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Generic and Intensive Growth Strategies of Apple

Apple generic and Intensive Strategies:

In the 21st-century business environment, it is not easy to achieve a distinct and differentiated position for any business. Competition has grown intense and to remain a leader, brands must have a distinct competitive advantage. Having just an excellent product or infrastructure is not enough, however, they too can be sources of competitive advantage. Brands also need an excellent strategy to achieve a leadership position in this hypercompetitive business world.  The source of competitive advantage can differ from brand to brand and company to company. For several, it is technological innovation and for others, it may be their human resources.  Michael E Porter has outlined three distinct strategies to achieve a source of competitive advantage.

These strategies are cost leadership, differentiation, and focus.  The third he has subdivided into two categories which are cost focus and differentiation focus.  These strategies are called generic strategies and can be used to build a competitive advantage. Apple is one of the leading PC and smartphone brands in the world.

This article discusses the generic strategies it has used to build a competitive advantage and the intensive strategies utilized to grow market share.  Apple is among the most valuable brands in the world and it has acquired this position based on its excellent technological products and services. It competes with the technology giants like Google, Microsoft, Amazon, and the PC brands like HP, Dell and Lenovo.  This is all a result of excellent products and a great strategy.

Generic strategy:

The generic strategy used by Apple is that of differentiation. This is a strategy of making your product different from those of the competing brands. Apple is known mainly as the maker of Mac, iPod, and Itunes as well as the iPhone. These all are premium products and while they are sold at premium prices the quality of these products is matchless. So, basically, the competitive strength of Apple arises from excellent technology.  However, these products by Apple are just as excellent in design and looks as they are in terms of technology and performance. iPhone and Macs look absolutely dazzling.

Still, the key thing is the underlying technology. Apple’s technology has always been hailed for excellence.  It is also the maker of Macs and its own operating systems macOS and iOS. Moreover, it has made an entire series of inter-compatible products. You cannot use the windows operating system on an Apple laptop. However, the technology and quality of these products are what set them apart from the competition. Despite the premium price tags, Apple products are a favorite of millions. Its fans are willing to pay the hefty prices for its products because they are simply irresistible.

Intensive Strategies:

Apart from the generic strategies that are to be utilized for building a  sustainable competitive advantage, there are intensive strategies that can be used to grow market share and expand one’s customer base. These strategies are Market penetration, Market development, product development, and diversification.

Market penetration:

It is the strategy of selling more to an existing customer base.  Apple’s products are just so good that it enjoys heavy brand loyalty. Its customers are quite brand loyal and would buy not one but more of Apple products.

Market development:

Market development means selling to more customers in new markets or regions. Apple’s market has continued to develop globally. It has grown into a global brand and from the Americas to Europe and the Asia Pacific, it is everywhere in all the markets. Apart from its own retail stores and through other retailers, it also sells online. It is ranked among the biggest PC and smartphone brands. The increased demand for iPhones has also expanded its market.

Product development:

Apple has continued to add new products and services to its kitty. After Mac and iPhone, there are iPod, Ipad, Itunes, and even the Apple TV and watch. It also continues to release new versions of the iPhone. In this way, Apple has continued to expand its market share and market presence by developing new products and services.  Its product line continues to grow.

Diversification:

Apart from computing, portable and personal technology, and music, Apple has also entered solar energy which could be turned into a big business later. So, Apple is also employing this strategy to grow its brand and market share further.

In this way, you can see that Apple has very well utilized Generic and intensive strategies to build a competitive advantage and grow its business globally. It has achieved a leadership position and built a distinct brand image of a technology giant that is also customer-focused.

Written by Abhijeet Pratap

Abhijeet has been blogging on educational topics and business research since 2016. He graduated with a Hons. in English literature from BRABU and an MBA from the Asia-Pacific Institute of Management, New Delhi. He likes to blog and share his knowledge and research in business management, marketing, literature and other areas with his readers.

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