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Apple Computer Essay

929 words - 4 pages

apple computer 2012

Apple Computer 2012
1. What, historically, have been Apple’s major competitive advantages?
Early on, although not always profitable, Apple Computer was known for their unique products. A quote worth noting from an analyst, “the majority of IBM and compatible users ‘put up’ with their machines, but Apple’s customers ‘love’ their Macs.” This is truer knowing what Steve Jobs strives to achieve with the company as well as the employees. Job was especially fanatic about industrial design, simplicity, and product elegance. The employees love working for Jobs, however it is very difficult. The employees connect with the passion that Jobs has in this work ethic. “My passion ...view middle of the document...

As well as, the innovative style and personal software touches makes it hard for substitutes to enter.
Bargaining power of suppliers
With Apple practicing vertical and horizontal integration, the bargaining power is nonexistent.
Threat of new entrants
The threat here is also very low. The industry is dominated by five major competitors that are always creating new products as well as revamping current products. A new entry into this industry will not be able to penetrate the market share enough to be relevant in the long run. Any threat can also be devoured by existing competitors due to their large cash holdings.
3. How sustainable is Apple’s competitive position in PCs?
Due to the elegant and unique style of Apple PCs, they are very sustainable. The brand recognition is high ensuring consumers to purchase despite evident price premiums. Historically, Apple has been a crucial vendor to the education category which hold a bigger part of their PCs versus competitors. With competitors being the ones that brought PCs into the mainstream, a new standard known as “Wintel” (the Windows OS combined with an Intel processor) dominated the industry. Challenges are faced historically due to the low cost building capabilities of Microsoft and Intel versus the more expensive distinctive Apple PCs. To provide a greater proof of sustainability, Apple strived to be the rare few to control both hardware and software. A revamped product line offered PCs that could deliver a cutting-edge, tightly integrated user experience. After creative marketing and several innovative computer products such as the Mac Air, Apple became the third-largest PC vendor in the U.S. with an 11.0% unit share in 2011. With all this being said, the sustenance of Apple as a company is more...

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