Examples of Product Differentiation Strategies to Research; Tesla—The Tesla Model S: Apple—The iPhone: Apple—The iPad: Google—The Google search engine Why is it so hard to not just think, but actually be different? The Apple design bulls-eye is the consumer. One of my favorite tasks each month is participating in the Band of Angels Screening Committee. You tell me the critical difference between Gatorade and Powerade. This post examines how companies and leaders differentiate themselves. Yet hardware innovation is only half the battle. Apple, however, has successfully been made known to have the brand logo of a bitten apple. Nor will they pursue an opportunity until it moves into their user-centered design sweet spot. Apple's pricing strategy extends to its differentiation in the retail electronics marketplace. These amenities include information, product reviews, help, technical support and product. Apple.com serves as a channel in which Apple Inc. tries to differentiate itself from its competitors. Example: Apple — Differentiation Strategy Apple Inc. is an American corporation that designs and manufactures computer hardware, software and other consumer electronics. Apple is known mainly as the maker of Mac, Ipod and Itunes as well as the Iphone. Apple trains their staff members with the acronym A-P-P-L-E: “Approach customers with a personalized warm welcome,” “Probe politely to understand all the customer’s needs,” “Present a solution for the customer to take home today,” “Listen for and resolve any issues or concerns,” and “End with a fond farewell and an invitation to return.”. Apple is a confusing company. Required fields are marked *. Apple continued its digital lifestyle strategy by launching iTunes Music Store online in 2003, obtaining cooperation from “The Big 5” Music companies—BMG, EMI, Sony Entertainment, Universal, Warner. Those that are relevant to Apple are product features, product mix, links with other firms, and reputation. Windows has a Subsystem for Linux, which, combined with the company’s laser focus on developers, makes Microsoft products increasingly attractive for software development. And they are willing to pay a premium price for it. Product differentiation is a viable strategy, especially if the company exploits the conceptual distinctions for product differentiation. I call this phenomena "Working Wider". For example, the ice skate brand that hockey players view as cool. Strategy, Differentiation & Alignment: 5 Examples from Apple . How do you create new and unique value without failing? The difference is they do not compromise the customer experience for time and often cost. The problem is two-fold. Apple will tune or tweak products such as iPhone interoperability with Microsoft Exchange servers for commercial needs at the edge but they have never been the bulls-eye. Companies strive to set itself apart from competitors through their brand image. People and companies rise to the top do by expanding into their potential; not by becoming who they are not. 8. Fourth, Apple’s processes and pacing are pegged to a relentless pursuit of “insanely great products”. First, people and companies hate to make mistakes. On one hand, it’s an unquestionable success. What does this look like in practice? A strong partner of working wider is thinking wider. The winning entry would be the template for a new limited edition Starbucks cup. How can I showcase that value so it’s easily seen? According to Porter (1980), differentiating a business requires that, new and unique products with value are created for which customers will pay premium … By focusing their resources on a few highly differentiated innovations, Apple brilliant marketing wows customers by inflating the innovations’ contribution while controlling cost, resources and maintaining stability. The generic strategy used by Apple is that of differentiation. Its unique features include its design, functionality, durability and consistency. Apple has built a strong relationship with many devoted fans across the world called “Applellites”, posing as a strong differentiating factor that competitors like Samsung cannot replicate in a short period of time. Yukari Kane, from Wall Street Journal, was interviewed about their research on Apple’s staff training. They focus on a few that sparkle while re-using much of the original product design. Although you want your business to excel in all things, it has been proven time and time again that specialization is the key to success. Apple established a reputation as an innovator by offering an array of easy-to-use products that cover a broad range of segments. Operating system. The Apple store presents itself as a base for customer service. Ask yourself: Your email address will not be published. Porter 's generic strategies can be divided into three aspects, which are cost leadership strategy, differentiation strategy, focus strategy and hybrid strategies (Johnson, 2010). Let’s take a look at Apple. Invariably, they want a priori proof that the proposed change will work from examples or benchmarking. To help create lessons that engage and resonate with a diverse classroom, below are 20 differentiated instruction strategies and examples. This is critical because a startup has to drive itself into the minds of customers as well as the marketplace. Definition: A differentiation strategy focuses on providing a product or a service with distinctive attributes, in comparison with the competition, to reach a broad market. Try the ones that best apply to you, depending on factors such as student age. On Porter's model of generic strategies, the horizontal axis is the degree to which a company pursues a low-cost or a differentiation strategy. Second, Apple’s “design voice” embodies a user-centric point of view that bridges gaps unseen or unaddressed by others. Apple has so many differentiation points that it can have a slew of ads, all targeted towards differentiating the products that it is offering. This also applies to established competitors as well as people. Specifically, the multinational technology company differentiates its products and services on the basis of simple, yet attractive design and advanced functionality. Where does that uniqueness offer differentiated value for which they’ll pay? This allowed iTunes Music Store online to offer over 200,000 songs at introduction. In this assignment, Apple’s differentiation strategy will be discussed, exploring how the company obtains an advantage over its competitors. Differentiation is a strategy which marketing organisations practice to gain a competitive advantage over its competitors. In other words, it means to set the product or service apart from similar ones. Hollywood is much quicker to fund a remake of “The Karate Kid” than a brand new movie. Your email address will not be published. Once found, executing requires aligning one’s organization to deliver that value. 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 Stores. Differentiation • A firm following a differentiation strategy attempts to convince customers to pay a premium price for its good or services by providing unique and desirable features. Apple business strategy consists of the following three elements: 1. they make high quality items that their competition would find hard to mimic and sell at … Apple must win at a services strategy to grow. This post examines how companies and leaders differentiate themselves. As every aspect is controlled, so is the customer experience. Meanwhile, most customers use web apps on their computers, PC or Mac. iTunes made it easier to buy and load music on MP3 hardware. The banking industry shows us an example of how User convenience can help you in your differentiation strategy. This is also called product differentiation. These are product, services, personnel, channel and image differentiation. The following are illustrative examples of competitive differentiation. Yet most products, services and even people offer more of the same. At the same time, I can’t keep track of how many executives I’ve met over the years who earnestly tell me they want change but reject anything that requires them or their companies to do anything differently. In the case of differentiation, a key advantage is that effective differentiation creates an ability to obtain premium prices from customers ("Executing a Differentiation Strategy" [Image missing in original]). Value creation has moved from the center of the firm to its edge and beyond. The company renamed itself Apple Inc. rather than Apple Computer. This strategy is crafted to give customers by incorporating good-to-excellent product attributes. Not only this, but it also has great functionality which differentiates itself from its competitors. By Tim Bajarin April 3, 2017 2:17 PM EDT A few years before Sony co-founder Akio Morita passed away, I had a … The banks differentiate themselves with the type of net banking services they offer as well as the number of ATM’s that they have in your vicinity. The company headquarters is in Cupertino, California, CEO and co-founder is Steve Jobs and the company boasts of 284 retail locations spanning 10 different countries. Consider the above as data to generate your own insights about what will differentiate your business or you as a leader. on 07/07/2010. Apple differentiates itself through the level of personnel differentiation. We’re always looking for value that is distinctive and sustainable in some new way. You won’t know which for some time. Look at the clean and to the point copy. What is our/my uniqueness that customers/others readily see? Here’s how to crack the code: look outside for data but stop looking there for the answer. If you go down that path, you’ve missed the entire point of this article. Updated 2 months ago. Learning This 1 Thing Helped Me Understand Apple's Strategy. Perhaps so, but they can grow into that without diminishing their focus on customer requirements. Differentiation strategy examples: Apple. I have chosen this company to describe differentiation generic strategy because Apple Company began using this strategy from the beginning hence gaining competitive advantage in computers industry to date (Christopher, 2010). Apple has also obtained rights to Liquidmetal which made a strong metal alloy that had the properties that can make future Apple products stronger, lighter and resistant to corrosion. Third, Apple limits the innovations in each new product generation. A company can set itself apart from other competitors through its product. Your email address will not be published. We all know a company or person that got beat up by Wall Street or in a performance review for missing expectations. Moreover, the company has a blend of personal computing and entertainment with a high level of integr… 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”. Through Apple’s great product, services, personnel, channel and image differentiation, the company was able to create a strong relationship with the customers, thus explaining Apple’s competitive advantage over its competitors. It dramatically changes the world of work, what defines leadership, how you compete and win. Data lights up their thinking but it’s the connections and meaning they make with the data that generates insight, excitement and ultimately, advantage. This includes iPhone 4S’s internal storage capacity of 64GB compared to Galaxy S II LTE 16GB. Their strategy for pricing and marketing is that of differentiation. Believe me when I say their differentiation strategy works wonders: regardless of being one of the newer airlines on the market, Spirit airlines is the leading low-cost airline worldwide. Consumers are guided within the website with large photographs of products and minimal use of texts, providing a good user experience. And if that uniqueness can’t be protected, their success will be fleeting. Apple Differentiation Strategy Essay Sample. Style Being more stylish than the competition in the eyes of a target market. Within the Apple store, customer services are offered which includes ordering ease, installation, customer training, customer consulting and other miscellaneous services. In fact, Apple has invested in programs that promote reseller sales such as the ASCP, which focuses on certain reseller locations and APRP that provides expertise in products and customer service. Your email address will not be published. The website, itself, is simplistic while catering for the consumers’ needs. Second, being different puts you outside the norm. Sixteen years on from the PowerPC-to-Intel transition, and Apple’s software differentiation is the smallest it has been since the dawn of OS X. Not only the print ads, even the video ads do the same. In computing, the Mac interface bridged across the user interface gap in MS-DOS. a long-term action plan of a company which is directed to gain competitive advantage over its rivals after evaluating their strengths Quality Superior quality such as the hotel with the most comfortable and visually stunning decor in all of central Paris. This sets up the Catch-22 of differentiation. We’re not just being challenged to think outside the box -- Now we’re working outside it as well. Examples of Differentiation • Apple - Steve Jobs said this about the difference between Dell and Apple: Apple and Dell are the only ones in this industry making money. Wall Street and regulatory bodies) may hurt them. For example, I can’t think of a technology or company that successfully disrupted their industry that wasn’t strongly criticized in the early days. Steve Job has been made famous and is greatly associated with Apple Inc., especially through his keynote speeches. Apple business strategy can be classified as product differentiation in plan and functionality. If you are taking care of user convenience, the customer will always come back to … These are product, services, personnel, channel and image differentiation. More importantly, they are willing to say no to those they don’t. In this article, we discuss how such industry leaders as Amazon, Apple and 3M, use differentiation strategies to achieve profitability and customer loyalty. Apple has done so, consistently, with all of its product offerings. It has been decades of thinking different for the Apple brand…… Steve Jobs, Apple’s co-Founder, described Apple as a “mobile devices company” – the largest one in the world. Within the store, there are patient, welcoming staffs that offer assistance to their customers. Great leaders constantly scan, observe and reflect on what’s happening in their environment but they use that data as grist to create insight. The iPhone applied the connective power of smartphones beyond mimicking desktop email to a constellation of new mobile applications. 1. Create Learning Stations. These all are premium products and while they are sold at premium prices the quality of these products is matchless. Each of us has padded a schedule or low-balled an objective to provide wiggle room. “The inviting feel of the stores is really carefully planned to the smallest detail”, said by Kane. You stand out either as a visionary or a fool. A Slippery Slope: Dissing Facts and Science. Besides, most examples are met with resistance such as “yes, but we’re different.”. Apple’s Premium Pricing Strategy, Product Differentiation By Samantha Nielson. I'm Christopher Meyer - author of Fast Cycle Time, Relentless Growth and several Harvard Business Review articles. The obvious answer is you can’t. In 2003, Apple released the world’s fastest PC (Mac G5), which had dual 2.0GHz PowerPC G5 processors. 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