Apple in 2013: How to Sustain a Competitive Advantage

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Brendan Wiley MKT 6301 2-17-2015 Apple Case Study Challenges Apple reached the highest publically traded stock in Sept 2012 at $650B making Apple the most valuable publically traded company of all time. Apple did this by having differentiated products, brand loyalty, and seamless integrated devices. It is April 2013 and Apples total value has gone down to $370B. This is mainly due to constant pressures from competitors such as Samsung and others. Apple is challenged with responding correctly to competition with the right product to market, as well as how they are going to compete in new emerging markets. Apple is also challenged with coming up with not only short term solutions but creating new long term solutions to bring back the…show more content…
Environmentally, due to Apples vertically integrated manufacturing processes, Apple would also need to increase factory floor sizes or erect new factories to build the high tech phones which could have an adverse effect on the environment with extra raw materials. Economically, with an increase in technical products and R&D, there would be an increase in costs and Apple may need to charge a higher price. This could be negative or positive to the economy depending on how successful Apple is at marketing the new Iphone. Solution #2 The second solution would be to branch out into new products and markets, as well as build the next big thing. Apple has demonstrated in the past that by creating the next big thing, they can create huge gains. The problem with that is the market will then follow suit with saturation and eventually it becomes difficult to keep your competitive edge. Apple would do this by creating smartwatches, branching to Hi-Def TV’s, and creating products that have never hit the market by anyone. Apple would also sell cheaper low cost low margin phones and products in new emerging markets to compete with its competitors. Apple would also bundle products, such as two new iPhones with a TV purchase, etc…Competitively, this option would open the door to so many opportunities because no one else is doing it. It would differentiate the company a
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