What Are Apple’s Major Competitive Advantages?

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Competitive advantage is when a firm sustains profits that exceed the average for its industry. The ultimate goal of business strategy is to achieve a sustainable competitive advantage. There are two main types of competitive advantage. Cost advantage and differentiation advantage. A competitive advantage exists when the firm is able to deliver the same benefits as competitors but at a lower cost (cost advantage), or deliver benefits that exceed those of competing products (differentiation advantage). Therefore a competitive advantage enables the firm to create superior value for its customers and superior profits for its self. Apple pursues a differentiation advantage strategy since it started in 1976. Only one time they offered a computer aiming for the mass market, but soon came back to their differentiation strategy. This differentiation strategy is supported by a strong promotion campaign, with the goal of to differentiate the Macintosh in the PC industry. Apple’s competitive advantages are its total control of software and hardware, marketing, digital asset management, retail strategy and product differentiation. Apple retails concept implements direct selling, creates firsthand experience to customers, customer education, after sales service etc. Apple has always been a very innovative computer manufacturer. Through excellent R&D, Apple always managed to launch PC innovations on the market. Apple designed its products typically from scratch, using the unique chips, disk drives and monitors. The critical attention was given to user interface by mission to bring easy-to-use computers to market. There is also a need to mention that Steve Jobs’ strategic decisions should be considered as a major differentiator and strong competitive advantage to Apple. Steve Jobs and Apple were better than anyone else at capitalizing on competitive advantage. They

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