Apple Competitive Advantage

3196 Words Mar 15th, 2006 13 Pages
Introduce a brief background of the business and its history. Use the ‘Brand Royalty' article to help you on this.

Competitive advantage is when a firm sustains profits that exceed the average for its industry, the firm is said to possess a competitive advantage over its rivals. The goal of much of business strategy is to achieve a sustainable competitive advantage.

There are two main types of competitive advantage. Cost advantage and differentiation advantage. A competitive advantage exists when the firm is able to deliver the same benefits as competitors but at a lower cost(cost advantage), or deliver benefits that exceed those of competing products (differentiation advantage). Therefor a competitive advantage enables the firm to
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Allowing themselves to think outside of their proprietary boxes will no doubt increase their abilities to see ahead on the road to profitability. This

Market research

Apple has dedicated a lot of time to market research to be able to accurately target their consumer and identify how this can be done most efficiently, at maximum profit.

Market Segmentation

One way in which a business will analyse the possible market for it's product it to consider the market segments at which the product may be targeted. Markets are segmented because of the variety in certain markets. You can segment a market in many ways like in cinemas there are different age categories of films U, PG, 12a, 15, and 18. This is a simple way of segmenting a market, films can also be segmented in many other different ways e.g.: Genre, Gender and interests these are all ways of segmenting the film market. Market segmentation is used to target a certain segment of the public and make them want to buy their product. Apple use carefully segmented markets to differentiate the different types of marketing to attract each segment to purchase their product. This is evident in the way they target their younger segment by selling cut-price apple machines to schools in the USA. This then "conditions" to apple's technology and they have a far greater chance of buying an apple rather than a pc this tactic has been proven to be extremely cost effective.
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