Apple Inc. in 2010: the Competitive Advantages of Apple

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Q1. The competitive advantages of Apple are the user-friendly interface, the new design, the innovation functions, the creator of personal computer and their long history brand name. The most important is their marketing strategy.

As the creator of personal computer in the industry, Apple deliver a high quality product to market, they make loyalty to consumers, make people feel what they get more than what they paid. Although, the selling price was not lower than the other computers. Apple’s customers really “love” the products.

Attractive designs was one of the key points of Apple, they attention to details of computer, their iMac is the all-in-one design, when everyone thinks computer at least have two parts, the iMac were everything at once. It changed people’s thinking, and reforms the computer industry.

Over the year, Apple use the Intel-powered computers in their product line to increase the market share, at the same time it solve the disadvantage to choose Apple’s product is the lack of Macintosh software. From hardware to create a user-friendly interface, people can install Microsoft window applications as well. Apple didn’t stop their innovation, later on some applications create by Apple even faster than Microsoft.

The most stronger competitive advantages is the marketing strategy, Apple focus home consumers’ lifestyle, although they are not the top computers in the market, but Apple try to blend into people’s life, focus on what people needs rather than selling the functions of products. It makes consumers feel good and easy to carry, then want to try on it.

Apple setup apple store and website for consumer face-to-face try their product and order directly, the purpose for people to try not only focus on the loyalty customer, is for the other haven’t try Apple’s product before, people can do the experience of i-products. Doing so can have an advertising effect and can be used for direct selling to eliminate middleman part, control the price better.

Most successful company has their brand ambassador, Apple also have their own, it was Steve Jobs – the key and the “soul” of Apple. Every time when Apple have the announcement for the new product, Jobs will come up and host for the presentation, the CEO do the presentation makes people feel is there any special thing, Jobs become the icon for Apple, he attract people’s attention, this action makes consumers exciting Jobs briefing.

All these points are something intangible resources of Apple, of course is not the only reasons of Apple successful, but all of these cause Apple’s product are non-substitutable, valuable, rare and costly-to-imitate, other competitors are hard to do so, that’s why Jobs invest a lot of their R&D because it is the core competencies of Apple.

Q2. Here are the analyze for the personal computer industry of Apple’s dynamics favorable or problematic.

Bargaining power of Supplier: CPUs were the hardware of PC, the functions like human brain for the process, it is master of a PC. In the Microprocessors and Operating system filed Intel and Microsoft are leading the market, the PCs in the market almost use the Intel CPU and the Microsoft application, in order to pander to the market. Apple shift to Intel CPUs in 2006, from now on Apple’s laptop can use Microsoft application. Due to no other CPUs can competed with Intel at this time, the bargaining power of supplier are strong.

Bargaining power of buyers: Nowadays PC is the needs in daily life, the largest group consumers are home consumers, concern about the design, mobility and wireless, but the outlay or the feature almost the same. But Apple’s Macintosh was different, it is a “Digital Hub” it is a digital cameras, portable music players and digital camcorders, brings people into a digital lifestyle, this idea must PC get away from a machine, it can be more fun. And then Apple introduce a new OS, it keep update every 12 to 18 months, it is greater frequency than...
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