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Competition between Apple and Samsung
Strategic challenges of apple
Competitive advantage of Apple's
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1. What, historically, have been Apple’s competitive advantages? When Jobs first started with Apple computers, his main focus was to differentiate his products from the rest of the competitors. They tried to offer a similar product by licensing Apple computers but it was a failure and went back to their differentiation strategy on their operations. Apple is known to be a very innovative PC company. Even though, their first PC had less memory and was weaker than its competitors. Apple always got a lot of attention because of its innovative role in the technologic industry. From the SWOT analysis and the VRIO framework provided below (exhibit 1 and 3), Apple has many competitive advantages. First, Apple has total control over its hardware, marketing …show more content…
Still, there are some positive development with other technology, such as the iPod, and Windows running on Macs, or home buyers shifting from value cost to mobility and wireless capabilities. However, the growth in the PC market is getting constant in the domestic market, Apple will get hurt in the long run if they don’t look at the potential that the emerging market is offering. This factor is already hurting Apple due to its inability to go global. Yet, Apple will always be seen as the original innovator that create breakthrough in the technologic industry due to their culture of innovation and their philosophy of controlling their software and …show more content…
The quality and capability in term of memory surpassed the one of any competitors. Furthermore, Apple started to introduce new model of the iPod which increased Apple lead and market share in the MP3 market. According to the text, Apple held more than 70% of the MP3 market in the United States. This is due to the fact that Apple introduce the iTunes, which allows customers to purchase and save their music on any computers of their choosing and have access to it on any Apple products that they own. Furthermore, iTunes is currently the largest music catalog available and forces people to buy Apple products to have access to its services. However, Apple does not really make money out of iTunes but customers will buy any Apple products / accessories in order to have access to the whole experience. While taking all these facts into consideration and that Apple is continuously introducing new products (iPhones and iPad), they will continue to stay the leader in the MP3 players
Apple is a king in the technology world; poisoning every area of the industry that they have introduced a product too. They are slowly weeding their competition out. The only a company thrives in the thorn bush market is if they are in cahoots with apple. Apples co-founder Steve Jobs, started the company with all intention of dominating the market. The only obstacle for them is the Anti-trust law created ages ago. Apple, in their attempt to take the market over, has been racking up evidence against themselves. There reach has leaped boarders and even caught the attention of the European Union. Apple is pushing their boundaries and in the future will eventually cross the line in to monopolistic actions.
In 1976 college dropouts Steve Jobs, Steve Wozniak, assisted by Ron Wayne embarked on a path to start a tech company that would create new innovative products by connecting people all over the world. This company came to be known as Apple Computers which has become a global leader in Technology and cultural innovation. The rise of Apple computers did not come easy and along with the major success obtained their failures have not gone without notice. Yet, through the joy of success and the agony of defeat, Apple has continued to reinvent its brand over four decades.
They have a succession of well-designed and innovative products; form the iMac to the Apple Watch. Apple as a company has built an empire of partnerships, retail outlet, services, etc. In doing so, they have become the most profitable company in history (EIU, 2015).
The Apple logo is well known by many, in fact, when consumers see the logo many things come to mind such as, how aesthetically well designed the products are, how easy it is to you and understand, the level of creativity in all products Apple. Apple brand has a value of about 124 billion dollars. Apple products are high in profit margin, with the new products coming out the company is marketing their products to show case a better lifestyle, more upscale, compactness, over-the-top, this evidence through the commercial advertisement done by Apple where they are paying everyday idols (celebrities) to show the ease and use of their merchandise. Do to Apple manufacturing products that are strong and build to last, it has had the capacity to hold a solid steadfast client base which is favorable position over its competition. In addition, Apple has done great in terms of its supply chain management operations which has enabled the company to do business globally without any hesitation or
Cutting costs by competitors is the most logical way for competitors to be more competitive in the market. By cutting costs, there are more profits to be made and to gain market share by offering lower cost substitute products. The industry is flooded by competition, but no other competitor of Apple really focuses on creating great technical upport or brand loyalty. (Elliot, 2014)Apple’s primary focus is to develop innovative products and create a unique product that consumers can depend on the being the most highly anticipated technological device while offering great service and support for these new products. Apple uses business model innovation which introduces new products that are compatible with each other such as iTunes and the iPhone or ipod. This has proven to be a very effective business model and competitors are trying to replicate the same model to their advantage. (Jakab, 2015) By being an innovator and first mover on this type of technology, it gave Apple the competitive advantage in the market. In order for competitors to be more effective in the industry, they must attempt to gain customer loyalty and offer a simliar business strategy to that of Apple if they are to be the industry
It was Steve Jobs who made Apple leave the garage and make leaps and bounds in the world of technology. Steve Wozniak made the first prototype, but it was Jobs who “saw the potential” in his computer and persuaded Wozniak to sell it (Peterson 106). Even though that first computer saw very little success, Jobs knew that Apple had potential and so released the Apple II. From the beginning Jobs knew what the consumers wanted, and where computers were going to take the world; he had a vision of the opportunities in technology and saw that Apple needed to move in a different direction. In 1984, one year before he left, Jobs finished the Macintosh computer system. He was pushed from his original computer design project, “the Lisa”, and then raced to release the Mac first, but the Lisa was released to the public first. Although the Lisa came out first, the Mac “[became] synonymous with Apple, mark[ing] a…revolution in…personal computing,” (Peterson 106).
The Apple brand name is a household name, the brand value of Apple, Inc. improved to $13,724 million in 2008 from $11,037 million in 2007 (Datamonitor PLC, 2009). Apple is different from its competitors because it produces high quality products, its products are also unique and attractive and this has helped to increase its market shares. Since Apple is known globally, 54% profits come from foreign markets (Datamonitor PLC, 2009). Apple products are easy to use and carry around, majority of its products are light, small and very easy to carry around and it has a major advantage of product diversity, there is something for every one of all ages.
Overall, Apple has a creative way of marketing to the millions of people over the world. Their creative marketing coupled with their unique product meshes together to form a multi-billion dollar company. If Apple keeps using their exclusive style of marketing to a younger “hip” generation then they will be Apple customers for life.
Apple’s SWOT analysis includes strengths that adhere to its great success; such strength is Apple’s marketing and advertising campaigns. Apple incorporates its products to portray a sleek, new, cool, the latest, and must-have technology image to its consumers. Our customer loyalty allows us to continue growing as a corporation and increases our already well-established brand awareness and reputation. Our strong financial performance is an outcome of our internal strengths highlighted. Apple’s weaknesses include, but are not limited to our patent infringements, defects that occur in our products, our declining market share, as well as our incompatibility with other os devices. Realizing our weaknesses allows us to develop goals that will correct these areas we currently need work on. The opportunities of our external environment; such as the ...
Apple is a company that has been round for many years. There are over 55 million people who use an apple product or are considered to have at least one apple product in their home. The apple products range from larger devices such as there amazingly known Mac books which are there computer based system to there much small hand held based device called the iPhone. That device allows a person to make calls all while have the convent amenities that a laptop would have. They also have the very popular iPod as well as Apple TV. They have expanded into an empire that everyone is trying to become as well as beat. As many people know there is history and hard work that has to take place in order for a business to be successful. Many people will refer to the success of apple as the underdog company that made despite the odds. Founder Steve Jobs was a regular person with a dream. He started of building an Apple computer in his parent’s living room and later moved to the garage true to lack of space. Later on in his building career a neighbor of Steve Jobs introduced him to Stephen Gary Wonzniak. Wonzniak was an engineer and Jobs was a market maven and together they have the skills to build and properly promote. The computer they were trying to promote was fairly expensive computer. Jobs was so dedicated to this idea of transforming this computer from what it was to something that is able to be sold to the public he reached out to Bill Hewlett and asked him to donate some parts for a class projects .
has a competitive advantage over their competitors. One of the methods that Apple uses to maintain a competitive advantage in international markets is tying their hardware and applications together with an integrated operating system. This means that one of their devices, such as the iPad works very much like the iPhone and many of the apps run one device just as they do on the other. The only difference would be the size of the product. Apples laptop is larger than the iPad which is larger than the iPhone. Otherwise these products share the same functionality and information through connectivity. They share functionality and information seamlessly through connectivity, constantly updating customer’s lives through simple plug-in. I think this is the number one reason why Apple has an edge over their
Apple Inc. was established by Steve Jobs and Steve Wozniak on April 1, 1976 as a computer designer, developer and seller company. However, the company shifted its focus from only personal computer to include other consumer electronics such as portable media player and mobile phone in 2007. Apple Inc becomes one of the most popular makers in its field since it seems that its popularity has increased according to a report on www.statista.com that Apple Inc’s products sales was generally increasing throughout the first quarter of 2006 to the first quarter of 2014. On the one hand, it has increased its revenue from about 14 billion US dollars to more than 170 billion US dollars in 2013. All in all, the company is highly successful corresponding to its products’ development and their sales growth in world’s market.
This report on innovation and change examines how Apple's iPod is the first entry into the marketplace that addresses the needs of the portable digital music market segment. It explains how it is small enough to fit comfortably in a shirt pocket. It shows how the device addresses the shortcomings of other portable MP3 music devices. It also looks at how market segmentation has been one of the most vital factors fueling the demand for technological products, as companies recognize that segmentation equips them to generate more sales than the mass marketing approach of the late 20th century. The report examines how Apple understood the needs of the digital music community, together with the strengths and weaknesses of other products in the marketplace prior to designing the iPod.
Computers and technology makes it easier for entrepreneurs to enter this market. Not only are major tech companies competing against one another, but they are also competing against little programmers that know how to code. In our time you will never know with certainty when a small group of engineers or computer scientists are going to create, “next big thing”. Apple has been able to have a competitive advantage over its competitor by creating the highest quality products and services. Some of Apple’s current competitors are Microsoft, Google, and Facebook, and a few other tech companies as well. Most people strongly people Apple is one of the stronger company its industry, but then again some other people have biased views. Financially, they are the strongest company in the world. Also people are always willing to pay a premium for their products because of their durability, quality, and prior experiences with Apple products. Apple is always on the look at for new innovative ideas and concept that are being produced by self-motivated entrepreneurs. They are always looking to hire bright minds and let them develop within the company. A lot of entrepreneurs, programmers and engineers do not have a problem working for Apple because of their well-established perks. Apple offers its employees of the best benefits in the world. They also fairly compensate their employees that work in the front-end store as
In 1976, Steve Jobs founded Apple Computer with his friend Wozniak in the garage of Job’s parents. In 1984, Jobs introduced the Macintosh to the world. It was a very innovative and good product but sales were not strong. Apple’s board wanted to Jobs to step down from his position. In 1985, Steve Jobs founded NeXT Inc. Steve was able to create technologically advanced product but the cost was too high to be successful. Company made first profit after 10 years of operation. In 1997, NeXT Inc was acquired by Apple Inc. In 1986, Jobs bought The Graphics Group. In 1995, the first film, Toy Story, came out. It was a big success and Pixar became one of the biggest animations producing company in the market. Jobs had opportunity to return to Apple, after Apple decided to purchase NeXT Inc. After Jobs returned to Apple, He started to invent new product. iMac was introduced to market and Jobs became permanent CEO of Apple. Apple started to expand their expertise under Jobs guidance. Apple started to introduce digital appliances like iPod, portable music player. In 2007, Apple introduced the iPhone, the very first multi-touch display cellphone. iPod and iPhone completely changed world. These inventions were not only a better product but also new way...