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Competitive Advantages Of Apple Inc

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For any company, the importance of competitive advantage is significant. Every successful company has theirs. Without it or its sustainability, a company cannot survive for a long period. 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. Our other work on the SWOT Analysis of Apple has studied the strengths this company acquired.

Apple is of one of those companies which have secured the status of a 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.

Apple’s Unique Differentiation

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, iOS was developed by Apple is 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.

Apple’s Image of Innovation

Also, Apple has gained a positive image of 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 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 Strategy of Apple Inc

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 Xiaomi, 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.

Innovative Products of Apple Inc

The factors such as innovative products, the 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.

People’s Trust on Apple

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 the 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.

Brand Value of Apple Inc

The brand value of Apple Inc. is 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 dollars. By that, we can understand that it has secured a distinctive advantage over other competitors in the industry.

Apple’s Advantage of Device Based Monetization

Recently, the privacy stance has gained more reputation than any other companies in terms of how it secures the privacy of the users. Other tech giants like Google or Facebook run promotional campaigns based on platform-dependent programs. However, Apple follows device based monetization methods that allow it not to play with the private information of its users. According to many technologists, it allows Apple to build a competitive advantage over other companies. People have the right to keep their information private. Apple is giving them this right by building device based monetization, not software-based.

Bottom Line

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.

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Sources:

  • https://www.fool.com/investing/general/2015/05/18/apple-incs-sustainable-competitive-advantages.aspx
  • https://markets.businessinsider.com/news/stocks/apple-stock-price-competitive-advantage-over-facebook-google-2018-3-1019009278



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