Strategic Competitive Advantage Analysis: Apple Corporation Report

This report provides a comprehensive analysis of Apple Corporation's strategic competitive advantage within the context of strategic marketing. It begins with an executive summary outlining Apple's strong brand image, innovative products, and high pricing strategy. The report then delves into the concept of competitive advantage, exploring how it influences strategic planning and marketing objectives. A literature review examines key articles and concepts related to competitive advantage, strategic management, and marketing strategies. The report explores various sources of competitive advantage, including product quality, innovation, brand strength, and supply chain management. The discussion section analyzes Apple's strategies for maintaining a competitive edge in the market, emphasizing its focus on innovation, customer loyalty, and unique software offerings. The report concludes with recommendations for Apple to further enhance its marketing efforts and maintain its market leadership, focusing on the development of a proper marketing mix strategy. The report also highlights the importance of competitive advantage in strategic marketing and its role in maintaining market dominance. The analysis is based on secondary sources such as books and journals, and it emphasizes the importance of understanding competitive advantages in designing effective marketing plans and expanding business in new markets.

Strategic Competitive
Advantage

Executive summary
Apple Corporation is considered as one of the leading brand in electronic market which
manufactures and sales products- smartphones, music players and tablets. It has strong brand
image due to innovative products and high pricing strategy that sets a bench mark in competitive
marketplace. The objective of present assignment is to provide a detailed analysis about concept
of strategic marketing in Apple Corporation. Though this research, it has identified how
competitive advantage of a company helps in developing strategic plan and achievement of
marketing objectives. This would help in analysing how strategic marketing plan give support in
developing customer awareness and increase loyalty to gain high competitive advantage. For this
purpose, secondary sources like books and journals, are used to gather adequate amount of
information. This would help in analysing that in order to design an effective marketing plan,
Apple needs to understand its competitive advantages. As it wants to expand its business in new
emerging market, it is recommended to this company to develop a proper marketing mix
strategy. Along with this, competitive advantage will play an important role in strategic
marketing because this will provide major benefits in order to maintain their monopoly at large
market area. Apple company require to maintain and mange their business operations for taking
position in the top market place which assist in reaching with desired goals and targets
effectively. Further, for developing strategic marketing plan, a company can reduce its efforts by
getting an edge over its rivalries. Since competitive advancement can only be gained if an
organisation has adequate resources and must know about its products or services, which are
difficult to be imitable. Therefore, once strategy is developed, it would be helpful to translate the
same into specific competitive advantage

Table of Contents
Executive summary .........................................................................................................................2
INTRODUCTION...........................................................................................................................4
LITERATURE REVIEW................................................................................................................4
Concept of Competitive Advantage.................................................................................................4
Article 1: Strategic Management for Competitive Advantage....................................................5
Article 2: Sources of Competitive Advantage...........................................................................5
Article 3: Strong Competitive Advantage...................................................................................6
Article 4: Importance of Competitive Advantage in Strategic Management..............................7
Article 5: Sustainable Competitive Advantage...........................................................................7
Article 6: Strategic management insight competitive advantage................................................8
METHOD......................................................................................................................................10
DISCUSSION................................................................................................................................10
CONCLUSION..............................................................................................................................11
RECOMMENDATIONS...............................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Competitive advantage is an attribute which permits an association to outperform their
rivalry which includes various things such as; access to natural resources like highly talented
employees, geographic locations, allowed using advanced technology and many more. In fact,
competitive advantage plays a very crucial in strategic marketing because it gives advantages to
maintain its monopoly at marketplace (Stonehouse, 2004). However, number of authors are
identified which were expressed their viewpoints or thought process on effectiveness of
competitive advantage in strategic marketing. The report is based on Apple company which is
American multinational technology firm and offers a variety of goods and services to its
customers. It sells a variety of consumer electronics, computer software and other services, to
cater needs of customers, for getting their high retention. Apple is one of the most widely
popular organisation in all over the world. The company operate and regulate in the desktop and
laptop computer, smartphone and entertainment technology spaces which face competition from
an ever growing array of peers. They are face various rivals while operate business in another
country such as Samsung, Dell, Sony, Bose and so more. This will help them in attaining
required goals and targets effectively.
This report covers four main parts that are- literature review that showcase the concept of
strategic marketing and competitive advancement, methods for investigation, findings where
analyses has made on the basis of research and the last one is conclusion. Furthermore, some
recommendations has also provide to Apple Corporation for achievement of its marketing
objectives.
LITERATURE REVIEW
Concept of Competitive Advantage
Competitive advantages are situation in which it allow an organisation or country to
develop effective products and services along with equal value at lower price in more desirable
way. This is that condition which allow productive venture in order to generate more sales and
higher margins are compared with its market competitors. Along with this, competitive
advantages are attributed to a variety of different factors which includes cost structure, branding,
quality of different goods offerings, distribution network and effective customer facilities. It will
generate higher value for Apple and their shareholders because of some advantages and benefits.
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It is most favourable position within an organisation which want to be more profitable as
compared with other rivals. For gaining and maintaining competitive advantages, Apple are
capable for shows the greater comparative and differential value rather than its competitors and
this convey information to its desired target market.
Article 1: Strategic Management for Competitive Advantage
Fredrick Gluck has suggested that strategy is considered as business buzzword for better
development of company (Strategic Management for Competitive Advantage, 2019). For
developing strategies, R&D Department of a company draw a layout about raw materials
sourcing and relations with distributors. In context with Apple Corporation, this concept has
shifted the focus of managers from planning process to substantive issues which affect the long-
term benefits and well-being of business. Here, for developing marketing strategies to gain
sustainability, it is important for such organisations to understand competitive advantages within
a particular marketplace, where they operate business. Competitive advantage is an attribute
which allow a company to perform best as compare to respective competitors while selling goods
and services (Bruni and Verona, 2009). For Apple, competitive advantage gives opportunity in
reaching with superior margins compared with rivals and this will generate values for business
and its shareholders. It is also considered as leverage for business over its rivalries that can be
acquired by offering best and greater value.
As per views of Ian Linton, it has evaluated that the main competitive advantage of Apple
Corp. can be determined in terms of brand strength, supply chain management and innovation,
premium pricing strategy. These factors give initiatives to this company to get engagement of
customers. In addition to this, a key competitive advantage for Apple Corp. is its abilities for
developing innovative features in products, which helps in completing every demand of
customers. This would help in minimizing the risk, cost and timescale for developing marketing
strategies for new product development. It also enables respective company in introducing a
stream of highly innovative products and staying ahead of its competitors. Innovative strategy of
Apple for introducing creative in products give complement to its major strengths viz. customer
loyalty and build a barrier to competition.
Article 2: Sources of Competitive Advantage
As per research carried by Arthur Rothberg, it has evaluated that organisations which
capitalise on source of competitive advancements, offer better products at marketing place (Five
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Sources of Competitive Advantage, 2018). Here, competitive advantages in terms of strategic
marketing, is also known as in USP (Unique Selling Propositions). This concept makes business
of a company different from its competitors. It also build strengths as well as emphasise majorly
on enhancing efforts to increase sales. In this regard, the five typical sources of its competitive
advantages in technology sector are- High product quality; Low price; Level of service;
Industrial Knowledge and expertise; Better technology and innovation. But with respect to Apple
Corporation, it believes that capture a marketplace for longer period, is one the best way to gain
high competitive advantage. For this process, it majorly focus on developing more innovative
features in electronic product and makes money through selling hardware directly to end
customers (Barney, 2014). With this assistance, it has given its software to make hardware more
valuable then competitors' products. Along with this, due to high presence of brand in
competitive marketplace, its marketing strategy is based on- “To build platform so valuable
which led rivals feel compelled to put their products or services on the same”. Therefore, it has
made all operating system and customer software (iWork, Keynote, GarageBand, iBooks, Find
my iPhone and more) free. This would give opportunity to Apple Corporation to gain a high
competitive advantage, that helps in developing strategic plan more effectively.
Article 3: Strong Competitive Advantage
As per article given by Ben Banjarin, it has ascertained that mobile device has become a
most important part of everyone's life, where customers tend towards big brand majorly for
satisfying their needs (Why Apple Has a Strong Competitive Advantage, 2011). It includes
Nokia, Samsung, Sony, Apple and many more. Extension of such product line is much easier
step to walk forward in updating its product and can cover the largest portion of market
segmentation. The competition is getting high but strategies are much more different, due to
which some unique companies can get stability in marketplace and some get disposed. Apple has
a unique significance when it talks about differentiation from its day one. It works at its core as it
defined as a more software company than a hardware one. It has vital strategies to design its
hardware more prominent, as one who focuses on its software has to work on hardware too
(Evans, 2016). A customer can't sum-up Apple into an IOS processor only, because it has its
many additional unique software such as iLife, which should call a universe in itself. It works for
entertainment and for every creativity which comes in mind of any human (Davcik and Sharma,
2016). When it talks about digital asset management, iTunes come in, mind which is one of the
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most unique strategies of Apple. In 2009, the company has announced that loyalty of its
software has reached a level that they have the data of 100 million credit card accounts through
iTunes. The data prove the trust factor of consumers on Apple software, it has adopted the
iTunes to save their account for future purchase. Talking about the retail strategy as Apple took
the initiative to work on its own retail stores, it focuses on the location and the priority of the
customers. A location which helped in many ways as Apple sets their stores in malls where
consumers enter into the mood of buying the products. Retail stores have the important role
played while authorizing retailers to carry all Apple's products and accessories including the
support and repair facility in it (Clemons, 2019). Apple has established a unique image which is
a apart from market competition, by providing its significant combination of hardware and
software. Designing its own processor and giving all the various software of its own, build a trust
in the mind of their customers. Its a way of establishing a market and taking an important role
play of delegating authority to its retail stores is much more vital to make product distinguish in
the market. Therefore, it has evaluated that Apple has established a brand name with fans across
the boundaries.
Article 4: Importance of Competitive Advantage in Strategic Management
As per the view of Catherine Capozzi has described that management team of a company
is highly responsible for taking strategic decisions (The Importance of Competitive Advantage in
Strategic Management, 2017). These are majorly based on relocation of resources, staff, supply
chain and marketing efforts to develop an effective plan. Here, for developing strategic
marketing plan, a company can reduce its efforts by getting an edge over its rivalries. Since
competitive advancement can only be gained if an organisation has adequate resources and must
know about its products or services, which are difficult to be imitable. Therefore, once strategy is
developed, it would be helpful to translate the same into specific competitive advantage. In
context with Apple, its management believes in holding long term sustainability to gain high
competitive advantages (Kurt and Hulland, 2013). This state assist to concern on two main
factors to capture a marketplace. It includes relevancy which can be gained by anticipating
current and future needs of customers. While another main factor is defensible i.e. build barriers
to replication by competitors. Henceforth, both concept states that for developing strategic
marketing plan for business expansion, Apple Corporation should know its competitive
advantages in a particular market.
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Article 5: Sustainable Competitive Advantage
As per the view of Mohsen Ejrami, it has ascertained that marketing potentials have
coined as an appropriate procedure of application of Knowledge management, skills of an
enterprise and resources for value added in products and services, for fulfilling the competitive
demand and response of relevant requirement at marketplace. Imported associations require such
capabilities and potentially in order to develop and employing the competitive benefits in order
to use in designing inimitable, valuable, rare and irreplaceable assets (Jarillo, 2013). Although,
sustainable competitive advantage can be described under few situation in which one
organization can overtake their competitors and get succeeded in maintaining its own efficiency
higher than rivalries enterprises. It has also clarified that there are various successful associations
which have identified few modification that includes; hierarchy, practical routines of
organization, covering lesser regulation, lesser regulatory enterprise coordination and
proportional to upcoming order in decisional process (Bruni & Verona, (2009). Apple can take
competitive advantages by analysing marketing capabilities in better manner, to perform role for
management of risk. This is essential for respective company is to examine whole market before
introducing specific products and services. In this regard, as competitive strategy play a crucial
role in acquiring huge income and profitability effectively. Therefore, by analysing this factor
Apple Corporation can enhance its business in emergent marketplace, more easily.
Through view point of Krush (2014), it has ascertained that in this modern world,
contemporary strategic thinking is dominated by central notion which clarifies that superior
performance of an organization is a result of attaining sustainable competitive advantage.
Therefore, successful determination, growth and deployment of appropriate base of SCA is
consider as a central principle of business as well as marketing scheme. Additionally,
improvement in quality and proper management of product quality is seen as most significant
basis for acquiring SCA (Sustainable Competitive Advantage). Thus, most suitable models for
enhancing quality process states that improvement of goods quality is resultant into SCA which
is possible through minimizing unit costs, maximization of market share and decrease the cost
sensitivity.
Article 6: Strategic management insight competitive advantage
According to the view of Ovidijus Jurevicius, competitive advantage can be defined as
market forces through which a company able to develop effective and appropriate strategies.
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This can be done by providing or offering best quality merchandise or products to customers
(Strategic management insight competitive advantage, 2013). Apple focuses on its features,
which is unique from other companies that create value in the eye of customers. It helps a
company in establishing and providing distinguish quality products to their customers.
Competitive advantage include various factors which talks about profit maximization, more
return on Assets of a company, properly delegation of authority, valuable resources and many
more (Marchi, Maria and Micelli, 2013). Every company has a unique perceived value in its
product, if a company finds it and work on it, then market welcome and accept product in
effective manner which leads to enhancement in profit. But if company losses this opportunity of
finding right thing then it will directly affect to their growth and profit. Apple is known for its
unique combination of processor and best quality hardware through which they got stability at
marketplace very easily and efficiently.
Finding advantages in the product has many different ways, but main role play, which
makes the product unique is cost and differentiation. Talking of differentiation, then Apple has
achieved that level of hardware and software combination, but with a high value price in the
market. It's market segments also focus on business class societal people. A company who can
succeed in creating its product perceived value with low prices can stable in the market in front
of their competitors (Jarillo, 2013). It helps in scattering its market segmentation in many ways
as it covers a maximum scale of society. Now, the question arises, “How a company can achieve
competitive advantage?” There are many ways for it, but most prominent are:- By changing
external forces and developing a new product. Taking about external forces, changes may take
place to change in different factors such as political, economy, socio-factor, technological, etc.
Apple which has achieved a next level of technology in its accessories as it works on proper
processor with its own software. The change in pest analysis will give an enormous benefit to the
product in the market. A company can maximise its profit by the change in any of the factors as
it directly link towards the establishment of an organization (Namada, 2018). Talking about
internal forces then it works accordingly with management, production, packaging, price,
quality and differentiate the product by any other mean. Apple has a main focus on its quality
which help companies in building integrity again in the eye of their consumers. Creating
perceived value and established a place in the market is the most prominent part of a company in
its own.
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Apple has established a unique image which is a apart from the market competition, by
providing its significant combination of hardware and software (Von Krogh, 2012). Designing
its own processor and giving all the various software of its own, build a trust in the mind of their
customers. Its a way of establishing a market and taking an important role play of delegating
authority to its retail stores is much more vital to make the product distinguish in the market.
Therefore it has evaluated, Apple established a huge brand name with fans across the boundaries.
The most richest and knowledgable layer of customer segmentation works with respective
company in order to scatter market across the country (West, Ford and Ibrahim, 2015). A way of
doing thing in a simple way and has best design in the mobile industry. It has a lock-In, which
give trust to their customers to use iTunes and the App-store. This is consider as main reason
why Apple has more integrity and become the priority of all the business class society.
METHOD
For conducting a research, it is essential to use effective method and technique which
help them in gaining accurate knowledge and information about specific journal topic. In this
context to evaluate the role of competitive advantages in developing strategic plan and achieving
marketing objectives, researchers have used secondary sources. It includes some journals and
books which are accessed from authenticate websites (Von Krogh, 2012). This would help in
collecting and gathering required data and information in shorter period of time. For identify the
impact of SCA in business organisation, such secondary sources helps in obtaining different
perceptions of writers on interrelationship of concept of competitive advantage and strategic
management.
DISCUSSION
Sustainable competitive advantage are required for an organisation to thrive in
international environment. In order to avoid purchasing a value trap which is one of the essential
factor in exploring sustainable competitive advantages(West, Ford and Ibrahim, 2015). In an
organisation, strategic competitive advantages is a benefit over rivals which are gained for
offering consumers greater values. Apple technologies is changing the way where companies are
operated and regulated. This will directly affect whole procedure through which organisation can
develop their products and services. Apple is large firm which provide benefits from economies
of scale but it does not have distinct advantage in this regard over large competitors (Maury,
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2018). There are various current competition which includes massive company which can match
or surpass Apple's manufacturing, management and marketing efficiency (Bhakar and et.al.,
2016). At the time, when Apple possess intellectual property and patent protection, so the array
of comparable goods across the world. Apple presents a highly competitive environment where
they are gain attention of large number of customer's towards their goods and services. Through
various findings of research, it has evaluated that marketing strategy helps in formulating a
proper plan to achieve marketing objectives of a company (Morden, 2016). With this respect, to
design such a plan, knowledge of competitive advantages helps managers of an organisation in
choosing a proper target market and getting an edge over their competitors. This would give
advantage to fix efficient price of goods and services as per brand image, to cater needs of
business and customers, in desired manner.
CONCLUSION
From the above report, it can be analysed that competitive advantage is an attribute which
permits an association to outperform their rivalry. It includes various things such as; access to
natural resources like highly talented employees, geographic locations, allowed using advanced
technology and many more. In this regard, organisations are required to maintain and manage
business operations and its functions in order to gain high income and profitability. Through
understanding own competitive advantages, a company can develop effective strategic marketing
plans. This would help in reaching loyal customers and accomplishing marketing objectives
accordingly.
RECOMMENDATIONS
In order to design an appropriate strategic marketing plan for business expansion, it is
recommended to Apple Corporation to ensure effective coordination among its different
departments. This would help getting support of entire workers and managers in identifying the
company's competitive advantages in a particular marketplace. Through this process, they can
also discover areas which are affected by growth of organisation. Thereby, they can develop
strategic plan accordingly to cater needs of customers of new marketplace. Along with this, it is
also recommended to Apple Corporation to conduct marketing mix analysis. This would show
how business proposes its products or services in a particular area. It give advantages in
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developing strategies related to anticipate demand of market, design price structure and adopt
distribution channels accordingly.
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