Introduction
Apple is one of the biggest technological companies in the world, famous for its innovative products. The firm produces different technological products such as smartphones, i-pads, and laptops, which are sold to high- end consumers in various countries. The firm has been able to dominate the market for a long time due to strong brand qualities associated with its products in the market.
However, the firm’s dominance is being challenged by other firms such as Samsung, Nokia, Blackberry, and LG, which also produce similar, high-quality products in the market. As a result, the firm is experiencing a lot of competition in the market, and this is likely to compel it to change its business strategies (Cohan, 2013). This paper will discuss how Apple’s response to its competitors will affect its business strategies in the future.
Value v. Cost Strategy
For a long time, Apple has relied on the value it offers its consumers to increase its share of the lucrative mobile devices target market. Its pricing strategy has focused on the intrinsic value which consumers gain from its products, and this has given it an edge over its competitors such as, Samsung, Blackberry, and Nokia. Therefore, Apple does not use pricing as one of its main competitive market strategies because all its products target high-end consumer segments.
Apple’s consumers have always looked forward to new product concepts for every version of its smartphone brand, i-phone released into the market. The product has a legion of loyal consumers spread all over the globe who have high expectations about the features of its new products. It relies on market differentiation to target high –end consumers who are willing to pay premium prices for its products (Cohan, 2013).
However, Apple’s main competitors, such as Samsung and Nokia, produce products that target different market segments. These firms benefit from low costs of production, which enable them to produce high-quality products targeting both high-end and low-income market segments. If Apple decides to produce cheaper smartphones targeting low-end consumers, it may not be able to compete effectively with Samsung and other companies which already dominate low-end market segments.
This strategy may also not produce the desired results because its key market segment may not respond well to this shift (Cohan, 2013). Many of Apple’s customers are emotionally connected to their products because they have high-quality features. Any shift in business strategy is likely to discourage them from purchasing the product, a factor that is likely to affect the firm’s performance in the market. The firm needs to make strong partnerships with other IT firms in the market to maintain its positive performance.
Conclusion
Apple needs to come up with an effective business strategy to help it overcome its competitors in the market. The firm needs to come up with revolutionary brands to help it maintain its lead in the market. The firm needs to open up its mobile devices to make them compatible with other software programs in the market, which are more popular.
For instance, Samsung’s mobile devices appeal to consumers because they can use Google’s Android operating systems, which make it possible for them to access more mobile applications. The firm needs to partner with different developers to strengthen the appeal of its products in the market.
Reference
Cohan, P. (2013). 7 reasons Apple is more doomed than you think. Forbes.