Case Analysis: Apple Inc., 2012 Essay example

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Case Analysis: Apple Inc., 2012

IBM introduced the personal computer into the mainstream in the 1980’s, after Apple pioneered the first usable “personal ” computing devices. By the early 1990’s, lower price and expanding capabilities drove the growth of “Wintel” (the windows OS combined with an Intel processor). The revenue growth continued through the early 2000’s then lowed over the next decades. The personal computer (PC) industry is in high dynamics, with new products emerging and old technology being abandoned quickly. With the requirement of cost cutting and the development of emerging market, contract manufacturing in Taiwan and China became popular. The dynamics are mainly driven by cost components cutting, software and hardware
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Apple’s Competitive Advantages in PC

Apple was successful in entering in the PC industry in the 1990 because Apple took a first-mover advantage and was the pioneer in taking an easy-to-use computer to market. However, the first-mover advantage disappeared quickly when IBM entered the PC market and fundamentally changed the rules for the industry.
In the early 21st century, Apple achieved a second success by creating its competitive advantages with the Macintosh. Jobs’s vision of “digital hub” was very appealing and gave directions to the strategies in the next few years. Four main changes in the Macintosh established competitive advantages for Apple. The changes include: a new operating system, which cost Apple roughly $1 billion to develop; a new chip architecture, which supports Mac to run Microsoft Windows along with Windows applications and expand its potential capability; a new suite of proprietary applications, which includes programs such as the iLife suite; and the Apple Store.
The changes brought Mac with competitive advantages by differentiating its products, providing superb customer experiences and establishing a new distribution channel. Customers can gain a comprehensive experience in the “digital hub” with faster speed and user-friendly design. Meanwhile, the apple store provided customers exposures to with Apple’s products as well as after-sales services.
Better customer experience, integrated functions, and user-friendly design have