Question

Think of some highly differentiated brands. Do they have branded differentiators? If not, how did they achieve differentiation? Will it be lasting?

Answer 1

When we think of a highly differentiated brand such as Apple, we think about it fairly high branded differentiator which is its iPhone. This is the product differentiation that gave Apple, as a brand, the factor of differentiation when it was first launched. Not only did it provide a successful business segment to be created, but, became synonymous with the work quality as well as create a number of brandy loyal customers. But, with the passage in time, it is evident that other brands have segmented into the market as well and have successfully created a product or two with direct competition to the iPhone. This has created a reduced market share for Apple and keeps on closing the gap between the two products. Therefore, in the future, as a brand differentiator, the iPhone will lose its value, while essentially, there needs to be another, bigger/better differentiation by Apple in the terms of creating a brand value for the customers in order to remain at their current market position of leadership.