1. Based on your experiences and/or knowledge of Apple’s current products and services, does
Apple’s strategy (as described in Illustration Capsule 1.1) seem to set it apart from rivals?
When it comes to Apple’s strategy, there are various areas that they excel in which ensures their
ability to continue progressing the company. They continue to maintain a loyal pool of
consumers that are solely reliant on their products and always looking for the next big release.
This has allowed Apple to formulate an image of their brand that fosters trust and reliability
which aids in their continued growth. Along with the customer and brand trust, Apple has created
an independent system with unique aspects outside of the classic electronic devices. There are
other strategies Apple has employed over the years to continue setting itself apart from rivals,
like the large production, buildup, and advertising that goes into each new product release, but
their unique business products and consumer populations are some of the largest contributors to
the success of the organization.
Reviewing the loyal customers aspect, Apple has successfully captured a series of ideal
customers that will seek out the next new product or generation they come up with in their
devices. Yet, they also have a wide variety of consumers who inherently trust in some or all the
products Apple creates, even if they aren’t always searching for the newest product. Unless
something goes acutely wrong for an individual or people have a different bias with the products
and processing system they use, once people start using an Apple product they typically stick
with their products. The loyalty of their consumers directly contributes to the sustainability of the
company, since the consumers consider the Apple products superior to the competitors and are
willing to pay the price to receive and maintain them, (Thompson et. al, 2022, pg. 6). Part of the
loyalty is due to the trust and reliability the company has fostered with their customers, that their
products are something people will continue using since they have not faced the issues they
expect or have had with other technology products and companies.
2. Does the strategy seem to be keyed to a cost-based advantage, differentiating features, serving
the unique needs of a niche, or some combination of these?
When considering the type of strategy Apple is using, it focuses on broad differentiation
strategies that showcase the unique properties of their products which allows for higher
premiums to be charged, (Thompson et. al, 2022, pg. 6). This occurs through their processing
systems, apps, cameras, device features, and many other areas that their consumers actively
search for. With these unique features, the company can then charge more when their new
products come out since there aren’t any other products that have the exact type of features
Apple offers. Other companies attempt to compete with devices such as the foldable smart
phone, better cameras, other features people might be interested in or look for, but Apple always
has a counter. The products may not be necessarily better every time, the classic jokes about how
the phones are just getting bigger without any true improvement, but they still attract the
attention of their consumers and continue increasing their revenue and improving their company.
Something which Apple is especially known for is their iPhones in more recent times, but they
have been pushing the boundaries of many of their other products as well and drifting away from
promoting their phones as much. They have been recently trying to decrease their dependence on
iPhone products and investing in their AI and other products. Even though they are drifting away
from their phones, they still are keeping up with the competition by continuously improving their
cameras which have been a longstanding frustration for iPhone users, (Dudovskiy, 2023).
