Question

In the computer tablet market, provide an example of a company that is using a cost leadership business strategy and one that is using a differentiation business level strategy?

(150 words minimum)

Answer 1

In the tablet business, Apple is utilizing product differentiation while Xiaomi is utilizing cost leadership business started with their products the iPad air and Mipad range.

While the IPad has a number of features, capabilities, and uses, the MiPad offers similar functionality at a fraction of the cost with differences being the ability to provide the functionality either at a reduced service level or making use of their third-party processes which the iPad is already capable of providing on its own. There are also differences between the Android and the iOS but these differences do not play a major role in their appeal to the customers.

What makes their offering unique is that the iPad can be utilized as a portable workstation and with its bundled apple pen, can also be used as a drawing device which has a number of uses. While the mipad lacks the functionality but makes up for it on the basis of its pricing model.