Market Position Comparison of Apple, Tesla, and Nike - Analysis

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This report provides a comparative analysis of the market positions of Apple Inc., Tesla Motors, and Nike, representing the technology, automobile, and footwear/apparel industries, respectively. It examines their financial standing, competitive advantages, and strategies for maintaining market share. For Nike, the report highlights its strong brand association and marketing strategies, while acknowledging competition from Adidas. Apple's success is attributed to innovation and a loyal customer base, with Huawei identified as a major competitor. Tesla's focus on electric vehicles is noted, but concerns are raised regarding its financial sustainability and increasing competition from companies like Volvo. The report concludes that financial stability, innovation, and effective cost management are crucial for these companies to maintain their market positions in increasingly competitive environments. Desklib offers a wide range of study resources, including similar solved assignments and past papers, to support students in their academic endeavors.
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Running head: COMPARISON OF MARKET POSITION
COMPARISON OF MARKET POSITION
Name of the Student
Name of the University
Author Note
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COMPARISON OF MARKET POSITION
Introduction
The essay will be based on the comparison of the market position of three
organizations which belong to three different industries. The comparison is mainly based on
the financial position of the three companies and the ways by which they create a competitive
advantage in the market. The three organizations that are taken into consideration for this
analysis are, Apple Inc. which is an American multinational organization operating in the
technology sector. The second organization is Tesla Motors which is a multinational
organization of American origin and operates in the automobile sector. The third organization
is Nike which is also an American multinational organization and operates in the sector that
offers footwear related products and fashion apparel as well (Brewster, 2017).
Comparison of the three companies
Analysis of Nike
Nike is an American multinational organization which is engaged in the development,
designing and manufacturing of footwear, apparel, sports related equipment and accessories.
The headquarters of the company is located in Beaverton, Oregon in the Portland area. Nike
has held the leading position in the market based on the sales and supply of sports shoes in
the different markets. The organization employs more than 44,000 employees in the whole
world and the value of the brand is around 19 billion dollars (Nike.com, 2018). The value of
the brand has further increased and Nike is now valued at 29.6 billion dollars. The revenues
of the organization in US was 34.35 billion dollars approximately in the year 2017. The
market share of the company has been highest for many years even after the advent of many
competitors. Nike has been unbeatable in the US which is considered to be the largest sneaker
market in the world. Nike has held the topmost position in the market with the help of its
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COMPARISON OF MARKET POSITION
unique promotional and marketing related strategies and the premium pricing of its products
(Nike.com, 2018).
The major reason that lies behind the huge success of Nike in the market is related to
the association of the brand name of the organization with some of the popular names in the
industry. The marketing and promotional strategy of the company has always been quite
string and this has acted as a major success factor for Nike in the industry. Nike has always
been successful in creating an impression with the help of its products in a constant manner.
This has helped the company in creating a different space in the minds of consumers
(Brewster, 2017).
The industry of athletic footwear, equipments and apparels is a competitive market.
The various brands have to face international competition from the other organizations that
operate in the environment. The major competitors of Nike in this industry are, Adidas,
Puma, Under Armour. The toughest among these competitors which has exerted huge
pressure on the operations and revenues of Nike is Adidas. Adidas has therefore proved to be
the strongest competitor of Nike in the sports shoes market. The organizations in this industry
also have face major challenges which are related to the changes in technology and the
increase in consumer demands. The major aspects related to competition in this industry are,
quality of the products, the innovation in new products and the development of product as
well (Castellucci & Podolny, 2017).
The competitive advantage that has been gained by Nike in the market will further
help the organization to maintain its topmost position in the sports shoes market. However,
the organization needs to continue with its innovation related activities to maintain the
position in the market as competition in this industry is on a constant rise.
Analysis of Apple Inc.
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COMPARISON OF MARKET POSITION
Apple Inc. is a multinational technology organization of American origin. The
headquarter of the organization is located in Cupertino California. The organization mainly
operates in the designing, developing, and selling of computer software, consumer electronics
and other online based services. The organization was founded by Steve Jobs, Steve Wozniak
and Ronald Wayne. The hardware products of the organization include, iPhone, Mac personal
computer, Apple watch and Apple TV. The software related products of the organization on
the other hand include, macOS. iOs, iTunes and the Safari web browser (Apple., 2018).
Apple has been able to create a unique position in the market with the help of its
innovative and premium products. The company has further developed a loyal customer base
who are considered to be the repeat buyers of the products of Apple. The financial position of
the company in the industry has always been strong enough due to the strong capital backup.
The net revenues of the organization in the year 2017 was around 229.234 billion dollars. The
company employs more than 1,00,000 employees all over the world. Apple has been
successful in claiming around 50% of the total shares in the US market during fourth quarter
of the 2017 after the launch of its latest product iPhone X (Fleisher & Bensoussan, 2015).
The major reason behind the immense success of Apple in the market has been
innovative and high-end products that are offered by the company. The company also
possesses a loyal customer base who are attracted by the premium pricing of the products.
The creative advertising and promotional strategies of the company have been helpful in
developing the huge market share of Apple in the technology industry (Urde & Koch, 2014).
The biggest competitor of Apple in the mobile phone industry is Huawei. The
organization has given tough fight to Apple in the market with the help of wide range of
products. The latest product of Apple iPhone X is fighting against the new product that has
been launched by Huawei named Mate 10. Huawei is considered to be the third largest
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smartphone company in the world. Apple has however been successful in maintaining its
position in the market in spite of the competition that is being provided by the other
smartphone organizations like, Samsung and Huawei (Fleisher & Bensoussan, 2015).
Apple has a position that has been developed during the years of its operations in the
industry. The competition in the smartphone industry is increasing and the advent of Android
has challenged the iOS operating system of Apple. The organization will therefore have to
continue with its innovative operations so that it can maintain its position in the market
successfully.
Analysis of Tesla Motors
Tesla Motors is an American organization that specializes in the production of electric
and high technology based vehicles. The other products that are manufactured by the
company include, energy storage related devices, and solar panel. The company was founded
in the year 2003 and operates in the field of automobiles (Electric Cars, Solar Panels & Clean
Energy Storage | Tesla., 2018).
The financial position of Tesla Motors has been declining since the year 2012. The
revenues of the company have been growing in the year 2016, however the operating
expenses have also increased with the same speed. The revenue growth of the company has
shown lack of sustainability which means that company is unable to operate without a certain
amount of debt or loans. The company also risen the prices of the cars after the year 2012and
this has further affected its progress in the market in a huge manner. The study of the
financial data of the organization have depicted that company is not able to operate in the
market in a sustainable and profitable manner (Electric Cars, Solar Panels & Clean Energy
Storage | Tesla., 2018).
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The major reason behind the success of Tesla Motors are the innovative car models
that have been manufactured by the organization over the years and the environment friendly
nature of the cars.
Tesla is facing high levels of competition from the other automobile organizations of
the industry like Volvo. The main uniqueness of Tesla motors are the electric cars and the
eco-friendly operations in the industry. Volvo has been successful in providing competition
to the various products of Tesla Motors with the help of its plans to launch electric cars by the
year 2019. Volvo also has the major advantage related to the support that is provided to them
by the government (Fleisher & Bensoussan, 2015). Tesla has been holding the topmost
position in the industry for producing electric cars. However, with the improvement in
technologies many other organizations are getting into the competition of manufacturing
electric cars. The organizations which are planning their operations related to the production
of electric cars are Jaguar, Nissan and General Motors.
The future operations of Tesla Motors can be successful if the organization can
decrease the costs that related to its operations. This will help the organization in increasing
its revenues and operate in the market in the market in a sustainable manner without getting
into too much debts (Urde & Koch, 2014).
Conclusion
The essay can be concluded by stating that the three different organization belonging
to three different sectors have different styles of operations. The financial stability of the
companies depends highly on the costs that are related to their successful operations. The
future performance and sustainability of the organizations also further depend on the
profitability and high revenues of the various organizations. The various competitors of the
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COMPARISON OF MARKET POSITION
companies also affect their profitability in the market and the ways by which they can
maintain their competitive position.
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References
Apple. (2018). Apple. Retrieved 10 April 2018, from https://www.apple.com/
Brewster, C. (2017). The integration of human resource management and corporate strategy.
In Policy and practice in European human resource management (pp. 22-35).
Routledge.
Castellucci, F., & Podolny, J. M. (2017). The dynamics of position, capability, and market
competition. Industrial and Corporate Change, 26(1), 21-39.
Electric Cars, Solar Panels & Clean Energy Storage | Tesla. (2018). Tesla.com. Retrieved 10
April 2018, from https://www.tesla.com/
Fleisher, C. S., & Bensoussan, B. E. (2015). Business and competitive analysis: effective
application of new and classic methods. FT Press.
McCrohan, K. F., & Lowe, L. S. (2015). A Critical Analysis of the Impact of Legislated
Market Shares. In Marketing Horizons: A 1980's Perspective (pp. 293-295). Springer,
Cham.
Nike.com (2018). Retrieved 10 April 2018, from https://www.nike.com/in/en_gb/
Urde, M., & Koch, C. (2014). Market and brand-oriented schools of positioning. Journal of
Product & Brand Management, 23(7), 478-490.
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