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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)AssetsActivitiesAdvantageLarge 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 verticalintegration, relying on proprietary designs and creatingproducts from scratch.Unique and differentiated products that cannot be imitated by competitors – horizontal differentiation