Apple Inc. is one of the companies that have successfully utilized differentiation to separate its products from other notable electronic manufacturers. It has employed a differentiation strategy right from MacIntosh home computers to iPhone, iPod music players and iPad mobile devices. One of the areas that Apple Inc. products stand out from its competitors is its product design. Its products display unique visual style and features that handle different tasks as compared to those provided by its competitors. Another product differentiation strategy stems from its pricing strategies. The company develops top-notch products with prices that are proportionate to its level of quality while sustaining maximum profit margins. This pricing strategy counters Apple’s competitors who sell lower-costs devices and depend on high volumes to boost their slim profit margins. The higher costs of Apple products give its consumers a sense of optimal value and exclusivity for their products.
Apart from using a pricing strategy to differentiate its products, it also uses a pricing strategy to differentiate itself in the retail electronics marketplace. While users of competitors' product can buy tablets, computers and mobile phones from the nearby electronic outlet, Apple differentiates itself by giving limited quantities to big-box retailers and concentrates its retail efforts on its Apple Stores. It also imposes a minimum marketing price policy to prevent outlets such as Best Buy and Walmart from undercutting the prices found at Apple Stores ( Dickson & Ginter, 2017 ). Another factor that makes Apple differentiate itself from its competitors is its brand loyalty. The company is one of the most successful technology companies in the establishment of loyalty to a brand. Its loyal customers are ready to wait in line to buy the latest iPhone, play games on their iPads and download music through iTunes.
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The efforts of Apple towards creating brand loyalty have permitted the company to differentiate itself from Samsung, Microsoft and other competitors in its different areas. The idea of brand differentiation has permitted Apple to develop a virtual split in the world of electronic devices. This brand differentiation has developed a vision of exclusivity that has given Apple a big share in the market assisting the company to maintain its product at the top. If Apple Inc. changes its differentiation strategies to integrated cost leadership and differentiation strategies, it will tremendously increase its customer base, particularly in a global frontier. This is because the integrated cost leadership and differentiation strategies will enable the company to provide unique or differentiated products in the market at a reduced cost. This strategy will also enable the company to adapt, learn new skills and technologies more quickly as compared to other business-level strategies.
Learning Disabilities at Intel Company
With regard to Cenovia Rodriguez post, it is clear that Netflix has three operating segments which include international streaming, domestic DVD and domestic streaming. The three operating segments are essential in meeting the needs of its customers all over the world. I totally agree with the post because it has clearly illustrated what Netflix uses to reach its customers all over the world. One thing that stands out in this post is the operating segments of Netflix that it uses to stream various shows to its customers. The operating segments indicated in the posts are designed to meet the needs of various categories by streaming shows that their customers are passionate about watching. As much as I agree with this post, I think it is important for Rodriguez to pinpoint the exact area that Netflix differentiates itself from its competitors. Does Netflix use pricing strategy or its brand loyalty or what? When these are put into consideration, the company will be able to understand its customers’ needs and improve its visual styles and features.
Learning Disabilities at Intel Company
Dickson, P. R., & Ginter, J. L. (2017). Market segmentation, product differentiation, and marketing strategy. Journal of marketing , 51 (2), 1-10.
