Preview

What, Historically, Have Been Apple’s Competitive Advantages?

Good Essays
Open Document
Open Document
1364 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
What, Historically, Have Been Apple’s Competitive Advantages?
APPLE INC.
1. What, historically, have been Apple’s competitive advantages?
Apple pursues a differentiation strategy since it started in 1976. Only one time they offered a computer aiming for the mass market, but soon came back to their differentiation strategy. This differentiation strategy was at one point supported by a strong promotion campaign, with the goal of to ‘differentiate the Macintosh amid intense competition in the PC industry. Apple has always been a very innovative PC manufacturer. Through excellent R&D, Apple always managed to launch PC innovations on the market. Although the products sometimes showed weaknesses, the innovative role still gave Apple a lot of attention. Apple designed its products typically from scratch, using unique chips, disk drives and monitors. This created a high value image of the Apple PCs and made the customers ‘love’ their Macs. These loyal customers allowed Apple to charge premium prices for their products.
2. Analyze the personal computer industry. Are the dynamics favorable or problematic for Apple?
Technology in Pc industry became cheaper and affordable over time. Company´s growth was driven by low prices but revenue growth did not match with the volume growth. This led to a decrease in R&D. Hence almost all PC suppliers used cost differentiations as their strategy and sell to volume. The consumers cared deeply about price, home consumers also valued design, mobility, and wireless connectivity, business consumers balanced price with service and support and at last education buyers depended on software availability.
It can be said, that the dynamics were problematic for Apple because of low prices of different supplier. But on the other hand it can be seen as favorable to Apple. The reason was Apple had control of both hardware and software. This was a unique strength which other computer industry did not possess. Furthermore, Apple revamped its product line which offered machines that could deliver a
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Satisfactory Essays

    A Comparison Of Apple, Disney And Chick-Fil-A
    • 481 Words
    • 2 Pages

    A Comparison Of Apple, Disney And Chick-Fil-A

    A huge collection of computers and products of electronics used by consumers such as television adapters, music players, smart phones and tablets are offered by Apple. These products bring factors such as innovation, strength of the brand, strategies of premium pricing and management of supply chain which gives them an advantage of competition.…

    • 481 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Better Essays

    Visual Literacy in Business/Cgd 218
    • 1042 Words
    • 5 Pages

    Visual Literacy in Business/Cgd 218

    Apple, Inc. has revolutionized personal computing since its founding in 1976 by Steve Jobs, Ronald Wayne and Steve Wozniak. For more than 30 years, Apple, Inc. has introduced groundbreaking products and accessories that truly defy the technological barriers. It has now become one of the world’s most famous computer brands and has introduced innovative products such as iPods, Macintosh, Mac laptops and QuickTime. The logo for Apple, Inc. F.K.A as Apple Computers, Inc. is possibly the most recognizable logo in history. For the past three decades, Apple, Inc. has been the pioneer in the computing industry with its landmark products. In the late 1970’s, the founders Steve Jobs, Ronald Wayne and Steve Wozniak introduced Apple Computers, Inc. to the American public. I was only a year old when the company was established and was familiar with their products growing up as a child. I do not have a distinct moment in my childhood that stands out relating to the Apple Computer however by the time I could understand the concept of computers Apple was already a household name. From the 1970’s to today, the company has experienced many transitions. From the dismissal of its co-founder Steve Jobs in 1985 to the updating of the company logo in 1997 to the changing of the company name in 2007 however even with the changes Apple has still remain a powerhouse in the industry.…

    • 1042 Words
    • 5 Pages
    Better Essays
    Read More
  • Better Essays

    Bus 599 Capstone Project Case Study
    • 3440 Words
    • 14 Pages

    Bus 599 Capstone Project Case Study

    Apple has been known to be an inherently personal computer company. However, it is also well known that there is no better example of innovative strategic thinking and execution. Apple’s strategy has remained to creating and sustaining value for customers across the world. Jobs returned to Apple in 1997 and the company never looked back since. However, it is also said that Apple lost the pc business because of ignoring the trends in pc industry. Apple’s business strategy is primarily based on innovation for creating differentiated products. It has built products that are cool to use as well as simple and intuitive. Its…

    • 3440 Words
    • 14 Pages
    Better Essays
    Read More
  • Better Essays

    Mkt 421 Marketing Plan Paper Iphone 6
    • 1357 Words
    • 6 Pages

    Mkt 421 Marketing Plan Paper Iphone 6

    Apple Inc. is one of the most well-known companies in the world. In 1976, Apple Inc. was created when Steve Jobs and Steve Wozniak created and released the Apple I. It was a slow process for the company and the two were not taken seriously at first. It wasn’t until 1977 when Apple released the Apple II at a local computer trade show. Over the years, Apple Inc. grew in to one of the largest home based computer company. However, during the nineties the company suffered a downfall in their sales when the competition began to increase. Apple was well known for having the best personal computers…

    • 1357 Words
    • 6 Pages
    Better Essays
    Read More
  • Good Essays

    Case Study Apple Of Your I
    • 1106 Words
    • 3 Pages

    Case Study Apple Of Your I

    Apple has shown its capability to create innovative product that meet and exceed its customer’s satisfaction and has also been able to keep that stream of innovations going until today. It has enable these innovations to play off of each other. It demonstrated his ability to break from away from the computer market and created successfully new markets with its iPod, iPhone, and iPad. Apple has developed an ability to sell and market its new products successfully by teaching its customers and the market that the price for an Apple product represents an outstanding value for the quality, design, and functionality. The great…

    • 1106 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    Mark Jaeger's Doc
    • 754 Words
    • 4 Pages

    Mark Jaeger's Doc

    In April of 1976 Steve Jobs, Steve Wozniak and Ronald Wayne founded Apple. In 36 years Apple has grown to be the most profitable company in the world, with unmatched quality and technology that is constantly one step ahead of every competitor it has. When you think of Apple usually the first thing that comes to mind is the Iphone, or the IMac, which Apple has worked at to make the best set of electronics that you can buy. They are worldwide known for their outstanding quality of both user interface systems and the overall build quality. When holding a Mac or Iphone, you can feel the sturdiness, and weight inside the machine that lets you know that every part put inside is of the best quality that you can put in there. Of course with such ferocious quality that Apple puts out, comes a heavy price tag with it. Mac is constantly at the lead when it comes to anything to do with audio and graphic design. Major companies that are in the video game industry only use make for that reason. In a general consumer market a make can easily cost twice as much as the next competitor. Often time’s companies that are in the same business will pride themselves in making equal to quality that Apple produces while keeping the cost at a modest level for the consumers.…

    • 754 Words
    • 4 Pages
    Good Essays
    Read More
  • Better Essays

    Assignment 1 Social Performance
    • 1382 Words
    • 4 Pages

    Assignment 1 Social Performance

    Apple Inc. is an American Multinational corporation with a focus on designing and manufacturing consumer electronic and related software products. Its best-known hardware products include the Macintosh line of personal computers, the iPod (portable media player), and the iPhone. The software products include the Mac OS X operating system, iTunes media browser and the iLife suite of multimedia and creativity software. (Wikipedia, the free encyclopedia) The personal computer industry is characterized by the following features: it is highly competitive, computer companies abide aggressive pricing practices that causes downward pressure on gross margins, another feature is frequent introduction of new products, computers, peripherals and accessories have got in a great extant short product life cycles, there are a lot of industry standards and patents, in fact, all makers apply strategies of continual improvement in product…

    • 1382 Words
    • 4 Pages
    Better Essays
    Read More
  • Powerful Essays

    Tim Cook, Ceo
    • 2581 Words
    • 11 Pages

    Tim Cook, Ceo

    In its mission statement, as a company, “Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings”. Looking at Apple’s long track record, they have certainly lived up to that mission statement. With Steve Jobs at the helm, Apple has mastered many products such as the Mac Book, iPhone, iPad, iPod, and iTunes throughout the last decade. What sets Apple apart from similar companies such as Microsoft is stated in the mission statement, “its innovative hardware, software, and Internet offerings”. Unlike PC’s, which make up for the rest of the computer brands, besides Apple’s MacBook’s and iMac’s, are ran with Microsoft’s Windows programming. The innovation of its distinct operating system has…

    • 2581 Words
    • 11 Pages
    Powerful Essays
    Read More
  • Better Essays

    How Apple Evaluate Their Performance
    • 962 Words
    • 4 Pages

    How Apple Evaluate Their Performance

    Apple, like many successful companies, has gone through the business lifecycle multiple times. Apple went from introduction in Steve Job’s garage to a steep decline into near bankruptcy. The have most recently rode a new wave of growth and are now sitting in a mature stage as the most one of the most highly valued publicly traded companies. Apple has continued to be a laggard in the PC industry. Since inception Apple has taken a higher-end, less mainstream approach to their product offering. Thus, they have consistently lagged behind in global dominance of the industry. Although Apple was the disruptive force that started the entire PC industry, as the innovators of the PC itself, their continued reluctance to mainstream caused them to lag in the industry as a whole, “globally Apple’s market share rose steadily…, but remained below 5%.” However, despite their low global demand for overall PC’s, within specific PC businesses they prospered, “91% of PCs priced above $1,000 in the U.S. market were sold by Apple.” Apple’s was able to differentiate itself in the higher end market and delivered a “cutting-edge, tightly integrated user experience” that bode well with the educational institutions. Therefore, although Apple was considered a laggard for the entire PC industry, they were quite successful within their niche end of the PC business.…

    • 962 Words
    • 4 Pages
    Better Essays
    Read More
  • Satisfactory Essays

    Dermavescent Lab Case
    • 496 Words
    • 2 Pages

    Dermavescent Lab Case

    Apple has sustained itself as a fast-growing, competitive brand since the 1980’s. From the launch of the first iPhone and iPod, Apple started viewing itself as a “mobile device company”. Sixty percent of total Apple, Inc. sales in 2009 were strictly from the iPhone and iPod sales. Revenues and net income were still growing even in the severe economic recession. As Microsoft started introducing new software, consumers were becoming more open to the idea of buying PCs over Apple products, and Steve Jobs knew that he could not relax and had to come up with a new product in order to remain a top competitor. The launch of the first-ever iPad was expected to take Apple to the next level.…

    • 496 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Better Essays

    Mgmt Info Sys, Chap 7 Case Study
    • 1430 Words
    • 6 Pages

    Mgmt Info Sys, Chap 7 Case Study

    Apple’s business model (with Jobs) began as a quest to be the best. Steve Jobs started it; the company was sort of stagnant after his leaving and then upon his return has become one of the top contenders in technology. Apple began by making the PC “beautiful”. He designed computers to look like more than big grey boxes on desks, so that they seemed appealing. Then he made it better, easier to use and stronger than other PC’s. When the PC market plateaued, mp3 players, cell phones and then eventually tablets were the focus for consumers. (Muehlhausen, 2010) They make a PC, the IPhone and IPad. They continually improve each of them along with a steady stream of applications that can be used on them.…

    • 1430 Words
    • 6 Pages
    Better Essays
    Read More
  • Satisfactory Essays

    Apple Co. Rivalry
    • 319 Words
    • 1 Page

    Apple Co. Rivalry

    4. The key problem for Apple in the PC market was the high price of its products while Microsoft machines were lower priced. Since Apple machines could only use the Apple OS, while Microsoft was compatible with all other machines, Apple’s market share was low. This caused Apple’s adoption rate to slow down and then more software would be developed for Microsoft due to its high market share. This in turn would give manufacturers and the buyer incentive to increase Microsoft market share due to more software available for it. This cycle would continue in Microsoft’s favor. The high price would also inhibit the common user as well as businesses to purchase an Apple machine due to its lack of software and extra cost for the budget conscious.…

    • 319 Words
    • 1 Page
    Satisfactory Essays
    Read More
  • Powerful Essays

    Apple - Hambrick and Fredickson 5 Element Strategy
    • 1494 Words
    • 6 Pages

    Apple - Hambrick and Fredickson 5 Element Strategy

    For a variety of reasons, from its design philosophy to their indie roots, as well as their advertising campaigns, Apple has built a distinct reputation in the computer…

    • 1494 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Good Essays

    What Were Apple’s Major Competitive Advantages?

    • 299 Words
    • 2 Pages

    What Were Apple’s Major Competitive Advantages?

    According to Hill, J.(2008:75) that the roots of competitive advantage is strategies, the root of strategies is distinctive competencies, the roots of distinctive competencies are resources and capabilities. Competitive advantage lead to superior profitability. So, talking about competitive advantages means about strategies, distinctive competencies, capabilities and resources. There are two types of competitive advantages: differentiation and cost leadership. All of them are effected by four factors: superior quality, superior customer responsiveness, superior efficiency and superior innovation. First of all, Apple have good researches and developed department (including Jobs, S.) which lead to good production. Beside that, Apple also have wonderful marketing, sales department. Every Apple’s products launching give customers eager not only by the quality of products, it also by the power of marketing. Lastly, they also have a wonderful customer service department. All of them combine to make huge profit for Apple with a lot of loyalty customers to. So, it is clear that Apple has a very good capabilities and resources. It builds to distinctive competencies. Moreover, Apple have chosen differentiation strategy, so they try to make different products with others means their strategy give them another competitive advantage.…

    • 299 Words
    • 2 Pages
    Good Essays
    Read More
  • Better Essays

    Apple Case: Clients and the Brand Itself
    • 1296 Words
    • 6 Pages

    Apple Case: Clients and the Brand Itself

    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.…

    • 1296 Words
    • 6 Pages
    Better Essays
    Read More

Related Topics