Apple Inc.’s Competitive Advantages in Computer Industry

Introduction

• Competitive advantage is significant in any company
• A prerequisite of success
• It enhances sustainable profit growth
• It shows the company’s strengths
• Apple Inc. explores its core competencies to achieve it

Case Summary

• Apple Inc. is led by Tim Cook
• The company was the first to hit the one trillion market cap
• The firm has introduced new products
• iPhone sales has grown five times under Tim Cook
• Hardware business has declined

1. Competitive Advantages of Apple Inc.

Unique Differentiation

• iOS is different and unique
• Highly satisfied customers
• Image of Innovation
  • Positive image (Liu, 2021)
  • First mover in tech industry
• Premium Pricing Strategy
  • Superiority (Yoffie & Fisher, 2020)
  • Relatively high price
• Innovative Products
  • Long product life
  • Unique operating system
  • High-quality (Mulumba, 2020)
  • High-perceived value
• Consumer Trust
  • High satisfaction
  • Unique and sole producer
• Brand Value
  • Most valued brand of all time
  • Distinctively advantageous (Yoffie & Fisher, 2020)
• Advantage of Device Based Monetization
  • Privacy stance
  • Keeps user information private

Why did Apple struggle historically in PCs?

1. The first to create personal computers
2. Did not embrace personal computer mainstream
3. Three vendors have complete market domination
4. Major players cover different territories (Yoffie & Fisher, 2020)
5. Difficulty of new market entry
6. High price point of computers
7. High specificity of materials related to the devices (Yoffie & Fisher, 2020)
8. High cost to the consumer compared to competitors
9. Low sales volume (Mulumba, 2020)
10. Limitations of operating system and software

Which New Areas Would You Invest Heavily to Grow Business?

• Software development
• Hardware development
• Service innovation (Mulumba, 2020)
• Affordable raw materials and technology

Conclusion

• To rise, Apple Inc. should
• Overcome technological disruptions
• Embrace technological change (Macado & Davim, 2018)
• Evaluate products before market launch
• Rely on technical expertise
• Commitment to best potential products

References

Liu, Z. (2021). Analysis of Apple Inc.’s innovation dilemma from the perspective of leadership. Proceedings of the 6th Annual International Conference on Social Science and Contemporary Humanity Development (SSCHD 2020). Web.

Machado, C., & Davim, J. (2018). Enhancing competitive advantage with dynamic management and engineering. IGI Global.

Mulumba, B. K. (2020). Knowledge management: A crucial asset toward a sustainable competitive advantage: Apple Inc. and Samsung Ltd. Teaching examples.The International Journal of Business & Management, 8(8), 21- 34. Web.

Yoffie, D. B., & Fisher, D. (2020). Apple Inc. in 2020. Harvard Business School.