Service Industry Analysis - Apple

Topics: Operating system, Apple Inc., Mac OS X Pages: 9 (3106 words) Published: April 3, 2012
Service Industries Critical Analysis

Service Companies Chosen for Analysis: Apple and Hewlett-Packard (HP)

Apple and HP are both multinational corporations that are widely known for producing consumer electronics and software. Both companies are considered to be one of the largest companies in their market, and would be considered to be competitors of each other. With the products and services that they offer being similar, they would be ideal companies for a critical analysis against each other. Both companies implement different strategies, with both leading to their success. Over the years of the company’s existence, Apple has built for itself a strong and powerful reputation within the personal computer and consumer electronics industry. Certain strengths of the company are what make it different from other companies within the industry, and are what leads to its success. Apple and HP both take different strategies, which give them a certain advantage in different aspects of marketing. One of Apples most obvious strengths would be its reputation due to its large name and its loyal fan base. There’s a saying “once you go Mac, you’ll never go back”, and there is definitely a reason for that sayings existence. Apples quality products and designs have created for them a loyal fan base, which is truly a strength component when it comes to the personal computer industry. Having many loyal returning customers is also more cost efficient than spending millions on advertisements and promotions to lure new customers. This is something that HP lacks. Apple already has a pool of customers that will always buy their products. The satisfied customers make them always coming back for more. The reliability of their products along with the customer service gives them that advantage. When Apple decides to release or update their product, there is already a guaranteed customer base. As with HP, they tend to not have that specific and loyal customer base. Their customer base is larger though; they appeal to those who use Windows based computers. The market for Windows based electronic devices is much larger than that of the Apple based products. In the personal computer market, HP competes with other brands that sell computers with the same operating system. This comes with several advantages as well as disadvantages.

Apple being the only licensed distributor of the operating system, the OSX, may give them an advantage over their competitors. The operating system is known for its user-friendly and efficient functionality. The operating system is one of the main reasons for Windows based users to switch to purchasing and using OXS based Apple computers. The disadvantage is the smaller pool of customers. While Apple appeals to only those interested in the OSX, HP appeals to the larger mass. According to ComputerWorld, a highly popular and trusted technology information website, Windows users make up of about 89.6% of computer users while Apple users made 8.9% and Linux made the remaining 1.5% (Keizer). The Mac operating system also can not run certain Windows programs which are necessary for certain users. For example, many engineer students require certain programs throughout their career to assist them in their courses. Many of these programs can only be run on the Windows operating system. Although the Windows operating system could be installed on Apple computers, it cost the consumer extra money to purchase and install the operating system on their machines. Although many users praise the operating system for its ease of use and functionality, it lacks compatibility. Since the Windows operating system is more widely used throughout the world, the Apple OSX should be able to adapt to Windows. Compatibility is a large issue with Apple and Windows based products. Since the market for Windows based products is much larger, this gives Apple a huge disadvantage. Compatibility becomes an issue with even basic things such as the...

Cited: Hewlett-Packard Company. 10-K Annual Report 2010. Retrieved June 6, 2010, from SEC EDGAR website.
Apple, Inc.. 10-K Annual Report 2010. Retrieved June 6, 2010, from SEC EDGAR website.
Keizer, Gregg. "Windows Market Share Dives below 90% for First Time - Computerworld." Computerworld - IT News, Features, Blogs, Tech Reviews, Career Advice. Computerworld, 1 Dec. 2008. Web. 06 June 2011. <>.
Flides, NIC. "HP Signs Deal to Take on ITunes - Times Online." The Times | UK News, World News and Opinion. Times Online, 25 Jan. 2010. Web. 06 June 2011. <>.
Mearian, Lucas. "Beats Audio Proves Increased Sales." Computerworld - IT News, Features, Blogs, Tech Reviews, Career Advice. 30 Apr. 2010. Web. 06 June 2011. <>.
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