Apple Computer 2012
Section I
1. What, historically, have been Apple’s major competitive advantages?
Apple had a strategy focused on differentiation-based advantage. Historically, Apple aimed
to design an easy-to-use computer for the market. Compare to other PC products, Apple’s
PC was able to plug-and-play. They also relied on some superior software for publishing
and education, like Aldus PageMaker and laser pointers. At that time, their price was
relatively higher than other IBM-compatible products’ price, they had a premium price for
their loyal customers, and they had to design a lower price product for their consumers.
Later, they aimed to spend more money on research and development. They tried to bring
out new products every 6 to 12 months. They also developed a website where customers
could buy things directly. They claimed that their products were energy efficient and all
materials used were recyclable. All they wanted to do was differentiate their products from
others.
2. Analyze the structure of the personal computer industry using Porter’s Five Forces. Are
these dynamics favorable or problematic for Apple?
For personal computer industry, the threats of new entrants were low due to high
investment on R&D, and PC companies had been continuously differentiate its products.
The competition in the personal computer industry was fierce. Companies like these were
all differentiation-based. So they all put relentless force on development new products. The
threats of substitutes among the PC industry were high. As long as the personal computer
were well functioned. Customers were willing to buy lower price products. For suppliers,
they had high power, because they had the ability to supply the unique materials. Buyers
