However, Apple’s iPhone has also become popular because of the growing demand for smartphones in the global market.
Apple Inc. conducts its business in a highly competitive market and experiences threats of monopolistic competition in business (HSC “The International Business Cycle”). In order to acquire a greater share of market demand and gain superior core competencies, the organization tries to offer qualitatively unique non-imitable products (Porter 87). Apple Inc. implements differentiation strategy in business for offering electronic hardware products such as iPhone. However, across all its international marketplaces, Apple offers standardized iPhone models. The technological features used in iPhone are authentically patented by the company. These Smartphone manufactured by the company are run through Apple’s own customized software, iOperating System (Apple Inc. “Financial Information”). iPhone is well known all over the market for its bigger screens, strong battery life and unique design. No other market rivals of the company can exactly imitate the internal and external features of iPhone. Product differentiation strategy helps to augment the brand value of Apple Inc. in the global forum. Consumers prefer to purchase iPhone because of its rare features and non-comparable applications.
Apple Inc. procures most of its hardware electronic products from the Asian economies. These semi-finished products are acquired by the company through the process of outsourcing. Some raw materials are obtained by Apple from its OEM trading partners (Apple Inc. “Financial Information”). Through an automated receiving system, Apple Inc. effectively manages the stock of its inventory. The organization utilizes environment-friendly means of production for ensuring low generation of toxins during its manufacturing process (Porter 160). Many by-products formed from the production process of Apple are recyclable in nature. The production amenities of the company aim to offer zero landfill facilities.