Apples Product Differentiation - Case Study Example

The Apple Company is leading in the digital industry. The company concentrates on the innovation of new aspects of the products that it offers to the consumers. The following essay illuminates on the industry that the company focuses its work. The iPhone is the central concern of the script. The publication gives the insight on the different aspects that the company employs in making sure that the product penetrates the market. The different perspectives include the product differentiation, the costing, the product quality and the barriers that determine the entry or exit into the industry. Furthermore, the article gives insight into the product development of the smart phone under the management of Tim Cook and Steve Jobs. Lastly, the publication ventures on the different influences that emanate from the product branding. The advertising procedures and the effects of the same to the iPhone are a composition of the text. The digital industry The apple company is a corporation that involves in the digital industry. The industry requires the provision of digital products as well as s services. The apple company involves itself in the production of the computer hardware and software. Moreover, the company invests heavily in the mobile phone industry. In addition, the company utilizes the online services to innovate new perspectives that are useful in the music industry. The industry, that the company involves, has the attribute of high competition that is mostly subject to innovation. In other words, the most innovative company becomes the lead in the market. Due to the different aspects that the company concerns in the digital industry, the company produces various products that significantly fit the particular segment of the market that constitutes the provision of digital products. In detail, the company provides the iPhone that caters for the phone industry, the iPod that ventures into the music industry as well as the Mac notebook that is a specialty of a palmtop computer. The company also produces the iPad that is also a computer product. The company also manages the iTunes that are an online service for uploading, sharing and selling music (Koskinen, 2009, p. 36). Apple’s product differentiation Apples product differentiation is in alignment with the business strategy that guides the operations of the company. The product differentiation of the company concentrates on innovation as the primary aspect that guides product differentiation. The innovation aspect coincides with the prospect or strategy of the business. The company strives to venture into new goods and reaches new markets before other competitors catch up. The company also thrives in the product matrix that encompasses the provision of all digital products that fill a consumer’s basket. The company ensures that it features two aspects of the market that includes the professional needs, as well as the user needs. The instance also allows for the provision of products that are portable and others that can remain stationary (Koskinen, 2009, p. 39). In particular, the iPhone is one of the best commodities that the Apple Company has in the mobile phone market. The product tends to different especially from the features. Basically, the phone contains a user interface that is friendly and easy for the consumers to comprehend and apply. The phone has a WI-FI connection that is easily compatible with other networks that are for cellular purposes. The smart phone is also capable of taking pictures as well as video recording that is a standard feature of all iPhones from the introduction of the iPhone 3GS. Furthermore, the smart phone can play music, surf the internet as well as be useful in navigation. The smart phone also receives voicemails that are visual; in nature. As an evidence of the various innovative acts of the company, the smart phone has undergone about eight generations in its reintroduction in the market. The phone also receives the praise of revolutionizing the phone industry. Consequently, the phone made the Apple Company appear as a lead in the mobile industry and also feature in all the markets around the globe. Competition as a basis of product quality and pricing The company’s pricing strategy is dependent on the various unit acts that constitute the consideration of the market. However, the company does not consider the demand and is rather dependent on the creativity aspects of the enterprise. Accordingly, the company tends to incorporate a procurement procedure that tends to act as a competitive strategy in the market. The company tends to employ exclusive agreements in the signing of deals. The instance tends to absorb potential competition from smaller businesses that offer significant competition in aggregate. The company’s quotation from prospective manufactures of the iPhone tends to constitute the exact manufacturing costs as well as a projection of the probable profits that may come up in the future. The company also ventures in the production of a large backlog of the same product. The backlog acts as a means of the creation of the economies of scale that is necessary for the provision of affordable prices in the market (Fahey, 2007, p. 7). In terms of product quality, the company invests in a human resource strategy that ensures the existence of performing personnel. The company works on a basis that focuses on reward as per the performance. The company also makes sure that it employs the right staff who have talent that is essential to the innovation aspects of the product. The instance ensures that the company creates a new element in the product thus enhancing the innovation and consequently the products quality. The situation ensures that the product is different from other commodities in the market. The innovation of the iPhone has made the company attain loyal consumers who are willing to wait until the company releases a new iPhone product in the market (Fahey, 2007, p. 12). Barriers to entry and exit The ultimate aspect, that the company controls the barriers, is through a new form of the supply chain. The company invests in the procurement of the best deals in the market. The instance ensures that the company attains the best personnel from other societies as well as raw materials that lower the costs of production. The other aspect is the acquisition of suitable manufacturing elements. The company tends to produce large output. The instance ensures that the company enjoys the benefits associated with the economies of scale. The situation ensures that other enterprises especially those, that are trying to enter the market, cannot sustain themselves by competing with the products commodity. The most probable result is the absorption of the companies by the apple companies (Inside Apple: how Americas most admired--and secretive--company really works, 2012, p. 49). The company also concentrates on the acquisition of exclusive agreements. For instance, the Samsung Company lost about ten billion dollars after the Apple Company made an exclusive agreement with Elpida over a deal of flash disks. The Apple Company did attain over fifty percent of the shares in the company and thus was the ultimate decision maker. Influence on the product development The primary importance on the development of the product at the company is dependent on the design. In other words, the company initial step in the formulation of a product is an unlimited spending in the design of the product. The design of products in the company tends to be free from the financial aspects of the enterprise. The designers in the business have the treatment of royals in the enterprise. The company also concentrates on the review of the particular designs every Monday. The other aspect, that the companies CEO, Tim Cook intends to employ, is the issue of environmentalism as well as the charity involvement. The instance is with a view of the social responsibility that most of the consumers of the iPhone tend to consider. The aspects of environmentalism are to focus on the conservation of the surrounding while the charity is to concentrate on the new markets, as well as the maintenance of the already existing markets. The particular aspect the company a competitive edge and thus makes the product more commendable at the eyes of the consumer (Kaliannan and Ponnusamy, 2014, p. 26). Influence of advertising and branding on the iPhone The iPhone is one of the commodities that did penetrate the market as a result of the promotion prospects of the Apple Company. The company did employ various online marketing procedures that made the commodity have a global penetration. The particular use of the internet was crucial in the conveyance of the different attributes of the iPhone. The branding of the product is in a way that the forms a market buzz. The consumers are willing to stand in waiting lines for hours in the Apple stores to buy new products. The instance, that the company uses a name that the consumers can identify every time, is a very significant step in the branding. The company also communicates specific messages to particular market segments. The company also provides a focus points through the differentiation of the product making the iPhone different from other products. The brand also enjoys promotional actions that are in an efficient manner (Kaliannan and Ponnusamy, 2014, p. 27). Bibliography Fahey, L. (2007). Connecting strategy and competitive intelligence: refocusing intelligence to produce critical strategy inputs. Strategy & Leadership, 35(1), pp.4-12. Inside Apple: how Americas most admired--and secretive--company really works. (2012). Choice Reviews Online, 49(11), pp.49-6372-49-6372. Kaliannan, M. and Ponnusamy, V. (2014). Apple was sweeter when Steve Jobs held sway. Hum Res Mgt Intl Digest, 22(4), pp.25-28. Koskinen, P. (2009). Supply chain strategy in a global paper manufacturing company: a case study. Industr Mngmnt & Data Systems, 109(1), pp.34-52. Lazonick, W., Mazzucato, M. and Tulum, O. (n.d.). Apples Changing Business Model: What Should the Worlds Richest Company Do with All Those Profits?. SSRN Journal. Read More