Apple Inc

3505 Words Nov 13th, 2015 15 Pages
Question 1:
Which of Porter’s four competitive strategies does Apple engage in? Explain. Scope | Broad | Cost Leadership | Differentiation | | Narrow | Cost Focus | Differentiation Focus | | | Cost | Differentiation | | | Source of Competitive Advantage |
Figure 1.0: Porter’s four competitive strategies
Porter’s four competitive strategies does Apple engage in are cost-leadership strategy, differentiation strategy, cost-focus strategy and focused- differentiation strategy. Explanation is as below. 1. Cost-leadership Strategy
Apple used to identify customers’ specific needs and designed to meet their needs. The cost strategy here can be clearly shown when Apple design iMac computer and iBook
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People like to feel that they are unique individuals with their own needs and desires. One of the best strategies for dealing with competitors is to offer customers exactly what they want, when they want it, and how they want it. The Internet provides a new outlet for mass customization by allowing customers to order one-of-a-kind products. For example, Apple uses product differentiation to help market its iPod and online music system to a broad swath of the population and create barriers that its competitors are having difficulty overcoming. 3. Cost-focus strategy
This strategy is crafted to give customers by incorporating good-to-excellent product attributes. A typical example is the incorporation of iPod digital music player, iTune website for the sale and download of music in the computers provided users of Apple Computers Value for money. 4. Focused- differentiation strategy
Apple has differentiated it products focusing on the professionals and producing computers tailored to meet exact needs professionals. Computers designed for professionals have complex functions that meet their today's requirements. Focus strategy based on cost. This strategy is concentrating on narrow market segment by providing low cost products to the segment. Apple has achieved this through the production of iBook computers to serve the customer section.
If an organization is in a fiercely competitive market, it can choose to focus on a very narrow segment of

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