Business Studies Essay Paper on Generic Strategies

Generic Strategies

            Generic strategies delineate various ways that a firm uses to achieve a competitive advantage over the others in the market. Among the four of Porter’s generic strategies, our group chooses the differentiation strategy. Differentiation refers to the act of developing unique designs and services for a firm’s product so that it may appear more appealing than the competitor’s products. Differentiation occurs when manufacturers produce quality products and services targeting creating a reputable image for the product. Several companies use this strategy and a good example is the Apple Inc. company. Apple has managed to catch a niche market of loyal customers by developing unique products. For instance, Apple has a distinctive logo that appeals to the users. Actually, the “high-end” consumers mainly purchase Apple products because it has already created the notion that it produces quality products. It is deemed as an eye-catching luxury and its consumers are loyal to the brand. That is why its products are relatively expensive than its rife competitors but the consumers still stay loyal to Apple products.

            Apple also uses its own operating software unlike other products such as Samsung that have to rely on Android. This improves the customer’s believe because they feel that the products are compatible with each other since they are manufactured in the same company. Apple also has a brand name that reflects on all its products; that is, iPhone, iTunes, iMac, iPad, iPod, and iWatch. The company invests on research and development so that it can keep on being innovative so that the consumers cannot feel left out by the competitor’s products. For example, Apple unveiled the iWatch recently to keep up with the technological advancement in the consumer electronics industry. Therefore, the differentiation strategy works in attaining a competitive advantage.