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Apple - A pple I nc Dustin Clevenger Joshua Thomas Ketan...

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Apple, Inc. Dustin Clevenger Joshua Thomas Ketan Patel Caitlin Vodopia Brandon Owen
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1. What were Apple’s competitive advantages? There are several major points that accented Apple’s competitive advantage in the computer industry. First was its proprietary design and ease of use. Apple practiced extensive horizontal and vertical integration to a greater extent than any other company which allowed them to create unique products including a proprietary operating system and many peripherals to complement their PCs. Essentially, Apple provided the “whole package”. From this Apple was able to form another competitive advantage, loyalty. Apple Inc. managed to create a base of customers that have become so loyal to the brand that no matter the cost of the product, they will continue the “love affair”. Next was innovation. In the past Apple was able to bring “hit products” to market every 6 to 12 months. These included laptops and PDAs and more. Apple has continued to be a leader in innovation since the inception of the high end graphics cards and visual abilities of the first generations of Apples, to the flashy products of today. 2. Analyze the dynamics of the PC industry. Are these dynamics favorable or problematic for Apple? There are many driving forces that have become apparent in the personal computer industry. In the very beginning, when computers were becoming more popular among individual consumers rather than corporations, ease of use was very important. Since the
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PC was a new concept, in order for them to become popular among individuals they had to be easy to use. This meant they would have a friendly interface and operating systems. In addition to this, consumers wanted a PC that would provide them with the total desktop solution which included hardware, software, and peripherals. These were favorable forces for Apple in the early years as most consumers struggled to add hardware and software to IBM compatible computers. Once computers gained early popularity, consumers started to desire lower prices. This was unfavorable to Apple as consumers viewed Apple PCs as overpriced alternatives to the cheaper IBM compatibles, especially when IBM had made strides in the ease of use category. This forced Sculley to move Apple in the direction of “products and prices designed to regain market share”.
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