Thursday, March 4, 2010

How to be different:

I would say that Apple's business level strategy would be differentiation. Very rarely do customers switch back to PC's or generic mp3 players after owning an Apple product. They are not a cost leader because there are many other products like phones, computers, and mobile devices that are offered at a much lower price, but Apple users value the consistency of the products and the dependability. Apple spends a lot of time and money on research and development, but they outsource manufacturing because for them it is more cost efficient. Apple prides itself on innovation and just recently filed a lawsuit against HTC for infringing on 20 patents related to the iPhone. With all the applications offered to put on someone's phone or ipod, it allows one to personalize their mobile device and make it different. Apple users are willing to pay a little extra money for the added value they get from their products. Apple as a company encourages their users to be creative and offers the programs to accomplish this.

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