Apple Case Study

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1. Historically, what were Apple’s major competitive advantages?
To have a competitive advantage a company should have a right strategy, consequently to have distinctive competences and as a result to have good resources and capabilities, which bring high profitability to the company. In our case the competitive advantages of Apple is differentiation and innovation, high quality, great customer responsiveness, high level of marketing and having strong sales department. By recruiting Steve Jobs Apple did its first steps. They have done a good research and according to the results offered their production. By having good marketing and sales and good customer responsiveness Apple gained loyal customers. This means that Apple has good
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iTunes was a disadvantage for the competitors.After iPod, other companies, such asSamsung, SanDisk and Creative came with their products, but they had market of 10% and below. The iPod is not just an MP3 player, it encompasses many good ideas as it got benefited of its Mac computers. Besides, the design of iPod was very stylish. -Power of Suppliers-High: The main suppliers in this industry are the song writers, singers and players who are the threat. One of the other threats is the possibility of downloading free songs from different websites. Although this encourages the MP3 Player market, it is a real threat for iTunes. -Power of Buyers-Low: The number of buyers is increasing, however, they look for innovative and updated products, their needs have changed, as they are more knowledgeable to use different software. iPod has its loyal customers and they pay the price for their favorable products to look stylish. Thus, the threat is low. -Substitute products-Not so high: The substitutes for iPods are the mobile phones, CD players, radio, etc. iTunes music store and other online music stores make the downloading easier. Moreover, most of the people use iPhone which is a real substitute for iPod and decreases the sale of iPods. Analyzes of Smartphones by Porter’s 5 forces: -Rivalry-High: There are large numbers of competitors in the market for iPhone, such as Samsung, LG, Nokia, etc. But, it is remarkable that iPhone is in the third position of all the

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