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Apple Competitive Strategy

Essay by   •  February 17, 2016  •  Case Study  •  492 Words (2 Pages)  •  1,947 Views

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  Apple is one of the most valuable companies in the world; its generic competitive strategy is a major determinant of competitive advantage and success over its rivals. Apple’s unique strategy for growth helps the firm’s ability to maintain its strong position in the global market. Apple knows a tremendous success relatively with its high selling prices because of their continuous innovation, high-end technology and their emphasis on excellence and appealing products design. Apple’s success proves their high effectiveness in using generic strategy.

  Apple’s generic strategy is broad differentiation; this strategy focuses on differentiating the company and its products from its rivals. By adopting this strategy, Apple stands out in the market, sets itself apart from competitors and maintains the leadership position and high-end value business. In addition, the company must ensure that it keeps expanding its market reach.  Apple does not focus on any specific market segment. The firm competes in all market segments with other players in the industry. Apple products target all different segments, and reaches broad market because its products are designed for everyone. To effectively apply this strategy, Apple has to continuously innovate its products through research and development, because competitors eventually catch up with new products, so the broad differentiation generic strategy compels Apple to always innovate to keep itself always ahead of competitors.

   In my opinion, Apple’s generic strategy of broad differentiation is the best option that helps the company stands out in the market. Differentiation and innovative design supports the firm’s goal of leading the market through innovative products. Innovation is at the heart of Apple’s business. However, the company must focus more on penetrating markets, especially developing countries where Apple’s market reach is still limited.

Market penetration and market development are good potential support for Apple’s generic strategy. The firm is strong in product development through innovation. However, to improve performance, the company should emphasize more on market penetration and market development. Emphasis on these two intensive growth strategies can improve Apple’s resilience against aggressive competitors like Samsung.



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