The essential complement to the pathbreaking Competitive Strategy, Michael E. Porter's Competitive Advantage explores the underpinnings of competitive advantage in the individual firm. For the quarter ending June 30, 2019, Apple revenue was $53.809B, a 1.02% increase year-over-year. A key competitive advantage for the company is its ability to develop innovative products that share the same operating system, software and applications. Apple has a long-established reputation for innovation and a commitment to developing new products. Chapter 2 in the textbook deals with firm performance and competitive advantage. Copyright 2020 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. Brand equity – Apple has repeatedly taken the top spot for its brand equity and has a cult following since ages. Competitive Advantages of Apple Inc. Apple’s Unique Differentiation. It must also be considered that Apple operates in different markets across the technology industry, not solely in the computer or mobile phone market. Through thebroad differentiation genericstrategy, Applestands out in the market. Apple is still determined to build and craft better, more proficient … Acceptable liquidity ratios are commonly considered to be between 1.5 and 3 percent. The company aims to offer customers a high-quality product with unique features and uses high prices to reinforce the perception of added value and maintain profitability. Other benefits include loyalty as a sustainable competitive advantage, as mentioned earlier, and increases in positive word of mouth and referral business. Who are the main competitors of Apple in the smartphone market? For apple, there exists a strong unique differentiation. Competitive Advantage introduces a whole new way of understanding what a firm does. Apple has not experienced a decline in annual revenue since 2015. For example, iOS was developed by Apple is a different and unique operating system. It offered a new single sign-on service that allows consumers to sign in … At the end of the second quarter 2019 ROE for Apple, was 52.13%. The iPod. An ecosystem of suppliers, developers and business partners provides Apple with a strong competitive advantage. Explore Apple's competitive position in the many industries in which it operates, and learn about the different products and services it offers. The technology industry is full of undifferentiated products. A Magic Mouse from Apple. I sit on a lot of PC company advisory boards, and, while this may surprise you, I actually point out Apple's competitive advantages on a regular basis. The market analysis suggest that the Apple stands at 3rd position in the PC market with the market share of 10.6 % while in the mobile market, it stands at second position with 24.2 % of market share. Apple is one of the most reliable company when it comes to personalized advanced computers and smart technology devices. It is much cheaper to serve existing loyal customers than to acquire new customers. AppleInc.’s generic strategyis broad differentiation. Major core competencies are identifiable through a VRIO analysis of Apple Inc. Top Technology. The investment analyst firm Market Realist identified brand strength, innovation, supply chain management and premium pricing strategy as key factors in the company’s competitive advantage. Michael Porter defines a competitive advantage as sustainable if it lasts for more than one economic cycle (about 10 years). This generic strategy focuses on key features that differentiate thecompany and its information technology products from competitors. Apple Inc. is an American multinational technology giant, founded in 1976 by Steve Jobs, Steve, Wozniak, and Ronald Wayne. It also has a community of more than 6 million independent software developers creating applications for Apple products. For the distribution system, Apple launched a website for direct sales for the first time. Gross profit margin shows the percentage of revenue retained after expenses are paid. The company holds the share of 78 % in the overall media player market. The problem for me is Apple… For Apple, the gross revenue statistic has been increasing consistently over the past 10 years. Return on Equity (ROE) measures the amount of net income returned as a percentage of shareholders’ equity, or the amount of profit derived from money invested by shareholders. This article discusses the generic strategies it has used to build a competitive advantage and the intensive strategies utilized to grow market share. Competitive advantage and economic value are two significant terms in this chapter. They were introduced in 1971 by a mutual friend who later became one of Apple's earliest employees Bill Fernandez (Macworld, 2017). Apple … Both men shared a passion for technology and … Competitive Advantage (Apple’s Competitive Advantage, 2004). For example, elegant design and user-friendliness ofproducts, combined with high-end branding, effectively differentiate the technologybusiness. Gain advantage in very competitive markets as of October 2019, Apple is brand.! And user-friendliness ofproducts, combined with high-end branding, effectively differentiate the technologybusiness elegant and. Software developers creating applications for Apple, Inc. is an analytical framework that assists apple competitive advantage 2019 business. In annual revenue since apple competitive advantage 2019 gross profit margin shows the percentage of revenue retained after expenses are.! Smartphones, tablets and music players – Apple has not experienced a decline in annual revenue 2015... 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