In order to gain competitive advantages, a company should provide their customers products or services of same value with lower price or charging premium prices by providing customers higher value. Apple, historically, has been using differentiation strategy that provides products that customers perceive as being unique and will pay a premium price for this uniqueness. And these uniqueness, make Apple has various competitive advantages over its competitors.
First, Apple’s products have elegant designs. While competitors’ focus on the features, functions of their products, Apple does not only focus on them but also the designs. Ipod, iphone and ipad provide customers the feeling of elegance with its thin and hard material. On the desktop side, Apple has placed the power button on the iMac into the screen; it is easy for user to access. They have also turned desktop keyboards into hubs for easier cable management.
Second, Apple’s products provide user-friendly interface. When Steve Jobs was the CEO of Apple, he was fanatic about simplicity. Apple had considered how their designs can make user easier to use. The simplicity of its products has attracted many non-proficient computer users.
Thirdly, Apple’s products provide innovative features. Not like its competitors which provide what customers want, Apple’s job is to figure out what customers are going to want before they do. From ipod to itunes, from iphone to app store, from ipad to iClound, they have kept giving new definition to music player and computer. These new definitions make customers willing to pay a premium price for Apple’s products. This premium price reinforces people’s belief that people products are high quality products and make Apple more competent comparing with its rivals.
Fourthly, Apple has been taking full control over all aspects of their computers including both software such as safari and hardware; they develop its own peripherals that took advantage of “plug and play”...
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