Assignment On Background and competitiveness

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( Total word count_ 2565 )

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Part 1. Background and competitiveness
Brief profile of Apple
Apple is an American multinational corporation dedicated for designing and
manufacturing electronic products and computer software. Steve Jobs, Steve Wozniak and
Ronald Wayne became the founders of Apple and it was incorporated on January 3, 2997 in
Cupertino, California. Apple has built the first personal computer which was designed with
single-handled and it was built by Steve Wozniak. Apple is operating in more than 250 retail
stores with more than 35,000 employees across the world and there also have online store. The
company's divisions include the Americas( where it includes North and South America),
Europe(where it includes European countries India, Middle East and Africa),Greater
China( including China, Hong Kong and Taiwan), Japan and the rest of Asia Pacific. Apple is
famous for its hardware products such as iPhone, iPad, Mac, Apple Watch, Apple TV and it also
deals in providing professional software applications such as iCloud, Apple Pay, iTunes and so
on. Apple has recognized in the fortune 500 lists since 1980 and its competitive advantage is
excellent in electronical environment than others. Further, Apple launches the series of iPhone in
every October and there always have a long queue in physical stores while some customers even
made pre-order before the new product launches. Offering innovative products with high quality
and outstanding design to its customer together with trying to increase its market shares is one of
the main reasons why Apple experienced a sudden increase in demand for products and services
since last few decade. On one hand, selling variety range of product encourages Apple for
understanding indeed needs of its customers. Besides, Apple makes contribution to make the
tools for the mind that advance humankind for the world is Apple mission statement. On the
other hand, vision statement of Apple is to think different. (Nisar, et al., 2012).
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Q-2: Core resources and capabilities
Without the threshold capabilities, it is not possible for businesses(including Apple) for
survival in the market and know the required threshold competency for using in the company for
meeting customers’ requirements.(Johnson, Scholes and Whittington, 2005). Apple’s threshold
capabilities can be found as in appendix(3).However, only threshold capabilities are not only
involved in gaining competitive advantage because core competences helps in achieving
competitive advantage in such a way that others cannot follow. (Johnson, Scholes and
Whittington 2005).
Apple had history of success in electronic market by facing various challenges. Core
resources and capabilities of Apple are identified with the help of the VRIO (which includes
value, rarity, imitability and organization of the business).Further, Apple exploits core
competencies for achieving long-term competitive advantage (Laufs and Schwens, 2014).
According to appendix (2), automation process of business, which is considered as
valuable, but it is not unique as same process is followed in all companies and markets. Further,
employees’ packages include function which helps company in maintaining a skilled workforce
for supporting the repaid changes and innovation. However, it is not considered as core
competency in Apple as many companies which deals in technology like Microsoft, Google are
also offering the competitive packages to employees. The ability of supporting innovative human
resource which is common in technology, consumer electronic company and digital industries is
presence in Apple. Furthermore, product portfolio of Apple is considered as increased diversity
as they put the strategic efforts for reducing the market risks. The various resources and features
of Apple are essential but not considered as core competencies (Omar, et al., 2009).
In Apple, CEO(Steve Jobs) is a valuable, rare, inimitable and non-substitutable resource
and his vision for business is unique. Even though Apple operates its business mainly on
Americas, Europe, Greater China, Japan and rest of Asia pacific as physically, it can be said that
there have global presence in Apple since Apple have online channels and authorized resellers
across the world.(Notesmatic.com. 2020). Further, company’s global well-known brand is a core
competency since it requires to analyse the valuable, rare and difficulty for imitating companies
and apple is required to organize the business strategies for gaining the competitive advantages

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(Sadaghiani, et al., 2011). Besides, Apple has made the investment in research and innovation
since its foundation. Apple has set up the system for making rapid changes in innovation for
business success. The resources and capabilities helps in maintaining the innovative ideas with
the updated technology in the hardware products like iPhone. Features in Apple products help in
attracting large number of customers to buy product like assess ability and compatibility in
iPhones. Artificial intelligence capability of Apple helps in providing the competitive advantages
in case of providing effective services with the help of Siri and other features. The products and
accessories of Apple bring the amazing experience for customers (Ragnetti, 2011).
Indeed, Apple’s competitive strategy is based on products differentiation, sustainable
competitive strategy, product innovation and vertical integration. Apple products differentiation
strategy is based on the production of hardware and software. Further, Apple's sustainable
competitive strategy aims to strengthen customer loyalty by implementing the customers indeed
needs and it hard to replicate. Besides, Apple relies on the horizontal and vertical integration
strategy, horizontal integration strategy is involved in channel and devices, while vertical
integration strategy is involves in software and hardware retailing.
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