Cost Leadership Strategy of Apple

Topics: Apple Inc., IPhone, Macintosh Pages: 3 (751 words) Published: January 9, 2013

Apple Inc.

Cost Leadership Strategy
Cost leadership strategy has been highly adopted by Apple Inc in its endeavors of ensuring competitiveness and success in the technology industry. The company’s management has been able to draw policies and strategies that are aimed at ensuring that the company is the lowest cost producer and distributor. •By lowering the cost of production and management, Apple Inc has been given golden opportunities on determining prices of its products, thus enhancing its competitive edge. •Some of the practices adopted by the company in executing the cost leadership strategy is through minimization of operating costs, lowering distribution costs, tight control on labor costs as well as reduction of input costs.

Differentiation Strategy
The concept of differentiation has also been widely adopted by Apple Inc in enhancing its competitiveness and profitability. •This has been achieved through designing and production of unique products. •The aspects of advertisement have also been adopted in ensuring product differentiation from competitor products. Despite that differentiation has been a cause of higher costs to the company, it has enabled it to distinguish its products and services from those of competitors. It is worth noting that differentiation has enabled the products of Apple Inc to appear unique, thus fetching higher markets.

Focus Strategy
The focus of Apple Inc on digital music environment has been a vital element of success and innovations. This strategy of specializing and putting more focus on digital music has reinforced the company’s competitiveness in the digital market. •Specialization in this product line has been aiming at capturing the young generation. Unlike other companies, the products of Apple Inc have bee widely focused on the young generation as well as the elite. This is much evident through iMovie, iTunes as well as the GarageBand. •Unlike...
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