Competitive Advantages of Apple Inc

For any company, importance of competitive advantage is significant. Every successful company has theirs. Without a it or its sustainability, a company cannot survive for a long period of time. Moreover, to have a sustainable profit growth, a company must achieve competitive advantage. Apple Inc. has established its economic moat by developing competitive advantages around the industry.

Apple is of one of those companies which has secured the status of highly profitable and investment worthy company. The market capital of Apple Inc., as of 2016, is 540 billion US dollar.

 

Competitive Advantages of Apple Inc

 

For apple, there exists a strong unique differentiation. The technology industry is full of undifferentiated products. In such a market, Apple has been offering unique differentiation. For example, the iOS was developed by Apple is really a different and unique operating system. The industry is saturated with Google Android phones that are undifferentiated products. People who used iPhones or any other products became satisfied.

Also, Apple has gained the positive image of in innovation. Apple consecutively introduced different types of tech products including Apple I, Apple II, iMAC, iPOD, iPhone, iTunes, and iPad. Because of this, it had achieved the recognition as the most innovative brand of all. Also, it has been able to take the first mover’s advantage in the tech industry.

Premium pricing is one of the superiority of Apple. If it is compared to other brands that are having equivalent specs such as Samsung, Asus, HTC, or Xiomi, the price of Apple is pretty high. Many people argued that the price is so high and it’s beyond the reach of many people. But with the Apple was able to build a brand image of exclusivity. It preserves an image that only the people from upper class society can have these products.

The factors such as innovative products, longevity of product life, unique operating system, and the overall quality helped apple to achieve the trust among the Apple users. It has been able to create high perceived value. As a result, it has been able to achieve a competitive edge that its so called competitors could not achieve.

Once a person buys an Apple product, s/he will never be satisfied with the products from other companies. Apple devices are unique and the sole producer is Apple itself. But in the same industry, many companies produce Android devices as android operating system is an open source operating system. So, any person wants to buy iOS devices, that person must buy it from Apple. By that Apple has successfully created the digital ecosystem.

The brand value of apple Inc. is really significant. In the year 2015, Forbes magazine has ranked Apple as the most valuable brand of all time and the worth was estimated 145 billion dollar. By that, we can understand that it has secured a distinctive advantage over other competitors in the industry.

In Conclusion

From the inception of the company, Apple has been achieving competitive advantages throughout its life. It has been smartly exploiting its core competencies, strengthening its competitive lead, and maximizing its value.


Sources:

https://www.fool.com/investing/general/2015/05/18/apple-incs-sustainable-competitive-advantages.aspx


Other SWOT Analysis:

  1. Great Opportunities for Apple Inc.
  2. Key Strengths of Apple Inc. 
  3. Apple Marketing Mix
  4. Key Weaknesses of Apple Inc.
  5. SWOT Analysis of Nestle

faizul

Sheikh Faizul Haque, the founder of GotAbout, graduated from North South University, Bangladesh. His major was Finance and Accounting. Faizul has been writing in business blogs since 2013, also has a strong interest in Behavioral Finance, Risk Management, and Portfolio Management.