Strategic Choice: Apple: Differentiation v Scale

A fascinating, short interview here with Tim Cook, CEO of Apple.Cook compares Apple's performance to its competitors, and explains his product strategy in an onstage interview.His argument is clear. Apple's strategy is one of differentiation, not cost leadership based on market-leading scale. For Apple, it is not about making the most of each of the product categories in which it has a presence - it is about making the best in the market.So, Samsung is now the clear global market leader in mobile phones (including the fast-growing smartphone segment). But Cook argues that Apple makes the best phone. Compare the iPhone 5 with the Samsung Galaxy S4 - is he right?For students, an important question to consider is this - what the key advantages that a successful strategy of product differentiation can bring? And can it be sustained against the intensive competition that Apple is facing from the likes of Samsung, Google and Huawei?