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1. Introduction

1.1 Background of Apple Inc

The corporate history of Apple Inc is considered as a history of passion (Schermerhorn 2010, p.438). It was begun by a pair of Stevens, i.e. Steven Wozniak and Steven Jobs together with Ronald Wayne, who combined their professional skills to create Apple Computer [1]on 1st April 1976 with the release of the Apple I, the first Apple computer, in the same year. Since the establishment, Apple has been focusing on the consumer electronics, computer software, and personal computers and the best-known products include Iphone, Ipad, Mac line of computers and other hardware and software products. And according one of the most recent brand study carried out by the global brands agency Millward Brown, Apple has overtaken Google as the world’s most valuable brand (Bbc.co.uk 2011).

Figure 1 Steve Jobs and the most recent Iphone 4 in white

Source: Yohe 2010

1.2 Industrial environment introduction

As claimed by Hill and Jones (2008, p.100) that for the last 20 years, fast growth of the power of the computer has greatly attributed to the high extent of innovation and a turbulent environment in the personal computer industry. There are a number of players and potential entrants in the industry that drive up the competition and such fierce competition again is enhanced by the fast technological innovation resulting in the fact that no single company, no matter how large and power it is once, could maintain absolute competitive advantage for a long time. For example, in the 1980s Apple Computer manage to build up a competitive advantage based on the combination of a proprietary disk operating system and an intangible product image but such competitive advantage was lost to Microsoft when the similar system, Microsoft’s Windows operating system with many similar features was released in the

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