Why Innovation Could be the Key to Apple’s Growth Entrepreneurial

WhyInnovation Could be the Key to Apple’s Growth: EntrepreneurialStrategy and Competitive Dynamics-Chapter 8

WhyInnovation Could be the Key to Apple’s Growth: EntrepreneurialStrategy and Competitive Dynamics-Chapter 8

  1. Synopsis

Nair(2014) addresses the key factors that have enables AppleIncorporation to succeed amidst the stiff competition in thetechnology industry. According to Nair (2014) Apple’s success isattributed to two key strategies, including the pricing strategy andproduct differentiation. Apple achieves the differentiation strategyby designing products that are unique and attractive to itsconsumers. Apple products are designed in a way that keeps them aheadof the curve compared to products that are produced by itscompetitors (Nair, 2014). In addition, Apple has managed to achievebrand loyalty by differentiating its products from those ofcompetitors instead of focusing on price competition. Apple’sdifferentiation strategy has four pillars, including a focus on asmall number of products, emphasis on the high end, prioritizingprofits over the market share, and making a hello effect (Nair,2014).

  1. Relevance of the article

Thecontent of the article is relevant to the course topic ofentrepreneurial strategy and competitive dynamics. The articlespecifically relates to the subtopic on differentiation as one ofgeneric strategies for new ventures. Dess, Lumpkin, Eisner andMcNamara (2014) stated that product differentiation can be achievedby applying new technology or deploying company resources in radicalways. Apple Incorporation is one of the companies that have managedto successfully apply the differentiation strategy to secure a largemarket share and consumer loyalty in a highly competitive industry.In the case of Apple Incorporation, differentiation is achieved bythe use of new technology, which results in production of uniqueproducts that can address specific needs of the consumers (Nair,2014). Apple Incorporation avoids direct competition with otherplayers in the technology industry focuses on quality and specialfeatures of its products.

Productdifferentiation is a strategy used by companies to enhance theircompetitive advantaged in the contemporary business environment thatis characterized by cutthroat competition (Dirisu, Iyiola andIbidunni, 2013). According to Dirisu, Iyiola and Ibidunni (2013) aneffective product differentiation is achieved by matching consumerrequirements (including wants, desires, needs, buying patterns, andpreferences) with organizational capabilities based on resources andskills available to the organization. Players in the current rapidlychanging business environment are competing for market shares,customers, and revenue, but the successful firm should be able toaddress the needs of its target customers. Effective deployment ofscarce resources is one of the techniques that help companies inachieving the quality standards and features that characterizeproduct differentiation (Dess, etal.,2014). Currently, Apple Incorporation is being distinguished from itscompetitors because of its capacity to utilize the expertise inhardware and software development departments (Nair, 2014).


Dess,G., Lumpkin, G., Eisner, A. and McNamara, G. (2014). Strategicmanagement (7 th ed.).New York: McGraw-Hill Education.

Dirisu,I., Iyiola, O. and Ibidunni, O. (2013). Product differentiation: Atool of competitive advantage and optimal organizational performance.EuropeanScientific Journal,9 (34), 258-281.

Nair,S. (2014). Apple’s premium pricing strategy and productdifferentiation. MarketRealist.Retrieved July 21, 2014, fromhttp://marketrealist.com/2014/02/apples-premium-pricing-strategy-product-differentiation/