1. What, historically, have been Apple’s competitive advantages?
Founded by Steve Jobs and Steve Wozniak in 1976 they had the determination to make cu%ng
edge products, with elegant design, and easy to use. Keeping this competitive advantage by mainly
refusing licensing hardware to third parties. They are o*en viewed as a leader in new technologies with
the +rst desktop solution, MP3 player and the +rst touch screen cell phone.
2. Analyze the personal computer industry. Why did Apple struggle historically in PCs?
The competitive environment was favorable at the beginning of Apple. The main issue of actually
developing this technology that had never been seen before. They did become the industry leader when
they launched a good IPO which enabled them to raise capital for future products. This made the PC
industry gain momentum fast, but Apple was the spark and created a “commuting revolution.” Apple
sells premium computers with a unique operating system, with really no direct competitor in the market
making the same system. Apple struggled historically in PCs because once IBM entered the market they
became the industry standard.
3. How sustainable is Apple’s competitive position in PCs, MP3 players, and smartphones?
Apple’s competitive position in became dominated by IBM and Microso* because they sold their
rights to manufactures who could make the almost identical product, much cheaper. They have however,
been able to turn in new developing technologies before anyone else and make a lot of profit. The idea
that Jobs’ created of having one place to buy all apple products and monopolize the customers
experience in an “Apple” store de+nitely contributed to their success I believe. The smartphones kind of
took over the mp3 player because you now have it all in one, and can just stream music compared to
having it download and take up storage. With the competition amongst smartphones I do belive Apple is
