Question

Evaluate the successes and/or failures of Apple's Inc.

Answer 1

Apple is one of the leading brand in mobile industry. The iPhone, iPod etc are few example of Apple that support mobile computing. It has App store that can be used by Apple users.

Apple is one of the most valuable brand and to gain competitive advantage, they use three strategies. They are:-

• Differentiation of business model is one of the important source which help Apple in gaining competitive advantage.
• Differentiation by uniqueness by following testing procedure and making sure that the products will help Apple in gaining competitive advantage.
• Differentiation based on strategy by developing new capabilities.

Apple's narrow market is focused on differentiation strategy by providing unique benefits or features that are valued by the customers. Also, the customers perceive to have better product than that offered by the competitors. This is done to helps in creating value for the brand and product uniqueness and in building great customer loyalty.

Apple strategies are made keeping in mind the four pillars. They are:-

• Offering small number of products.
• They target the high end customers.
• They focus more on profits rather than market share
• Creating halo effect by which people desire for new Apple product.

They focus on differentiation strategy by making products with unique features and that attracts the customers. It focus on the customers who are willing to pay more and thus maintain premium price and gain competitive advantage.

The competitive advantages of Apple include:-

• Apple is one of the most valuable brand and its hardware design makes the Apple products unique and elegant. They have the best design hardware and make unique and quality products. It keeps the color and design of the product very simple and prefer black and grey color for its products. The PC designed by Apple is unique and the hardware designed by them is of superior quality.
• Apple's marketing strategy is unique and their advertising don’t talk about the product's features rather they focus on making the people aware how their products can change their life. It uses its logo differently. For example the Apple logo is placed on the right side top corner of the open screen.
• Apple retail strategy is also different from other brands as it takes in account the location and priority which other brands lack. They have authorized retailers which carry all Apple products and accessories and for support and service they have separate service outlets. Since they own their own retail stores at correct location they get the chance to interact with the customers.

These strategies used by Apple make them to sustain competitive advantage in the global market.

Apple innovation focus on adopting design thinking which is nothing but process focus on providing solution to the consumer at all development stages. It focus on fulfilling the consumer needs by using advanced technology which is essential for business success. So, personal media, user-center technology and user joy are the dimensions of Apple innovation which is achieved through design thinking.