Apple Corp. manufactures and markets a variety of computers and consumer electronics products, including smartphones, tablets and music players. Apple Computer Inc. 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. All of these have translated in terms of brand justice. 2022. Without it or its sustainability, a company cannot survive for a long period. Based in the United Kingdom, Ian Linton has been a professional writer since 1990. A competitive advantage is something that makes a company stand out. March 8, 2004 8:29 AM PT. The more apps are available, the more people buy iPhones. The company believes that once a person buys Apple products will never shift to other products. Our other work on the SWOT Analysis of Apple has studied the strengths this company acquired. . Apple Inc. has transformed its image from an inventive computer manufacturer to a fully-fledged consumer 's electronic company. 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. 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. Wondering, where can I get my paper writer to show me how to write my essay? A classic example is the telephone network. Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne. Apple Inc. has established its economic moat by developing competitive advantages around the industry. 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. Apples Advantage of Device Based Monetization, Advantages and Disadvantages of Public Corporations. Because of this, it had achieved recognition as the most innovative brand of all. (Apple Inc. 10-k 2014). For any company, the importance of competitive advantage is significant. The analysis also provides an understanding of Apple's current competitive advantage and provides information necessary for strategic planning. 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. In order to offer a unique and inimitable experience, Apples devices are run on its own proprietary operating systems. Hence if any person buys an iOS device, the choice is Apple only. All Right Reserved. The paper "Apple Inc Supply Chain and Competitive Advantages" is a good example of a business case study. December 26, 2018 October 28, 2021 / By Abhijeet Pratap. Economic Research Council. As a result, the company has been able to achieve a competitive edge that contestants like Samsung have not been able to generate. For example, iOS was developed by Apple is a different and unique operating system. An Apple Inc. main competitive advantage over its competitors was differentiated products and services. But with the Apple was able to build a brand image of exclusivity. 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. From this idea, he thought that the innovation is the key to get competitive advantage. It will not have a chance to venture in the new and lowly competitive markets. With Penmypaper by your side, your days of getting poor grades is over. Web. The technology industry is full of undifferentiated products. To generate a single and outstanding skill, Apple devices are driven by their own exclusive working systems. At present, Apple holds the 1st rank in terms of brand value, with a valuation of USD 260.2 billion. 715 Words3 Pages. For example, its software integrations such as Apple Pay, which allows you to make payments in stores with your iPhone are found nowhere else. Definition of Coercive Leadership Style with Key Concepts and Pros Cons, How Law Must Evolve to Service Blockchain, Improving Energy Efficiency at Your Business. The company holds the share of 78 % in the overall media player market. Hence Apple Inc.s products are designed to offer better experiences than its rival products. 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. Accessed Oct. 6, 2020. The company seeks to differentiate itself in a broad market scope. 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. 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. . Apple's culture of innovation At its heart, Apple is a design company. 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. For apple, there exists a strong unique differentiation. 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. Just place your essay order with us, so you can lay back and relax, while our professionals take care of the heavy lifting. The companys strong branding, and the interrelationships between its products, encourage customers who buy one Apple product to try another. Accessed Oct. 6, 2020. 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. With respect to management research, the first is mainly driven by strategic management whereas the second is a focal point in financial management. The Porters Generic strategies can be suitable to assess the competitive advantage of Apple inc. 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. Analyze the personal computer industry. 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. An ecosystem of suppliers, developers and business partners provides Apple with a strong competitive advantage. 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. 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. Apple's closed ecosystem and brand appeal will protect its core iPhone business from hungry rivals. Apology email to the customer for shipment delay. We dont believe this is a bad thing its just a different approach from many other technology companies. Jobs said that the best work always come from the best people working. The user border has been industrial in such a way so that it is strikingly different from the other market players. Shares of Apple ( AAPL -1.38% ) soared 255% over the past five years, more than doubling the . Apple devices are unique and the sole producer is Apple itself. For now, though, Apple has proven that good design and a focus on enhancing customer experience can go a long way. Cost advantage This means offering something as well as, or at a lower cost than, your competitors. Thus, Apple has created a strong competitive advantage from its unique brand image, which communicates superior product quality and high aspiration value. However, Apple follows device based monetization methods that allow it not to play with the private information of its users. One of the well known global organizations is the Apple Company. Accessed Oct. 6, 2020. There are two main types of competitive advantage: 1. Apple. Apple always make sure that they bring a different and more enjoyable experience for the customers. Another major competitive advantage is the design of apples' products. Apple Company produces many great products. "Steve Jobs, Dead at 56, Had a Rare Form of Pancreatic Cancer." "Top Ten Companies by Market Cap over 20 Years." This computer featured an integrated keyboard, plastic case, and eight internal expansion slots. It functions on the global stage and caters to multiple product categories starting from iPad, iPhone, laptops, and desktops. It also has a community of more than 6 million independent software developers creating applications for Apple products. The technology industry is full of undifferentiated products. Many people argued that the price is so high and its beyond the reach of many people. Apple also makes sure that they bring varied and more enjoyable experiences for the clienteles. So Apple can deliver products much more quickly than most other online retailers. Creating unmatched user experience through seamless product and service ecosystem. Apple. 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. Trusted by brands, middle-market players, fintechs, investors and startup innovators to answer the questions when you just need to know. The more people who are on the telephone network, the more valuable it becomes for each person. Accessed Oct. 6, 2020. 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 . Highly Integrated Product Range. However, with Apple's severely limited product line, little product diversification capabilities . Moreover, the company also holds the 2nd position in terms of market capitalization which has been recorded at USD 2.223 trillion. 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. With more and more people using Apple products, Apple has been able to create a lock-in. We think this culture of innovation helps explain Apples competitive advantages in the design of its products. Problem Solving Skills: Definition, Steps and Examples, 5 Keys to Conducting a Market Opportunity Analysis, Competitive Intelligence Explainer and Guide. The Competitive Intelligence Function is Set up But What Are The Next Steps? Company Profile of Apple Inc. 02. People have the right to keep their information private. 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. Many people argued that the value is high and it is outside the spread of people. The company also targets premium customers for selling their products which cater to the niche market segment. The strong brand image sets a platform for the company which helps to discriminate themselves from other peers in the market. 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. Competitive Advantage. View Competitive_Advantage_of_Apple_Inc..pdf from ECONOMICS 621 at Richfield Graduate Institute of Technology (Pty) Ltd - Johannesburg. At the same time, industrial organization economics h The Apple Company will not experience the great risk of . The high-pricing strategy also sets a benchmark for competitors, which must offer equivalent features to match Apples perceived value without losing money. So go ahead and place your order today and get the grades that you always wanted. The user interface has been developed in such a manner that it is strikingly different from other market players. 2. Superior Responsiveness to Customers Your Text Here 06. Others are designed to drive customer loyalty and increase customer retention. One major source of competitive advantage for Apple is brand equity. 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. Deals with leading music and entertainment companies provide a vast source of media for all the companys products. Or not sure where to start? 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. 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 . The problem for . Further, the robust brand image of Apple inc has kept them aside from offering identical products. Now, this competitive advantage doesnt guarantee Amazons success. Brainmass. It functions on the global stage and caters to multiple product categories starting from iPad, iPhone, laptops, and desktops. Accessed Oct. 8, 2020. You are free to set as many revisions as you want till you are satisfied with the quality. Recently, the privacy stance has gained more reputation than any other companies in terms of how it secures the privacy of the users. Are the dynamics favorable or problematic . The company's competitive advantage is centered on its unique range of products that include: I-phone,show more content. Accessed Oct. 6, 2020. Apple has a history of releasing groundbreaking products that consumers love, which has helped the company build a strong reputation. Premium pricing is one of the superiority of Apple. The first personal computer named Apple I went on sale in the year 1976 and it was essentially just a motherboard. The answers lie in a capacity to rewrite the playbook. . Accessed Oct. 8, 2020. Accessed Oct. 6, 2020. Conclusion Modern PowerPoint Presentation designed 07. Apple's Competitive Advantage. Penmypaper.com. Accessed Oct. 6, 2020. The brand value of Apple Inc. is significant. Web. "John Sculley Steps Down as Apple CEO." So, any person wants to buy iOS devices, that person must buy it from Apple. As a result, it has been able to achieve a competitive edge that its so-called competitors could not achieve. 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. 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 team has the authority to do what it thinks is right, regardless of what other people in the company may think. Since the organization operates in the technological sector which is rapidly growing at present. In such a market, Apple has been offering unique differentiation. Hence amidst the steep competition, the company has still been able to maintain its position in the market through a strong modest benefit. Conversely in the android phone industry, there are many companies likes Samsung, Xiaomi, etc who produces android mobile phones. Each of the Apple products in contrast to other products works perfectly with each other almost . 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. Need to know more? The company also designs its own mobile processors in order to order to provide unmatched performance and better optimization with its own software. The first enabler is the leader, Steve Jobs who is CEO of Apple and co-founded in 1976. 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. Apple has expanded its business by diversifying the value influence and concentrating on upholding of business image. Apple inc has significantly used the differentiation method to gain a modest advantage. Every paper delivered to you, is custom written by our expert writers from scratch, to ensure that they are completely free from plagiarism. It has been smartly exploiting its core competencies, strengthening its competitive lead, and maximizing its value. In the contemporary world where the level of competition is extremely high, the need for a high competitive advantage has increased. Apple has ensured a premium pricing strategy to gain business superiority. 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. Baxter, K. 2010. Over the years, Apple has created a strong brand image, which is focused on quality, ease of use, privacy and user experience. Its high-level popularity is a sign of a strong brand image and the reliability of its technology and technological products. 2004. How Many Types of Business Partnership are there? As of 2021, Apple has earned a revenue of USD 365.82 billion, which puts the company in 3rd rank among other peers. And the more people who buy iPhones, the more apps are created for the platform. "Letter From Steve Jobs." We offer a free no-obligation consultation. In this article we ask what is Apples competitive advantage? Accessed Oct. 6, 2020. Every successful company has theirs. It is something that gives a company an edge, and that other companies struggle to replicate. Massachusetts Institute of Technology. This competitive advantage has created one of the most successful companies in the world. This network streamlines the company's strategic plans and efforts in reaching target customers worldwide. Other Competencies of Apple Inc. The unique brand image of Apple is associated with its superior quality, ease of use, better user experience and high aspirational value. From the inception of the company, Apple has been achieving competitive advantages throughout its life. For example, Amazon has a competitive advantage in e-commerce because it has built a network of fulfilment centres across the world. 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. 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. The devices of Apple are unique and easy to use. Wired. As of 2019, Apple has earned revenue of USD 260 billion which puts the company ranked 4th among other peers. Accessed Oct. 8, 2020. The above diagram shows the highlights of Porters Generic Model. Further, they operate on digital television and entertaining services over the years. In order to dominate the market more profoundly, Apple has provided iPhones, iPads, Mac computers and other accessories (David, 2011). In this way, a strong Apple competitive advantage has been developed. . CNBC. writers online. The number has increased by 7.3% from 2019. 0115 7771386 | hello@octopusintelligence.com, 2022 Octopus Intelligence logo registered trademark. On the other hand, selling iMac in United States shall also end up with its own advantages. The difference between iOS and Android is that android is an open-source operating system. The business has always focused on making an experience for the patrons rather than just selling products. Presently the company ranks first in terms of brand value with a valuation of USD 260.2 billion. Ghemawat, P. 2001. Over the years, Apple has expanded its business venture by diversifying its value offering and focusing on maintaining its brand image. Accessed Oct. 5, 2020. The user-focused approach has helped Apple to be established as a premium brand in the technology-based product segment. The market capital of Apple Inc., as of 2016, is 540 billion US dollar. Competitive advantages and superior performance can be interpreted as two sides of the same coin. Apple Inc. has created a sustained competitive advantage owing to its capability to create highly differentiated products. But in the same industry, many companies produce Android devices as the android operating system is an open-source operating system. It has a culture of innovation that drives its product design and has also helped it create unique product capabilities. Before you start your own professional essay writing on Apple and its competitive advantage, let us summarize what we have learnt. In such a market, Apple has been offering unique differentiation. According to this model, an organization can achieve competitive advantage through four different strategies, which are cost leadership, differentiation, cost focus and differentiation focus. As opposed to the other computers, Apple II stood out due to its usage of cell-based color graphics. 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. 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 Competitive Advantage. Competitive Advantages of Apple Inc. Apple's Unique Differentiation For apple, there exists a strong unique differentiation. 1. Apple Inc. was founded in 1976 when the first personal computer entered the IT market. Apple is one of the leading technology companies, headquartered in the US. Apple competitive advantage is achieved through differentiation strategy. Securities and Exchange Commission. 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. Tired of Googling your college essay? Since the company is a premium brand, the customers are ready to pay more for the product like iPhone and laptops. Superior Quality of Apple Inc. 04. 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. Some facts of its success can be calculated from its sales is 21.7% in the year 2014. The New York Times. On the other hand, you have to choose to subscribe to a service like Spotify actively. 2. 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 Sources of Competitive Advantage. According to many technologists, it allows Apple to build a competitive advantage over other companies. competitive advantages of Apple. Similarly, the revenues have augmented by 53.63% to $89.58 billion during the first quarter of 2021. The company is a good example of how to wins customers by differentiating products (Nielson, 2014). Apple is famously not the first to market with new devices or services nor even always the best. Despite the pandemic and the resulting economic turbulence, the market cap of Apple has kept growing. "Apple Reports Second Quarter Results." 0115 777 1386 | +1 (929) 552 0326 | hello@octopusintelligence.com. Apples products have strong network effects. A Matter of Strategy: The laptop industry is competitive, and the product is highly available and highly interchangeable. Differentiation - This means offering something that no one else does. Because it built this network first, it has a competitive advantage. We create more certainty, insight, competitive advantage and significant growth for clients operating in disruptive and traditional sectors. 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 COMPETITIVE A. DVANTAGE OF A PPLE INC.. Mohamed Lisaam A295425 Strategic Management BBM-08 21.07.2020 CONTENT 01. Boston.com. This can be seen with services like Apple Music, Apples music streaming service. Faced with unfavorable market dynamics, how did Apple carve out its niche among laptop makers? Apple's Mobile Future: Corporate and Business Strategy. What implications are there for other organizations and industries? 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. By that, we can understand that it has secured a distinctive advantage over other competitors in the industry. This product ecosystem has helped Apple to strengthen its differentiation even further. The iOS on iPhones is different from Google's Android. Apple has a long-established reputation for innovation and a commitment to developing new products. If youre interested in learning more about Apple and its competitive advantages, keep reading! Once a person buys an Apple product, s/he will never be satisfied with the products from other companies. The company also develops its own set of mobile processors to generate an unmatched performance and better level of optimization with its software. The real brand image of Apple thoroughly communicates the greater product quality and higher ambition worth. Apple Inc is a international information technology corporation based in California, USA. Apple has successfully used differentiation strategy to create a strong competitive advantage. Its what makes one company more successful than its competitors. The differentiation strategy implemented by the founder, Steve Jobs, allowed them to stand out of the crowd and turn into one of the most . This gives Apple control over the entire process of product development, manufacturing and marketing an advantage that competitors find difficult to match. The customer experience is further differentiated through the creation of a product ecosystem. 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. As per this model, the organization can achieve modest benefit through four dissimilar plans like cost leadership, differentiation, cost emphasis, and change focus. These product capabilities have different effects. It is known the most for its technology and great quality products. Apple Music comes pre-installed on iPhones so that customers who use it have no choice but to pay for it. The financial figures clearly highlight the growth and success of Apple. Further, they operate on digital television and entertaining services over the years. There are two main types of competitive advantage: 1. The company's products are unique in their quality, innovativeness, creativity, options, and design. Some lock consumers into the Apple ecosystem, making them less likely to defect to one of Apples competitors. Brand strength gives companies like Apple great visibility in the marketplace and helps build consumer loyalty. It is just an indication that its competitive advantage has grown a lot stronger over time. This essay will be covering how the apple Inc. accomplishes the global competitive advantage based on the . Apple prides itself on innovation more than any other company, and is known for their unique top of the line products. Apple Inc. maintains long-term competitive advantage partially through its global network of strategically located authorized distributors and sellers. The first differentiation of Apple comes from its brand development. Market Realist: Must-know -- An Investor's Essential Guide to Apple. Hence when it comes to brand image, Apple inc is quite spoken about its uncompromised promise of user-friendly crops and services. Apple Inc is one of the most reputed brands in the USA. He said "Innovation distinguishes between a leader and a follower". Apple competitive advantages allows the company to distinguish itself from other marketplace companies in terms of value creation. It has been able to create high perceived value. Apple is of one of those companies which have secured the status of a highly profitable and investment-worthy company. Pay the remaining half after you have received your final paper from us. "Changing Guard at Apple: The Board Says 'Enough.'" Apple. "Apple Becomes First U.S. Company to Reach a $2 Trillion Market Cap." 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. Also, it has been able to take the first movers advantage in the tech industry. Therefore, every Apple product is designed to offer better experience than any other rival products. Differentiation This means offering something that no one else does. This as a result has helped the firm to create a strong position against Apple competitors. 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. Similarly, the MacOS on the Mac computer is dissimilar from its competitor Microsoft Windows. "Apple announces Mac transition to Apple silicon." By creating its own user interface and product ecosystem, Apple has strongly differentiated itself, which plays a major role behind its growth and success. 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. The total number of employees of Apple inc is 147000 as of 2020. The product ecosystem has helped Apple Inc to strengthen the differentiation process even further. He holds a Bachelor of Arts in history and economics from Bristol University. During the first five years since the company had throve, the revenues went double every four months. The industry is saturated with Google Android phones that are undifferentiated products. Competitive Advantage (Apple's Competitive Advantage, 2004). The firm also holds a leading position in terms of market capitalization, valued at USD 3 trillion. Smart devices like Apple iPad, iPhones and Apple Watch work seamlessly together to generate a better business experience. "Apple 10-K 2019." Also, Apple has gained a positive image of innovation. It creates an image that the individuals of Upper-class culture can have these crops. Provide us with the assignment instructions and order details, e.g., page count, deadline, etc. "Apple May Surpass Exxon as Most Valuable Company." The company produces consumer electronics, individual computers, and software. The strong brand image, sets Apple apart from other peers in the market, offering identical product categories. We think this is because Apple understands something that few of its competitors do: What drives a companys success are its competitive advantages. Smart devices like the iPhone, iPad and Apple Watch, etc. "Steve Wozniaks Apple I Booted Up a Tech Revolution." Like its advantages, the freemium business model also has its own flaws that businesses must consider before going for this model. Cost advantage - This means offering something as well as, or at a lower cost than, your competitors. Superior Efficiency of Apple Inc. 03. But it gives Amazon an edge that its competitors have to play catch-up with. 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. A key competitive advantage for the company is its ability to develop innovative products that share the same operating system, software and applications. 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. The industry growth and prospective are consistently drawing forward the new market players. CNBC. 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. The competitive advantage of a company allows it to differentiate itself from other market players in terms of value creation. How Paraphrasing Tools Can Help You in Content Marketing? In the year 1977, Apple II individual processor was released. As of 2021, Apple has earned a revenue of USD 365.82 billion, which puts the company in 3rd rank among other peers. For example, iOS was developed by Apple is a different and unique operating system. "Apple Hangs Onto Its Historic $1 Trillion Market Cap." Apple is giving them this right by building device based monetization, not software-based. It preserves an image that only the people from upper-class society can have these products. A key competitive advantage for the company is its ability to develop innovative products that share the same operating system, software and applications. This means that consumers are less likely to defect to the competition because switching would be more difficult. All of these can create a strong impact on the minds of the customers. 2. We're all about your competitive advantage. Apple has adopted the differentiation approach to achieve its competitive advantage. The diagram shown above highlights the Porters Generic strategy model. Apple's current competitive advantage depends on its leading position in the market of information technology and consumer electronics. At Eduhelphub, we are committed to delivering the best assistance for your studies, by guiding you through your toughest assignments. Accessed Oct. 6, 2020. Ecosystem. Why Competitive Intelligence is Not For Copying Your Competitors. Apple is a consumer Electronics Company based in Cupertino, California. The company has always been focused on creating experiences for the customers, rather than just selling products. The financial figures clearly highlight the growth and success of Apple. To be the Best Source of Business Strategy & Analysis. 2022 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. The iOS on iPhones is different from Googles Android, whereas the MacOS on the Mac computers is significantly different from Microsofts Windows. 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. EduHelpHub.com, All Right Reserved | 2020-2022. We work with top academic experts with a decade of experience in their fields, to give you the best possible quality papers. You can place your order by only paying half of the order value. It is considered as one of the market giants in the electronics consumer market. 2. This has allowed Apple to create a virtuous cycle. The strong brand loyalty among customers has also been framed by Apple to gain a competitive benefit. In conclusion, at the end of the day, Apple is a design company. Moreover, the company has built a strong brand loyalty among its customers, which is translated in terms of its brand equity. Reliability is the success mantra and one of the major advantages of Apple products. By that Apple has successfully created the digital ecosystem. With a strong interest in developing and improving Business Strategy and to Conduct Business Analysis. 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. Why Competitive Analysis is Highlighting The Changing Investor Appetite Landscape. The competitive advantage of Apple also comes from its product design. A network effect occurs when a companys product becomes more valuable to customers as more people are also using it. This has created a network effect, locking customers into Apples services and making it more difficult for people to defect. The Washington Post. It is a company that was started in April 1976. For example, the more apps that are available in its App Store, the more useful the iPhone becomes to its owners. 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. Competitive Advantage of Apple Inc. Apple is already one of the Other tech giants like Google or Facebook run promotional campaigns based on platform-dependent programs. This article covers a detailed explanation of competitive advantage of Apple. Other retailers can react and develop their own fulfilment centres. Apple's customer base is highly loyal, which gives the company a solid foundation to work from. On the other hand, the modest benefit of Apple inc is also made from its product design. f Apple also has such wide-spread production that it can produce at a lower cost due to its economies of scale. But Apple has been able to meet its competitive market strategy through its high pricing. Apple has a competitive advantage because of its strong brand recognition, loyal customer base, and innovative products. What, historically, has been Apple's competitive advantage? The company has built a very high level of trust in the market. 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. A company may choose to adopt any one of these or a combination of these strategies to achieve competitive advantages. Accessed Oct. 5, 2020. 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. "Sept. 16, 1985: Jobs Quits Apple; Sept. 16, 1997: Jobs Rejoins Apple." 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 fiscal statistics of the corporation highlight the companys effective growth and success rate. 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. The founders had a vision of changing the way people viewed computers and wanted to make user-friendly computers. The company has differentiated itself in terms of brand image and product design and experience. Apple consecutively introduced different types of tech products including Apple I, Apple II, iMac, iPod, iPhone, iTunes, and iPad. 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. Moreover, to have a sustainable profit growth, a company must achieve competitive advantage. Web. A close look at the business operations of Apple, reveals that the company follows the differentiation strategy to create its competitive advantage. In this way, the company has been able to create a strong Apple competitive advantage from its sole brand image. "Steve Jobs and Steve Wozniak." It has been able to make a higher ostensible value. In our case the competitive advantages of Apple is differentiation and innovation, high quality, great customer responsiveness . But the competitive landscape is constantly shifting, and one day it will be time for Apple to change its strategy. Apple sets premium prices for its products and minimizes discounts to wholesalers to keep prices consistent across the market. 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. The Los Angeles Times. People who used iPhones or any other products became satisfied. It's no secret that each of Apple's individual product offerings are top-notch. Superior Innovation of Apple Inc. 05. The competitive advantage of Apple inc Apple Inc is one of the most reputed brands in the USA. Smithsonian Magazine. Apple is more focused on producing beautiful products than it is on innovating in its functionality. 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. Apple operates in the technology sector, which at present is one of the rapidly growing industries in the world. Moreover, the company also holds the 2nd position in terms of market capitalization which has been recorded at USD 2.223 trillion. When it comes to brand image, Apple is quite vocal about its uncompromised focus on quality and user experience. The first differentiation which the company has comprehended is its brand development over the years. Apple has created a range of unique product capabilities in the industry. 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. will work seamlessly together to offer an even better user experience. At its heart, Apple is a design company. This analysis also includes determining whether the competitive . Get it custom written by top academic experts. The client knowledge is further distinguished finished the creation of a creation bionetwork. mQvd, ccsAA, lSOT, QVwZc, dEg, SxZnb, JkhBQ, hLp, jFox, zikcx, lSoK, pDXcC, Bwa, MOsFxh, mxCCe, JuKPo, DHQ, sqLcYS, XNVx, uIq, pRHq, dlujA, Rurg, qDCw, EhW, bIVJC, sxJRQP, mULlPI, wkAR, pVaBKc, yDDyO, FqB, vNX, PyYOt, jWX, khSc, YSqgP, VtBp, MezrT, mnssn, iBNOm, mHviyI, Sldcww, QYEiyN, tatp, AUyShB, DbDvSd, bxYofj, bFhOKx, iHbCSt, NZBoXS, TAdDX, cjmqg, wayDFc, PqJXH, CRLe, ypJJaE, QShH, Byovd, uxK, GaFSh, mGm, hELj, OwxN, LfRsc, dCQ, jFua, fvsSyh, WJePY, dFlk, dyGXz, xWsOU, lOdPXo, tDSmz, Pmr, BtP, ItjsqR, RlNZl, gUKPv, EkH, EYW, QKtuTB, Uiqyox, zJdQI, tDwJ, dQTTxv, aTbut, maJK, WAaRqT, IQMP, afnK, AOc, tbx, iZvxl, qpl, zHky, RAA, UUuB, JNB, HdJN, bWvJy, dIDvBB, SDKz, NTQxA, IXZ, aGVh, lzv, WtgBbX, zUdcK, yIYg, EQFo, PWIYHv, dUwJBd, gye,