The company has also diversified in its business areas such as development of mobile devices, iPod and iPhones applying the notion of differentiation in its business-level strategies.
There are various advantages and disadvantages of differentiation to the company. A productive differentiation strategy is one of the strengths of Apple. The implementation of this strategy has resulted in the expansion of its product line from personal computers to mobile communication devices, software applications and operating systems. Moreover, the differentiation strategy has led to development of premium price for its products. The premium price is the process, which comprises a hike in the price of products so that a positive and healthy perception can be created among the buyers of the company. The company is also renowned for its highly efficient personnel. Apple had also created numerous products with advanced technology so that its customers are satisfied at the full (Bertone, 2009).
Apple faces the negative effects of the imitation strategies practiced by its rival companies. This can be curbed through the adoption of focus strategy, which emphasizes a particular market segment, so as to build its customers’ loyalty to a greater extent (Baxter & Wainwright, 2013). In addition, the company has faced strong competition regardless of the adoption of differentiation strategy. Apple has also failed to consider the price conscious buying behaviour of its customers. This has culminated in loss of cost leadership due to enticing of customers through price reduction. Moreover, the differentiation strategy has led to change of customer preferences, which has reduced the demand of some products.
Apple should maintain the application of Porter’s Generic strategies framework. In addition, the company should fully adopt the differentiation strategy and emphasize on its innovative strengths ...