Apple: Success in Global Market
Introduction and Company Background
Established in the State of California in 1977, Apple has been one of the leading manufacturers of personal computers and software solutions in the domestic and international market. Furthermore, Apple is deemed to be the pioneer of personal computer revolution in the 1970’s with its Apple II and then reinvented the personal computer in the 1980’s with its Macintosh (Fundinguniverse.com, 2008). Apple manufactures Xserve G5 server, Mac OS X Operating System, and MacBook which serve as one of its sources of competitive advantages (Marketwatch.nytimes.com, 2008). At present, Apple expands its product lines from the manufacturing of personal computers and software solutions to media players. iPod made a great hit in the market and one of the top grosser in among the music player gadgets in the market. Since the launching of iPod in the market it has been one of the major contributors of Apple’s profit and market share leading to a more competitive company. The key of Apple success in the market lies on its innovative characteristics and advanced technologies that cope up with the present day needs of its target customers domestically and internationally.
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Strengths of Apple
Apple provides premium attention on its brand development – the area where its competitors is less focus, leading to its ‘healthy’ IT brands in the international market. Due to its stylish design yet technologically advanced personal computers and software solutions, Apple has been able to easily penetrate its target market and establish brand loyalty (Marketingteacher.com, 2008). Since the start of its international operation, Apple has become well known in the field of IT industry and competes at par with Microsoft. Apple’s management concentrates not only on recruiting more customers but they also on focus on how to maintain the customers on their side by providing personal computers and software solutions that fits the tastes and preferences of the latter.
iPod and iTunes
iPod - the first media player manufactured by Apple which started the entry of the latter to the media player industry and has a product line-up of iPod Classic, iPod nano, iPod shuffle, and the recent iPod touch. iPod was developed only in less than a year and was launched in October 2001 introduced as “Mac-compatible with a 5GB hard drive that put 1,000 songs in you pocket”. Medial players during those times can only store less than 100 songs, bulky, and has a low memory capacity. This is the main reason why iPod becomes “hit” since it introduction in 2001 since it is less bulky, stylish, has high memory capacity, and can store up to 1,000 songs. The total sales of iPod in the world market already reached 150 million as of April 2008 from the 120 million units sold in December 2007 making it the world’s best selling digital audio player series in history. In just 4 months, the total units of iPods sold in the international market have increased by 25 percent. As a result, Apple gained tremendous amount of profit and market share in the international market. The main reason why iPod successfully penetrates its target market and become so much in-demand in the market would be due to the fact that developers of iPod focused on the development of its user interface and ease of use rather than its technical capabilities, plus providing complementary software solution - iTune
In order to complement iPod, iTune was developed by Apple and provides music library on the personal computer where one can rip, play, and burn music from CD. iPod users can also download songs using iTune since the latter is a software used to transfer music to other devices. Furthermore, iTune also can transfer photos, videos, games, e-mail messages and other supporting features that users can totally enjoy. In this regard, iTune successfully upgrade the ease of use of iPod users by providing downloading site and other complimentary services.
One of the sources of competitive advantages of Apple would be its high technology products in the market which its target customers prefer. This serve as the triggering factor why Apple’s products gains tremendous amount of sales and profit, take the case of iPod wherein in just a few years since it was introduced in the market, it already become the top selling media player in the market. Furthermore, Apple does not provide technologically advanced products in the market, it also pioneer in product innovation and development which conforms to the constantly changing tastes and preferences of today’s consumers.
Another factor that serves to be the source of competitive advantages of Apple would be its skilled workers coming from various well-established IT companies like Steve Jobs who was a former employee of Atari – manufacturer of popular video games before becoming the CEO of Apple; Jonathan Rubinstein who was a former employee of Hewlett-Packard before becoming the chief engineer in Apple and developed the iPod. With these high skilled key officials of Apple, it is no wonder why the said IT Company has been able to produce high quality and technologically advanced personal computers, media players, and software solutions.
Based from the above top selling products of Apple as well as its sources of competitive advantages, it has indeed one of the successful multinational companies in the international market and continuously producing high quality and technologically advanced personal computers, media players, and software solutions which its target consumers wanted. In the next coming years, further development on the present Apple products is predicted to dominate the market given the superb top officials of Apple and its advance technology.
Fundinguniverse.com (2008). Apple Computer, Inc. Retrieved May 19, 2008, from http://www.fundinguniverse.com/company-histories/Apple-Computer-Inc-Company-History.html
Marketingteacher.com (2008). SWOT Analysis: Apple. Retrieved May 19, 2008, from http://www.marketingteacher.com/SWOT/apple_swot.htm
Marketwatch.nytimes.com (2008). Apple Inc. Retrieved May 19, 2008, from http://marketwatch.nytimes.com/custom/nyt-com/html-companyprofile.asp?MW=http://marketwatch.nytimes.com/custom/html-companyprofile.asp&symb=AAPL&sid=609
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