Competitive Strategies of Apple Essay Example
COMPETITIVE STRATEGIES * Introduction of new products
In introducing new products, this enables the firm to have an edge on the market share since many people want the most interesting and newest product on the market. Apple is a recognized innovator in the areas of personal computers, software applications, computer operating systems, personal music devices, cell phones, and even marketing and retail. The company is organized to focus its core strengths with senior vice presidents overseeing Macs (PC computer), iPods, software engineering, computer applications, and worldwide marketing. The key to success for Apple moving into the future is to focus its R&D and marketing on winning two battles: 1) Personal computer share of market 2) The share of the consumer’s pocket (iPods and iPhones). * Differentiation/Cost leadership
In a differentiation strategy a firm seeks to be unique in its industry along some dimensions that are widely valued by buyers. It selects one or more attributes that many buyers in an industry perceive as important, and uniquely positions itself to meet those needs. It is rewarded for its uniqueness with a premium price. Apple has developed a core strength of understanding their buyers (consumers) and developing products to enhance their “digital lifestyles”. By continuing to invest in enhancing consumer insights, Apple can translate those learnings into products that offer unique features and command a higher price. Apple has excelled at understanding the value equation for PCs and portable music devices. By creating products with unique features they are able to increase their retail prices, while working with contract manufacturers and large suppliers like Intel, they have been able to reduce their operational costs, which has increased their product margins. Apple must remain a company focused on creating a premium product and providing a premium service and avoid trying to take a low cost approach in any of its businesses
In introducing new products, this enables the firm to have an edge on the market share since many people want the most interesting and newest product on the market. Apple is a recognized innovator in the areas of personal computers, software applications, computer operating systems, personal music devices, cell phones, and even marketing and retail. The company is organized to focus its core strengths with senior vice presidents overseeing Macs (PC computer), iPods, software engineering, computer applications, and worldwide marketing. The key to success for Apple moving into the future is to focus its R&D and marketing on winning two battles: 1) Personal computer share of market 2) The share of the consumer’s pocket (iPods and iPhones). * Differentiation/Cost leadership
In a differentiation strategy a firm seeks to be unique in its industry along some dimensions that are widely valued by buyers. It selects one or more attributes that many buyers in an industry perceive as important, and uniquely positions itself to meet those needs. It is rewarded for its uniqueness with a premium price. Apple has developed a core strength of understanding their buyers (consumers) and developing products to enhance their “digital lifestyles”. By continuing to invest in enhancing consumer insights, Apple can translate those learnings into products that offer unique features and command a higher price. Apple has excelled at understanding the value equation for PCs and portable music devices. By creating products with unique features they are able to increase their retail prices, while working with contract manufacturers and large suppliers like Intel, they have been able to reduce their operational costs, which has increased their product margins. Apple must remain a company focused on creating a premium product and providing a premium service and avoid trying to take a low cost approach in any of its businesses