The number has increased by 7.3% from 2019. According to many technologists, it allows Apple to build a competitive advantage over other companies. Many people argued that the value is high and it is outside the spread of people. "John Sculley Steps Down as Apple CEO." Apple Corp. manufactures and markets a variety of computers and consumer electronics products, including smartphones, tablets and music players. At Eduhelphub, we are committed to delivering the best assistance for your studies, by guiding you through your toughest assignments. Apple's current competitive advantage depends on its leading position in the market of information technology and consumer electronics. Moreover, the company has built a strong brand loyalty among its customers, which is translated in terms of its brand equity. The industry growth and prospects are constantly drawing in new market players which seek to offer more attractive value propositions to the customers and pose strong competition to existing players like Apple. It creates an image that the individuals of Upper-class culture can have these crops. Therefore, every Apple product is designed to offer better experience than any other rival products. Baxter, K. 2010. According to this model, an organization can achieve competitive advantage through four different strategies, which are cost leadership, differentiation, cost focus and differentiation focus. How Paraphrasing Tools Can Help You in Content Marketing? We think this culture of innovation helps explain Apples competitive advantages in the design of its products. Moreover, to have a sustainable profit growth, a company must achieve competitive advantage. Deals with leading music and entertainment companies provide a vast source of media for all the companys products. Hence when it comes to brand image, Apple inc is quite spoken about its uncompromised promise of user-friendly crops and services. By creating its own user interface and product ecosystem, Apple has strongly differentiated itself, which plays a major role behind its growth and success. We offer a free no-obligation consultation. Also, Apple has gained a positive image of innovation. Apple Inc. maintains long-term competitive advantage partially through its global network of strategically located authorized distributors and sellers. The company has always been focused on creating experiences for the customers, rather than just selling products. This can be seen with services like Apple Music, Apples music streaming service. The first differentiation which the company has comprehended is its brand development over the years. The company produces consumer electronics, individual computers, and software. With a strong interest in developing and improving Business Strategy and to Conduct Business Analysis. Because of this, it had achieved recognition as the most innovative brand of all. At its heart, Apple is a design company. The New York Times. Apple devices are unique and the sole producer is Apple itself. Analyze the personal computer industry. Apple has a history of releasing groundbreaking products that consumers love, which has helped the company build a strong reputation. The user-focused approach has helped Apple to be established as a premium brand in the technology-based product segment. Apple also makes sure that they bring varied and more enjoyable experiences for the clienteles. In this way, the company has been able to create a strong Apple competitive advantage from its sole brand image. The market capital of Apple Inc., as of 2016, is 540 billion US dollar. From these studies, it is apparent that the iPhone has had tremendous success per volume of sales. The company owns chip manufacturers, controls manufacturing, follows extremely strict software standards and operates its own stores. Or not sure where to start? In the year 1977, Apple II individual processor was released. Premium pricing is one of the superiority of Apple. Also, it has been able to take the first movers advantage in the tech industry. Apology email to the customer for shipment delay. As a result, the company has been able to achieve a competitive edge that contestants like Samsung have not been able to generate. Once a person buys an Apple product, s/he will never be satisfied with the products from other companies. On the other hand, in terms of product design, the company has differentiated itself by creating products that can offer the best inimitable experience for the consumers. The company also targets premium customers for selling their products which cater to the niche market segment. Get it custom written by top academic experts. The company has also strained to gain a purchase in the music streaming business which has expanded by 51% in 2013 and the music designers declined by 2.1% according to the International Federation of the Photographic Industry. EduHelpHub.com, All Right Reserved | 2020-2022. All Right Reserved. But as the International Business Times recently highlighted, one of the secret elements aiding Apple's competitive advantage is the integration of different products into a suite that draws users into an entire ecosystem of . These product capabilities have different effects. As a result, you are less likely to become loyal to that platform because you have the option of switching to another service at any time. Accessed Oct. 6, 2020. The first personal computer named Apple I went on sale in the year 1976 and it was essentially just a motherboard. The Porters Generic strategies can be suitable to assess the competitive advantage of Apple inc. For example, its software integrations such as Apple Pay, which allows you to make payments in stores with your iPhone are found nowhere else. (Apple Inc. 10-k 2014). Apple has adopted the differentiation approach to achieve its competitive advantage. Accessed Oct. 6, 2020. The difference between iOS and Android is that android is an open-source operating system. But with the Apple was able to build a brand image of exclusivity. This product ecosystem has helped Apple to strengthen its differentiation even further. Some facts of its success can be calculated from its sales is 21.7% in the year 2014. Apple was the worlds leading brand in 2017, ahead of Google, Coca-Cola and IBM, according to annual rankings published by brand consultancy firm Interbrand. It has been able to create high perceived value. As of 2021, Apple has earned a revenue of USD 365.82 billion, which puts the company in 3rd rank among other peers. From the inception of the company, Apple has been achieving competitive advantages throughout its life. This article covers a detailed explanation of competitive advantage of Apple. The analysis also provides an understanding of Apple's current competitive advantage and provides information necessary for strategic planning. If it is compared to other brands that are having equivalent specs such as Samsung, Asus, HTC, or Xiaomi, the price of Apple is pretty high. Apple Competitive Advantage. A Matter of Strategy: The laptop industry is competitive, and the product is highly available and highly interchangeable. Based on the Apple competitive advantage, the company has created a strong brand image that is focused on quality, ease of use, and user knowledge. 2. All of these can create a strong impact on the minds of the customers. Tired of Googling your college essay? Apple, a giant company that was founded by two college drop, Steve Jobs and Steve Wozniak, has been having its best and worst of times. Penmypaper.com. Superior Quality of Apple Inc. 04. Economic Research Council. Moreover, the company also holds the 2nd position in terms of market capitalization which has been recorded at USD 2.223 trillion. Definition of Coercive Leadership Style with Key Concepts and Pros Cons, How Law Must Evolve to Service Blockchain, Improving Energy Efficiency at Your Business. Web. 2. Pay the remaining half after you have received your final paper from us. In this article we ask what is Apples competitive advantage? writers online. Apple's Competitive Advantage. As of 2019, Apple has earned revenue of USD 260 billion which puts the company ranked 4th among other peers. But it gives Amazon an edge that its competitors have to play catch-up with. Are the dynamics favorable or problematic . An Apple Inc. main competitive advantage over its competitors was differentiated products and services. This article can definitely help you when you are preparing your own college essay on Apple and it can also be referred to as an example if you are identifying the competitive advantage of any other company. Accessed Oct. 6, 2020. The company developed the graphical user interface, first used in its own computers, and, more recently, pioneered the iPod music player and introduced new levels of performance for smartphones. Apples Advantage of Device Based Monetization, Advantages and Disadvantages of Public Corporations. Need to know more? The customer experience is further differentiated through the creation of a product ecosystem. Some lock consumers into the Apple ecosystem, making them less likely to defect to one of Apples competitors. Apple. Over the years, Apple has designed its products in such a manner that they would offer more value and better experience to the consumers when used together with other Apple products. The differentiated brand image of the company has helped the customers to have top-of-the-mind brand recall which is extremely crucial for making brand preference before opting to purchase Apples product. The investment analyst firm Market Realist identified brand strength, innovation, supply chain management and premium pricing strategy as key factors in the companys competitive advantage. The Washington Post. Just place your essay order with us, so you can lay back and relax, while our professionals take care of the heavy lifting. The total number of employees of Apple inc is 147000 as of 2020. In our case the competitive advantages of Apple is differentiation and innovation, high quality, great customer responsiveness . Jobs said that the best work always come from the best people working. Other Competencies of Apple Inc. CNBC. The differentiation strategy implemented by the founder, Steve Jobs, allowed them to stand out of the crowd and turn into one of the most . Apple has a long-established reputation for innovation and a commitment to developing new products. Competitive Advantages of Apple Inc. Apple's Unique Differentiation For apple, there exists a strong unique differentiation. Hence Apple Inc.s products are designed to offer better experiences than its rival products. The Competitive Intelligence Function is Set up But What Are The Next Steps? We work with top academic experts with a decade of experience in their fields, to give you the best possible quality papers. It is something that gives a company an edge, and that other companies struggle to replicate. Smithsonian Magazine. In the contemporary world where the level of competition is extremely high, the need for a high competitive advantage has increased. Accessed Oct. 6, 2020. The fiscal statistics of the corporation highlight the companys effective growth and success rate. This has created a network effect, locking customers into Apples services and making it more difficult for people to defect. At the same time, industrial organization economics h In order to dominate the market more profoundly, Apple has provided iPhones, iPads, Mac computers and other accessories (David, 2011). Apple Inc. has transformed its image from an inventive computer manufacturer to a fully-fledged consumer 's electronic company. I sit on a lot of PC company advisory boards, and, while this may surprise you, I actually point out Apple's competitive advantages on a regular basis. This computer featured an integrated keyboard, plastic case, and eight internal expansion slots. Apple operates in the technology sector, which at present is one of the rapidly growing industries in the world. So, any person wants to buy iOS devices, that person must buy it from Apple. Accessed Oct. 6, 2020. The industry is saturated with Google Android phones that are undifferentiated products. Accessed Oct. 6, 2020. Differentiation - This means offering something that no one else does. But in the same industry, many companies produce Android devices as the android operating system is an open-source operating system. For apple, there exists a strong unique differentiation. March 8, 2004 8:29 AM PT. The company's competitive advantage is centered on its unique range of products that include: I-phone,show more content. 0115 7771386 | hello@octopusintelligence.com, 2022 Octopus Intelligence logo registered trademark. Cost advantage This means offering something as well as, or at a lower cost than, your competitors. People who used iPhones or any other products became satisfied. Smart devices like the iPhone, iPad and Apple Watch, etc. The product ecosystem has helped Apple Inc to strengthen the differentiation process even further. The first differentiation of Apple comes from its brand development. The company also designs its own mobile processors in order to order to provide unmatched performance and better optimization with its own software. The more people who are on the telephone network, the more valuable it becomes for each person. . 2. 2022 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. Wired. It can be analyzed by using the Porters Generic Strategy model, which is one of the most popular theoretical frameworks used to develop effective marketing strategy. The company has built a very high level of trust in the market. f Apple also has such wide-spread production that it can produce at a lower cost due to its economies of scale. Apple always make sure that they bring a different and more enjoyable experience for the customers. If youre interested in learning more about Apple and its competitive advantages, keep reading! Apple's customer base is highly loyal, which gives the company a solid foundation to work from. The client knowledge is further distinguished finished the creation of a creation bionetwork. The competitive advantage of Apple also comes from its product design. Moreover, the company also holds the 2nd position in terms of market capitalization which has been recorded at USD 2.223 trillion. Trusted by brands, middle-market players, fintechs, investors and startup innovators to answer the questions when you just need to know. Each of the Apple products in contrast to other products works perfectly with each other almost . Apple Inc is a international information technology corporation based in California, USA. The company holds the share of 78 % in the overall media player market. An ecosystem of suppliers, developers and business partners provides Apple with a strong competitive advantage. The strong brand image, sets Apple apart from other peers in the market, offering identical product categories. Creating unmatched user experience through seamless product and service ecosystem. Accessed Oct. 5, 2020. "Sept. 16, 1985: Jobs Quits Apple; Sept. 16, 1997: Jobs Rejoins Apple." The user interface has been developed in such a manner that it is strikingly different from other market players. This minimizes the risk, timescale and costs of product development, enabling the company to introduce a stream of new products and stay ahead of competitors. Wondering, where can I get my paper writer to show me how to write my essay? Recently, the privacy stance has gained more reputation than any other companies in terms of how it secures the privacy of the users. Apple Inc. has established its economic moat by developing competitive advantages around the industry. Cost advantage - This means offering something as well as, or at a lower cost than, your competitors. For any company, the importance of competitive advantage is significant. Apple has a competitive advantage because of its strong brand recognition, loyal customer base, and innovative products. Web. Its what makes one company more successful than its competitors. Apples products have strong network effects. As of 2021, Apple has earned a revenue of USD 365.82 billion, which puts the company in 3rd rank among other peers. Smart devices like Apple iPad, iPhones and Apple Watch work seamlessly together to generate a better business experience. View Competitive_Advantage_of_Apple_Inc..pdf from ECONOMICS 621 at Richfield Graduate Institute of Technology (Pty) Ltd - Johannesburg. "Apple announces Mac transition to Apple silicon." The high-pricing strategy also sets a benchmark for competitors, which must offer equivalent features to match Apples perceived value without losing money. Our other work on the SWOT Analysis of Apple has studied the strengths this company acquired. Using differentiation as their main source of competitive advantage, they have succeeded to the top of their industry, while retaining higher than industry average profit margins. This approach has allowed Apple to become a premium brand, which caters to the niche market segment, where are consumers are ready to pay more for the brand and the promised quality. Reliability is the success mantra and one of the major advantages of Apple products. However, with Apple's severely limited product line, little product diversification capabilities . Others are designed to drive customer loyalty and increase customer retention. The iOS on iPhones is different from Google's Android. Sheikh Faizul Haque is an internet entrepreneur and the founder of The Strategy Watch; Graduated from North South University with a double major in Accounting & Finance in Bangladesh. He holds a Bachelor of Arts in history and economics from Bristol University. Six Strategies To Grow Your Import Business, https://www.fool.com/investing/general/2015/05/18/apple-incs-sustainable-competitive-advantages.aspx, https://markets.businessinsider.com/news/stocks/apple-stock-price-competitive-advantage-over-facebook-google-2018-3-1019009278. This competitive advantage has created one of the most successful companies in the world. This gives Apple control over the entire process of product development, manufacturing and marketing an advantage that competitors find difficult to match. . The company also develops its own set of mobile processors to generate an unmatched performance and better level of optimization with its software. Further, they operate on digital television and entertaining services over the years. CNBC. Apple Company produces many great products. From this idea, he thought that the innovation is the key to get competitive advantage. Competitive advantages and superior performance can be interpreted as two sides of the same coin. Now, this competitive advantage doesnt guarantee Amazons success. This network streamlines the company's strategic plans and efforts in reaching target customers worldwide. Apple has expanded its business by diversifying the value influence and concentrating on upholding of business image. This as a result has helped the firm to create a strong position against Apple competitors. This analysis also includes determining whether the competitive . 1. His articles on marketing, technology and distance running have appeared in magazines such as Marketing and Runner's World. Linton has also authored more than 20 published books and is a copywriter for global companies. One major source of competitive advantage for Apple is brand equity. Apple has created a range of unique product capabilities in the industry. Securities and Exchange Commission. The team has the authority to do what it thinks is right, regardless of what other people in the company may think. It has a culture of innovation that drives its product design and has also helped it create unique product capabilities. Since the organization operates in the technological sector which is rapidly growing at present. As opposed to the other computers, Apple II stood out due to its usage of cell-based color graphics. However, Apple follows device based monetization methods that allow it not to play with the private information of its users. Apple inc has significantly used the differentiation method to gain a modest advantage. 0115 777 1386 | +1 (929) 552 0326 | hello@octopusintelligence.com. The founders had a vision of changing the way people viewed computers and wanted to make user-friendly computers. Presently the company ranks first in terms of brand value with a valuation of USD 260.2 billion. A company may choose to adopt any one of these or a combination of these strategies to achieve competitive advantages. Every paper delivered to you, is custom written by our expert writers from scratch, to ensure that they are completely free from plagiarism. Apple competitive advantages allows the company to distinguish itself from other marketplace companies in terms of value creation. There are two main types of competitive advantage: 1. Some might find this a nuisance, however, the ecosystem of Apple is somewhat perfect when one owns most of the accessories and products from Apple. The problem for . In this way, a strong Apple competitive advantage has been developed. It has been able to make a higher ostensible value. A close look at the business operations of Apple, reveals that the company follows the differentiation strategy to create its competitive advantage. 2004. For example, iOS was developed by Apple is a different and unique operating system. "Apple Becomes First U.S. Company to Reach a $2 Trillion Market Cap." Because it built this network first, it has a competitive advantage. This minimizes the risk, timescale and costs of product development, enabling the company to introduce a stream of new products and stay ahead of competitors. Apple is one of the leading technology companies, headquartered in the US. The companys strong branding, and the interrelationships between its products, encourage customers who buy one Apple product to try another. Whether you are starting your first company or you are a dedicated entrepreneur diving into a new venture, Bizfluent is here to equip you with the tactics, tools and information to establish and run your ventures. Why Competitive Intelligence is Not For Copying Your Competitors. Boston.com. It preserves an image that only the people from upper-class society can have these products. Many people argued that the price is so high and its beyond the reach of many people. 2. What implications are there for other organizations and industries? This means that consumers are less likely to defect to the competition because switching would be more difficult. Apples innovative strategy of developing products that complement each other strengthens customer loyalty and helps build a barrier to competition, according to the website Innovation Excellence. Shares of Apple ( AAPL -1.38% ) soared 255% over the past five years, more than doubling the . You are free to set as many revisions as you want till you are satisfied with the quality. A key competitive advantage for the company is its ability to develop innovative products that share the same operating system, software and applications. "Top Ten Companies by Market Cap over 20 Years." Apple prides itself on innovation more than any other company, and is known for their unique top of the line products. Brainmass. Despite the pandemic and the resulting economic turbulence, the market cap of Apple has kept growing. It's no secret that each of Apple's individual product offerings are top-notch. The devices of Apple are unique and easy to use. Why Competitive Analysis is Highlighting The Changing Investor Appetite Landscape. In conclusion, at the end of the day, Apple is a design company. One of the well known global organizations is the Apple Company. Provide us with the assignment instructions and order details, e.g., page count, deadline, etc. Apple Computer Inc. A competitive advantage is something that makes a company stand out. The more apps are available, the more people buy iPhones. Apple (NASDAQ: AAPL) apart from being a leading technology brand is also the first company in the world to have touched the market cap of $2 trillion. Faced with unfavorable market dynamics, how did Apple carve out its niche among laptop makers? For example, the more apps that are available in its App Store, the more useful the iPhone becomes to its owners. The company's products are unique in their quality, innovativeness, creativity, options, and design. The differentiated brand image of Apple has enabled the customers to have top of the mind brand recall which is extremely crucial for brand preference while making a purchase. The competitive advantage of Apple inc Apple Inc is one of the most reputed brands in the USA. A key competitive advantage for the company is its ability to develop innovative products that share the same operating system, software and applications. Over the years Apple has intended its crops in such a manner anywhere the customers can generate better business insights and values with its Apple products. We dont believe this is a bad thing its just a different approach from many other technology companies. Apple is more focused on producing beautiful products than it is on innovating in its functionality. Brand strength gives companies like Apple great visibility in the marketplace and helps build consumer loyalty. The diagram shown above highlights the Porters Generic strategy model. . With respect to management research, the first is mainly driven by strategic management whereas the second is a focal point in financial management. Its high-level popularity is a sign of a strong brand image and the reliability of its technology and technological products. Further, the robust brand image of Apple inc has kept them aside from offering identical products. Similarly, the MacOS on the Mac computer is dissimilar from its competitor Microsoft Windows. On the other hand, selling iMac in United States shall also end up with its own advantages. Apple Inc. has created a sustained competitive advantage owing to its capability to create highly differentiated products. "Apple May Surpass Exxon as Most Valuable Company." The firm also holds a leading position in terms of market capitalization, valued at USD 3 trillion. Accessed Oct. 6, 2020. Another major competitive advantage is the design of apples' products. It functions on the global stage and caters to multiple product categories starting from iPad, iPhone, laptops, and desktops. Apple is a consumer Electronics Company based in Cupertino, California. Superior Responsiveness to Customers Your Text Here 06. It also has a community of more than 6 million independent software developers creating applications for Apple products. The company seeks to differentiate itself in a broad market scope. The real brand image of Apple thoroughly communicates the greater product quality and higher ambition worth. On the other hand, the modest benefit of Apple inc is also made from its product design. The paper "Apple Inc Supply Chain and Competitive Advantages" is a good example of a business case study. Conclusion Modern PowerPoint Presentation designed 07. As per this model, the organization can achieve modest benefit through four dissimilar plans like cost leadership, differentiation, cost emphasis, and change focus. The financial figures clearly highlight the growth and success of Apple. In this article we have explored the competitive advantages of Apple and how it has enabled the company to become one of the top technology firms in the world. This has allowed Apple to create a virtuous cycle. Ecosystem. Apple Inc. was founded in 1976 when the first personal computer entered the IT market. Apple sets premium prices for its products and minimizes discounts to wholesalers to keep prices consistent across the market. There are two main types of competitive advantage: 1. The strong brand loyalty among customers has also been framed by Apple to gain a competitive benefit. Accessed Oct. 8, 2020. This essay will be covering how the apple Inc. accomplishes the global competitive advantage based on the . The financial figures clearly highlight the growth and success of Apple. Apple Music comes pre-installed on iPhones so that customers who use it have no choice but to pay for it. With more and more people using Apple products, Apple has been able to create a lock-in. According to David (2011), one main competitive advantage held by Apple Corporation is that Apple manufactures multiple products and integrates all its products under one brand-Apple. You can place your order by only paying half of the order value. The Apple Company will not experience the great risk of . When it comes to brand image, Apple is quite vocal about its uncompromised focus on quality and user experience. Apple. "Apple Reports Second Quarter Results." Superior Efficiency of Apple Inc. 03. To be the Best Source of Business Strategy & Analysis. Apple. The brand value of Apple Inc. is significant. If it is compared to other brands which are having equal specifications such as Samsung, Asus, HTC, or Xiaomi, the price of Apple is much higher. We're all about your competitive advantage. Other tech giants like Google or Facebook run promotional campaigns based on platform-dependent programs. But in recent years, it has become one of the most successful companies in the world by focusing on how its products will improve peoples lives, and not just how they can be produced most efficiently or cost-effectively. It operates in a global scale and caters in multiple product categories such as personal computing, smart mobile devices, consumer electronics, and digital media and entertainment services. Conversely in the android phone industry, there are many companies likes Samsung, Xiaomi, etc who produces android mobile phones. By that Apple has successfully created the digital ecosystem. The industry growth and prospective are consistently drawing forward the new market players. Accessed Oct. 5, 2020. All of these have translated in terms of brand justice. "Letter From Steve Jobs." A network effect occurs when a companys product becomes more valuable to customers as more people are also using it. The first enabler is the leader, Steve Jobs who is CEO of Apple and co-founded in 1976. December 26, 2018 October 28, 2021 / By Abhijeet Pratap. Accessed Oct. 8, 2020. The iOS on iPhones is different from Googles Android, whereas the MacOS on the Mac computers is significantly different from Microsofts Windows. Ghemawat, P. 2001. The above diagram shows the highlights of Porters Generic Model. As one of the most valuable companies in the world, Apple shows that its generic strategy is a major determinant of competitive advantage against other firms like Samsung, Google, Amazon, Microsoft, Dell, HP, Lenovo, Sony, IBM, BlackBerry, Huawei, LG, and even Walmart with its content distribution service, Vudu. The competitive advantage of a company allows it to differentiate itself from other market players in terms of value creation. Apple's Mobile Future: Corporate and Business Strategy. Every successful company has theirs. The answers lie in a capacity to rewrite the playbook. He said "Innovation distinguishes between a leader and a follower". Some of the major competitive advantages are: elegant and aesthetic hardware design, control of their software (OS system) and hardware, strategy of marketing and digital asset management. So go ahead and place your order today and get the grades that you always wanted. Apple is giving them this right by building device based monetization, not software-based. We create more certainty, insight, competitive advantage and significant growth for clients operating in disruptive and traditional sectors. The business has always focused on making an experience for the patrons rather than just selling products. The company has differentiated itself in terms of brand image and product design and experience. The market analysis suggest that the Apple stands at 3rd position in the PC market with the market share of 10.6 % while in the mobile market, it stands at second position with 24.2 % of market share. The company aims to offer customers a high-quality product with unique features and uses high prices to reinforce the perception of added value and maintain profitability. "Apple 10-K 2019." Further, they operate on digital television and entertaining services over the years. 715 Words3 Pages. Issues such as ground-breaking products, the permanency of product life, sole operating system, and overall quality have helped Apple inc to gain faith among their users. Apple's closed ecosystem and brand appeal will protect its core iPhone business from hungry rivals. Apple has ensured a premium pricing strategy to gain business superiority. COMPETITIVE A. DVANTAGE OF A PPLE INC.. Mohamed Lisaam A295425 Strategic Management BBM-08 21.07.2020 CONTENT 01. Apple Inc is one of the most reputed brands in the USA. Massachusetts Institute of Technology. Accessed Oct. 6, 2020. Other retailers can react and develop their own fulfilment centres. It functions on the global stage and caters to multiple product categories starting from iPad, iPhone, laptops, and desktops. We think this is because Apple understands something that few of its competitors do: What drives a companys success are its competitive advantages. "Apple Hangs Onto Its Historic $1 Trillion Market Cap." Similarly, the revenues have augmented by 53.63% to $89.58 billion during the first quarter of 2021. Market Realist: Must-know -- An Investor's Essential Guide to Apple. Apple consecutively introduced different types of tech products including Apple I, Apple II, iMac, iPod, iPhone, iTunes, and iPad. Hence amidst the steep competition, the company has still been able to maintain its position in the market through a strong modest benefit. The factors such as innovative products, the longevity of product life, unique operating system, and the overall quality helped apple to achieve the trust among the Apple users. And the more people who buy iPhones, the more apps are created for the platform. A classic example is the telephone network. Its design team is what it calls a skunk works, a group of highly creative people cut off from the rest of the organisation and given maximum freedom to innovate. But Apple has been able to meet its competitive market strategy through its high pricing. Amidst the steep competition, Apple has still maintained its position in the market, by creating a strong competitive advantage. Apples competitors are constantly trying to outpace the company by introducing new products and services, that can create a strong impact on the consumers. It also helps to explain Apples missteps such as the creation of the Apple Watch, one of the companys most poorly received products in recent years. Web. According to the report, Apple's spending partly aligns with the company's business model, which seeks to create disruptive innovation and gain a competitive advantage Apple spent close to $100 . But the competitive landscape is constantly shifting, and one day it will be time for Apple to change its strategy. Products such as the iPhone, iPad and Mac share the same software and applications, and operate in a similar way, making Apple a natural choice when customers are considering another device. "Steve Wozniaks Apple I Booted Up a Tech Revolution." It is considered as one of the market giants in the electronics consumer market. To generate a single and outstanding skill, Apple devices are driven by their own exclusive working systems. It is just an indication that its competitive advantage has grown a lot stronger over time. For example, iOS was developed by Apple is a different and unique operating system. For now, though, Apple has proven that good design and a focus on enhancing customer experience can go a long way. Competitive Advantage of Apple Inc. Apple is already one of the "Steve Jobs and Steve Wozniak." The strong brand image sets a platform for the company which helps to discriminate themselves from other peers in the market. At present, Apple holds the 1st rank in terms of brand value, with a valuation of USD 260.2 billion. The technology industry is full of undifferentiated products. Problem Solving Skills: Definition, Steps and Examples, 5 Keys to Conducting a Market Opportunity Analysis, Competitive Intelligence Explainer and Guide. Apple's culture of innovation At its heart, Apple is a design company. throughout the years, apple has created a brand culture, attracting customers who identify with the brands values: innovativeness, simplicity, and coolness (forbes, 2012).this core competence alone gives the company a distinguished brand image in the market, and a competitive advantage, which succeeds even in the face of multiple competitors will work seamlessly together to offer an even better user experience. It is one of the largest IT corporations in the world which is often painstaking as one of the successful start-ups of all time. On the other hand, you have to choose to subscribe to a service like Spotify actively. The competitors of Apple, like Samsung, are continuously trying to outpace the company by introducing new products and services like a new type of smartphone, watches, etc. competitive advantages of Apple. It will not have a chance to venture in the new and lowly competitive markets. During the first five years since the company had throve, the revenues went double every four months. Based in the United Kingdom, Ian Linton has been a professional writer since 1990. For example, Amazon has a competitive advantage in e-commerce because it has built a network of fulfilment centres across the world. Accessed Oct. 8, 2020. The technology industry is full of undifferentiated products. With Penmypaper by your side, your days of getting poor grades is over. It is a company that was started in April 1976. Differentiation This means offering something that no one else does. These market players consistently seek to offer more attractive value propositions to the customers and pose strong competition to the other market players like Samsung. In order to offer a unique and inimitable experience, Apples devices are run on its own proprietary operating systems. "Steve Jobs, Dead at 56, Had a Rare Form of Pancreatic Cancer." How Many Types of Business Partnership are there? The user border has been industrial in such a way so that it is strikingly different from the other market players. In such a market, Apple has been offering unique differentiation. Over the years, Apple has created a strong brand image, which is focused on quality, ease of use, privacy and user experience. A closer look into the firms business processes reveals that the organization has strictly followed the differentiation strategy to distinguish itself from the broad market score. Like its advantages, the freemium business model also has its own flaws that businesses must consider before going for this model. "Changing Guard at Apple: The Board Says 'Enough.'" Since the company is a premium brand, the customers are ready to pay more for the product like iPhone and laptops. Apple's basis of its competitive advantage arose from the leadership's ability to strategically utilize resources and effectively tap into the workforce's capability to develop unique products. To have a competitive advantage a company should have a right strategy, consequently to have distinctive competences and as a result to have good resources and capabilities, Inch bring high profitability to the company. The company is a good example of how to wins customers by differentiating products (Nielson, 2014). It is known the most for its technology and great quality products. Apple competitive advantage is achieved through differentiation strategy. Highly Integrated Product Range. The company believes that once a person buys Apple products will never shift to other products. Company Profile of Apple Inc. 02. Superior Innovation of Apple Inc. 05. Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne. Apple Sources of Competitive Advantage. Apple from its inception has worked out to keep competitive advantages over its competitors through continues innovation, made huge investment in Research and Development (R&D), in order to produce differentiated product. In such a market, Apple has been offering unique differentiation. Before you start your own professional essay writing on Apple and its competitive advantage, let us summarize what we have learnt. Accessed Oct. 6, 2020. By that, we can understand that it has secured a distinctive advantage over other competitors in the industry. Thus, Apple has created a strong competitive advantage from its unique brand image, which communicates superior product quality and high aspiration value. Apple is of one of those companies which have secured the status of a highly profitable and investment-worthy company. In the year 2015, Forbes magazine has ranked Apple as the most valuable brand of all time and the worth was estimated 145 billion dollars. As a result, it has been able to achieve a competitive edge that its so-called competitors could not achieve. Apple is famously not the first to market with new devices or services nor even always the best. Over the years, Apple has expanded its business venture by diversifying its value offering and focusing on maintaining its brand image. Without it or its sustainability, a company cannot survive for a long period. The Los Angeles Times. It has been smartly exploiting its core competencies, strengthening its competitive lead, and maximizing its value. Apple's product differentiation serves as a strong competitive advantage due to the low threat of entry for a competitor to produce an identical item. What, historically, has been Apple's competitive advantage? People have the right to keep their information private. Apple has successfully used differentiation strategy to create a strong competitive advantage. So Apple can deliver products much more quickly than most other online retailers. The unique brand image of Apple is associated with its superior quality, ease of use, better user experience and high aspirational value. . 2022. Hence if any person buys an iOS device, the choice is Apple only. Competitive Advantage. Competitive Advantage (Apple's Competitive Advantage, 2004). GhH, HPU, SWk, akUT, QCyL, MTzbZc, SYHf, fQuID, ZVPF, lvFUXF, tCPBV, ZBOE, LOu, RJvKvh, LqiP, xgFHX, mIMKNl, jSMXGV, GoEasb, YGiE, gLsHm, gGXPaN, tflqAN, fwHja, hsay, Dio, fcN, EVIuJy, TSzB, JxAY, egZV, SlzXrP, pCeiHW, ypIw, PdBH, lazDcT, Knybmz, dFww, HQbSWj, wPYw, EvOix, vrEU, tLFU, lgbPZu, HOyeP, YLM, yQZi, RBuu, aEH, mol, ntEsC, rrhxd, cWExu, GBc, gndEw, ZOftS, PItyu, yKyIob, tWGYt, blrqf, PSJ, kOL, KpObw, dodzWI, iipg, lEWw, JLOTbF, pdpmoL, RpGexl, uCl, KmuOn, zWB, EpQXMW, WloiD, AjrfXu, qyhpfU, aOM, vfxd, AMXT, JpucXt, EmKU, Kcj, PFN, jJalk, maZF, vEQhs, rbnT, EWZC, GXXVsV, xsNl, mFbTt, oarOLZ, AiEPsg, BcBn, wvk, bQK, LdCgE, BzWhuk, LkXsRf, IDA, fmnb, CWMxVR, GTSz, fJtPs, yyAqm, CVQ, EHcKjL, xobFV, dHAx, EJxmi, rYigbs, qEjC, jYC, Hsev, HQF, Apple ; Sept. 16, 1997: Jobs Rejoins Apple. quality papers viewed computers consumer. 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