Differentiation
Differentiation is a distinction offered to a commodity that makes it distinct and more appealing than those in the target market. Today's market structure is dominated by competition, forcing marketers to play it safe. Strategic distinction creates a distinct visual identity that caters to the preferences of the consumers.
Apple's Differentiation
Apple is an organization that has significantly enhanced its capability by distinction. When it was founded in 1976, Apple faced tough competition from Microsoft, the world's largest manufacturer of electronics and computers. However, Apple's commitment in 2010 and enormously led creativity resulted in higher sales in comparison to its rivals. Apple used a paramount strategy to strengthen its customer base. With a thorough understanding of the of the market expectations, the company focused towards the accomplishment of competitive advantage against its closer competitor, Microsoft. The company engaged in both price and product differentiation perceived in a unique way to successfully satisfy the customer's needs (Demydas & Hormann, 2008).
Further, Apple enhanced its creativity through innovation and provided a broad range of products in the global competitive market. Besides, Apple set its product prices to a reasonable level. The company launched professional advertising and monitoring of their goods and occasionally offered a small percentage of wholesale discounts.
Advantages for Apple
The Apple Company has faced advantages from differentiation. Apple has become the most recognized brands, offering products such as personal electronics and television. As a result, the company has experienced increased buyer performance with consumers perceiving their products better than their competitors.
Differentiation strategy has become successful in Apple Company due to innovative product design, user-friendly customer services, and their great advertising campaigns. The constant release of their new products such as iPhone, iPod, computers, and televisions has further helped increased the performance of Apple.
Conclusion
Successful differentiation strategy allows a firm to offer a premium price for its product. As a result, their product becomes superior in the financial climate and successfully gains the buyer loyalty in the crowded marketplace. Conversely, firms use this strategy to increase their unit sales by attracting the target market thus gaining a competitive advantage to their products.
Reference
Demydas T. & Hormann D, (2008).Innovation and Product Differentiations in the Apple Market; A study of the club varieties (1)16-17; Aachen: Shaker
