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they make high quality items that their competition would find hard to … Differentiation Strategy: Since 1980s Apple has successfully used the differentiation strategy to separate their product in the market from other competitors‟ products, starting with their mackintosh computers to their music player “Ipod”, and smart phones “Iphone”. A low-cost strategy is more likely, however, to generate increases in market share. While users can purchase computers, tablets and mobile phones from nearly any electronics outlet, Apple differentiates itself by providing limited quantities to big box retailers and focusing its retail efforts on its Apple … Another differentiation strategy that Apple has adopted relates to the distribution of its products, where it has established retail stores around the world. Huawei operates with strong penetrative pricing, which is common for all Huawei competitors such as Samsung, Apple's iPhone and Google Pixel which operate on skimming price strategy. 1 Introduction During the mid 1990s, Apple Computer Inc. experienced severe financial and op-erating difficulties.1 It piled up record losses, suffered internal turmoil, and had its debt ratings dramatically downgraded.2 These developments raised concerns among financial market observers about Apple’s long–term viability. Tech giants Apple have been selling their line of products such as the Iphone, the Ipad and the Ipod for about a decade now. For ex-ample, when Apple co-founder Steve Jobs returned to Apple This is also called product differentiation. Apple Inc., led by Steve Jobs virtually rewrote the book of strategy as well as the history of consumer electronics, with its pioneering "i products": the iPod and iphone . Apple focus on making the best products. APPLE’S STRATEGY FAILURE PUT APPLE IN CRISIS (1997) 5 How We Failed Apple (by Steve Wozniak, Newsweek, February 19, 1996) 5 4. strategy of implementing a 55% profit margin on Apple products (Apple History, 2015). In this assignment, Apple?s differentiation strategy will be discussed, exploring how the company obtains an advantage over its competitors. IMAC (1998) 6 Apple of Buyers’ Eye: iMac Takes Biggest Bite of PC Sales with Jobs Key to Quick Turnaround (NY Daily News, December 23, 1998) 6 5. What is Apple's business level strategy? Apple faced a huge loses at that time and went back into the shadow (Apple History, 2015). Apple’s pricing strategy extends to its differentiation in the retail electronics marketplace. Apple's business-level strategy. STRATEGY Apple has achieved its outstanding performance through effectively implementing an unconventional strategy: differentiation through innovation (along various dimensions that include serial, strategic and incremental innovation), with simultaneous intense levels of efficiency, leading to the lowest costs in its peer group. athletic shoes, Apple Computer, and Mercedes-Benz automobiles. Research does suggest that a differentiation strategy is more likely to generate higher profits than is a low cost strategy because differentiation creates a better entry barrier. Apple has done so, consistently, with all of its product offerings. Steve Jobs’s Second Coming To Apple Many strategic leaders of innovative U.S. enterprises venture to focus on differentiation with product innovation. A company can set itself apart from other competitors through its product. APPLE … Their strategy for pricing and marketing is that of differentiation. 3. low-cost strategy to product differentiation strategy (Gam-ble and Gehani, 2013). This strategy failed as soon as PC’s came out having similar capabilities as the Macintosh and sold for a fraction of Macintosh’s retail price (Apple History, 2015). They are a company that focuses on innovation, and by that I mean with new products, but also improvements on their existing products. 2. Is that of differentiation generate increases in market share loses at that time and went back the... Low-Cost strategy to product differentiation strategy will be discussed, exploring how the obtains. ( Apple History, 2015 ) generate increases in market share a loses... Set itself apart from other competitors through its product offerings this assignment, Apple Computer, and Mercedes-Benz automobiles,... Many strategic leaders of innovative U.S. enterprises venture to focus on differentiation with product.. 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