Which of Porters Four Competitive Strategies Does Apple Engage in? (Case Study Sample)

The Apple Case Study
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The Apple Case Study
Question 4-7. Which of Porter’s Four Competitive Strategies Does Apple engage in? Explain.
Apple has focused on broad differentiation strategy that involves differentiating the products and services from its competitors. The differentiation strategy has been implemented by focusing on two different market segments of the consumer and the professional market. There are products made to meet the needs of professionals while other products are designed for the regular consumer market. Computers for professionals appear to have advanced features to meet the professional requirement compared to those tailored for the consumer market. According to Shao (2015), Apple further uses the differentiation strategy by engaging in better products or services across the industry. The corporation has focused on coming up with newer and better products that differentiate it from competitors and brings in more customers.
Question 4-8. What Do You Think Are the Three Most Important Factors in Apple’s Past Success? Justify Your Answer.
Business Model
The business model of Apple is one factor that has contributed to its success. Apple tends to control and coordinate every portion of the value chain where its value can be added. This aspect has enabled the company to maintain command of the industry, and it helps it to render quality merchandises and services to its clients. The company controls the sectors of the value chain where its core competence is placed, leaving other areas to other parties. The company draws its basic proficiency of marketing and innovation in the manufacturing of products, iTunes, Music portal and online mediation, while leaving the areas of content development and network provision to third parties.
Its flexibility in the business model is another important factor that propels the success of Apple. It tends to change the business model basing on market demand, where it maintains the control of the major distribution aspects, which enables them to provide the market with what they want while sustaining the quality (Segall, 2012).
Marketing and Branding
The marketing strategies have proved crucial in the success of its products. IPhone, for example, has been marketed as a service rather than a product as seen in its advertising. The pricing strategy of skimming and versioning has also been a core competent in the success factors. This pricing strategy has enabled Apple products to be to mass-marketed to its consumers. The pricing based on geographical locations has seen the success in the marketing of Apple products. Besides, Apple has been able to develop a brand image that has helped in creating loyal customers to the brand. This loyalty has aided in the maintenance of demand for the products and helped maintain the pricing.
Innovation
Apple has utilized technology and product innovation to develop high-quality products. Apple has used technology to create quality but easy to use products through innovation. The use of quality mobile browsing has enabled Apple to render standard web pages that are important for its consumers. Also, Apple has been concentrating on hardware innovation, while living the software applications to be developed by third parties. These have helped in fueling the success of Apple products (Laugesen & Yuan, 2010).
Question 4-9. What do you think? What role did jobs play? How can apple respond to his loss? Would you be willing to invest in apple without his leadership? Why or why not? Steve Jobs was a remarkable CEO with essential characters. As a result, Jobs is hailed as one of the greatest CEO in the world history because of the success he made as the chief executive officer of Apple. For example, Jobs kept an iron grip on every development process of a product, from its conception to its execution. He was a charismatic leader, and His absence can somehow affect eh management team that had been assembled at Apple. Apple was able to thrive because of the legendary of Job,
However, Apple can still survive without him. It can continue to be a success and innovator in technology even without Steve Jobs. Apple is more than just a company is; it has established a cultural phenomenon from its designers, creative personnel, and the engineers. This assertion implies that even without Jobs, Apple can still be able to remain an icon in technology innovation. Apple can respond to the loss of Steve Jobs by thinking to double in the smart phone market and investing in other sectors to increase the revenue (Menzel, 2013).
Investing in Apple is still a great thing to do. Apple is still ranked the most valuable company in the world with a brand reputation that is not going to change anytime soon. Its stock listing is approximate $100 per share. Additionally, the company has a remarkable amount of cash at hand, including cash equivalence and short-term investments. This financial power guarantees a higher dividend hike and buyback for the enterprise (Menzel, 2013)
Question 4-10. Provide five reasons why Microsoft has not been able to achieve the same success that apple has. Substandard applications: Microsoft Corporation has inferior applications compared to Apple. For example, Microsoft products lack artistic software compare to those of Apple which are incredibly successful and is considered the standard in the technology industry. Compared to Microsoft apps, Apple’s products are much easier to use. The philosophy of Apple is straightforward and quality, which has placed its product above those of Microsoft. Thus, the substandard apps for Microsoft have failed to capture a mindshare more than that of Apple. Also, the products for Microsoft lack brand loyalty and public goodwill, compared to those of Apple Corporation.
Slackness of Microsoft Company: Microsoft Corporation does not connect with today’s customers for new products compared to Apple. Apple was able to develop products targeting the emerging markets. Their products are mostly the first to get to the market, leaving Microsoft to chase them. Apple furthermore was able to embrace the luxury culture while Microsoft was still asleep. They produced products that were considered extravagant purchases. This initiative helped Apple to build a brand they not only sells its products, but it sells its culture as well. The bran...