What, historically, has been Apple’s competitive advantages?
On 1st April 1976, Steve Jobs and Steve Wozniak, together with other college dropouts in the USA, founded Apple Computers, and after several months, they had produced 200 units. This made them take on a new partner, Markkula, Jr., who was known to be an experienced businessman and used to attract many business ventures. Job’s aim was to make use of computers, and in 1978, they produced Apple II. This ignited the computing revolution and contributed $1000 in profits annually. Apple Inc. eventually became the leading firm in the industry, selling up to 100,000 Apple II brands by the end of the year 1980. They advanced their technology, and in December 1980, they successfully launched an IPO. Due to the competition from IBM PCs who used Microsoft DOS and gained a high percentage of the market share, Apple introduced Macintosh in 1984 as a response to their competitors. The introduction of Intel-powered computers by Apple led to a continuous increase in the market share.
Apple’s first competitive advantage has been the fact that the company takes courage and sticks to its principles, rather than venturing into other opportunities that could have guaranteed easy increase in short-term profitability. Ultimately, this unusual approach led the company to gain a lot of profits and large volumes of sales. Secondly, there is a great difference in the organization of the company, while other business companies are divided into business units resulting in competition; Apple has been an organized company with only one category of products. Therefore the company’s products are compatible, making their consumers enjoy the brand experience. Thirdly Apple’s approach to launching products is very different. While other companies launch products for a small period of time, Apple launches product families lasting for many years, for example, iPhone, iPod, iPad, among others. It is also worth noting that pricing is done considerably hence generating a competitive advantage and, at the same time, high profits.
Fourthly, Apple does not always rush in the production of products the way most business companies do. The company strategically conducts research in the market to ensure that at the time of the launch, competitors will not be able to take advantage of them. Above this, Apple terms the whole consumer experience as the most important factor which needs to be valued. This means that the product’s technical performance, as experienced by the consumers that are, what is inside the product is very important than what is outside. Due to this, Apple has kept the consumers and technology relationship easy and exciting.
Lastly, Apple Inc. is one of the companies that look at people as assets and greatly values their contribution to the company. The company handsomely rewards its human capital. Most people have received big paychecks, and this has helped the company maintain the highest experienced and knowledgeable people in the company, something which has been hard for other business companies.
"What, historically, has been Apple's competitive advantages?" Custom-Writing, 6 May 2020, custom-writing.org/qna/what-historically-has-been-apples-competitive-advantages/.
1. Custom-Writing.org. "What, historically, has been Apple's competitive advantages?" May 6, 2020. https://custom-writing.org/qna/what-historically-has-been-apples-competitive-advantages/.
Custom-Writing.org. "What, historically, has been Apple's competitive advantages?" May 6, 2020. https://custom-writing.org/qna/what-historically-has-been-apples-competitive-advantages/.
Custom-Writing.org. 2020. "What, historically, has been Apple's competitive advantages?" May 6, 2020. https://custom-writing.org/qna/what-historically-has-been-apples-competitive-advantages/.
Custom-Writing.org. (2020, May 6). What, historically, has been Apple's competitive advantages? Retrieved from https://custom-writing.org/qna/what-historically-has-been-apples-competitive-advantages/
Custom-Writing.org. (2020) 'What, historically, has been Apple's competitive advantages'. 6 May.