Apple\'s Generic Competitive Strategy PDF

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Apple’s Generic Strategy.

Apple implements both a generic broad differentiation and a focus differentiation strategy along with intensive growth strategies to guide its development as an industry dominating competitor in the wider computer hardware, computer software, consumer electronics and cloud computing industry as well as the niche market for high-end and market-leading, cutting-edge devices. These strategies drive its thriving business model to effectively set it apart from all competitors and establish its position as the industry leader in advanced smart-phone and computing technology. This combination of strategies are reflected across all functions of Apple, including its marketing, pricing and retail structure. Apple strives to cater to the high value customer, who is more concerned with high standard of quality, having the latest features and the most advanced technologies than they are with affordability.

Pricing. Apple's unique ability to design and develop its own operating systems, hardware, applicatio n hardware and services to provide its customers products and solutions with innovative des ign, superior ease of use and seamless integration allows it to command a higher average sel ling price on their products compared to their competitors resulting in higher profit margins i n an industry characterised by declining average selling prices. Market-leading innovation has always been the strategy behind the way Apple products are designed. They have always been designed to be ahead of peers. Despite high competition, Apple has succeeded in creating demand for its products by offering special and exclusive features, that are unique to its brand and very difficult to substitute with. As a result, the company has power over prices through product differentiation, innovative advertising, ensured brand loyalty, and hype around new product launches. By focusing on customers willing to pay more and maintaining a premium price at the cost of unit volume, Apple also set up an artificial entry barrier to competitors.

Retail Outlets

Apple's pricing strategy extends to its differentiation in the retail electronics marketplace. While users can purchase computers, tablets and mobile phones from nearly any electronics outlet, Apple differentiates itself by providing limited quantities to big box retailers and focusing its retail efforts on its Apple Stores. For its third-party retailers, Apple also imposes a minimum advertised price policy to prevent outlets like Walmart (in the U.S) and Best Buy from undercutting the prices found at the Apple Stores. This is all part of the effort to distinguish and differentiate the quality of service and experience provided at an Apple store to everywhere else one might purchase Apple products.

Product Design

A major aspect of a product differentiation strategy comes from product design. Products that display a different visual style, include different features or handle different tasks stand out from those offered by the competition. Apple has made product design a hallmark of its

differentiation strategy since the company's origins. When Apple introduced the iPod, iPhone, and iPad, there were no similar consumer electronics products that included so many features in one distinctive, iconic package.

Marketing/Advertising. Apple was voted the overall winner of the 2017 CMO Survey Award for Marketing Excellence for the 10th consecutive year. At apple, It's not just a product; it's an experience. Creating unique customer experiences is something that Apple does well. From their 1984 Super Bowl ad, to their annual ‘Apple Event’, Apple sets itself apart in that it doesn’t make its marketing or even its products just about the products. It's also about creating experiences for the customer that are unique to Apple and memorable, giving them a reason to keep coming back. Apple uses simple graphics, elegant designs and uncomplicated messaging – as well as the art of storytelling to create these experiences that connect with customers and audiences through the sensors....