Business Strategy for Competative Advantage
Porter set out to define a strategic model to which all companies conform. He maintained that failing to fit into one of his pre-defined categories “the firm stuck in the middle is almost guaranteed low profitability.” (Porter, 1980). The pre-defined categories are noted in appendix 1.
Apple Inc. falls under a differentiation strategy, “Differentiation is the ability of the firm to provide unique and superior value to the buyer in terms of product quality, special features, or after-sale services” (Porter 1990, 1998). This encompasses the Apple philosophy, in an Apple Report they state that they are “committed to bringing the best user experience to its customers through its innovative hardware, software, peripherals, and services. The Company’s business strategy leverages its unique ability to design and develop its own operating systems, hardware, application software, and services to provide its customers new products and solutions with superior ease-of-use, seamless integration, and innovative design. The Company believes continual investment in research and development and marketing and advertising is critical to the development and sale of innovative products and technologies” (Apple Inc. 10-K Annual Report). However circumstances
One example of a cost leader strategy carried out in the computer industry is Dell Inc. where they rely on consumers who want inexpensive products, however they provide a “no frills” service on these basic computers. Where Apple Inc. and Dell Inc. differ is apple put emphasis on branding, design, service, quality and new product development, whereas Dell focus on scale efficiency, control of overheads and R&D, process innovation and outsourcing to overseas. Dell offer incentives linked to quantitative targets whereas apple offer incentives linked to qualitative targets (Grant R.M).
None of Apples competitors have been able to replicate their unique product quality, and for this reason Apple are able to charge premium prices for
Apple Inc. falls under a differentiation strategy, “Differentiation is the ability of the firm to provide unique and superior value to the buyer in terms of product quality, special features, or after-sale services” (Porter 1990, 1998). This encompasses the Apple philosophy, in an Apple Report they state that they are “committed to bringing the best user experience to its customers through its innovative hardware, software, peripherals, and services. The Company’s business strategy leverages its unique ability to design and develop its own operating systems, hardware, application software, and services to provide its customers new products and solutions with superior ease-of-use, seamless integration, and innovative design. The Company believes continual investment in research and development and marketing and advertising is critical to the development and sale of innovative products and technologies” (Apple Inc. 10-K Annual Report). However circumstances
One example of a cost leader strategy carried out in the computer industry is Dell Inc. where they rely on consumers who want inexpensive products, however they provide a “no frills” service on these basic computers. Where Apple Inc. and Dell Inc. differ is apple put emphasis on branding, design, service, quality and new product development, whereas Dell focus on scale efficiency, control of overheads and R&D, process innovation and outsourcing to overseas. Dell offer incentives linked to quantitative targets whereas apple offer incentives linked to qualitative targets (Grant R.M).
None of Apples competitors have been able to replicate their unique product quality, and for this reason Apple are able to charge premium prices for