In addition Microsoft is also aggressive promoting an alternative song format to Apple’s AAC.
At first sight:
The first impression of this case study shows that the iPod story seems to be a great success for the Apple Company.
2 Answer to Question 2
2.1 How would you define Apple’s competitive advantage?
Apples’ competitive advantage could be summarized into an extraordinary marketing expertise, that make possible to offer an unique experience to a community of enthusiastic customers.
We can divide the sources of Apple’s competitive advantage in two groups:
• Highly known brand associated with a trendy and inventive image
• High customer loyalty
• Innovation and very high quality of products
• Good distribution channels (Internet, own retail stores in different countries, distribution partner) iPod-related • Product features (outstanding quality and ease of use, low weight, cutting-edge design, compatibility with Windows format)
• Iconic status
• Accepted Pricing (Premium) by loyal customers
• iTunes on-line music exchange …show more content…
Customer loyalty is indispensable for any company, but it is a particularly sensitive issue for Apple. Apple’s early evangelistic marketing path created much more than a product, it formed a lifestyle approach to innovation and technology. This product lifestyle approach delivers not only user friendly and physically attractive products, but targets persons who identify themselves as individual thinkers or revolutionaries. This image created an exceptionally strong Apple brand and community, leading many journalists to dub Apple product users as “fanatics” .
The fanatical involvement of even non-traditional Apple users in the context of customer loyalty can be well illustrated in the battle with Real Networks online store for an open market. Real Networks, a competitor to Apple’s online iTunes store, cracked the fair play code that prevents iPod users from downloading at competing online music stores. The reaction from iPod users was harsh - they pointed out that Apple solely had developed the iPod concept, and that Real Networks’ reverse engineering of Apple’s code constituted a technology rights infringement . Windows and Apple Mac users found themselves together fighting for innovation and idealism. Many outsiders were amazed at the speed and extent at which Apple was able to bring even non-traditional users into the Apple