Top Dog vs Under dog: Apple and Microsoft

Apple and Microsoft are two of the biggest companies in the world - and each others most contentious rivals. It wasn't always this way however. Both companies were founded in the late 1970's, one by Bill Gates and the other by Steve Jobs. They actually had a collaborative business relationship in the beginning with one focusing on developing software, and the other on designing state of the art desktops. Soon they split apart and began the race for innovation in the technological field they were competing in. As it now stands of Jan. 2022, "AAPL had a market cap of around $2.61 trillion. Microsoft briefly edged out Apple as the largest company in the world riding on the strength in the growth of its cloud computing business, but MSFT has now fallen to second at $2.17 trillion (Ross, 2022)."

What is the brand strategy being used by the top dog?

Top dogs, in this case Apple, are "market leaders, or the strongest brands with the largest market shares in their product categories (Kardes,2020)." In order to stay on top, they often try to prevent a  change in the status quo. They may encourage consumers to '“stick with what works”; remind them that “you get what you pay for,” and emphasize that “we’re always there when you need us (Kardes, 2020).”' Apple does this through the "Apple Ecosystem Lock", which stems from the company's "insistence on integrating its products, making it easier to keep using new Apple products and thus more difficult to switch to a competitor's interface (Ross, 2022)." This retention strategy discourages consumers from trying other brands by utilizing exclusivity and convenience. Current customers may stay loyal because it requires effort and a degree of risk to go with the competitor and transfer all your important data into an entirely different system.

What is the brand strategy being used by the underdog?

Underdogs must do the opposite of top dogs and bark loud enough to disrupt the status quo. They have to distinguish themselves as a unique breed that rises above the pack of competitors that are crowded by ambiguity. Microsoft embodies this by adapting and trying to be what's next. Despite falling behind in the race against Google and Apple, "Microsoft unveiled a new vision in April 2014, instantly shifting focus to make Windows software more compatible with competitor products, such as the iPad (Ross, 2022)." They have also developed rivals to this device with the Microsoft Surface and Surface Pro, as these products are beginning to replace PCs. CEO Satya Nadella describes a new business model for the company that "emphasizes product integration, a "freemium" software package, and a concentration on its cloud computing business (Ross, 2022)."

How can the underdog improve its strategy so that it can gain more market share and surpass the top dog? Provide three recommendations.

Microsoft needs to shock the status quo by upping its cool factor and becoming more iconic. It should expand its customer base to younger people in order to build more loyalty, longevity, and motion.  Microsoft doesn't role off the tongue like a sweet fruit. It should work on being appealing and relevant to this demographic not just through function (which is great!) but through style. Apple spoke to people through music and entertainment like in this iconic ad. Building a reputation that young people want to associate themselves with and are proud to flaunt might take Microsoft in a whole new direction but it is worth pursuing in order to stay relevant.

They might do this through:

1. Encouraging consumers to challenge their current beliefs (reinvigorate brand image)
2. Using unusual educational approaches to increase customer learning (memes, influencers, viral trends)
3. Selling products through unusual distribution channels (events, school programs)

Why do you believe consumers prefer the top dog over the underdog? Which do you prefer, and why?

Though I am loyal to Microsoft myself, I believe the majority of consumers prefer Apple for its simple, sleek, and trendy reputation. The latter connects with younger demographics who tend to be early adopters of technology with fun ads of dancing silhouettes for their iPods, and aesthetically pleasing products that make the consumer look and feel cool while using them. Microsoft seems more humble and understated by focusing on the many attributes its' products provides rather than the coolness factor. I personally find Microsoft easier to use with more straight forward features. I'm also an android person, and have never owned an iPhone. I'm usually drawn to the quiet confidence of the underdog rather than the brash, loud, and popular top dog. Sometimes the underdog has amazing qualities that get drowned out by the top dog's already massive platform, so I tend to give them a chance before going with the flow of the masses.

References

Kardes, F., Cronley, M., & Cline, T. (2020). Consumer Behavior (2nd Edition). Cengage Learning US. https://mbsdirect.vitalsource.com/books/9781305161689

Ross, S. (2022, January 26). Apple vs. Microsoft Business Model: What’s the Difference? Investopedia. https://www.investopedia.com/articles/markets/111015/apple-vs-microsoft-vs-google-how-their-business-models-compare.asp

Top 10 Business Rivalries. (2014, May 25). [Video]. YouTube. https://www.youtube.com/watch?v=1OE4Q60Dzyw