In response to Nicole’s post about Apple’s shift in generic strategies, I believe that the decision Apple made is not entirely disadvantageous because pursuing multiple strategies can give the company more dimensions.

Although the iPhone 5c is relatively cheaper – $99 with a contract and $550 off contract – (Reed, 2013), the features of the phone also went down as it has a slower processing speed and lower storage capacity. It is evident that Apple is attempting to shift to a Focus Strategy. Nicole says that this is a bad decision because it strays away from the rest of the Apple products, which follow a differentiation strategy, therefore putting the company at a “stuck in the middle” situation. However, I argue that it is not entirely bad. As mentioned in our reading, customers often seek satisfaction from various dimensions in a product such as quality, style, convenience and price. I feel that if Apple plans this strategy out it will make the company stronger and more difficult to be replaced by new entrants or existing substitutes. This low cost strategy has already helped Apple sales in oversea markets and made the product more appealing and affordable to teenagers and low-income families.

Reference:

Piccolo, M. (2013, October 2).  iPhone 5c Release: How the New Phone Redefines Apple. Retrieved from http://www.policymic.com/articles/66009/iphone-5c-release-how-the-new-phone-redefines-apple

Reed, B. (2013, October 8). Tim Cook may regret dismissing low cost smartphones as ‘junk’.  Retrieved from http://bgr.com/2013/09/20/apple-ceo-cook-iphone-5c-analysis/