Business Studies class
Product Differentiation Strategy
Product differentiation aims to have an advantage over competitors by having outputs that are different to others in the market. They do this by making a unique product with leading edge technology. This can be seen with the Iphone and IPod range in Apple. Apple has constantly innovated its products to make it different from competition and better for the environment. Apple has made its packaging smaller so it uses less materials and is more efficient in transport more can be transported at once. The reducing of size can also be seen in the product themselves. The Iphone has become slimmer and more compact. Apple has been able to do this as they have used leading edge technology to be able to make the products smaller. For example the touch screen not only has a new concept which gave a large advantage over competitors, it also made the product more compact as there was no need for a key pad. Increase in the technology within the products itself has made the products faster and be able to reduce size. These strategies used to differentiate products for Apple has made them be able to charge a higher premium price which has given them funding to innovate further and is one of the leading factors contributing to its success.
Interdependence of business functions
Interdependence exists because there is specialisation. Operations relies on the finance function to provide it with the capital it need to buy resources. Operations relies on human resources to supply suitably qualified, experienced and skilled staff. Operations relies on marketing to research the market and identify features of a product customers desire. In return, the operations function supplies a product that will help the business earn revenue from sales and profit so that all resources, including human, can be paid |
Influences On Apple