Target Markets and Establishing a Competitive Advantage

Target Markets and Establishing a Competitive Advantage

Apple Inc. is one of the selected brands for analysis. The company focuses on selling electronic products such as computers and mobile phones. The company is reputable and is one of the leading brands globally, with a firm place in the market regarding positioning and market segmentation. According to Tien (2019), the company has middle-class and upper-class individuals as its primary target markets. The choice of this market target is influenced by the quality of products and services offered by Apple Inc. Notably, middle and upper-class individuals are willing to spend on products and services with a high-quality user experience without considering their price. Accordingly, Apple Inc. takes advantage of this nature of the target market and sells them quality products that offer a great user experience. The company is criticized for being pricy on its products. However, the high prices are one way of serving their target markets effectively and attaining a competitive advantage.

Further, Apple Inc. derives its competitive advantage in the marketplace from its ecosystem. It enables the company to sustain its operations in the market and avoid competitive threats. The ecosystem entails a long-established innovation reputation for creating new products. The brand is always in the lead regarding developing unique and effective products. For instance, the company was the first to generate touchscreen smartphones and a graphical user interface (Hagiu & Wright, 2020). The ability to develop innovative products based on a similar operating system is a significant source of competitive advantage within Apple Inc.’s ecosystem. However, the company’s competitive advantage in the marketplace is drawn from other aspects. They include substantial brand equity, as indicated by the company’s share in the stock market, an integrated and robust supply chain, and a premium pricing strategy.

Another brand that is considered in this paper is Netflix. The brand is an entertainment service company that offers television shows and movies to watch online. Their customers subscribe to the company’s website and enjoy many products on their mobile devices, computers, and TVs. Netflix draws its target market from more than 190 countries in the world. The target market comprises individuals of younger ages, both male and female. However, the number of female subscribers is relatively higher than that of males by 4% (Annissa et al., 2020). Additionally, the market target for Netflix is influenced by the need for entertainment by young people compared to older individuals. Although the target market is composed of diverse demographics and age groups, an analysis of Netflix subscribers confirms that most of their customers are tech-savvy and young users with internet connectivity.

Netflix draws its competitive market advantage from its pricing power. Currently, the company has higher prices than any other competitor. Although the pricing is a source of competitive advantage, it can be drawn from the company’s brand name, built over a long period. The brand name has attracted many subscribers to its platform for various entertainment services. According to van Es (2022), Netflix prices are a competitive advantage because they optimize customers’ time on their services. It is a marketing strategy that ensures quality content is channeled, allowing them to charge more than competitors. Additionally, the company has a strong market performance regarding its stock, which wins customers’ confidence.

References

Annissa, I., Susilawati, W., Suseno, N., & Hamdani, N. A. (2020). Netflix Consumer Preference Analysis. Strategic: Jurnal Pendidikan Manajemen Bisnis, 20(2).

Hagiu, A., & Wright, J. (2020). When data creates a competitive advantage. Harvard Business Review, 98(1), 94-101.

Tien, N. H. (2019). International distribution policy comparative analysis between Samsung and Apple. International Journal of Marketing Management and Sales Research, 2020(1), 2.

Van Es, K. (2022). Netflix & Big Data: The Strategic Ambivalence of an Entertainment Company. Television & New Media, 15274764221125745.

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You will research one or two well-known brands and discuss their competitive advantage with what you have learned in this course.

Target Markets and Establishing a Competitive Advantage

Instructions:

 For this assignment, you will begin researching target markets and competitive advantage. Please choose one or two well-known brands and describe and discuss their target market(s) and how they established a competitive advantage in their marketplace.