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Advantages Of Apple

Satisfactory Essays
1. What, historically, have been Apple’s competitive advantages? When Jobs first started with Apple computers, his main focus was to differentiate his products from the rest of the competitors. They tried to offer a similar product by licensing Apple computers but it was a failure and went back to their differentiation strategy on their operations. Apple is known to be a very innovative PC company. Even though, their first PC had less memory and was weaker than its competitors. Apple always got a lot of attention because of its innovative role in the technologic industry. From the SWOT analysis and the VRIO framework provided below (exhibit 1 and 3), Apple has many competitive advantages. First, Apple has total control over its hardware, marketing strategy, retail strategy, product differentiation, digital asset management and also software (OS system) development operations. Recently, Apple has opened its own store, which is offering a firsthand experience to the customers with all the Apple product line. Furthermore customers are very loyal to the brand. As of today, Apple has created a very strong relationship with the cellphone carrier (such as AT&T, Verizon, and Sprint), which allow customers to have access to the iPhone at a pretty low price. Another major competitive advantage is their hardware design. It was exceptional, the aesthetics of their PC was getting a lot of attention from the vendors as well as the customers. Apple is known to have a culture for innovation and introduce new product often to stay ahead of its competitors. Also, if we look at the cell phone market, the implantation of the iPhone changed the entire industry and customers were impressed with the advance of technology even though it only offered a f... ... middle of paper ... ...troduce new model of the iPod which increased Apple lead and market share in the MP3 market. According to the text, Apple held more than 70% of the MP3 market in the United States. This is due to the fact that Apple introduce the iTunes, which allows customers to purchase and save their music on any computers of their choosing and have access to it on any Apple products that they own. Furthermore, iTunes is currently the largest music catalog available and forces people to buy Apple products to have access to its services. However, Apple does not really make money out of iTunes but customers will buy any Apple products / accessories in order to have access to the whole experience. While taking all these facts into consideration and that Apple is continuously introducing new products (iPhones and iPad), they will continue to stay the leader in the MP3 players market.
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