Marketing begins with simple and aesthetic product design, which generates viral customer interest in Apple products.
In an industry of low profit margins and cost cutting, Apple focuses on revealing radical concepts and appealing designs to making its products different. Its differentiation increases brand loyalty and reduces price sensitivity.
While competitors seek to imitate Apple's successful products and the innovative complementary relationship between iPod and iTunes, Apple continues to introduce ground-breaking new products timed perfectly to achieve first mover advantages.
The company continually re-invents itself to enter new product categories and avoid price competition in maturing product markets. Identifying emerging trends and exploiting the advantages of early market penetration has been fundamental to Apple's revolutionary success in the distribution of music, and the company plans to achieve similar results in video distribution and mobile phone connectivity.
Apple seeks to change the way people behave rather than just competing in the marketplace for traditional products or with incremental innovations.
Product refinement and development now aims at capitalizing on the convergence of PCs, digital consumer electronics, and mobile communications. Using the company's core competencies in different product markets employing a mulitproduct strategy decreases Apple's dependence on revenues from a single market.
Related diversification allows the company to share resources, activities, and technologies across product lines, and the transfer of skills and intangible core competencies can build a competitive advantage that is difficult for rivals to emulate. Apple's valued supply chain relationships, reseller agreements, wireless carrier contracts, and innovative co-branding arrangements play a critical role in supporting the company's differentiation strategypowerfully linking the success of strategic partners together.
The company's strategic alliances have provided an effective avenue for gaining sizeable market share. Also, affiliations with other strong brand names serve to increase Apple's marketing exposure and build consumer confidence.
Apple's strategy also involves the pursuit of opportunities to create demand for its products in the global market. In today's business environment, it is common to expand into international markets when domestic markets mature and commodity pricing tactics infiltrate the industry.
The impact of downward pressure on prices can be minimized when alternative markets are discovered. For high-tech products like the iPhone, immediate success can be found in many different cultures and societies.
|IN ADDITION TO READING ONLINE, THIS TITLE IS AVAILABLE IN THESE FORMATS:||Critical success factors An important strength for any organisation will be the achievement of critical success factors. This should allow the organisation to cope better than rivals with any changes in its competitive environment.|
|Motorola - Computerworld||Page 71 Share Cite Suggested Citation: The National Academies Press.|
|The question, though, is where this uniqueness comes from, and how it can be sustained.|
Additionally, operating and selling beyond the home market can enhance the company's ability to compete with major rivals and bring knowledge into the organization to expand its pool of innovative ideas.
Apple's commitments and actions should be integrated and coordinated to exploit the company's core competencies, strengthen its competitive advantage, and maximize value. The analysis reveals that, to secure strategic success, it will remain important for Apple Computer to be fanatically protective of the Apple brand image and adequately invest in the company's competitive advantages in innovation and marketing.
Some suggestions for achieving this include: Only cautiously engage in the low-end of the market which can tarnish Apple's reputation as a technology leader.According to Strategic Management Insight, Apple’s core competencies include innovation in mobile device technology, strong marketing teams, high quality customer service and a strong financial performance.
It also has a strong brand reputation for its products, which include the iPad, iPod.
Core com. competencies which are unique. critical success factors of excellent organizations and Eastman Kodak's core competence might be consid- trend-setting companies (Godbout.
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core competencies are the integrated bundles of skills key determinants of competitive advantage (Carayannis, Alexander, ). Resource-based competencies Xerox, Motorola, Ikea, and Kodak achieved these goals, .
Matching Core Competencies To Key Success Factors In Odl, Some Views From The Zimbabwe Open University The study gives the ZOU an essential analysis of its competencies.
The study evaluates the extent to which the This study contexualises the critical success factors and the core competencies to the requirements for. Apr 10, · James Manktelow of schwenkreis.com states that the idea of “core competencies” is one of the most important business ideas currently shaping the world, which lies behind the current wave of outsourcing, as businesses concentrate their efforts on things they do well and outsource as much as they can of everything else.
The . identifying core competencies usually entails having employees identify core competencies by scanning and assessing company-critical resources, capabilities, and competencies (Prahalad and Hamel, ) – three factors commonly referred to as “associated concepts”.