Apple Computers

Apple Computers was founded in 1976, by a pair of college dropouts, Steve Wozniak, and Steve Jobs. The business started in the Job’s family garage, where the two built a computer circuit board. The two acquired a partner, Markkula, who was the “experienced business man.” Wozniak was the technical genius, and Jobs had the vision “to change the world through technology.” Together, they did. Apple’s mission was to “bring an easy-to-use computer to every man, woman, and child.” Apple was the leader in the computer industry by the end of the 1980’s. Apple Computers since has had its share of ups and downs over the years, but is still bringing the most advanced and innovative technology to consumers.

Apple Computers has built a number of competitive advantages since the beginning of the computer industry. In 1978, Apple launched the Apple II. It was simple to use, and ready right out of the box. For three years, Apple stood alone in the personal computer market, therefore it was a monopoly. Apple possess four differentiations; brand loyalty, innovative hardware design, dedicated market shares, and ease of use. On page 36 in the text book, it is stated that “competitive advantage accrues to companies that possess distinctive capabilities.” Apple focused on rolling out new products every six to twelve months, keeping them ahead of the competition.

Brand loyalty is one of Apple’s leading competitive advantages. In 1990, “the majority of IBM and compatible users ‘put up’ with their machines, but Apple customers ‘love’ their Macs.” If a person falls in love with a product, they will continue to be loyal to that company until their needs and desires are let down.

By 1990, Apple’s worldwide market share stabilized at about 8%. In the education market, the company held a share of more than 50%.” Education will always require the latest technology and advancement, which leads the school systems to upgrade on a regular basis, driving up the bottom line for Apple.

Apple Computers “designed their products from scratch, using unique chips, disk drives, and monitors, as well as unusual shapes for its computers’ chassis. Apple also developed its own proprietary operating system which, it bundled with the Mac; its own application software, and many peripherals, including printers.” Page 36 in the text book also states, “Many companies today have partnered with specific suppliers and distributors to create a superior value delivery network, also called a supply chain.