One of the main factors that brought Apple back from near oblivion was its ability to produce, market, and sell IT products such as the iPod, iPhone, and customer developed application... ... middle of paper ... ...e but to purchase the product from Apple. Unfortunately, Apple could not create an entry barrier and soon many other companies began offering integrated cell phones, which increased buyer power and reduced supplier power. 9. Which of Porter’s Five Forces did Apple address through its customer-developed applications? Ans.
Apple has started to take this information on board only after the death of Steve Jobs and has purchased companies, issued dividends and underwent share buy backs. This had inflated the share price more and also allowed Apple to use acquired company's technologies in their product range such as the Touch ID on the latest iPhone 5S.” Trademark loyalty is one of the best things that the company has been going for it. This has created a type of loyalty with consumers for Apple to keep and grow over time while their competitions, such as Android based smartphones, have found it hard to take some of this market back. The brand and the logo itself of the company are known around the world by most people and would be able to name at least one product made by Apple. Cu... ... middle of paper ... ... the Apple TV set-top box.” Apple competitions are their biggest threats.
However, with the rising popularity of android and its competitive devices, the market share of Apple is starting to shrink. The major strength of the Apple organization is creativity. They have created products that have been ahead of the power curve of the IT industry with features that look well into the future. Items such as touch screens and app store have now become the standard of mobile platforms thanks to the engineering efforts Of Apple. The others products created and offered by apple such as the ipad manage to find the rare balance between form and function.
In the early 1980s the top competitor in this industry was IBM due to its open system and ease of being cloned. During this same time, Apple struggled to keep pace and changed its competitive strategy multiple times. From 1980 to 1993 Apple positioned itself in the computer industry as the company that provides easy to use desktops with superior software and hardware. Unlike its competitors, Apple did not use “open systems that other producers could clone; instead they practiced horizontal and vertical integration and used Apple’s own proprietary design” (Pearce, 2013). It is this strategy that held the company back.
The company is known for innovation and quality. In spite of the premium prices, the company has almost a maximum market share to it and continues to grow up the success ladder with its ever evolving product line which is a mixture of quality, innovation and highly detailed mechanics. Apple continues to not only survive, but excels in the electronics market which, is becoming more and more competitive by the day. About Apple Inc Apple Inc. is a multinational born in America which, is involved into designing, development and sales of consumer electronic p... ... middle of paper ... ...e-popularity-apple-lags-behind [Accessed 3 January 2014]. COWLEY, S., 2013.
It was a very risky investment and too much of a risk for Ronald Wayne back then. Apple is one of the biggest computer companies in the world. Today they said to be worth around $705 Billion (Finger, 2013). It has very loyal customers that trust and buy only Apple products. The company is well known for its quality electronics.
Those suggesting that Samsung will not win this battle are wrong. Samsung is a powerful and innovative company, which has worked hard to take the lead in this battle. Its new problem solving method and low cost high quality products seem to be making the company’s sales rise. Although this battle between the two most important smartphone companies is not over, Samsung’s victory can be predicted. It is currently leading Apple in two of the largest markets, India and China and has managed to produce low cost high quality products, which adapt to all customers tastes.
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.
There are big telecommunication companies like AT&T, Verizon, T-Mobile and Sprint offering very affordable contract price to customer and rapidly increases the users of Apple. It becomes very easy to buy Apple products in many countries. Samsung has more advantages than Apple in the European and Asian market. Because Samsung has wider price variant and most of the products are cheaper than Apples. Maybe everyone has different answer for which is the best between Apple and Samsung.
Apple’s recent success has been due to its continued investment in R&D, evolving its products over time & developing a complete eco-system around its products. Apple developed the idea of digital hub and capitalized on it by launch of iPod, iPhone and iPad that set Apple on explosive growth path. Apple’s unique culture of innovation, huge brand equity/customer loyalty & strong leadership gives it a sustained competitive advantage. Application of VRIO framework, (Annex 1), shows that its core competencies are valuable, rare and hard to imitate. Although Apple is a dominant player, it cannot ignore the external environment in which it operates.