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In 2009, Apple adopted the differentiation strategy; in other words, the company tried to develop products that could be perceived as unique by potential products. In turn, personal computers sold by this corporation were also considered to be unique by many consumers, and this business segment significantly contributed to the profitability of this company, even though the management laid more stress on mobile technologies such as smartphones.
In order to illustrate this argument, one should look at Apple’s approach to product development and pricing. It should be noted that this company attempted to design innovative or even groundbreaking products; moreover, the company charged premium prices for these goods.
When discussing the generic strategies of Apple, one should look at the qualities of the products offered by this company. In many cases, they entirely transformed different segments of the market. For example, one can speak about iPod. A similar argument can be applied to such a product MacBook Air that appealed to many users, especially those ones who valued portability (Marino, Hattaway, and Jackson 31). At the moment of its release, this design of this laptop was almost unprecedented. This is one of the aspects that can be singled out.
Apart from that, the company charged premium prices for their products. Their approach differed from the policies adopted by such companies as Dell, Acer, or Hewlett-Packard. The managers believed that consumers had been ready to pay this price. Despite, the increased cost of its personal computers, Apple was able to control 8.7 percent of the U.S. market (Marino, Hattaway, and Jackson 31).
Thus, by retailing personal computers, the company was able to increase its profitability. It is possible to relate these examples to such a concept as differentiation. This notion means that a company tries to distinguish its products in terms of design, usability or efficiency. This approach often enables an organization to gain competitive edge, and win the loyalty of clients. Yet, a company should continuously develop innovative products in order to be successful. This is one of the limitations that should not be overlooked.
On the whole, the success of Apple illustrates that in some cases differentiation strategy can increase the competitive strengths of a company because this organization is able to retain clients for a long time. This principle of differentiate has been applied to personal computers marketed by Apple since these products could be distinguished in terms of design and usability. To a great extent, this policy contributed the improved financial performance of this company. These are the main points that can be made.
Works Cited
Marino, Lou, John Hattaway, and Katy Jackson. Apple Inc. in 2009, New York, Routledge: 2009. Print.
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