Does the strategy seem to be keyed to a cost-based advantage, differentiating features, serving the unique needs of a niche, or some combination of these?

Business Strategy 21e has the Starbuck’s case and Business Strategy 22e has the Apple case. Use whichever case is in the textbook that you purchased.  However, the 22e is the one being used for this course.

Based on your experiences as a coffee consumer or Apple User

  • Does Starbucks’ or Apple’s strategy (as described in Illustration Capsule) seem to set it apart from rivals?
  • Does the strategy seem to be keyed to a cost-based advantage, differentiating features, serving the unique needs of a niche, or some combination of these?
  • What is there about Starbucks’ or Apples’ strategy that can lead to sustainable competitive advantage?

You can do some research on the Internet to support your responses.

Student 1:

Does Starbucks’ or Apple’s strategy (as described in Illustration Capsule) seem to set it apart from rivals?

According to the illustration capsule describing Apple’s key elements, I believe it does have a successful business strategy that set it apart from rivals. Apple is one of the most famous and profitable companies in technology industry. It puts a lot of contributions as well as spending massive capital on developing creative products that give customers better and easier experiences of using their products. Moreover, the series of Apple’s products such as Mac, iPhone, iPad, Apple Watch, Apple TV meet customers’ different needs. Therefore, if customers buy one of Apple’s products, they will probably buy its other technology as well.   

Does the strategy seem to be keyed to a cost-based advantage, differentiating features, serving the unique needs of a niche, or some combination of these?

I believe Apple strategy seem to be keyed to differentiating features. Apple continuously investing in research and development and frequently introducing products, which it masters the most advanced technology. Thus, its users are willing to pay a premium price for Apple products, and this could be one of its major source of competitive advantage. Since it spends upwards of $11 billion a year on its products sufficiently innovation and design, Apple has successfully adopted of a broad differentiation strategy.

What is there about Starbucks’ or Apples’ strategy that can lead to sustainable competitive advantage?

While Apple is currently the world’s leading technology company, many other technology companies have grown rapidly and catch up with Apple’s popularity and profitability. They now have many strong competitors. I think Apple has some great strategies that lead to sustainable competitive advantage, such as focusing on its inimitable value proposition, staffing them with knowledgeable personnel, cultivating a diverse workforce and so on.

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