Case10: Apple 1. What are the chief elements of Apple’s overall competitive strategy? How well do the pieces fit together? Is the strategy evolving? Apple has done an excellent job of developing a very distinct strategy through industry leading innovation.
However, they are also very different. By discussing their features, ease of use, and synchronization software; this will prove that Apple’s iPod has superior features, screen resolution, style, and functionality than its competitor, the Zune. Ease of use always has been one of the most important selection criteria consumers consider before purchasing an MP3 player. Apple’s iPod Nano 5G features a user-friendly interface known as the click wheel. It allows the user to adjust the volume, pause and play, find music, and videos by simply using their thumb.
During this stage Apple developed, updated software, new features and continued to keep the style of the iPod that made their style unique to Apple. They developed a user friendly interface, better software, hardware and even the packaging attracted customers and had them coming back for more. As David Taber said that “While everyone else was making an MP3 player that was better/cheaper/faster, Apple was making electronic jewelry that also played MP3’s. Never focusing on price, they brought to market more value, more style, and new ways of interacting with digital media.” (Weisbein, pg 1) Apple also ensured that they made the iPod more reliable by using better parts then their competitors. They also ensured they stayed ahead by updating their hardware, software, and providing newer applications for the iPod.
To operate a successful business you must understand the information technology from a specific position or viewpoint, which help to enhance the daily operations. Small businesses start with a disadvantage and it is necessary to find ways to expand the business. “ Strategic Information Systems provide a competitive advantage by
Best Buy stores also do car audio installation and have a Geek Squad for computer repairs and warranty services. (bestbuy.com) In attempts to keep growing as a company and finding better ways to service their customers Best Buy’s customer centricity campaign was created. Customer-centric is defined by the business dictionary as; “creating a positive consumer experience at the point of sale and post-sale” a customer-centric approach can add value to a company by enabling it to differentiate itself from competitors who do not off the same experience. This campaign is a way to understand the needs and behaviors of specific types of customers by breaking them up into five different categories; Barry: The professional who is seeking the best technology and entertainment and demands the best service. Jill: The typical “soccer mom” who is the busy suburban mom who is looking to enrich her children’s lives with technology and entertainment.
6. What recommendations would you make to allow Apple to strengthen its position in its most important markets? What steps should it take to ensure that the iPad becomes a major contributor to the company’s overall performance?
P1 Successful businesses will always use elements of the “promotional mix” in order to assist the sales of a product. This could be: Advertising, Publicity, Public relations, Sales promotions, Direct Marketing, Personal selling, Sponsorship, Product placement, Celebrity Endorsement and Exhibitions. If a business takes into consideration the AIDA principles alongside the promotional mix then they could be looking at a potentially very successful business idea. I’m going to explain how Beats by Dr.Dre and HTC use both AIDA and the promotional mix to sell their products. Beats by Dr.Dre [pic] The beats by Dr. Dre headphones are a perfect example of how an expensive high quality product can sell successfully to a market who are predominantly struggling financially by using the promotional mix.
During the tenure of former CEO Steve jobs, Apple had extreme unprecedented success. Garnering an almost cult-like following with its innovations, Apple found itself in very unique position in that the products it manufactured were first to market, essentially creating a new market for competitors to challenge it in. While there where computers, phones and mp3 players from different companies none had the integration and usability across all it’s platforms like Apple did. This allowed it to sell one product to a consumer but guarantee this product would work with its other devices. Additional to this, it brought to market a phone that integrated various technologies.
However, while Kia have attempted to do so by expanding the perception of their brand as a dynamic and youthful one, Hyandai have focused on improving perception of their brand as reflective of a refined and modern image. Consequently, the two ideals in terms of brand identity have emerged: Kia as “exciting and enabling” and Hyandai as “refined and confident”. The building of a brand identity involves the development of functional (or tangible) attributes to bring about and reinforce the emotional perceptions one desires for the brand and communicates to the consumer through marketing efforts. In the case of the Hyandai brand, the company has attempted to imbue their products with sleek designs, intelligent systems, ergonomic interfaces and quality engineering. These safe, reliable and high quality vehicles also come with excellent service back up and warranties.
The Company believes that sales of its innovative and differentiated products are enhanced by knowledgeable salespersons who can convey the value of the hardware and software integration and demonstrate the unique solutions that are available on its products. The Company further believes providing direct contact with its targeted customers is an effective way to demonstrate the advantages of its products over those of its competitors and providing a high-quality sales and after-sales support experience is critical to attracting new and retaining existing customers. To ensure a high-quality buying experience for its products in which service and education are emphasized, the Company continues to build and improve its distribution capabilities by expanding the number of its own retail stores worldwide. The Company’s retail stores are typically located at high-traffic locations in quality shopping malls and urban shopping districts. By operating its own stores and locating them in desirable high-traffic locations the Company is better positioned to ensure a high quality customer buying experience and attract new customers.