the company is well known for its innovative products such as macintosh line computers, the ipod. it is also concerned with innovative software such as mac operating system, x operating systems, the itunes media browser, ios mobile operating system and many more other software. the company was started in 1976 by ronald wayne, steve jobs and steve wozniak. i have chosen this company to describe differentiation generic strategy because apple company began using this strategy from the beginning hence gaining competitive advantage in computers industry to date (christopher, 2010). apple company has utilized this strategy since it was founded and has retained its competitive advantage in the computer and consumer electronics industry.
the company limits the innovation of new product generations and focus on few sparkling innovations while re-using the already existing product design. this has helped the company to focus on few highly differentiated innovations that result in brilliant marketing wonders while controlling the resources, costs and maintaining stability. on the other hand, apple controls the variety of both the hardware and software, this minimizes the end user technical issues because there is guarantee there is a common macintosh hardware platform that create user experience. this monopoly ensures them to make quality products that compete differently with the competitor windows hardware and which are manufactured by many manufactures. in summary, apple products are designed and produced to give the customer the value and quality. highly differentiated and unique hardware and software integration gadgets enables apple to charge premium prices for its products hence making higher profits and maintains its competitive position in the market (alex, 2002)
the company’s products have always been designed to be ahead of peers. 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. the company also employs a variety of indirect distribution channels, such as third-party cellular network carriers, wholesalers, retailers, and value-added resellers. maps are usually enforced through marketing subsidies offered by a manufacturer to its resellers. this small percentage in savings isn’t enough of a profit margin for retailers to offer big discounts on apple’s products. however, a retailer could give up this small profit margin and offer products at a discount to attract more customers.
apple is thereby able to keep its distribution channels clean while making more money on its direct sales. jobs’s vision for apple was always to create a premier product and charge a premium price. however, a company can only charge a premium price as long as it has a competitive advantage, and analysts believe apple is on the way to losing its “aspirational” status. with advanced technology, smartphone companies have managed to reduce handset costs. android has enabled a number of new manufacturers to enter the smartphone market, supported by a variety of turnkey processing solutions. additionally, the newer versions aren’t offering enough incremental features to justify an upgrade. however, apple’s iphone 11 and iphone 11 pro are getting a good response, according to the company.
iphone and ipad hardware products (christopher, 2010). it is also concerned with innovative strategy, differentiation & alignment: 5 examples from apple. fast cycle time, relentless growth. differentiation. apple attempts to increase market demand for its products through differentiation, since the 1980s, apple inc. has successfully used product differentiation to separate its finally, there is the example of apple inc., which reported a huge profits surge in quarterly earnings in 2010., product differentiation strategy, product differentiation strategy, apple differentiation strategy pdf, apple pricing strategy, differentiation strategy examples. apple tries to prevent its rivals from developing lower cost and lower priced items that have the same features as their products. the success of the iphone is a clear cut example of apple making it difficult for other competitors to imitate their products and setting a lower price.
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