Discussion main post, discussion 200 words with 2 APA References and 3 post responses
As the reading and material covered this week, there are multiple ways a company can hold a competitive advantage over another. In this week’s discussion, you are to pick your preferred brand of electronics (Apple, Samsung, Dell, etc.) and discuss what you believe one of their key competitive advantage is in the market today. Provide a justification based on the course material and light research on the company. Be sure to relate the course concepts to your example.
Post1 – Dana
Competitive advantage is how a company differentiates itself from the competition. (Hooley, 2020) The electronic market, like most current markets, is intense with close quarter competition. The need to stand out to gain and retain customers is fierce and companies go to great lengths to be the first to develop and make available cutting edge technology. The companies also realize that creating brand power goes a long way in retaining customers.
Samsun has a vast number of customers and focuses on retaining those customers. One way in which the company accomplishes this is by constantly getting feedback from customers on what they like about current products and what they would like or need in future products. Another way they inspire loyalty is by providing top notch customer service to customers. Samsung’s key competitive advantages stem from brand recognition, efficient supply chain to meet customer needs, and building quality products at competitive prices. (Djatmiko, 2016)
Post 2- Lynn
As reported by Journal of Economics & Management Strategy, in the article “Focality advantage in platform competition”, Apple Inc. strategically aims advertising at convincing agents that other agents will join the platform. Most recently, Apple’s Apple Pay’s launch in 2014 was met with skepticism from merchants. Apple’s CEO, Tim Cook, declared “We are more convinced than ever that 2015 will be the year of Apple Pay.” Cook’s confidence in Apple Pay was realized among all agents.
Apple’s key competitive advantage is differential advantage. Differential advantage is created with Apple’s strengths and skills relative to the competition. Apple products and services command higher prices and margins, and thus avoid competing on price alone (Hooley et al., 2020, p. 46). Apple sustains competitive advantage through unique and valued products; clear, tight definition of market targets; enhanced customer linkages; established brand and company credibility.
Post 3- Robert
In today’s highly competitive market, Apple Corporation (AC) maintains a competitive advantage in its market with products such as the iPhone, Mac, iPad, iPod, Apple Watch, and Apple Tv. Apple’s key competitive advantage in their market is their product differentiation (PD). Through product, pricing, promotional, and brand differentiation, Apple has developed a unique and innovative variety of consumer electronics products. According to Hooley et al. (2020), PD aims to increase the consumer value of a product or service. Essentially, PD is how companies, such as Apple, stand out and distinguish their products from their competitor’s products while increasing revenue and growth.
Apple’s core marketing strategy focuses on customers who are willing to pay more while maintaining a premium price at the cost of unit volume (Nielson, 2014). Due to the perceived consumer value and their PD, Apple prohibits dealers and resellers from marketing Apple products below an established minimum price threshold. This strategy ensures that Apple maintains a definitive profit margin on their products. Hooley et al. (2020) notes that premium pricing is generally acceptable when there are perceived advantages for the customer. Therefore, Apple’s technology and innovation initiatives have created a unique line of products that consumers find valuable. Examples of these consumer value applications include reliability, a simplified user interface, enhanced technological performance, and advanced security protection.