quality products and effective marketing that promoted them “as a hip alternative to other
compute brands.” This leads to a CA of being able to charge a premium price and remain
profitable despite competitors that operate on a cost and volume advantage, such as IBM. The
last advantage of Apple is their strong horizontal differentiation with easy to use computer
software and hardware that provided a complete desktop solution. Apple relies on proprietary
designs and creating products from scratch through the use of horizontal and vertical integration.
Thus, their products are uniquely differentiated to avoid imitations from competitors or
consumers finding alternatives.
Appendix 1)
Assets
Activities
Advantage
Large investments in R&D
relative to competitors.
Ability to create and design
innovations in the computer
industry and beyond.
A lineup of revolutionary
products including the
Macintosh, iPhone, and iPad.
Strong brand image and
goodwill from consumers.
Through extensive marketing
and a proven track record, they
create a loyal customer base
who “love” their products.
Ability to charge a premium
price and remain profitable
despite appearing overpriced
compared to competitors.
Easy to use computer programs
and hardware that offered a
complete desktop solution.
Practiced horizontal and vertical
integration, relying on
proprietary designs and creating
products from scratch.
Unique and differentiated
products that cannot be
imitated by competitors –
horizontal differentiation
