As of 2021, Apple has earned a revenue of USD 365.82 billion, which puts the company in 3rd rank among other peers. Moreover, the company has built a strong brand loyalty among its customers, which is translated in terms of its brand equity. Apple Inc. has created a sustained competitive advantage owing to its capability to create highly differentiated products. Pay the remaining half after you have received your final paper from us. Penmypaper.com. It is just an indication that its competitive advantage has grown a lot stronger over time. This has created a network effect, locking customers into Apples services and making it more difficult for people to defect. At Eduhelphub, we are committed to delivering the best assistance for your studies, by guiding you through your toughest assignments. 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. Conclusion Modern PowerPoint Presentation designed 07. It is known the most for its technology and great quality products. Superior Quality of Apple Inc. 04. 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. What implications are there for other organizations and industries? Accessed Oct. 6, 2020. The customer experience is further differentiated through the creation of a product ecosystem. Web. The differentiation strategy implemented by the founder, Steve Jobs, allowed them to stand out of the crowd and turn into one of the most . 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. In order to offer a unique and inimitable experience, Apples devices are run on its own proprietary operating systems. Apple has ensured a premium pricing strategy to gain business superiority. 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 . As a result, the company has been able to achieve a competitive edge that contestants like Samsung have not been able to generate. 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. Our other work on the SWOT Analysis of Apple has studied the strengths this company acquired. Company Profile of Apple Inc. 02. Apple Inc. maintains long-term competitive advantage partially through its global network of strategically located authorized distributors and sellers. It functions on the global stage and caters to multiple product categories starting from iPad, iPhone, laptops, and desktops. Apple competitive advantage is achieved through differentiation strategy. "Apple 10-K 2019." The company is a good example of how to wins customers by differentiating products (Nielson, 2014). Hence Apple Inc.s products are designed to offer better experiences than its rival products. Its high-level popularity is a sign of a strong brand image and the reliability of its technology and technological products. Moreover, to have a sustainable profit growth, a company must achieve competitive advantage. 2004. Apple Inc. was founded in 1976 when the first personal computer entered the IT market. Apple Inc. has transformed its image from an inventive computer manufacturer to a fully-fledged consumer 's electronic company. 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. Are the dynamics favorable or problematic . As of 2019, Apple has earned revenue of USD 260 billion which puts the company ranked 4th among other peers. As opposed to the other computers, Apple II stood out due to its usage of cell-based color graphics. All Right Reserved. Web. The iOS on iPhones is different from Google's Android. 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. But it gives Amazon an edge that its competitors have to play catch-up with. 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. This as a result has helped the firm to create a strong position against Apple competitors. Apples products have strong network effects. The company has always been focused on creating experiences for the customers, rather than just selling products. Other Competencies of Apple Inc. The competitive advantage of Apple also comes from its product design. Similarly, the MacOS on the Mac computer is dissimilar from its competitor Microsoft Windows. With Penmypaper by your side, your days of getting poor grades is over. The competitive advantage of Apple inc Apple Inc is one of the most reputed brands in the USA. Accessed Oct. 6, 2020. Thus, Apple has created a strong competitive advantage from its unique brand image, which communicates superior product quality and high aspiration value. The brand value of Apple Inc. is significant. As a result, it has been able to achieve a competitive edge that its so-called competitors could not achieve. The more people who are on the telephone network, the more valuable it becomes for each person. Differentiation - This means offering something that no one else does. Accessed Oct. 6, 2020. Apple competitive advantages allows the company to distinguish itself from other marketplace companies in terms of value creation. 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. The total number of employees of Apple inc is 147000 as of 2020. Shares of Apple ( AAPL -1.38% ) soared 255% over the past five years, more than doubling the . By that, we can understand that it has secured a distinctive advantage over other competitors in the industry. And the more people who buy iPhones, the more apps are created for the platform. Apple's closed ecosystem and brand appeal will protect its core iPhone business from hungry rivals. 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 . 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. Cost advantage This means offering something as well as, or at a lower cost than, your competitors. Provide us with the assignment instructions and order details, e.g., page count, deadline, etc. Apple has adopted the differentiation approach to achieve its competitive advantage. Because of this, it had achieved recognition as the most innovative brand of all. For example, iOS was developed by Apple is a different and unique operating system. Accessed Oct. 8, 2020. EduHelpHub.com, All Right Reserved | 2020-2022. However, Apple follows device based monetization methods that allow it not to play with the private information of its users. December 26, 2018 October 28, 2021 / By Abhijeet Pratap. In this article we ask what is Apples competitive advantage? This article covers a detailed explanation of competitive advantage of Apple. An ecosystem of suppliers, developers and business partners provides Apple with a strong competitive advantage. Its what makes one company more successful than its competitors. Another major competitive advantage is the design of apples' products. Accessed Oct. 6, 2020. 1. 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. Recently, the privacy stance has gained more reputation than any other companies in terms of how it secures the privacy of the users. "Apple Hangs Onto Its Historic $1 Trillion Market Cap." Over the years, Apple has created a strong brand image, which is focused on quality, ease of use, privacy and user experience. This essay will be covering how the apple Inc. accomplishes the global competitive advantage based on the . Therefore, every Apple product is designed to offer better experience than any other rival products. In the contemporary world where the level of competition is extremely high, the need for a high competitive advantage has increased. Apple inc has significantly used the differentiation method to gain a modest advantage. Jobs said that the best work always come from the best people working. You can place your order by only paying half of the order value. The Apple Company will not experience the great risk of . 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. Apple operates in the technology sector, which at present is one of the rapidly growing industries in the world. CNBC. When it comes to brand image, Apple is quite vocal about its uncompromised focus on quality and user experience. This can be seen with services like Apple Music, Apples music streaming service. 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. 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. We think this culture of innovation helps explain Apples competitive advantages in the design of its products. An Apple Inc. main competitive advantage over its competitors was differentiated products and services. Or not sure where to start? Accessed Oct. 8, 2020. "Steve Jobs and Steve Wozniak." It will not have a chance to venture in the new and lowly competitive markets. This computer featured an integrated keyboard, plastic case, and eight internal expansion slots. (Apple Inc. 10-k 2014). Further, they operate on digital television and entertaining services over the years. 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 On the other hand, selling iMac in United States shall also end up with its own advantages. 2. 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. The Los Angeles Times. Since the company is a premium brand, the customers are ready to pay more for the product like iPhone and laptops. Apple is one of the leading technology companies, headquartered in the US. 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. March 8, 2004 8:29 AM PT. Why Competitive Intelligence is Not For Copying Your Competitors. We work with top academic experts with a decade of experience in their fields, to give you the best possible quality papers. The company also targets premium customers for selling their products which cater to the niche market segment. The technology industry is full of undifferentiated products. COMPETITIVE A. DVANTAGE OF A PPLE INC.. Mohamed Lisaam A295425 Strategic Management BBM-08 21.07.2020 CONTENT 01. With respect to management research, the first is mainly driven by strategic management whereas the second is a focal point in financial management. The company believes that once a person buys Apple products will never shift to other products. Despite the pandemic and the resulting economic turbulence, the market cap of Apple has kept growing. The above diagram shows the highlights of Porters Generic Model. 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. A company may choose to adopt any one of these or a combination of these strategies to achieve competitive advantages. Massachusetts Institute of Technology. Apple has expanded its business by diversifying the value influence and concentrating on upholding of business image. Apple always make sure that they bring a different and more enjoyable experience for the customers. The strong brand loyalty among customers has also been framed by Apple to gain a competitive benefit. Competitive Advantage. Superior Innovation of Apple Inc. 05. 715 Words3 Pages. Accessed Oct. 6, 2020. The user border has been industrial in such a way so that it is strikingly different from the other market players. Many people argued that the value is high and it is outside the spread of people. From these studies, it is apparent that the iPhone has had tremendous success per volume of sales. The real brand image of Apple thoroughly communicates the greater product quality and higher ambition worth. Smart devices like the iPhone, iPad and Apple Watch, etc. 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. Securities and Exchange Commission. Apple is famously not the first to market with new devices or services nor even always the best. The client knowledge is further distinguished finished the creation of a creation bionetwork. Similarly, the revenues have augmented by 53.63% to $89.58 billion during the first quarter of 2021. The strong brand image, sets Apple apart from other peers in the market, offering identical product categories. The competitive advantage of a company allows it to differentiate itself from other market players in terms of value creation. It preserves an image that only the people from upper-class society can have these products. 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. The company seeks to differentiate itself in a broad market scope. The answers lie in a capacity to rewrite the playbook. 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. The devices of Apple are unique and easy to use. Brainmass. Apology email to the customer for shipment delay. Apple prides itself on innovation more than any other company, and is known for their unique top of the line products. For example, iOS was developed by Apple is a different and unique operating system. Competitive Advantage of Apple Inc. Apple is already one of the The first enabler is the leader, Steve Jobs who is CEO of Apple and co-founded in 1976. This gives Apple control over the entire process of product development, manufacturing and marketing an advantage that competitors find difficult to match. He said "Innovation distinguishes between a leader and a follower". Get it custom written by top academic experts. During the first five years since the company had throve, the revenues went double every four months. The New York Times. The strong brand image sets a platform for the company which helps to discriminate themselves from other peers in the market. Creating unmatched user experience through seamless product and service ecosystem. "Changing Guard at Apple: The Board Says 'Enough.'" Problem Solving Skills: Definition, Steps and Examples, 5 Keys to Conducting a Market Opportunity Analysis, Competitive Intelligence Explainer and Guide. Apple Inc. has established its economic moat by developing competitive advantages around the industry. Apple. How Paraphrasing Tools Can Help You in Content Marketing? Web. Reliability is the success mantra and one of the major advantages of Apple products. For example, Amazon has a competitive advantage in e-commerce because it has built a network of fulfilment centres across the world. "Apple May Surpass Exxon as Most Valuable Company." Apple has a competitive advantage because of its strong brand recognition, loyal customer base, and innovative products. In this way, a strong Apple competitive advantage has been developed. The companys strong branding, and the interrelationships between its products, encourage customers who buy one Apple product to try another. 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. Others are designed to drive customer loyalty and increase customer retention. Like its advantages, the freemium business model also has its own flaws that businesses must consider before going for this model. In this way, the company has been able to create a strong Apple competitive advantage from its sole brand image. The company produces consumer electronics, individual computers, and software. 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. CNBC. Hence if any person buys an iOS device, the choice is Apple only. Apple devices are unique and the sole producer is Apple itself. 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. "Top Ten Companies by Market Cap over 20 Years." One of the well known global organizations is the Apple Company. The business has always focused on making an experience for the patrons rather than just selling products. 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. We create more certainty, insight, competitive advantage and significant growth for clients operating in disruptive and traditional sectors. As per this model, the organization can achieve modest benefit through four dissimilar plans like cost leadership, differentiation, cost emphasis, and change focus. 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. Need to know more? "Letter From Steve Jobs." Apples Advantage of Device Based Monetization, Advantages and Disadvantages of Public Corporations. This analysis also includes determining whether the competitive . 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. 0115 777 1386 | +1 (929) 552 0326 | hello@octopusintelligence.com. Boston.com. All of these have translated in terms of brand justice. But in the same industry, many companies produce Android devices as the android operating system is an open-source operating system. But Apple has been able to meet its competitive market strategy through its high pricing. Apple consecutively introduced different types of tech products including Apple I, Apple II, iMac, iPod, iPhone, iTunes, and iPad. This means that consumers are less likely to defect to the competition because switching would be more difficult. . 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. 2022 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. Apple has a long-established reputation for innovation and a commitment to developing new products. It also has a community of more than 6 million independent software developers creating applications for Apple products. In order to dominate the market more profoundly, Apple has provided iPhones, iPads, Mac computers and other accessories (David, 2011). Why Competitive Analysis is Highlighting The Changing Investor Appetite Landscape. As of 2021, Apple has earned a revenue of USD 365.82 billion, which puts the company in 3rd rank among other peers. But the competitive landscape is constantly shifting, and one day it will be time for Apple to change its strategy. . From the inception of the company, Apple has been achieving competitive advantages throughout its life. At the same time, industrial organization economics h 0115 7771386 | hello@octopusintelligence.com, 2022 Octopus Intelligence logo registered trademark. The first differentiation of Apple comes from its brand development. Conversely in the android phone industry, there are many companies likes Samsung, Xiaomi, etc who produces android mobile phones. In our case the competitive advantages of Apple is differentiation and innovation, high quality, great customer responsiveness . People have the right to keep their information private. This has allowed Apple to create a virtuous cycle. writers online. Deals with leading music and entertainment companies provide a vast source of media for all the companys products. He holds a Bachelor of Arts in history and economics from Bristol University. Apple is a consumer Electronics Company based in Cupertino, California. Some facts of its success can be calculated from its sales is 21.7% in the year 2014. You are free to set as many revisions as you want till you are satisfied with the quality. Presently the company ranks first in terms of brand value with a valuation of USD 260.2 billion. 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. Before you start your own professional essay writing on Apple and its competitive advantage, let us summarize what we have learnt. 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. Economic Research Council. Superior Responsiveness to Customers Your Text Here 06. Apple Corp. manufactures and markets a variety of computers and consumer electronics products, including smartphones, tablets and music players. There are two main types of competitive advantage: 1. 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. Apple's customer base is highly loyal, which gives the company a solid foundation to work from. The company owns chip manufacturers, controls manufacturing, follows extremely strict software standards and operates its own stores. Apple has created a range of unique product capabilities in the industry. This product ecosystem has helped Apple to strengthen its differentiation even further. The user-focused approach has helped Apple to be established as a premium brand in the technology-based product segment. Apple is more focused on producing beautiful products than it is on innovating in its functionality. Since the organization operates in the technological sector which is rapidly growing at present. The industry growth and prospective are consistently drawing forward the new market players. For apple, there exists a strong unique differentiation. To be the Best Source of Business Strategy & Analysis. The Washington Post. will work seamlessly together to offer an even better user experience. All of these can create a strong impact on the minds of the customers. Competitive advantages and superior performance can be interpreted as two sides of the same coin. 2. We think this is because Apple understands something that few of its competitors do: What drives a companys success are its competitive advantages. Hence when it comes to brand image, Apple inc is quite spoken about its uncompromised promise of user-friendly crops and services. A key competitive advantage for the company is its ability to develop innovative products that share the same operating system, software and applications. Once a person buys an Apple product, s/he will never be satisfied with the products from other companies. Tired of Googling your college essay? 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. Other tech giants like Google or Facebook run promotional campaigns based on platform-dependent programs. 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. Premium pricing is one of the superiority of Apple. The Porters Generic strategies can be suitable to assess the competitive advantage of Apple inc. It is a company that was started in April 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. Because it built this network first, it has a competitive advantage. Apple. The technology industry is full of undifferentiated products. It has been able to create high perceived value. "Apple Becomes First U.S. Company to Reach a $2 Trillion Market Cap." This network streamlines the company's strategic plans and efforts in reaching target customers worldwide. There are two main types of competitive advantage: 1. Analyze the personal computer industry. Ecosystem. It is considered as one of the market giants in the electronics consumer market. The company's products are unique in their quality, innovativeness, creativity, options, and design. 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. 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. "Steve Wozniaks Apple I Booted Up a Tech Revolution." The diagram shown above highlights the Porters Generic strategy model. Moreover, the company also holds the 2nd position in terms of market capitalization which has been recorded at USD 2.223 trillion. . 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