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Competing on differentiation
Apple Corporation is a leader in IT products, thus differentiating itself from the products. By reviewing its history, the company is a technology leader enabled through continuous innovation. The company pioneered the PDA industry by producing Newton in 1993. As other competitors picked the pace, Apple introduced the iMac in 1998 with new features but easier to use than any other such product in the market (Iliev, Lindinger & Poettler, 2004).
In 1999, the company changed the history of PDAs when they introduced the first electronic book reader, the iBook, allowing Apple to be the first to have a portable computer and a desktop in both consumer and professional segments. Still, the company hit another historical point when it launched the iTunes in 2001 marking the beginning of the new strategy to make Mac the core for the next digital lifestyle. As the competitors struggled to match their technologies with Apple, the company showed its superiority by introducing the iPod which changed music completely.
Moreover, Apple led PDA competitors when they introduced the first flat-screen LCDs for desktops and launched the iLife package which improved versions of iPhoto, ITunes, and iMovie after competitors imitated the digital lifestyle strategy. Differentiation is a feasible strategy in operations, especially if a firm utilizes the intangible characteristics for product differentiation.
The relevant distinctions for Apple are product mix, product features, reputation, and link with others (Iliev, Lindinger & Poettler, 2004). The company establishes its reputation as a leader in innovation by launching an array of products with unique technologies, easy-to-use making the user to always have a new experience when using them.
The mere mention of the Apple’s iPhone makes every person to think of a computer, a music store, or a LAN system all in one package. The company has really differentiated itself and the products in terms of technologies and their integration for convenience.
Competing on cost
With its humble beginning in 1995, EasyJet has pursued low-cost strategy in its operations that has enabled it to overtake British Airways in terms of the passengers it carries within Europe. The company is aware of the need to lower its overheads and operations costs in order to maintain low cost as their competitive advantage.
With its main office resembling a tin shed next to the main taxiway within the old-fashioned Luton Airport, the company’s operations are aimed at lowering costs as much as possible. Around 95% of all seats are sold over the internet, with online booking systems using a capricious pricing system that tries to maximize load factors (EasyJet.com, 2011).
Rather than providing tickets, all their travel details are emailed to passengers as well as booking reference which reduce the costs of issuing, processing, distributing, and reconciling thousands of tickets every day.
In addition, there are no free on-board catering which minimizes costs and redundant bureaucracy. EasyJet does not pre-assign seats on-board and passengers are free to sit anywhere, eliminating the redundant complexity and passengers can board faster. The company flies to airports that are less crowded within smaller cities (remote airports), also preferring secondary airports in case they fly in major cities.
This minimizes the landing charges and usually provides faster turnarounds. Through this, the company is enabled to achieve more rotations on busy routs, capitalizing on aircraft utility. EasyJet further simplifies its operations by offering point-to-point means of travel such that there is no worry about further connections for passengers or their luggage.
The company also has all its administration and management undertaken on the IT systems, reducing cost associated with paperwork and enhances the flexibility in the execution of operations (EasyJet.com, 2011).
Competing on response
Within the United States, Barnes & Noble, the largest bricks-and-motor bookseller has differentiated from competitors through flexible and fast response in books delivery. The company operates about a thousand bookstores across the United States and which are located not more that 50 miles apart (WUP, 2008).
The stores stocks millions of different books including the best sellers. This vast stocking enables the bookstore to have the right books at the right time and at the right place. Incase a customer does not find the book he/she wants from a particular store, he/she need just to drive a few miles and get the book.
In fact, the store makes speedy arrangements to get the book from the nearest store. It is this fast response that has enabled the book store to remain competitive despite the changing market trends which are against the bricks and motor system.
Furthermore, Barnes & Noble uses an inventory tracking system containing many best selling titles and allows the employees to check the availability of inventory in stores, warehouses, and distribution centers. This ensures that the stores are stocked up with the best selling books.
Additionally, the company provides an online bookstore through which customers can buy books (WUP, 2008). The online shoppers do not necessarily have to wait for shipment, but are referred to the nearest store from which they can get purchases. While other competitors are struggling to respond to customers’ expectations in time, the many book stores for Barnes & Noble allow the company to be ahead of others in fast and flexible of books delivery across the US market.
References
EasyJet.com, (2011). Book a cheap flight. Retrieved from: https://www.easyjet.com/en?lang=en
Heizer, J., & Render, B. (2011). Operations management. Boston, MA: Prentice-Hall.
Iliev, V., Lindinger, A. & Poettler, G. (2004). Apple Computer Inc.: strategic audit. Web.
Wharton University of Pennsylvania, (2008). Online book retailing: operations strategies. Retrieved from: http://cachon-terwiesch.net/2e/sample_cases/OnlineBookRetailing_OperationalStrategies.pdf
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