What, Historically, Have Been Apple’s Competitive Advantages?

1349 Words May 4th, 2011 6 Pages
APPLE INC.
1. What, historically, have been Apple’s competitive advantages?
Apple pursues a differentiation strategy since it started in 1976. Only one time they offered a computer aiming for the mass market, but soon came back to their differentiation strategy. This differentiation strategy was at one point supported by a strong promotion campaign, with the goal of to ‘differentiate the Macintosh amid intense competition in the PC industry. Apple has always been a very innovative PC manufacturer. Through excellent R&D, Apple always managed to launch PC innovations on the market. Although the products sometimes showed weaknesses, the innovative role still gave Apple a lot of attention. Apple designed its products typically from scratch,
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In contrast, the iPod, iPhone and iPad are successful in only using Apple’s operating systems. This surely contributes to weakening their position. If Jobs is one day able to offer the customers an operation system which can match or even supersede Microsoft’s, this would severely increase Apple’s competitiveness in the PC market.
Physical keyboard With the PC’s they are able to service the professional users as well, something which the iPad can not. iPad is more and entertainment device, which appeals to private usage.
4) How sustainable is Apple’s competitive position in MP3 players?
With the introduction of the iPod, Apple overran all competitors, such as Creative and Samsung, and became the clear market leaders. In the US for example Apple now holds approx. 70% of the MP3 market share, which indicates that Apple has a very strong position in this market. Price and profit margin is also a major competitive factor in regards to the iPod. Firstly, Apple is able to sell its products at a higher price than the competition, because the customers favor the brand, design and operating ease. Secondly, the iPod itself doesn’t cost that much to produce and Apple have even managed to lower the production costs even further, due to large purchase volumes and increased purchase power. This means that the iPods are a very profitable business for Apple.
However, it looks as if the popularity of the

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