Apple Case: Clients and the Brand Itself

Topics: IPhone, ITunes, IPod Touch Pages: 4 (1296 words) Published: January 28, 2013
1. Apple’s success is also due to the many important historical competitive advantages that the company was able to develop during the years. Starting from Steve Jobs’ garage the company has had the capabilites to attract loyal customers who, with time, started loving their Macs instead of simply “putting up” with them. The company was able to establish a deep relationship between clients and the brand itself. Thus, the customers’ loyalty allowed Apple to sell its products at premium prices which resulted in a gross profit of 50%; therefore, the company was able to invest in R&D and develop interesting and unique products that made Apple what it is today. There are many features that brought the customers to love their Macs and to not want to buy devices other than Apple’s. A winning feature is the ease in use, which later evolved in a superior software that allowed plug-and-play peripherals. Other appealing characteristics to the public were the industrial design and the technical elegance of Apple’s products: Apple has the best designed hardware from an aesthetic point of view. Furthermore Apple has created the incredibilele value of its brand through strict policies and decisions. For instance, Apple refused to license its hardware and software creations to third parties. This is why a Mac user does not have a real alternative or substitute, and once he or she gets into Apple’s world he or she can hardly abandon it. Apple wanted to make its own way through the market becoming a cultural force and promoting itself as a hip alternative to other computer brands.

2. The PCs’ industry has historically been one of the fastest growing markets reaching the billion of computers in use in only 30 years. The unique evolution of internet in everydays life pushed the growth of the market, supported by decreasing prices and expanding capabilities. Althought the sales’ volume was increasing extremely, companies’ revenues could not follow the same trend; the average...
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