Apple has been a revelation in the last few years in the technology industry. The company has been able to develop into a strong unit financially as well as building a reputation of developing high quality products. The company has been able to compete favorably against its rival companies such as Microsoft, Dell, HP, Nokia and Samsung in their respective sections. The success the company has realized can be attributed to its internal strengths. Despite some gaping weaknesses, the company capitalized on its strong points to realize its vision.
One of the main strengths is that Apple Inc. has a strong department dedicated towards research and development, and charismatic and visionary leaders. The company is known to be one of the most innovative companies in technology. Its ability to develop new and effective software, as well as hardware such as computers and smart phones, has placed it right ahead of its competitors. The research and development department is composed of committed and highly qualified individuals who work tirelessly with the objective of adding value to Apple Inc. products. Furthermore, the company is headed by leaders who are visionary. One such leader is the immediate former CEO, the late Steve Jobs, who led by example and was a symbol of motivation and hard work to all other employees in the company.
Apple inc. is known to have pioneered innovative and high technology products such as iPhones, iPods, Mac and iPads which are all of high quality. These products have made the world to identify the company as one of the most creative and makers of high quality products over its rivals. This good reputation has earned the company competitive advantage. For instance, a Smartphone from Apple is regarded superior to another Smartphone made by Google Android.
Apple’s other strength is its recognized brand name at global level. The company has retail and wholesale outlets worldwide which provide an opportunity for customers and potential customers to view the products and experience software and hardware made at Apple Inc. This is strength because it is an internal strategy by the company to make its products popular everywhere. The global recognition makes the company’s market size large hence; its sales increase. Furthermore, global recognition makes the company shares gain strength hence; shareholders benefit.
The company has several competitive advantages over its rival companies. The fact that the company has diversified its products gives it advantage over other companies. Apple Inc. makes software, and different kinds of hardware such as Smartphone’s, personal computers, music gadgets and it also has a music website, iTunes, which sells online music. This means the company can compete favorably in three different industries. Therefore, the company has advantage over its rivals such as Dell and HP which deal specifically with computers. It also competes with Nokia and Samsung in the mobile phone industry. The company also competes with Microsoft, a maker of software. The company can potentially make more revenue than all its rivals because of this diversification. The good repute of its brand name at global level, high quality products, strong financial performance also contribute to the company’s competitive advantage. The company has in the past earned partnerships with other software makers ahead of its competitors because of these reasons.
However, Apple Inc. has some weaknesses too. The company has had cases of product recalls in the past. This has placed its good reputation at risk because customers could begin to think the company’s product quality is on the decline. In fact, some of Apple Inc’s products have flopped totally. The Apple TV and the Mac Mini failed and even caused disappointment to some clients who were looking forward to own these products. This has cast a dark shadow over the company’s innovative capacity in research and development.
The company’s small market share in relation to the high prices it charges for its products are a gaping weakness. The company has significantly few customers compared to companies like Microsoft, Dell, HP, Nokia and Samsung. However, its prices are much higher than what those competitors charge for the same products. This poses a risk because customers are known to consider prices more than quality. The company needs to address this strategy issue. The company restricted iPhones to single operators, a decision which turned out to be very unpopular in most markets worldwide.
References
Baum, M., Hackstein, M., & Mehling, M. (2012). Strategic Marketing: Assessment of why the Sony Walkman brand lost out to iPod in terms of its position and level of demand in the marketplace. New York: GRIN Verlag.
EDGAR Online, Inc. (2011, October 26). Form 10-K Annual Report. Retrieved August 1, 2012, from Apple Inc.: http://investor.apple.com/secfiling.cfm?filingID=1193125-11-282113&CIK=320193
Schneiders, S. (2011). Apple's Secret Of Success - Traditional Marketing Vs. Cult Marketing. New York: Diplomica Verlag.
Sutherland, A. (2012). The Story of Apple (illustrated ed.). New York: The Rosen Publishing Group.
