With the current changes and fluctuations in the market stock pricing, for a company such as Apple to be established there has to be levels of uncertainty. As such, the company has to take risks to ensure positive returns on the amount invested in the product. The risks can either be systematic or unsystematic depending on the effects it will on the market or the company. Higher investment returns warrant a high level of uncertainty while lower returns result in lower risks (Porter, 2008).
Apple’s products have always been a success in the market even with the current high competition from other companies operating within the market. This only proves that their strategies are working effectively and need no changing but an only improvement to increase the return rates. For instance, the company’s differentiation strategy has worked effectively. The strategy helps the company to become unique within its industry by singling out some features that the buyers find important to meet their needs as customers. The company can also be rewarded with a premium price for being unique thus increasing its returns.
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Apple also employs cost leadership strategy where the company lowers its cost of production by exploiting its cost advantage sources such as access to raw materials and technology. This aims at producing great products with great experience at a lower cost. The company also chooses to employ the “minimum advertised price” strategy which prohibits the advertisement of products below certain price levels considered minimum by the manufacturers. This is usually done through marketing subsidies offered to dealers by the manufacturer.
In a nutshell, for a company to be able to experience high levels of returns in the market and compete effectively with its competitors, there is a need to work on its competitive strategies. The strategies will play a significant role in ensuring that a company has an upper hand when it comes to great service delivery for quality and unique products as well as a greater customer experience (Porter, 2008). Apple is one such company, with effective product strategies that have seen the company’s competitiveness improve considerably.
References
Porter, M. E. (2008). Competitive strategy: Techniques for analyzing industries and competitors . Simon and Schuster.
