ADVANCE MARKETING MANAGEMENT

CONTINOUS EVALUATION

Name: RICHA MAYUR VAGHANI

Section: H

Enrollment number: 19BSP2197

COMPETITIVE STRATEGIES

Michael Porter introduced a number of popular strategy

frameworks, most notably his Five Forces Framework and
Generic Strategies. The Generic Strategies state that competitive
advantage can be achieved through either cost leadership,
differentiation, or a focused mix of the two. Through his activity
positioning framework, Porter prescribed that firms can achieve
competitive advantage through three positioning strategies:
variety-based, needs-based and access-based.

Michael Porter divided competitive strategy into four different types of

strategies.

Cost Leadership Strategy

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Cost leadership strategy is difficult to implement for small scale businesses as it
involves making long term commitment for offering products and services at
lower prices in the market.  For this purpose, firms need to produce products at
a low cost otherwise it will not make a profit.

Differentiation Leadership Strategy

Identifying the attribute of a product that is unique from competitors in the
industry is the driving factor in the differentiation leadership strategy. When a
product is able to differentiate itself from other similar products or services in
the market through superior brand quality and value-added features it will be
able to charge premium prices to cover the high cost.

Cost Focus Strategy

This strategy is quite a resemblance to the cost leadership strategy; however, a
major difference is that the cost focus strategy businesses target a particular
segment within the market and that segment is offered the lowest price of the
product or service. This type of strategy is very useful to satisfy your consumers
and increase brand awareness.

Differentiation Focus Strategy

Similar to the cost focus strategy, differentiation focus strategy targets a
particular segment within the market; however, instead of offering lower prices
to a consumer; firms differentiate itself from its competitors. Differentiation
strategy offers unique features and attributes to appeal to its target segment. For
example, Breezes Resorts is a company having several resorts and caters the
only couple having no children and offer a peaceful environment without any
children disruption.

Let’s discuss the competitive strategies adopted by apple

The business strategy of Apple aims to design and develop its own OS,
hardware, software applications and services uniquely which facilitates the
customers with innovative and new product solutions having unique features
such as easy usage, flawless additions, and innovative designs.
Apple provides its various products in multiple market segments i.e. MP3
players market, PC market, Tablet Market, and other wireless communications
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markets within the digital and consumer electronics industry. Apple is
considered as the true innovator in the consumer electronics industry and this
has exposed the existing products to gigantic market opportunities
The value chain of Apple Inc suggests that the company is efficiently handling
the chain of activities in innovative and design leading to management of all the
activities and operations which provides it a great competitive advantage.

Conclusion
The company has attained a distinct position in the industry through its
competitive strategy which is innovation and premium pricing policy. Apple has
a consistent practice of developing new products and its ability to make
products complement each other and strengthens customer loyalty and helps in
creating a barrier for competitors in the market.
Since the company has been charging high prices to its value-added product it
seems to adopt a differentiation leadership strategy that says that a product is
able to differentiate itself from other similar products or services in the market
through superior brand quality.

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