In the case of Apple Inc., a company dealing in breakthrough products the world over, a “focused differentiation strategy” appears to be the best. This is so because Apple projects and holds a unique image amongst its customer base. Apple products and services are not for the common man. In fact, the users of Apple’s Macintosh systems are known as Macolytes, a unique identify for the users of Macintosh (Yinb, Haslam and Andersson, 2013).
Apple’s presence in a limited number of market segments, primarily the youth, educated, urban professionals, is consistent with an image of those who look for perfection in whatever they do in life. For Apple to keep an elite image of its powerful brand and continue producing breakthrough products, the most suitable competitive strategy is to create value through differentiating features.
On such rationale, it is suggested that a ‘broad differentiation strategy’ may be applied. This is so because the company would still be producing differentiated products, such as the thinnest laptop or the clearest smart phone display. However, it may now reach a larger range of market segments with a differentiated strategy. This means that the differentiating features of Apple Inc. are not only for the elites, but several other segments based on geography, ethnicity, and education levels may be applied. As income levels increase in various segments of the population, Apple products would be in their reach. With such supplemental strategy, Apple Inc. may increase its revenues tremendously while retaining an image of superior electronics product range (Mace and West, 2010).Develop a strategy for foreign markets. Provide a rationale for why this is a good strategy for foreign markets.
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