Apple uses differentiation strategy in order to compete successfully. Apple prides itself of innovation and technology as compared to other companies. This strategy has brought immense success while earning them higher than industry average profit margins. The strategy enabled them launched iTunes using the Mac as the hub for digital lifestyle. They opened stores and through customer relation and strategic management launched the digital lifestyle.
Apples incredible success is attributed to innovation and design of quality products differentiating them with those of its neighbor. Their iMac computers omitted the floppy disc drive which is evidently compulsory for any other company. Second, Apple encourages customer visits visit’s to its stores which provide help desk care and sales. Therefore, they built customer loyalty. Finally, Apple shares its revenue with developers a move that promotes more creativity in application development.
The absence of Steven Jobs in Apples management is seen to have little impact. Job had created the foundation for the success of the company in form of top-selling products and enviable management.
Microsoft is not as much successful as Apple because, first, it manufactures the software and hand it over to hardware makers who build what the user wants. This strategy does no down well in relation to a single company which assembles everything. Second, Microsoft is committing design faults ever since. Devices that attract the market should continually be slim and lighter. Apple has capitalized on that. Third, Microsoft is not too swift to read the market signs and act quickly the way Apple does. Fourth, Microsoft do not encourage customer interaction and loyalty through retail stores the way Apple did. Finally, Microsoft do not offer low cost tablets and Smartphones intended for the low class masses.
Apple is the best option in terms of investing my $5000. The company has developed a good brand name in addition to reliable customer relations and quality products.
References
Elsevier. Flash Mobile: Developing Android and IOS Applications. Focal Press.
Hammond, J. (2008). Branding your Business. Kogan Page .
