Question

Analysis: winning strategy tests of Apple Inc.

Answer 1

Winning strategy tests of Apple Inc.

Apple focuses on their UVP (unique value proposition), which is beautiful design that works right out of the box with ever-smaller packaging. It's a marketing strategy that gets juice throughout social media and is very much a competitive advantage for Apple and its market share.

Positioning Statement:

We just want to make great products. Apple’s tagline has been “Think different.” This position statement appeals to the changing trends in technology and consumer tastes. Once the iPod and iPhone took off, that tagline took on a life of its own. The Apple brand makes a strong promise about its products. Their customers are extremely loyal because Apple backs up their brand promise with great products.

Apple’s Generic Strategy & Intensive Growth Strategies

Apple’s generic strategy and intensive growth strategies directly relate to the company’s strategies in pricing, marketing, and other areas of the business. As one of the most valuable companies in the world, Apple shows that its generic strategy is a major determinant of advantage against other firms like LG, Samsung, and BlackBerry. Also, Apple’s intensive strategies for growth support the firm’s ability to maintain its strong position in the global market.

With a high rate of innovation and emphasis on excellence in product design, Apple succeeds even with its relatively high selling prices. This successful position indicates Apple’s effectiveness in using its generic strategy and intensive growth strategies.

Apple’s generic strategy, based on Porter’s model, aligns with the company’s intensive growth strategies. In particular, the intensive growth strategy of product development is key to fulfilling this generic strategy and supporting Apple’s success.

Apple’s Generic Strategy (Porter’s Model) & Objectives

Apple’s generic strategy is broad differentiation. This generic strategy focuses on key features that differentiate the company and its products from competitors. Through the broad differentiation generic strategy, Apple stands out in the market. For example, emphasis on elegant design combined user-friendliness and high-end branding effectively differentiate the company. The broad differentiation generic strategy means that Apple always aims to set itself apart from competitors not by price but by other key features beneficial to customers.

Apple’s Intensive Strategies (Intensive Growth Strategies)

Product Development. Apple uses product development as its main intensive strategy for growth. Product development requires that the company must offer attractive products to grow its market share and performance. Apple implements this intensive growth strategy through innovation in its research and development processes.

Market Penetration. Apple uses market penetration as its second most significant intensive strategy for growth. Market penetration involves gaining a larger market share by selling more of the company’s current products. In particular, the firm achieves more sales by adding more authorized sellers in its current markets. This approach is important in penetrating markets where Apple has not yet achieved a significant position.

Market Development. Apple uses market development as the least significant of its intensive strategies for growth. Market development involves creating new markets for new products or entering entirely new markets. This intensive growth strategy is similar to market penetration, but market development focuses on establishing presence in new markets