Professional Documents
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Apeksha Maniar - 206 Tulsi Gajjar 246 Vaishali Gusani 248 Vineet Khatri 251 Vipul Raval 252 Vishal Thakkar 253 Shakti Mistry - 256
Differentiation
Creating value through uniqueness Customers must be willing to: Pay more for the differentiators products Buy more from the differentiator (at same or similar price)
Types of Differentiation
Tangible Differentiation Intangible Differentiation
Tangible Differentiation
Components of tangible differentiation Design Packaging Style Quality
Intangible Differentiation
Components of intangible differentiation Brand loyalty Image Company reputation Customer Preferences
Sources of Differentiation
Differences inquality Differences in functional features or design Buyers preferences Salespromotionactivities of sellers Differences in availability (e.g. timing and location)
Cost of Differentiation
High Cost of R&D Increased advertising spend to promote the product Cost of hiring highly skilled staff Use of more expensive material to improve the quality of the product, etc.
HISTORY
Formed in 1976 Founders: Steve Wozniak Steve Jobs 1976 - Apple I 1977 - Apple II 1978 - Apple III (Failure) 1985 Macintosh (Failure)
HISTORY
Steve Jobs resigned in Dec, 1985. Job formed new company NeXT Job re-united Apple in Feb, 1997 1997 Introduced MAC & Operating System
7S model
Shared Values
Shared Values
Shared Values
Empathy for Customers/Users
Structure
Structure
Structure
System
Integration mechanisms and control systems Increases intra-functional coordination and communication Helps in problem-solving and other strategic issues Reach both first time buyers and Power users
Style
Decision Maker Charismatic leader Strongly believes in quality and excellence Convincing Spends most of the time in product development Perfectionist
Our primary goal here is to make the world's best PCs not to be the biggest or the richest. Leave your neckties, bring your ideas
Staff
49500 Employees Smart & Intelligent Creative- Think differently Open for challenges- flexibility to adapt to fastmoving situations Passionate about what they do
Skills
Managerial Skills Engineering Skills Specialized engineering Industrial design Quality assurance Software development Battery Technology CPU Software Engineering Display Engineering Media Engineering Multi-Touch Engineering
Strategy
Strategy
Product Differentiation
Premium Quality Exceptional Design Personalized Service Organizational reputation and brand name
Create Uncontested market space Create and capture new demand Make the competition irrelevant Break the value-cost trade-off Align the whole system of a companys activities in pursuit of differentiation and low cost
Apple Products
Net Sales
Margin
Advantages of Differentiation
Strong Brand Loyalty creates barrier to entry as switching costs are considerably high Constant innovation resulting into Frontend & Backend Integration Eco-friendly
Disadvantages of Differentiation
Competitors being able to imitate the products Low Cost competitor such as Dell and HP/Compaq gaining more market share Over Emphasize on Quality by Steve Jobs
Strategy
Focus Strategy
Providing a product or service that caters to a particular segment of the market Firms can focus on differentiation or low cost Serving the needs of the chosen market segment better than a broad range competitor Risks: changes in preferences of the narrow segment or attack by a broad cost leader or differentiator