Apple 's A Competitive Advantage

1003 WordsAug 6, 20145 Pages
Apple experienced a significant spike in advertising expenditures that correlated with the release of the new iPhone and iPad products in 2010. Nevertheless, Apple’s spending on advertisement never topped one percent of total sales. Furthermore, Apple spent only 0.6% of total sales on advertising compared to Samsung’s 2.3% of total sales spent. Despite the refined marketing and advertising expenditures, Apple’s 2012 earnings grew by $48.2 billion, a 45% increase from 2011, compared to Samsung’s earnings growth of 21.9% (SMInsights, 2014). Thus, Apple was able to achieve the best return from marketing and advertising spending in the industry. Apple’s advertising money is spent more effectively than its direct competition and provides greater returns in terms of revenue, brand value, and recognition. In doing so, Apple creates a competitive advantage that has proven very difficult to match. 4.1.2. Extensive Distribution Channels The United States is the leading and high-end smartphone market in the world. The U.S. generated $66.6 billion or 39 percent of Apple’s total sales in 2013, proving the market’s arterial importance to overall organizational sustainability. Apple utilizes direct distribution channels, most notably, retail stores, to deliver products to customers. Upon the end of 2013, Apple, Inc. controlled 254 retail stores in the U.S. The stores generate $4,032 per square foot, the highest among all brick and mortar retailers (Apple.com, 2014). The
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