Competitive Advantage of Apple Company

Apple Corporation produces and markets numerous consumer electronics and computer product comprising of the music players, tablets, and Smartphones. Notably, Apple is considered as a leader of the computer products in the electronics industry. Among the factors which contribute to its competitive strategy are innovation, premium pricing strategy, brand strength, and supply chain management.

Innovation

Apple Company has a long- established a good image for change and focus on developing modern products. For example, the firm invented a graphic user interface which is first used in its electronics, pioneered in the iPod music player, and then introduced in current levels of production for Smartphones (Akan, Allen, Helms & Spralls, 2014). Specifically, the main competitive advantage for Apple Company is its potential to create innovative products that have a typical application, software, and operating systems. Consequently, this reduces the timescale, risk, expenses related to product development. Ultimately, these factors enable Apple Company to launch a stream of latest products and remain ahead of its close competitors such as Hewlett – Packard (HP). Apple’s invention approach of developing commodities that complement each other reinforces client loyalty and aids establish a barrier to competition.

Premium Pricing Strategy

Apple Company sets premium prices for its electronic products and offers huge discounts to wholesalers to ensure their prices are equal in the entire market. Additionally, the firm seeks to provide clients with high- quality commodities with unique features and utilizes high prices to underpin the notion of maintaining profitability and added value. Ultimately, the top- pricing model sets a benchmark for rivals such as Hewlett – Packard (HP) which should provide common aspects to match the Apple’s presumed value without making losses.

Brand Strength

Apple Company was ranked the top leading brand in the year 2017 ahead of HP, IBM, Coca-Cola, and Google. Correspondingly, the brand loyalty offers firms like Apple remarkable clarity in the marketplace and aids build customer loyalty. The corporation’s robust branding and the interdependence between its commodities encourage consumers who acquire Apple goods to try another (Akan, Allen, Helms & Spralls, 2014). For example, products such as Mac, iPad, and iPhone share common applications and software, and they run an ordinary way hence make the Apple item a natural selection when clients are considering an alternative device.

Supply Chain Management

An ecosystem of business partners, developers, and supplier offers Apple Company with a robust competitive advantage. The firm controls manufacturing owns chip manufacturers, adheres to confined software rules, and runs its stores. Moreover, the company handles a supreme and entertainment entities offering a tremendous primary source of media for all corporation’s commodities. Further, Apple firm has a society of over 6 million individualistic software developers developing apps for Apple goods (Akan, Allen, Helms, & Spralls, 2014). Consequently, this allows Apple to control the whole process of item development, marketing, and manufacturing. Indeed, this is a benefit that rivals cannot find.

The competitive strategy for Hewlett – Packard (HP)

Hewlett – Packard Development commonly known as HP is exceptionally competitive company against corporations such as Apple, Dell, Oracle, and Cisco. Notably, this challenge is coupled with the widespread emergence of technologies and hardware. Accordingly, HP Company creates and executes effective marketing strategies to counter these challenges.

Partner Engagement

HP has a reselling, distribution, and deliberate covenants with over 146,000 partners (Parnell, 2016). These agencies register in the ‘Partner One Program.’ The latter is a framework that benefits resellers and route partners as per their degree of involvement in the firm’s chain of the marketing undertakings (Parnell, 2016). Correspondingly, the levels of engagement range from sales and technical training to the financing of co-marketing operations for the first –class participants.

Market Strategy Orientation

Marketing its applications and products us a primary aspect of HP’s prudent arrangements due to the company’s Corporate site since June 2014. HP focuses its potential to offer low- cost resolutions for different IT needs of clients in various markets across the world.

Product Segmentation

HP company draws most of the competitive edge from technological and product innovations. Such technologies and products comprise the server systems, tablets, software services, and personal computers. These items are grouped into four main business departments such as enterprise systems, individual systems, printing, and software application.

Social Media Platforms

HP Company has incorporated multiple social media platforms which engage clients via the development of the relevant information. The company has a social strategy which it to relate its product to issues that are trending on the social media platforms.

What Are Companies doing to improve their current competitive position?

Apple Company

Apple’s accelerated growth and general expansion strategies instantly concerning to the firm’s strategy in promotion and other section of the business. As a valuable organization internationally, Apple indicates that its inclusive approach as an important determinant of benefits against other organizations such as HP (Parnell, 2016). Moreover, Apple’s comprehensive models for expansion underpin the company’s potential to keep it healthy in the international market. With the high percentage of emphasis and innovation on the magnificent product plan, Apple survives with its higher prices. Ultimately, this fruitful position shows that Apple is efficient in applying fast growth and generic strategies.

Apple has adopted a broad differentiation to increase their current competitive position that differentiates the products of the company from that of its competitors like HP. Notably, by this broad differentiation comprehensive approach, Apple Company succeeds in the market. For example, focus on a distinct design integrates high- end and user-friendliness branding efficiently distinguish the firm (Pretorius, 2014). The more extensive differentiation inclusive model implies that Apple Company consistently seeks to set itself from its competitors by both the price and customer satisfaction. These critical elements comprise of an irrational network among the products and cutting-edge artistic design (Pretorius, 2014). Further, they make the company stand out by reaching to numerous market segments. In this way, the broad differentiation reinforces Apple Company in keeping its leadership ahead of others.

Another approach being used by Apple Company to improve their current competitive position is market penetration. The latter enables the company to gain a more significant percentage by disposing of its existing items. For instance, Apple uses this general technique by selling iPads and iPhones to its modern target markets. Notably, Apple achieves more sales revenues by increasing the number of authorized sellers in its latest markets. Most importantly, the model helps Apple to enter it economies where they have never been before (Pretorius, 2014). Additionally, to support this model, the firm uses advertisement via media outlets and various websites. For example, promotion encourages more clients to purchase Apple products. By selling new commodities to more consumers in emerging markets, this inclusive approach enables Apple to get more clients in all markets globally.

HP Company

HP firm is positioned to enlarge its leadership in greater trends moving IT investment, information optimization, data security, and cloud computing. HP Company launched a multiyear reformation made to realign its create investment and cost structure capacity to promote transformation and against its deliberate priorities to reinforce market leadership and restructure its balance sheet while making returns to investors. Regardless of challenging the surrounding, the corporation has kept research and development (R&D) expenditures together with an emphasis on maintaining the long-term viability of the business (Allen & Helms, 2017). Moreover, HP is in progress of delivering its saving goals and finishes the reconstruction by the end of the financial year 2016. Consequently, HP Company seeks to grow its revenues and become the leader in the fiscal year 2019.

What likely moves or strategy shifts will they make?

Apple Company

Apple company implements market development as an alternative strategy for expansion. The market development comprises of developing current markets for a new good or penetrating modern markets. This model is equivalent to market penetration although the difference is that the first one focuses on setting presence in an emerging market. Apply uses this general growth technique by accepting new sellers in new areas where it does not have branches or operations (Allen & Helms, 2017). Notably, its manly uses in developing countries. Consequently, this strategy is used through different items. For example, Apple provides Apple Watch which a new commodity in the market for the firm. Ultimately, by introducing Apple Watch in the market, Apple creates an accessibility ion the smartwatch sector.

HP Company

HP Company uses data trap as their alternative strategy for growth. The technique involves encouraging clients to purchase or create apps and content that is exclusively kept on a program. Such a platform includes devices, software, and websites. By leaving a single platform client can manage to secure their information (Allen & Helms, 2017). For example, applications such as Play store host apps and content that cannot be transferred to another device and this precisely what HP Company seeks to do.

The vulnerability of Apple and HP Company

Nonetheless, like a giant company, Apple is set to have various vulnerable points that the competitors like HP have capitalized upon to provide a steady competition platform. First, Apple employs a closed system which runs from having all their services provided by themselves, ranging from hardware design, distribution, software installation and running of web services (Porter, 1998). In as much as these are often considered as some of the critical strengths and factors that give Apple a competitive advantage, it has been used by other companies to hit and to an extent succeed in providing a tough challenge. This action is mainly a result of the fact that Apple is forced to be in all businesses and have more exerted input to match up the services provided by competitors. HP, for instance, concentrates on the provision and design of the hardware and then contracts third-party companies to install and run the software. This move results in fast growth and better quality that is achieved by specialization.

Moreover, the slow pace of innovation has been a hindrance to the match of competing companies that launch new products more frequently hence providing the customers with the experience of being current. HP, on the other hand, has had a weak after-sales service in developing countries that has been capitalized upon by the peers and competitors to shift market demand for the products

Competitive Moves that will evoke the Greatest and Most Effective Retaliation

However, regardless of all the weaknesses, each of the companies can have a significant shift that would lead to a prompt response from the peers. First, with the dominance of complete systems, Apple would have to radically shift strategy at the instance when HP ventures into the software and retail services which would match it up with Apple (Tsung-Sheng, Hsin-Pin, & Cheng-Yuan, 2015). The outcome would assure customers of better quality services after sales and information security that has been a substantial strength and market advantage for Apple.

On the other hand, a concentration of Apple in the design and rapid introduction of novel products would elicit a quick response from their competitors (Hawre & Shaman, 2016). This move, accompanied by a drop in the prices of the Apple products would result in an instant response from HP who has enjoyed higher sales from their relatively affordable products. The effect of the price difference is quite evident in cases such as laptops. Apple trades their cheapest laptop at around US$ 1000 while HP laptops trade at as low as US$ 250.

Recommendation

The primary expansion strategy for the Apple Company is product development. Market development and Market penetration are alternative approaches which can be sued by Apple Company for growth. These strategies support the Apple’s comprehensive model. Accordingly, the corporation is robust in commodity advancement via change. Nevertheless, to enhance production, Apple Corporation should focus more on exchanges development and market penetration. Focus on these main comprehensive frameworks can enhance Apple’s flexibility against close rivals such as Hewlett – Packard (HP).

References

Akan, O., Allen, R. S., Helms, M. M., & Spralls III, S. A. (2014). Critical tactics for implementing Porter’s generic strategies. Journal of Business Strategy, 27(1), 43-53.

Allen, R. S., & Helms, M. M. (2017). Linking strategic practices and organizational performance to Porter’s generic strategies. Business Process Management Journal, 12(4), 433-454.

Hawre K. & Shaman S. (2016). Modelling Business Performance using Marketing Capabilities and Competitive Strategies of Iranian Telecom Industry. Journal of Ecophysiology and Occupational Health.

Parnell, J. A. (2016). Generic strategies after two decades: a reconceptualization of competitive strategy. Management decision, 44(8), 1139-1154.

Pretorius, M. (2014). When Porter’s generic strategies are not enough: complementary strategies for turnaround situations. Journal of Business Strategy, 29(6), 19-28.

Porter, M. E. (1998). Competitive strategy: techniques for analyzing industries.

Tsung-Sheng, C., Hsin-Pin, F., & Cheng-Yuan, K. (2015). A novel model to implement ERP based on dynamic capabilities:A case study of an IC design company. Journal of Manufacturing Technology Management.