Brand Equity

...

Competitive Advantages

Technology companies often have difficulty standing out against their competition. The most successful companies find their own unique ways to create a competitive advantage in order to edge out the competition. Apple does a superb job of finding a way to stand out and keep the customers coming back time and time again.

- Brand Loyalty

Apple has been among the most successful technology companies in the development of loyalty to a brand. Loyal Apple customers will wait in line to purchase the latest iPhone, download music through iTunes, watch their favorite television shows on Apple TV and play games on their iPads. The company's efforts toward building brand loyalty has allowed Apple to differentiate itself from Microsoft, Samsung and other competitors in its various arenas. This loyalty not only strengthens your revenue potential with those customers, but it is more likely that they will recommend your company to friends who want the same benefits.

- Increased marketing communications effectiveness

Apple consumers will be interested in hearing about apple’s new product because they recognize apple as an electronic industry leader. In some cases, the consumer does not know why you are an industry leader but is familiar with your reputation.

- Improved perceptions of product performance

The hardware design is elegant. There is no better word for it. Apple has the best-designed hardware from an aesthetics point of view of any vendor. For the cellphone market, people are crazy with the advanced and developed iPhone. Because it is so impressive that make your life and work easier.

- Greater trade cooperation

Apple is using the internet to market to athletes, or consumers interested in physical fitness, by partnering with Nike to develop the Nike + iPod Sport Kit or Sensor. Apple developed the iPod to be able to record running times by placing a special sensor in a runner’s shoe. Customers must sync the iPod at www.nikeplus.com. Additionally, the iPod Nano and iPod Touch can record work-outs on cardio equipment that is Nike + iPod compatible.

- Premium Pricing Strategy

Apple sets premium prices for its products and minimizes discounts to wholesalers to keep prices consistent across the market. The company aims to offer customers a high-quality product with unique features and uses high prices to reinforce the perception of added value and maintain profitability.

Apple’s general policy does not reduce prices on new products - when it has done so, as with the cheaper iPhone 5c, they have generally been a failure. Apple’s strategy is to continuously produce greatly improved, best of all entirely new, products – the iPod, iPhone, iPad etc. This strategy of ‘maintain the price, raise the quality’, is therefore accurately termed ‘product innovation.’

Conclusion

Apple has constantly remained competitive in the technology industry by developing innovate products. The have built a solid reputation based on quality and product design. Apple has taken advantage of the internet by marketing its products on the Apple website, creating the Apple online store and developing programs, such as iTunes.

Customers can easily shop for and purchase Apple products online. This feature saves customers time and money, as they no longer need to travel to an Apple store to purchase Apple products. If a customer has an issue related to an Apple product, he or she can access the product manual at the Apple website, eliminating the need to call Apple’s customer service department.

Apple has certainly mastered competitive advantages by leveraging their IT expertise. As long as Apple continues to develop high quality, innovative products for the demanding consumers, provides easily accessible product information on their website and develops unique programs the company will be a constant threat to their competition.

Reference Sources:

http://www.ehow.com/way_5815745_apple-differentiation-strategy.html

http://www.ehow.com/info_8373070_importance-competitive-advantage.html

http://www.ehow.com/about_5453221_apple-vs-windows-computers.html