What, historically, has been Apple’s competitive advantage?

The Apple Inc. started as “Apple Company” and was widely known for its Macintosh computers in 1980-90. Despite the fact that the brand was well-known, strong, earned high profits and was growing rapidly it eventually got almost bankrupted in 1996. Then the CEO Steve Jobs strategically pulled the company out of the dilemma. He transformed the Apple Company into Apple Inc. with innovative products without a PC in the beginning of 2000. The CEO saw the company as Mobile Phone Company. In 2011, the revenues of Macintosh computers were lower than 20% of billion dollars that Apple Company was earning and making history of its own and became most valuable company in 2012.

The CEO Tim Cook knew that a company cannot prosper if it stays on a stabilized platform as the sale of iPod was falling for 4 straight years until 2012. At the same time Microsoft was all set to introduce Windows 8 which was promised to challenge the user interface of Apple. The Macintosh Company was prospering in sales. Many people wondered that Steve Jobs and his epic strategies are needed for the company. Tim Cook established supply chain of Apple worldwide.

Steve Jobs and his few friends created a computer system of their own in 1976; their aim was to being simpler and accessible computer system to the market. They named it Apple I, and made 200 units of the same system and did marketing through a member on the team. In 1978 Apple II was made and resulted in revolution of computer systems and the annual sales were $1 billion annually. And once for all it became the leader of the entire industry. By the end of 1980s 100,000 Apple II were sold. It led to making of Apple IPO in the end of the same year.

This competitive position of Apple was changed in 1981 when IBM was introduced in the market of PC. The IBM system used Microsoft’s DOS operating system and a microprocessor brought by Intel. The Intel was an open system which was easy to copy. Apple worked solo and never allowed interference of a foreign body in its cooperation body. It rely only its own designs and integration without involving any third party. The IBM PC’s got acknowledgement and were widely used and gained market shares. In 1984 Mac computers were introduced by Apple and it was widely used for being easy, having technical elegance and innovative design but lacked fast processor and compatible software and this led to fall of income so the burden fall on to new recruit John Sculley which was hired by Jobs for his marketing skills.

The competitive advantage that Apple had through put the years was efficient leadership who was determined to leave a mark and carve an identity of its own. Apple is known to be world’s greatest and leading business company because of its leadership and strategic planning over the years. They never settled and never limited but keep bring new designs and things to the market. Aldus (Adobe reader), laser printers, chips, disk drives, software, hardware and devotion of 9% d total sales to Research and Development.

In 1997 fate of Apple changed once and for all. Steve Jobs announced that Microsoft will invest $150 million in Apple with a 5 year commitment in order to upgrade the Apple with software and updates such as Microsoft Office etc. Jobs did not grant an official license to Mac OS to protect its own sales. Previous CEO’s brought new culture to Apple while Jobs was determined for focus. It was his mission to make Apple a force of cultural values. It was promoted as better alternative than any other PC brands because of its innovation, determination and focus.

Analyses the personal computer industry. Why did Apple struggle previously in PC’s?

Apple introduced the first PC in personal using computing industry. IBM brought the PC in use in industry by 1980s and hybridization of Windows OS and Intel came into being as Wintel by 1990’s. Microsoft and Intel set standard of PC and then several manufactures followed up such as Dell. Growth expanded when PC with lesser prices and improved capacities were introduced. The industry of PC flashed when internet was introduced in 2000s which originally emerged from China. The growth was so rapid that analysts said that more than 2 billion PC will be sold globally by the year 2015.

New PCs which were introduced to market had expanded memory, better storage still the average selling prices (ASP) were falling 9-10% every year from 1990-2005. The condition of PC market got better in 2006-11 and the average profit of PC industry reached to revenue of 5% every year this made the PC developers to cut the margin of Research and Development from their total profit. The industrial innovation was recognizable when contract based manufacturer were known from Taiwan, China and other Asian countries, this trick ensured better designs and innovation.

Then netbooks were introduced into the market these devices were lighter in weight and had limited storage and were confined for only web usage. But the customers liked the lighter weight web using device in an average range of $400. In the beginning people were greatly interested in this new innovation which resulted in sale of 40 million netbooks in 2009. But when Apple introduced iPad in 2010, the sale and profitability of netbooks declined. In the competition a design similar known to be Ultrabooks was introduced in the market by 2011. The Ultrabooks were greatly competitive and advantageous as these were based on Windows; they were light weight and had high performance much similar to a PC. The developers of Ultrabooks thought that the introduction of such a device in global market will fuel the PC demand and will demand the replacement when prices will com low.

PC was distributed among five categories depending upon the place it is being used. Every person wanted better design in good and affordable prices. The big enterprises began to purchase the PC directly from the developers, home based customers depended upon big stores for their purchase. A type known to be White box Pieces were in great demand of and presented 30% in 2011 were widely used in offices based upon homes and small areas.

There were 4 types of PC developers in the market such as Dell, Acer, Lenovo, and Hewlett-Packard (HP). HP led the PC industry which was then followed up Compaq leadership in the market which led HP to lower its cost in Asia.

The Intel was an open system which was easy to copy. Apple worked solo and never allowed interference of a foreign body in its cooperation body. It rely only its own designs and integration without involving any third party. The IBM PC’s got acknowledgement and were widely used and gained market shares. In 1984 Mac computers were introduced by Apple and it was widely used for being easy, having technical elegance and innovative design but lacked fast processor and compatible software.

Steve Jobs presented Macintosh as digital hub in 2001 he had vision of adding advantages of an individual’s PC by integrating high in demand features such as camera, portable players for music, mobile phones, camcorders and what not. In this way Apple got brilliant common hardware as well as software and gave great strength to the company and it grew faster which is the result of brilliant marketing and great number of innovative products of computer.

How sustainable is Apple competitive position in PCs, MP3 players and Smartphone?

Apple has very competitive position in market in every regard whether it is PC, MP3 player or smartphone Apple is ahead of every other company in the market. Several companies tried to compete and beat the design, innovation, creativity and marketing of Apple and no company have succeeded yet.

Competitive position of Apple in terms of PC

Jobs introduced Macintosh as digital hub with several unique features such as camera, camcorder, and portable music system and several other unique things which was deficient in every other company device. It brought best strategies of distribution, innovation and design under practice and fulfilled the demand of the customers. This is how the Apple got to reign over hardware and software globally.

These innovations and strategic management led to increase in customer demand. Slowly and gradually Apple increased its products and matched the regular demands and made people keep waiting and wanting for more and maintained its competitive position even in present world. The customer sales grew dramatically, the innovative easy and light use devices such as Ultra-thin Mac Air and brilliant strategies are to be thanked for. In 2011, Apple was known to be the 3^rd largest seller and developer of PC in the industry with almost 11.0% of market share. The finest developing unit and strength of the company lays in the premium price PC. The 91% of PC were more than $1000 in the market. Worldwide, market share of Apple rose consistently till 2004 but stayed low until 2011 and then rise of Apple began.

Competitive position of Apple in terms of MP,3 Players

The next innovative device of Apple of great advantage and simplicity was introduced. The iPod is one of the first music playing devices based on standard of MP,3 standard. It was sleek in design, easy to carry, yet with large storage and became an icon of recognition in Digital Age. After that it was approach of Apple to do marketing and development and it was more often than its strategy for Macintosh.

 Competitive position of Apple in terms of Smart Phones

 In 2007, Jobs introduced iPhone with modern technology. The bid of Apple was represented by smartphone of the company. The step was quite risky for the company as the league was demonstrated and led by Nokia, Samsung, and Motorola etc. the Apple introduced its sophisticated, innovative technology. Apple faced very strong competitors in market but still established its position. The competitive carriers which were powerful such as Vodafone and T-Mobile which controlled the networks. Purpose of phones is to make calls but iPhone launched new apps in it and broaden the use. (woyfie, 2012)

 Reference of Analyses the personal computer industry

Woyfie, D. B. (2012). Apple Inc in 2012. 490-712.