Apple Overall Competitive Strategy

CASE 3

Notre Dame College

February 10th, 2019

Summary

Apple was founded by Steve Jobs, and Steven Wozniak in 1976 when they designed the first Apple computer. The first computer was named “Apple I,” which was then followed by “Apple II.” After reading the case and completing the questions we were able to confirm how successful Apple has become over the years. Although they were at a downfall at one point and needed a boost to get back up there, they have become a very successful company.

It started as a personal computer company and turned into a multinational technology company. This case proves how Apple has not only become a popular company for their computers but also personal devices such as iPhones, iPads and more. Throughout its up come and currently, it has had many other competitors such as Samsung, Dell, HP, Acer and others. Apple is pricier than its competitors, but what keeps people continuing to buy their products is the quality. Reading through the case, and also from common knowledge we know Apple focuses on the quality of a product and continuing to make them better to satisfy their customers. They have created such a name and logo for themselves that many people will buy an Apple product because of how popular they are.

A competitive trait Apple has against its competitors is its constant hunger for innovation. Being customer focused, they improve their products each year to keep everyone wanting more. Apple has evolved throughout the years since it was first started, and all the products are only getting better. They have proved they do not necessarily have to come out with a completely new product, as long as they continue to improve current products, customers get excited with just that. Keeping up with the culture of modern day and continuing to be an innovative firm, Apple is only bound to more success.

Questions 1-8:

1. Apple’s biggest element of their overall competitive strategy is innovation. The company is by many considered as one of the world’s most innovative firm in the world. Apple is also very focused on differentiation and tries to set themselves apart from its competitors like Samsung, Dell and HP. Apple’s products stands out as superior with high quality and an image of luxury. The company’s products work very well together, and they are all connected to each other in some way. Apple is always looking to improve, and if they do not come up with a new product, they make an existing product better.  Even though the company have been facing some issues with their products and their competitors, Apple’s strategy is working, and they are evolving every year because of their innovative and competitive mindset. 

2. The key elements of Apple’s strategy in computers, personal media players, and Smartphone are to design and develop its own software, hardware and services uniquely. Apple creates innovative products that facilitate costumers with their innovative and unique features. In all three of these markets, Apple was able to be the first to release the newest and top technology. In addition, apple is always looking for improvements, and that is why the company is always on the top. Apple’s innovative strategies played a huge role to their success in the phone industry, offering Wi-Fi, high quality cameras, and affordable prices collaborated with iTunes. Therefore, Apple’s strategy has proved to be very successful in all windows.  

3. As compared to other leaders in the computer industry such as; Dell, HP and Acer, Apple shows a competitive strength. We feel as if the selling of iPods and iPhones were able to help Apple since people started to get familiarized with their products and quality. Some strengths Apple has is that it is customer focused, they are always coming out with new products to satisfy their customers that other PC companies haven’t. People buying these new products see the great quality of Apple and will trust in buying a PC product even if that means paying extra than they would from any of its competitors. Another one of Apples strengths is also the company image. There came a point where people started buying Apple products not only because of the quality but because of its reputation and wanting to be a part of a new trend. Compared to the other PC companies, Apple may lack rating in the price for their products but that does not stop anyone. Their power of the quality of their products, their continuous innovations, and product capabilities are what keep people in the loop and addicted to having their up-to-date products.

4. Apple has been growing and they will continue to grow in the future thanks to their innovation and ability to release the newest technology. I think that being on top of innovation keeps the company in a strong competitive position in personal media, tablet computers and smartphones. However, not all of their products can be considered leaders of their markets. The personal media players, for instance, earn 70% of the market, while by the other hand the iPad’s market is falling apart. In order to ensure that the iPad becomes a major contributor to the company’s overall performance, I would make sure to keep up with what other firms are doing from an innovational point of view, perhaps creating a new service, which would be exclusive for iPad. This way they would have the opportunity to see if people would buy more iPads due to the new service just released.