Apple’s generic strategy in 2009 was the differentiation of products, with the view of maintaining its growth and revenues in an extremely competitive environment. By 2009, it was evident that the company had become aggressive in introducing innovative, high quality consumer electronic products to cover diverse market segments. Such products include desktop computers (e.g., Mac Pro, iMac, Mac Mini), notebooks (e.g., Mac Book Pro, Mac Book, Mac Book Air), iPhones, iPods, and the widely popular iTunes.
It is justifiable to argue that Apple has utilized this strategy due to the increasing competition in its core markets, and also due to its use of premium pricing policy. The case study is evident that the firm was receiving stiff competition from other manufacturers, including Dell, Compaq and Acer, thus it is only fair to conclude that the market was saturated.
Additionally, to attract more customers and satisfy their needs the company decided to pursue a differentiation strategy which implied creating color graphics, storage, expansion, and processing power. These unique capabilities enabled Apple to sell its products at a premium price in line with the differentiation strategy.
Apple should continue competing in the personal computing industry for the growth and competitiveness. From the exhibits contained in the case study, it is evident that the company’s market share in the personal computing industry continued to rise, from 6.4 percent in the second quarter of 2007 to 8.7 percent in the second quarter of 2009.
Although competition has been high in the industry, with Dell Inc controlling a market share of 26 percent in the second quarter of 2009, Apple should take pride in its capability to produce personal computers and notebook products with unique features and continue competing in the segment.
The justifications for taking this perspective have been sourced from the case study. First, although in 2009 Apple accounted for only 2 percent of international computer shipments in the United States, the company has taken the initiative to reduce its premium pricing and open up its proprietary operating system to the interested parties. This initiative is expected to attract more customers and maintain them over longer periods of time, hence facilitating the company’s growth and sales revenues in the industry.
Second, as suggested in the case study, the projected halo effects brought about by Apple’s non-computer products (e.g., iPods, iPhones and iTunes) are expected to trigger a switch by customers, from using products made by other manufacturers to rely sorely on Apple personal computers. Such a switch, in my view, is expected to boost sales revenues and position of Apple in a better position to conquer a larger market share in the personal computing industry.
Lastly, Apple has made great investments in the industry as demonstrated in a variety of models configured to serve the interests of diverse customers, including professionals, students, business people, and consumers. It is only proper that intense marketing campaigns will be undertaken to ensure the growth of this industry.
Drawing from the case study, it can be concluded that in 2009 Apple has been using a generic strategy entailing the differentiation of products due to its diverse products, increasing competition in the core markets, premium pricing, and ability to have unique resources and capabilities. The company should also continue to compete in the personal computing industry if it expects not only to remain competitive, but also attract and retain customers.