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Apple is a large global company with great access to resources and connections allowing the creation of a market that buyers will about. This differentiation strategy is successful permitting Apple to charge a higher price for its products. Even though the price is higher, customers will still purchase the Apple brand over competitors. Through brand recognition, loyalty and a strong customer base have been obtained. This plan allows Apple consumers to remain strongly attached to the differentiation factors and prefer the Apple variation over other providers. Some of the special features that differentiate Apple products from their competitors are: •Superior service: Apple has the famous ‘Apple stores’ which are specialized Apple product sales locations, offering assistance with Apple products for free •Engineering design: Apple prides themselves on always having the latest innovatively designed products •Ease of use: The simplicity of Apple’s product interface is a large selling factor and an area where the company prides itself on. Apple products are usually more user friendly compared to competitors like Microsoft and Android. One of the risks of pursuing a differentiation strategy is that competitors may find a way to copy the differentiated features. Apple has had to file many lawsuits against Samsung for patent
14 infringements over features and technology improvements on similar products. The main reason the differentiation strategy is effective strategy for Apple is because it achieves all of the following conditions: •Products and services are differentiated in many ways in order to remain competitive and have follow up services available such as assistance from the Apple Genius Bar, something that is a massive advantage over rivals. •The wants and needs of Apple customers are unique and require a wide diversity of products that can be tailored to the specific need of the customer. •There are not that many competing companies that are following the same differentiation approach as Apple. This uniqueness within the competition factors into Apple’s business model which is to differ and offer a superior product in comparison to competitors. •Apple is in a competitive, rapidly changing, and fast-paced technology market. Where in this market, product and services are rapidly changing and evolving with the new technology that is constantly released and developed. Apple attempts to always remain ahead of the technological curve by providing innovation and simplicity in all their products. Corporate level strategiesFor Apple to preserve and maintain the position of a leading multinational technological company, constant intensive efforts are required. At this stage of development and due to the recent beneficial changes in tax legislation in the U.S., Apple received additional financial resources, sufficient enough for the company to pursue various strategies simultaneously. This produces positive synergistic effects on business performance and is essential for retention of their sustainable competitive advantage. Such strategies as market development, market penetration,