Hw2 Business Strategy Mgmt451

Part A

For your chosen company, please indicate the generic business strategy? We will get into the specific language further in chapter 6 but think simply in terms of low-cost, differentiated, or somewhere in between. If this is a multi-segment firm, indicate which segment or market your business strategy refers.

Justify why you think this is the business strategy. You can do this by comparing demand (customer value delivery) and/or competition.

To talk about the generic business strategy of Apple’s smart phone division, I think that Apple is implementing a combination of differentiation strategy and segmentation strategy .

In the supply aspect, what Apple did is become a differentiation supplier. Although that, a touch screen and a elegant appearance has become the symbol of most of the smart-phones. iPhone has its unique iOS system and apple store, which Apple customers are more comfortable with and are very attractive for new customers because of the reliability and abundant functions. Sacrificing features and customer service to lower cost is not worth. The customer loyalty and reputation are extremely important for Apple.

In the demand aspect, Apple is implement the segmentation strategy to gain big portion of market share. Nowadays, cellphone is a daily life tool to people. Customer are looking forward something that is affordable and looks cool as a daily tool. It will be easy to gain some market share if if a product meet those requirement.The demand is big and expanding. Frequently technology innovation cause high replacement frequency. That makes cellphone hardly become luxury product. Being a niche player and focus on a small market share seems not very reasonable to make money in smart-phone market. Apple is now ranked the 2nd place of smart-phone market share over the world following Samsung. According to Wikipedia, 31.9 million iPhone were sold in the second quarter of 2013, that is 14.2% of the market share. While in August...