Case study 4 - Assignment Example

Case Study 4: The Apple of Your i Apple engaged in two of four porter’s competitive strategies: differentiation strategy and differentiation focus strategy. The company noticed that the PC segment was not working, so they sought a differentiation strategy, which is adopting a unique dimension valued by buyers (Wright et al 24). As a result, Apple went the iPod, iPad and iPhone way that provides unique and creatively engineered products. Similarly, the differentiation focus strategy saw the company focus their products and services on a specific segment of consumers.

Through hot music, cool, fun and objects that can be used for reading different materials, Apple was able to appeal to a segment of consumers who were ready to spend lots of money for such features. The three most important factors of success in Apple are investment on innovation, strategic market segmentation and emphasis on customer satisfaction. First, Apple spends 2.5 billion on developers to create a range of applications for is products. Second, Apple focuses on one section of the market by fulfilling their needs and requirements, and in turn they do not hesitate to spend on the products.

Last, Apple practices excellent customer service, in addition to a variety of quality products and services, which satisfies needs of customers and earns their loyalty. Steve Jobs played a crucial role in steering the company to heights of success, and the company can respond by upholding his strategies. I think the company will still be successful because the growth and prosperity lies not only on leadership, but also on strategic ventures, which Steve Jobs left behind. Therefore, I would be willing to invest in Apple because the company still maintains her strategic decisions and market ventures.

Microsoft was not able to achieve success like Apple because of failure to design attractive products, focus on the general market instead of creating differentiation with a profitable segment, lack of strategic leadership and decision making, poor innovation and customer satisfaction and finally, lack of product diversity.I would spend my $5,000 in buying Apple stocks because the company has attained competitive advantage in the market share that is unlikely to be challenged anytime soon. Work CitedWright, Peter, et al.

"Strategic Profiles, Market Share, and Business Performance." Industrial Management (1990): 23-28. Print.