According to Hill, J.(2008:75) that the roots of competitive advantage is strategies, the root of strategies is distinctive competencies, the roots of distinctive competencies are resources and capabilities. Competitive advantage lead to superior profitability. So, talking about competitive advantages means about strategies, distinctive competencies, capabilities and resources. There are two types of competitive advantages: differentiation and cost leadership. All of them are effected by four factors:
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apple computer 2012 Apple Computer 2012 1. What, historically, have been Apple’s major competitive advantages? Early on, although not always profitable, Apple Computer was known for their unique products. A quote worth noting from an analyst, “the majority of IBM and compatible users ‘put up’ with their machines, but Apple’s customers ‘love’ their Macs.” This is truer knowing what Steve Jobs strives to achieve with the company as well as the employees. Job was especially fanatic about industrial
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What, historically, have been Apple’s competitive advantages? From the beginning, customer loyalty has been one of Apple’s competitive advantages. Apple owners were much more attached to their Apple computers than PC users. Early on Apple pushed into the publishing and education markets. They were able to grab half the market for education. Their computers were easy to use, had sharp designs, and high quality. Apple also used a plug and play system with all its own peripherals as a major advantage
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Question 1: What, historically, have been Apple’s competitive advantage? Historically, Apple’s competitive advantage has been product differentiation and premium pricing strategy. Apple is known for offering high-end innovative products. Mike Markkula, investor and entrepreneur, was able to attract a lot of venture capital which allowed Apple to place a significant investment into R&D in order to create its premium products. Unlike other “Wintel” firms that manufacture only hardware, Apple
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1. What historically, have been Apple’s competitive advantages? Apple’s main competitive advantages have been their innovation, large customer base, and large customer loyalty. From its conception, the main goal of Apple was to create cutting edge products that were both aesthetically pleasing and easy to use. They create each computer from scratch, allowing them to be innovated and upgraded as soon as they create a new technology. Due to the fact that they have been creating their own new technology
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1. Historically, what were the Apple’s major competitive advantages? We can identify the Apple’s major competitive advantages through The Potential Source of competitive advantage Model by Michael Porter. Apple successfully differentiates its product as the high-quality PC product. While IBM PC has relatively open system and low price strategy, Apple concentrates on their loyal customers. Apple had relatively narrow customer base in PC market. But their products were a lot different from
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1. How attractive is the PC industry? Conduct an industry analysis on the PC industry (A) in its early stages, and (B) in its later stages. Comment on how the industry has evolved. In personal computer industry, we considered two different time periods. The early stage includes development from 1980s to the early 2000s, and the later stages starts from early 2000s to now. Threat of Entry Early Period PC industry has low entry barrier which is brought by IBM’s entry to the market. In 1980s
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1. What, historically, have been Apple’s competitive advantages? Apple, one of the most famous, valuable, and competitive company in nowadays marketplace. Although it was once almost bankrupt, its competitive advantages of innovation and differentiation bring Apple to the leader position in the industry. At the beginning of Apple, it was only focus on making computers. However, with Steve Jobs’ innovation, it started to diversify its product lines and successively introduced
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APPLE CASE: Apple Inc. in 2010 Ipad: 2010: 3rd major innovation launched by Apple over last decade (revolutionary product). 80’s + 90’s: Mac personal computers. Late 80’s: Strong brand, rapid growth, high profits. 96’: almost went bankrupt. Then: Apple Computer=> Apple Inc + innovative non-PC products in early 2000s (=mobile device company). 2009 fiscal year: Iphone+Ipod= 60% of sales (total sales= $43 billion) Apple stock had risen more than 15-fold since 2003. -Macintosh
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Apple Case Team Assignment 1. What historically have been the sources of Apple’s competitive advantage? (15pt) Apple, since its conception, has been focused on making a superior personal computer. Apple was, at first, ahead of their competition due to their improvements upon the personal computer. Apple was adamant on creating an easy to use personal computer with exceptional design and style; creating a premium product. Apple was focused on being different, rebellious and cutting-edge. Steve
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