Apple Case - Competitive Advantage
Table of contents
Apple competitive advantage ……………………………………………………………… p 3
The personal computer industry ………………………………………………………….. p 6
Apple’s competitive advantage in PCs …………………………………………………... p 9
The introduction of IPhone as a blue ocean strategy ……………………………………. p 13
Apple’s competitive position in smartphones …………………………………………… p 19
How does the death of Steve Jobs affect Apple’s overall strategy for the next 5 years …. P
References list …………………………………………………………………………….
I. Apple’s competitive advantage
In order to explain Apple’s competitive advantage, we need to look at Porter’s generic strategies. Porter defines 3 strategies: * Differentiation focus * Cost focus * Cost leadership
Apple strategy is based on differentiation. In fact, Apple ambition is to be unique on computer and new technologies market. That is the reason why Apple differentiates its products but also its stores and its services. In order to be unique on it segment, Apple offers an other vision of computers and music players. Apple stores are build on the same basis: a futurist concept, with an uncluttered aspect. The Apple main differentiation is that it produces its owns softwares, that means it does not used Microsoft ones. Thus, its consumers have to use Apple services if they have any problems with their laptops or other Apple’s products.
Apple success begins in 1977 with Apple II. It is the first success of Apple in computers market. This laptop is used as an education tool. It is the first laptop with a screen and a keyboard. The following year, Apple III is commercialised, and it was the first laptop with disk drive blended in it.
Apple was the first company to offer an operating system possessing a graphical user interface with icons and programs.
In 1984, Apple decides to bring out the Macintosh in order to compete and unhinge IMB’s PC (personal computer) launched in 1981. Macintosh is a sort of Canadian apple.
Apple competitive advantage ……………………………………………………………… p 3
The personal computer industry ………………………………………………………….. p 6
Apple’s competitive advantage in PCs …………………………………………………... p 9
The introduction of IPhone as a blue ocean strategy ……………………………………. p 13
Apple’s competitive position in smartphones …………………………………………… p 19
How does the death of Steve Jobs affect Apple’s overall strategy for the next 5 years …. P
References list …………………………………………………………………………….
I. Apple’s competitive advantage
In order to explain Apple’s competitive advantage, we need to look at Porter’s generic strategies. Porter defines 3 strategies: * Differentiation focus * Cost focus * Cost leadership
Apple strategy is based on differentiation. In fact, Apple ambition is to be unique on computer and new technologies market. That is the reason why Apple differentiates its products but also its stores and its services. In order to be unique on it segment, Apple offers an other vision of computers and music players. Apple stores are build on the same basis: a futurist concept, with an uncluttered aspect. The Apple main differentiation is that it produces its owns softwares, that means it does not used Microsoft ones. Thus, its consumers have to use Apple services if they have any problems with their laptops or other Apple’s products.
Apple success begins in 1977 with Apple II. It is the first success of Apple in computers market. This laptop is used as an education tool. It is the first laptop with a screen and a keyboard. The following year, Apple III is commercialised, and it was the first laptop with disk drive blended in it.
Apple was the first company to offer an operating system possessing a graphical user interface with icons and programs.
In 1984, Apple decides to bring out the Macintosh in order to compete and unhinge IMB’s PC (personal computer) launched in 1981. Macintosh is a sort of Canadian apple.
References: Harvard Buisness School. Apple Inc. 2010 written by David B. Woffie and Renee Kim. Besson E., 2011 - External Environment Scanning : Inter-Industry Analysis Jones, G. R., & Hill, C. W. (2010.). Strategic Management: An Integrated Approach (8th ed., pp O 'Grady, J. D. (2009). Apple Inc. Westport: Greenwood. Ostrowick, J. (2010). About This Macintosh (3rd ed.). Johannesburg, South Africa: WITS. New Mobile Phone Signals Apple 's Ambition, The New York Times, January 9, 2007.