Photo Courtesy of Apple

As a challenger, it takes a sharply focused strategy to secure top-of-mind status in your luxury real estate marketplace, and also to seize the lion’s share of business from the incumbent market leader. Complacent leaders can often be caught off-guard by a challenger with a fine-tuned brand strategy. If you want to sustain your own market leadership THINK STRATEGICALLY! Study the brand strategies of the most highly valued brands in the world.  And, that is what we begin to explore in this article series. 

Lately, doubts have been cast about the ability of Apple (#1 highest valued brand in the world) to fend off the fierce competition of Google (#2), Samsung (#30), Amazon (#14) and Microsoft (#7) in the realm of smart phones and tablet computers. Sustaining their market leadership will require Apple to create an impenetrable buffer zone to protect their overall lead in these combined categories, in terms of revenue, and create switching barriers, to hold on to existing customers. 

But, first let’s start with Google who wants to rule the world of online advertising. One of their key strategies is offering their Android operating system software for FREE.  Better yet, they entice device makers and app developers to use Android though profit sharing on the sale of apps in their app store. 

Some pundits believe that this "better than free" strategy along with Google’s Motorola acquisition will significantly drive down the prices of smart phones and tablet hardware, which could completely commissioned those devices.  The cost of offering cheap hardware, free software and cash incentives constitutes their buffer zone. And, it should be offset with Google’s increased ad revenue given their potential dominance over the highest volume of devices in the world, which are Android based.

This could potentially be a huge threat to Apple  But, Apple is definitely not complacent.  In Part 2 of this article series we will explore what Apple’s strategy appears to be for maintaining their leadership position as the world’s most valuable brand.   

PART 1   l   PART 2   l   PART 3

Written by Ron & Alexandra Seigel-


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