GLOBAL COMPETITIVE ADVANTAGE

Global Competitive Advantage



Global Competitive Advantage

Introduction

Apple continues to grow faster than industry in all categories. New manufactory plants and sales offices are continually introduced to regions in order to save time and cost. The exact relationship model provides the powerful differentiator for the company to deliver satisfaction to customers of all sizes and types. Apple has focused most of the resources to support large commercial and formal organizations segment to sustain its growth by delivering superior services over competitors. In fact, Apple sells more computer systems to business organizations than any other company in the world. To adapt market change, Apple extents product categories to consumer electronics for better growth opportunities (Westland, 1999, 210).

Apple's mission

Apple's vision can help us to understand many organizational decisions taken at the company's history. Employees of Apple have often been encouraged to follow ideas and inclinations, and this has often led to development of profitable products. Apple believes that employees work harder if they feel free from the hectic of manager's assigned task. Apple major cause of success is its strong trust on the employees of the company and innovation. Apple suffered some serious problems in the different regional areas financially that stopped the spending on innovation and made Job think about changing the culture (Anderson, 1999).

Michael Porter's Model

The Porter's Five Forces Model provides a broad view of attractiveness in computer manufacturing market through distinct perspective (Porter, 2008, pp.78-93).

Threat of New Entrants

Low computer manufacturing is the high-profit potential and high risk industry which involves a lot of investment. Fixed equipments, method assets, and channels of circulation require many years to develop. Therefore, chances for entry and exit are high for both the potential new entrants and present firms. Possible, potential entrants could be any consumer electronics constructor; although, gigantic allowance of resources and transformation is needed to succeed.

Threat of Substitute Products

Threat of substitute products has increased with time. With products like HCD, Android, Samsung and Blackberry, customers have varied choice (Wind, 2003, 23).

Bargaining Power of Buyers

High Customers are highly priced sensitive to computer products. Their choice of decision can be affected by brand and advertising at the moment of purchase. The swapping cost is reduced when it arrives at normal users but high for organizations. Thus, Apple follows right direction to differentiate itself to minimize bargaining power of buyers by selling directly.

Bargaining Power of Suppliers

Low-costs of switching suppliers are low to Apple as company treats them as partners to provide quality products. The company shares customer information with suppliers so they can improve and forecast capacity for future.

Threat of Industrial Rivalry

Customers and organizations are price and service sensitive to the point that even the little value added element would affect their buying decision. The differentiator for Apple to stay competitive in the market is to spend all their focus on customers rather on competitions. Apple has never put focus on competition but to communicate directly with customers (Shama, 2005, ...