Strategic Management: Competing With Apple Product Term Paper

Pages: 3 (870 words)  ·  Bibliography Sources: 1  ·  File: .docx  ·  Level: Master's  ·  Topic: Business

Strategic Management: Competing With Apple

Product Differing (consider calling it Product Differentiation)

Strategy Description: Proposed strategy for differentiation; Apple will continue to use one basic model for its products that customers are already familiar with and in addition, the products will continue to be priced reasonably. By doing this when a customer is looking for a new mp3 or a new cell phone, the Apple products will not be lost among the masses. By doing so, Apple will continue in making an effort to make the customer service experience an easy one. Despite low costs, consumers want the latest in technology, or what they perceive to be the latest most special piece of equipment. By using mass marketing techniques to flood the consumers mind of a new product before it is actually launched, the consumer will perceive the product to be a "must have." We will reintroduce the Mac to the market and give the customers the option to build it to their specifications and even have a choice of color scheme or design. This strategy not only allows Apple to eliminate the distributor, but save the customer money by avoiding after market mark-ups. If Apple continues to keep its products similar and different from the rest, they will be able to lower the amount of competition from competitors (Deephouse, D., 1999).

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Apple continues to struggle with managing its partnerships with digital content providers (Murray, Goode, Di Muro, 2010), as they fear what happened to the music industry will happen to them. As a result, the lack of partnership cooperation on the part of digital content providers has left open a wide area of the Apple iTunes ecosystem for competition. The iTunes ecosystem is shown below, and generates nearly 30% of all Apple top-line revenue as of the close of their latest fiscal year. Apple is re-vamping their iMac and Apple TV products as of 2010 to further solidify and protect this ecosystem.

Source: (Apple Investor Relations, 2008)

Term Paper on Strategic Management: Competing With Apple Product Differing Assignment

The one weakness however that the iTunes ecosystem has however is the lack of differentiation offered to content providers, as the pricing on the existing iTunes site, at 99 cents for the majority of songs, is considered to be one the primary catalyst for driving profitability out of the music industry. Video content providers are crucial, and in fact represent the future of Apple going forward. In highly competitive markets the use of partnerships and alliances can serve as an even more powerful differentiator than products or pricing (Berling, 1993). Earning and keeping the trust of video and digital content providers of all types, from large, diverse… [END OF PREVIEW] . . . READ MORE

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How to Cite "Strategic Management: Competing With Apple Product" Term Paper in a Bibliography:

APA Style

Strategic Management: Competing With Apple Product.  (2010, July 11).  Retrieved January 23, 2021, from

MLA Format

"Strategic Management: Competing With Apple Product."  11 July 2010.  Web.  23 January 2021. <>.

Chicago Style

"Strategic Management: Competing With Apple Product."  July 11, 2010.  Accessed January 23, 2021.