1. What, historically, has been Apple’s competitive advantage?
- Innovation. They were the first ones to create a personal computer, first to capitalize on the MP3 movement, first to create the tablet computer. They have the first mover advantage in their efforts.
- First mover strategy of being the first company to do something
- A case can be made for efficiency with their quick turnaround of product updates
2. Analyze the personal computer industry. Are the dynamics favorable or problematic for Apple?
- Problematic: Since tech industry is highly innovative in nature, therefore if Apple were to ever mess up or fall behind, it would present a huge opportunity for another company to come in a fill the void and take the lead.
- Favorable: difficult for new competitors to enter the industry, apple revolutionized the industry and now the industry is widely reliant on Apple; high profit margin for products due to differentiation; separated themselves from the market/competitors
3. How sustainable is Apple’s competitive position in PCs?
Competitive advantage building blocks
a. Then core competencies: either resource or capabilities Resources: either tangible or intangible Capabilities: Skills, process, and routines
- V: Yes, consumer features: apple store, plug and play, distribution, ease of use, etc.
- R: Not a rare commodity
- I: Very, because they put a LOT of money into their marketing, strict product/resource controls, cost of innovation/R&D
- O: significantly yes, all aspects of the organization is used (financial, sales, marketing, R&D, etc.)
4. How sustainable is Apple’s competitive position in MP3 players? Competitive advantage building blocks
a. Then core competencies: either resource or capabilities Resources: either tangible or intangible Capabilities: Skills, process, and routines
- V: Yes, consumer features: apple store, plug and play, distribution, ease of use, etc.
- R: Not a rare