...Critical Analysis about Competitive Advantage of Apple Inc. based on the Porter`s Five Force Model Northeastern University Strategic Leadership Xiaolong Cao Instructed by James Lux June 6th 2016 Abstract This article aims to detect two key areas in Apple`s competitive advantage through using Porter`s Five Force model. According to the knowledge learned from class, there is no forever lasting competitive advantage, so through analyzing the case of Steve Jobs competitive strategy it presents a clear and reasonable structure and explanation of their competitive advantage. After doing this analysis, this article helps to fine both the disadvantage and advantage of their competitive advantage, and each of them contains two aspects according to Porter`s Five Force Model, which provides a reliable and meaningful support to test and excavate the effect of competitive advantage and future developing orientation. Introduction In the modern time, there are numerous resources that identify the importance of the competitive strategy. The ever growing technological trends and volatility within business operations in today's society make it extremely difficult for organizations to stay complacent with their strategies. Adjustments and new ideas need to constantly be developed to be able to maintain a competitive edge. The most obvious examples happen in IT industry, high performance laptop was a competitive advantage 2 years ago...
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...Developing a competitive strategy can take on many avenues of approach. For Apple, Inc., a few competitive strategies can be pursued in the Brazilian market. Those strategies include a product differentiation strategy, a pricing strategy, and/or a market segmentation strategy. However, determining which strategy will be ideal can only be determined over time, but an initial path needs to be taken based upon identified strengths and weaknesses. Therefore, it is recommended that Apple, Inc. move forward with a competitive pricing strategy in Brazil. A product differentiation strategy would not be conducive in the Brazilian market because several other businesses already operating in the market provide products that either meet consumer needs, wants, etc. Although Apple, Inc. does provide quality products and services, they are not really ahead of the competition in Brazil. A market segmentation strategy may or may not work for Apple, Inc. in the Brazilian market. While focusing on a specific market may seem like a viable option, it would be rather difficult for Apple, Inc. to benefit from it because they focus on all users of their products and services. Apple, Inc. may be able to focus on providing products and services for high dollar amounts in the United States and other countries; however, this strategy is viewed negatively in the Brazilian market. Not to mention, there is no specific market that would really produce a significant enough profit for Apple, Inc. in order...
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...The Apple Corporation Bus431: Marketing Strategy CERTIFICATION OF AUTHORSHIP: I certify that I am the author of this paper and that any assistance I received in its preparation is fully acknowledged and disclosed in the paper. I have also cited any sources from which I used data, ideas or words, either quoted directly or paraphrased. I also certify that this paper was prepared by me specifically for this course. Student Signature: Cynthia M. Cantu Table of Contents Organizations Background…….……………………….……………………………………...4 Business Strategy………………………………………………………………………………4-5 Mission………………………………………………………………………………………….5 Vision…………………………………………………………………………………………...6 Competition…………………………………………………………………………………… 6-7 Apple’s Strengths……………………………………………………………………………... 7 Weaknesses Apple Faces……………………………………………………………………… 7-8 Opportunities for Apple………………………………………………………………………...8-9 Threats Apple Faces…………………………………………………………………………...9-10 Demand & Competitive Factors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .10 Labor & Staffing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....
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...multinational approach to get a competitive advantage over others in the global environment. Competitive analysis is an important component in environmental scanning. In this paper, the internal and external environments of three popular companies will be studied and contrast the ways in which companies analyze their internal as well as external environment and the strategies formed accordingly to get a competitive edge over others. Three popular companies selected in this paper are Coca Cola, Proctor, and Gamble (P&G), and Apple Inc. All three organizations are related to different industries and carry out different businesses. The competitive strategies and their measurement guidelines will evaluate their internal and external environmental perspective. Determine what competitive advantages each company has and what strategies each company is using. Coca Cola Company is known in the beverage industry, P&D is known in the consumer product industry and Apple Inc. is known for their technology. All three organizations are one of the top market giants in their respective industries and have competitive advantage over other firms in their relevant industries. Coca Cola strongest competitive rival in beverage industry is Pepsi. Both have competing efficiently in the market; however, Coca Cola has many competitive edges over others. Because of a competitive environment, Coca Cola has invested a large amount of effective competitive strategies in the market and to gain...
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...generic strategies with particular reference to Apple Inc) Table of contents Introduction…………………………………………………………………………………………………. Porter’s three Generic Competitive Strategies…………………………………………………………. Cost Leadership…………………………………………………………………………………………… Differentiation………………………………………………………………………………………………. Focus or Niche strategy…………………………………………………………………………………... Apple Inc……………………………………………………………………………………………………. Identification and Critical Evaluation of the Company’s Existing Strategies………………………… Apple Inc Cost leadership Strategy……………………………………………………………………… Apple Inc Differentiation Strategy………………………………………………………………………... Apple Inc Focus or Niche Strategy………………………………………………………………………. Conclusion………………………………………………………………………………………………….. References…………………………………………………………………………………………………. 1.0 Introduction A firm's relative position within its industry determines whether a firm's profitability is above or below the industry average. The fundamental basis of above average profitability in the long run is sustainable competitive advantage. There are two basic types of competitive advantage a firm can possess: low cost or differentiation. The two basic types of competitive advantage combined with the scope of activities for which a firm seeks to achieve them, lead to three generic strategies for achieving above average performance in an industry: cost leadership, differentiation, and focus. The focus strategy has two...
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...APPLE’S PROFITABLE BUT ISKY STRATEGY Case Study [Type the author name] CASE STUDY ON PROFITABLE BUT RISKY STRATEGY OF APPLE INTRODUCTION: A long term plan and action that is formulated to help a company to setback and achieve a competitive advantage against its competitor and rival is called competitive strategy. This type of strategy is frequently used in marketing, promotion and advertising operations by somehow questioning the rivalry's service or product. Competitive strategies are vital to businesses which are competing in markets for the leading position, the market which is deeply saturated with substitutes for consumers. (Porter,2008). This case study is truly about the competitive strategy of Apple. Apple was founded in 1976 by two Steve Job and Steve Wozniak. Apple initiated its early reputation by making user friendly personal computers and keeping the price high against those made by the competitors. Their first computer was the Apple Macintosh (MAC). It was launched in 1984. From the very first, Apple’s strategy was innovative and profitable. Innovation brings risk with it. So Apple always followed innovative, risky but a highly profitable strategy. Apple is a front line company in industry of electronics whether in cell phones, tablets, personal computers and music devices etc. Apple’s software is actually the one which is greatly designed and programmed. Apple charge premium and comparatively high price from the consumers when compared with prices...
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...UNIVERSITY OF AGDER | Term Paper - Apple | ORG 409-1, INTERNATIONAL MANAGEMENT | Ole Erik H. Larsen 25.09.2015 | Innhold 1 INTRODUCTION 1 2 COMPETITIVE ADVANTAGE 2 3 PORTER´S STRATEGIC GROUPS 3 4 SWOT - ANALYSIS 5 5 CONCLUSION/REVIEWS 6 5.1 Future research 7 6 SOURCES 8 6.1 Guidebook 8 6.2 Internet 8 6.3 Pictures: 8 1 INTRODUCTION Apple is an American multinational technology company that constantly designs, develop and sells consumer electronics, online services, computer software and personal computers. Its best known products are the Mac line of computers, the iPhone smartphone, iPad tablet computer, and the Apple Watch smartwatch. Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne on April 1, 1976, to develop and sell personal computers. By revenue Apple is the second-largest information technology company in the world, after Samsung Electronics. On November 25, 2014 in addition to being the largest publicly traded corporation in the world by market capitalization, Apple became the first U.S. company to be valued at over US$700 billion. As of March 2015, Apple employs 98.000 permanent full-time employees, maintains 453 retail stores in sixteen countries, and operates the online Apple store and iTunes Store. ITunes are otherwise the world’s largest music retailer. Apple has in recent years enjoyed an outstanding success in technology, and the company has grown to become one of the most valuable brands in the world...
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...Introduction This case study highlights Apple Inc. position on the consumer electronics retail within the United Kingdom’s market. The competitive conditions are highlighted using Porter’s five forces theory. The second part of this case study shows how Apple Inc handles the different forces and threat to remain competitive on the market. Porter’s five forces The Porters five forces is a model helping to analyse the forces that shape an industry’s competitive environment. The tool can be used to define the attractiveness of an industry as well as plan the strategy of a company within a market. Competitive rivalry within the industry The main actors of the consumer electronic goods are divided depending of the type of products their providing. Based on Apple’s product, we can identify the following competition’s group: * Computers: Lenovo, HP, Acer, LG, Fujitsu, etc. * Smartphones: Samsung, HTC, Sony Ericsson, LG, Nokia, Blackberry, etc. * Music players: HP, Samsung, etc. * Tablets: Samsung, Tesco, Acer, Microsoft, Blackberry, etc. The competitive rivalry is intense within the consumer electronic goods retail. Entering this market as a new brand is very difficult as the current actors are well settle. Also many companies having a step in the market are diversifying their type of electronic products, and each of them is a potential competitor for any other brand. Bargaining power of buyers The buyers have the opportunity to compare the products prices using...
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.............................................................................................................................. 2 2.0. Company Profile ..................................................................................................................................... 3 3.0. Apple Distinctive Competencies ............................................................................................................ 4 3.1. The R-C Model.................................................................................................................................... 4 3.2. Building Blocks of Competitive Advantage ........................................................................................ 6 4.0. Nature of Competition in the PC industry ............................................................................................. 7 4.1. PC Industry Life Cycle ......................................................................................................................... 7 4.2. Porters 5 Forces ................................................................................................................................. 8 5.0. Apple Sustainable Competitive Advantage.......................................................................................... 10 5.1. Value Chain ...................................................................................................................................... 10 5.2. New McKinsey 7S Model .....
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...[Course Title] [Instructor Name] [Date] Apple iPad Marketing Plan Executive Summary To survive in the global and competitive business environment, it is essential for a company’s to conduct extensive research so that they can develop a strong brand image from the initial stage as it leads to greater financial benefits for the company. The marketing plan of Apple’s iPad is the topic where an effective marketing strategy is developed to ensure its success in the global competitive market where major plays such as Sony, Compaq and Dell have a significant impact upon Apple’s strategies. Apple’s latest ipad is the revolutionary product which is a portable mini device used as a pc anywhere with its wide range of options and innovative design. Apple’s marketing strategy will be focusing upon the product design, brand positioning, price and promotion of iPad in the global market. This will be linked to the research and analysis of the environmental forces and SWOT analysis to understand the company’s position. Apple’s market strategy will be incorporated with the generic business strategy which is towards growth and maintaining a strong position in the market through its innovative products. Apple will use competitive marketing strategy for its iPad where two such strategies can be developed which are differentiation and Focus to make iPad a success in the global market. Marketing planning and strategies can become highly effective if Apple focuses upon its strategic human resource...
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...Strategic Management Apple & Nokia Case Analysis 1. Table of Contents 1.0 EXECUTIVE SUMMARY OF APPLE AND NOKIA CASE 2 2.0 QUESTION 1 3 2.1 Competitive analysis of Apple and Nokia – who is stronger? 3 2.1.1 Competitive Analysis 3 2.1.1.1 SWOT Analysis 5 1.1.1 Strengths of Apple 6 2.1.1.2 Value Chain Analysis 9 2.1.1.3 Resourced Base View Tool 11 3.0 QUESTION 2 14 3.1 PESTEL analysis tool 15 3.2 Porter’s Five Forces 17 3.3 The Implications for Strategic Development are; 21 4.0 QUESTION 3 21 4.1 Critical Analysis Lessons from Apple’s risky but profitable strategy 21 5.0 REFERENCE: 23 1.0 EXECUTIVE SUMMARY OF APPLE AND NOKIA CASE Apple chalked some initial success with its invention of the Macintosh (Mac) computer but with the introduction of the Windows 1.0 from its rival company (Microsoft), it was faced with a threat in the industry. Their earlier strategic decision of not cooperating with rivals in the industry was seen as a weakness which Microsoft capitalized on to make their software available to other computer manufacturers for a license fee. Apple, diversifying into a new market (mobile telephone industry) with the introduction of user friendly products sought industry cooperation when it came to the launch of subsequent products including the iPod and iPhone. This strategic decision was inspired by its past...
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...Apple Analysis Executive Summary In week 8 of AMBA 640, we will be analyzing the Apple case located in chapter one of Management Information Systems: Business Driven MIS Inc from an information systems management perspective. Our analysis will look at some of the common tools used to analyze competitive intelligence such as Porter’s Five Forces Model, the three generic strategies for choosing a business focus and the value chain analysis. We will also discuss why and how data, information, business intelligence and knowledge are important to Apple. This analysis will also include how Apple identified areas where it achieved a competitive advantage using management information systems and why competitive advantages are temporary. Introduction Apple was launched April 1, 1976 by Steve Jobs, Ronald Wayne and Steve Wozniak and is considered to be one of the most innovative technologies companies in the world. The company is responsible for products and services such as the Macintosh desktop and laptop computers, iTunes, iPod, iPhone, iTouch, iPad, Apple TV, and iCloud. Apple also develops its own software to run on its computers, its philosophy “has always been to create products that consumers find easy to use and marry innovative technology to work productivity and personal entertainment” (Mallin & Finkle, p.49, 2011). This accomplished company faces constant challenges from a competitive market to a technology lifecycle that is continuously being shortened and thus must...
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...Case Case Study #1 Apple Inc. Dixie Corbin MGMT 670 Fall 2013 What does a competitive strength assessment reveal about Apple's computer business as compared to the leaders in personal computer industry? Use the methodology in Table 4.2 to support your answer. Does it appear that the company's competitive positions in the media players and smartphones are stronger or weaker than its position in computers? Table 4.1 is in Chapter 4, page 65; Table 4.2 is the SWOT analysis, page 71. Apple Inc. has provided many innovative and creative products to consumers over the years. Many industry analysts want to know if Apple can sustain its growth and defend against new competitive threats. Apple lost their CEO Steve Jobs in 2011 to health issues. They were still able to stay ahead of the competition with impressive growth into 2012. “The company set record quarterly revenues and profits during its second quarter of 2012, which resulted in its stock price catapulting to a level that made it the world’s most valuable company as measured by its market capitalization.” (Gamble & Marino, 2012) Even with the loss of Steve Jobs, Apple was able to continue to provide innovative products such as the iPhone, iPad and iPod. During Job’s absence Tim Cook was able to perform successfully and was eventually appointed Job’s successor as Apple’s CEO. With a new CEO, Apple faced many difficulties including being forced to “work creatively and expeditiously to sustain the company’s success...
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...Apple Inc. Apple Inc. formerly Apple Computer, Inc., is an American multinational corporation headquartered in Cupertino, California that creates and retails consumer electronics, computer software, and personal computers. Apple’s mission and vision summarizes its committed efforts in bringing the best user experience to its customers through its advanced hardware, software, peripherals, and services along with a unique ability to design and develop its own operating system, hardware, application, software, and services, in order to provide its customers new products and solutions with superior case-of-use, seamless integration, an innovative design (“Apple Inc. Form 10-K Annual Report”, 1, 2012). Company’s mission and vision statements against the performance of the organization Apple’s mission and vision statements and objectives are neither interchangeable nor autonomous. Without objectives, the mission and vision statements are impractical. Without the mission and vision statement the objectives have no relevance. Both statements are too broad to be measurable, and the objectives are too definite to provide the big picture. When properly coordinated they strike a balance that helps to shape the business operations and service strategy. Apple Inc.'s mission statement is as follows - Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through innovative hardware, software and...
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...Apple Analysis Executive Summary In week 8 of AMBA 640, we will be analyzing the Apple case located in chapter one of Management Information Systems: Business Driven MIS Inc from an information systems management perspective. Our analysis will look at some of the common tools used to analyze competitive intelligence such as Porter’s Five Forces Model, the three generic strategies for choosing a business focus and the value chain analysis. We will also discuss why and how data, information, business intelligence and knowledge are important to Apple. This analysis will also include how Apple identified areas where it achieved a competitive advantage using management information systems and why competitive advantages are temporary. Introduction Apple was launched April 1, 1976 by Steve Jobs, Ronald Wayne and Steve Wozniak and is considered to be one of the most innovative technologies companies in the world. The company is responsible for products and services such as the Macintosh desktop and laptop computers, iTunes, iPod, iPhone, iTouch, iPad, Apple TV, and iCloud. Apple also develops its own software to run on its computers, its philosophy “has always been to create products that consumers find easy to use and marry innovative technology to work productivity and personal entertainment” (Mallin & Finkle, p.49, 2011). This accomplished company faces constant challenges from a competitive market to a technology lifecycle that is continuously being shortened and thus must...
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