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Differentiation as a Generic Competitive Strategy

Competitions offer chances for development, education, and self-improvement. Differentiation is one of Michael Porter’s generalized competitive techniques. The goal of differentiation is to set a business apart from its rivals in the marketplace by developing an original and unique product or service. The differentiation technique is demonstrated using Apple Inc. and its flagship iPhone. Apple has effectively used this approach to position itself as a significant participant in the fiercely competitive smartphone market. The iPhone from Apple differentiates itself from its rivals due to several essential features, including its aesthetic, user interface, brand image, ecosystem integration, and emphasis on R&D and innovation.

A multi-national technology business known for its cutting-edge goods like the iPhone, Apple Inc. Since its introduction in 2007, the iPhone has completely changed the smartphone industry by establishing new capability, design, and user experience benchmarks. Being different from what other companies offer enables competitors to persuade clients that their product is superior(Bica,2022). According to Martin’s theoretical appeal, Apple has excelled in this area by focusing on design, user interface, and ecosystem integration. The iPhone stands out thanks to its sophisticated design, user-friendly operating system (iOS), and seamless compatibility with other Apple products (Martin,2015). In Martin’s textbook, there is also an increase in the ecosystem, whereby other companies recognize that their competitive edge comes from working with other businesses and people instead of simply through their initiatives (Martin,2015). The iPhone has become increasingly unique due to Apple’s focus on developing a robust app ecosystem and offering a smooth user experience.

Apple’s marketing and branding initiatives have also contributed to the iPhone’s reputation as a high-end item. Apple has developed a strong emotional bond with its customers through successful marketing efforts and a carefully built brand image (Bica,2022). This has encouraged brand loyalty and increased demand for the iPhone at higher prices. Martin emphasizes the significance of developing accurate new business models rather than two-sided markets, where most companies are paid to unite two companies (Martin, 2015.) To remain competitive, Apple has improved and innovated its products continuously. New features, enhanced hardware and software capabilities, and services like Apple Music, Apple TV+, and Apple Arcade have all been added. The decision to go with Apple Inc. and the iPhone was significantly influenced by the company’s capacity to innovate consistently, develop distinctive products, and satisfy customer expectations. These attributes have been essential to its success in the competitive smartphone market.

Apple Inc. and its iPhone product line have had positive and harmful effects due to the COVID-19 epidemic. The epidemic caused problems in international supply networks, affecting Apple product production and distribution. This made it more difficult for Apple to satisfy consumer demand, causing delays and shortages in some iPhone models (Zsigmondová, Zsigmond, & Machová,2021). In order to safeguard its staff and clients, Apple temporarily closed a large number of its retail locations throughout the world. Due to customers’ inability to make purchases and receive service in person, this had an impact on iPhone sales. Despite the difficulties, the pandemic increased demand for iPhones and Apple’s online services. Smartphone usage increased as individuals became more accustomed to remote work and learning, which increased iPhone sales.

In conclusion, Martins’ textbook “There are Still only Two Ways to Compete” helps analyze differentiation as a form of general rivalry on Apple Inc. and the iPhone. While the epidemic presented difficulties, Apple modified its methods and approach to deal with the new environment. The company’s focus on digital services, innovation, and online sales helped offset several adverse effects and seize new opportunities. It has used differentiation and premium positioning methods to compete in the smartphone market. Apple’s success in the market has been primarily attributed to its capacity to produce a distinctive user experience, foster brand loyalty, and uphold a high-end reputation.

References

Bica, J. A. A. S. A. (2022). Apple and the Earbuds business in 2021 (Doctoral dissertation).

Martin, R. L. (2015). There are still only two ways to compete. Harvard Business Review.

Zsigmondová, A., Zsigmond, T., & Machová, R. (2021). The Impact of COVID-19 on the Apple Brand and Customer Satisfaction. THE POPRAD ECONOMIC AND MANAGEMENT257.

 

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