The purpose of the paper is to discuss the contribution of Porter’s diamond model to the success of Apple Incorporated. Various aspects of this model such as firm strategy, demand and factor conditions, as well as supporting and related industries will be considered in determining their contribution to Apple’s international success.
However, this company has also ventured into other technology-related businesses among them the production of personal computers and computer software. In addition to these investments, it is also involved in the business of providing online services. hence, it has a healthy range of products for its target market. However, Apple is not on itself in the production of computer electronics. It faces a lot of competition from other equally well-established international companies such as Samsung from South Korea and China’s Hawaii. Their main points of competition besides the usual superiority of their respective products also border around other aspects such as product pricing and market appeal.
In coming up with the Diamond strategy, Michael Porter recognized the fact that the strategies invoked by a firm play a crucial role in determining its market performance (Reinhert 2013, p.15). Hence, for multinational companies such as Apple, the strategy is of the essence as it helps direct their approach towards the market. A primary strategy that is the hallmark of this corporation is differentiation. In the world of technology whereby consumer tastes and preferences tend to revolve around similar product attributes, differentiation is of the essence. The unique designs of Apple products and their high quality have greatly served to set them apart from the products of other competitors such as Nokia.
Another vital strategy is value creation. This company has outsourced manufacturing functions to third parties as a way of focusing on product design and the creation of user interfaces.