Question 2 [20] CASE STUDY Apple When we talk about differentiation, Apple is one of the brands that will most often come to mind. Started in 1976 by Steve Jobs, Ronald Wayne, and Steve Wozniak, the company has had an unquestionable impact on the consumer electronics and computer software industry. Ever since its creation, Apple has been well-known for its innovative products, including their Macintosh line computers, the iPod, iPad, and of course the iPhone. And it has successfully managed to distinguish them from their competitors through a multi-layered approach: Product Design The iconic, elegant and minimalist design on all Apples products is one of the first things that makes the brand stand out from its competitors. Their products not only display a different visual style which is aesthetically pleasing, but is also well thought out to simplify the use of each device. This elegance and simplicity are highly valued by customers. And they are willing to pay a premium price for it. ASSIGNMENT 2023 FIRST SEMESTER MAN400 MANAGEMENT PRACTICE IV Page 5 of Assignment Operating system Another factor, which of course is considered a part of the product, is Apples unique operating system. However, I wanted to differentiate it in another section because Apple could have stopped at just having a beautiful and visual product which, in some cases and depending on the product, can be enough for a company to differentiate itself. But they didnt! Apple also wanted to differentiate their products with an operating system that further enhanced user experience, bridging the gaps that were unseen or unaddressed by competitors. Pricing strategy The companys pricing strategy is another factor that takes part in their differentiation strategy. The prices for most of their products are significantly higher than those of competitors, set with the idea of being proportionate to the level of quality with Apple still maintaining high profit margins. The competition between Apple Inc. and Samsung Electronics is a good example of how two companies that operate in the same industry and thus, are exposed to the same external forces, can achieve different organisational performance due to the difference in resources. Apple competes with Samsung in tablets and smartphones markets, where Apple sells its products at much higher prices and, as a result, reaps higher profit margins. Why Samsung does not follow the same strategy? Simply because Samsung does not have the same brand reputation or is capable to design user-friendly products like Apple does. Source: 13 Amazing Differentiation Strategy Examples (in 2022) - mktoolboxsuite.com 2.1 Use examples from the case study on Apple Incorporated above and explain a generic differentiation strategy. (8) 2.2 Use the above case study on Apple Incorporated to explain the distinguishing features of the differentiation strategy. (12)