Comparative Study between Cost Leadership Strategy and Differentiation Strategy on Company Profitability/Market Share: Case Study Apple and Nokia

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ACKNOWLEDGEMENT

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I, [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

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ABSTRACT

In this study we try to explore the concept of competitive strategies in a holistic context. The main focus of the research is on Nokia and Apple and its relation with cost and differentiation strategy. The research also analyzes many aspects of competitive strategies and tries to gauge its effect on Nokia and Apple. Finally the research describes various factors which are responsible for strategies and tries to describe the overall effect of strategies on Nokia and Apple.

Table of Contents

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

Introduction1

Research Aim2

Research problem3

Research Objective3

Research Question3

Electronic data base searches4

Inclusion and exclusion criteria4

Search rationale4

Layout of the Report5

Learning Process6

CHAPTER: 2 LITERATURE REVIEW8

Part 1: Industry Overview8

Competitive Strategies10

Part II: Strategic Framework11

Porter's Generic Strategy Framework11

Cost Leadership Strategy13

Product Differentiation Strategy16

Focus20

Sustainable Competitive Advantage20

Porter's Five Force Model25

Barriers to Entry26

Barriers to Exit27

Competitions/ Rivalry27

Threat of substitutes27

Bargaining power of buyers and suppliers28

Resource Based Strategy28

Value Innovation: Blue Ocean Strategy29

Nokia30

Apple Incorporation32

CHAPTER 3: CONCEPTUAL FRAMEWORK35

Synthesis of Research Framework35

Variables of the Study36

Linkage with the Research36

CHAPTER 3: METHODOLOGY37

Research Objectives37

Research Approach37

Research Instrument39

Data Collection Method39

Techniques for Finding Data40

Research techniques40

Quantitative Research43

Interviews44

Questionnaires45

Design of Questionnaire45

Informed Consent46

Confidentiality47

Validity47

Reliability49

Sampling50

Sample in Current Research Study51

Ethical Considerations52

CHAPTER 4: DISCUSSION AND ANALYSIS53

Findings of the Research53

Part A: Descriptive Questions and Quantitative Survey53

Qualitative Research: Findings from the Focus Group Interviews60

Discussion of the Findings61

CHAPTER 5: CONCLUSION68

REFERENCES73

APPENDIX78

Questionnaire78

Focus Group Interviews81

CHAPTER 1: INTRODUCTION

The subject at hand pertains to the discussion of differentiation and cost leadership strategy in context of gearing and analyzing the marketability and profitability of the company. This investigative study undertakes the discussion in a much detailed manner and through a comprehensive research. For this purpose, two companies, Apple Inc. and Nokia have been taken into consideration and the research has been performed on the benefit of utilizing cost leadership and differentiation strategies inside the organizations.

Introduction

Mobile device is taking over the present world and Web interactions with mobile phone are becoming a necessity. Not only are more people accessing the Web while they are on the go, but they are doing so with mobile applications for smart phones like Apple's iPhone, Google Android and BlackBerry. Since the creation of mobile phone in 1980 by Motorola then evolving into a smart phone (personal computer) in 1994 by Apple (Key Note Market Report 2011), the introduction of the iPhone was immediately viewed as a 'style leader', and a challenge is now being mounted by other 'smartphone' brands using applications ('apps') that effectively turn them into mini computers. Companies such as Microsoft and Google are also being drawn into the market, intensifying the competition.

Nokia has been the world leader in ...