What are the Competitive Advantages of Apple?

Published October 7, 2020 | Author: PenMyPaper

Key Points

  • Apple has successfully used differentiation strategy to create a strong competitive advantage.
  • Creating unmatched user experience through seamless product and service ecosystem.

Apple is one of the leading technology companies, headquartered in the US. It operates in a global scale and caters in multiple product categories such as personal computing, smart mobile devices, consumer electronics, and digital media and entertainment services. Over the years, Apple has expanded its business venture by diversifying its value offering and focusing on maintaining its brand image.

As of 2021, Apple has earned a revenue of USD 365.82 billion, which puts the company in 3rd rank among other peers. Moreover, the company also holds the 2nd position in terms of market capitalization which has been recorded at USD 2.223 trillion. The financial figures clearly highlight the growth and success of Apple. In this article we have explored the competitive advantages of Apple and how it has enabled the company to become one of the top technology firms in the world. Our paper writer service has made sure that if you need to do an assignment on Apple, this article can help you as a reference of the same.

Apple Competitive Advantages

Apple operates in the technology sector, which at present is one of the rapidly growing industries in the world. The industry growth and prospects are constantly drawing in new market players which seek to offer more attractive value propositions to the customers and pose strong competition to existing players like Apple. Apple competitors are constantly trying to outpace the company by introducing new products and services, that can create a strong impact on the consumers. Amidst the steep competition, Apple has still maintained its position in the market, by creating a strong competitive advantage.

The competitive advantage of a company allows it to differentiate itself from other market players in terms of value creation. It can be analyzed by using the Porter’s Generic Strategy model, which is one of the most popular theoretical frameworks used to develop effective marketing strategy.


The diagram shown above highlights the Porter’s Generic strategy model. According to this model, an organization can achieve competitive advantage through four different strategies, which are cost leadership, differentiation, cost focus and differentiation focus. A company may choose to adopt any one of these or a combination of these strategies to achieve competitive advantages.

Using Differentiation to achieve Competitive Advantage

A close look at the business operations of Apple, reveals that the company follows the differentiation strategy to create its competitive advantage. The company seeks to differentiate itself in a broad market scope.

The first differentiation of Apple comes from its brand development. Over the years, Apple has created a strong brand image, which is focused on quality, ease of use, privacy and user experience. Moreover, the company has built a strong brand loyalty among its customers, which is translated in terms of its brand equity. At present, Apple holds the 1st rank in terms of brand value, with a valuation of USD 260.2 billion.

The strong brand image, sets Apple apart from other peers in the market, offering identical product categories. The differentiated brand image of Apple has enabled the customers to have top of the mind brand recall which is extremely crucial for brand preference while making a purchase. When it comes to brand image, Apple is quite vocal about its uncompromised focus on quality and user experience. If you are writing a leadership essay you can mention that because of this approach Apple has made itself a premium brand, which caters to the niche market segment, where are consumers are ready to pay more for the brand and the promised quality. Thus, Apple has created a strong competitive advantage from its unique brand image, which communicates superior product quality and high aspiration value.


The competitive advantage of Apple also comes from its product design. The company has always been focused on creating experiences for the customers, rather than just selling products. Therefore, every Apple product is designed to offer better experience than any other rival products. In order to offer a unique and inimitable experience, Apple’s devices are run on its own proprietary operating systems.

The user interface has been developed in such a manner that it is strikingly different from other market players. The iOS on iPhones is different from Google’s Android, whereas the MacOS on the Mac computers is significantly different from Microsoft’s Windows. The company also designs its own mobile processors in order to order to provide unmatched performance and better optimization with its own software. Apple always make sure that they bring a different and more enjoyable experience for the customers.

The customer experience is further differentiated through the creation of a product ecosystem. Over the years, Apple has designed its products in such a manner that they would offer more value and better experience to the consumers when used together with other Apple products. Smart devices like the iPhone, iPad and Apple Watch, etc. will work seamlessly together to offer an even better user experience. This product ecosystem has helped Apple to strengthen its differentiation even further.

Let’s Sum it Up

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Before hopping to write a research paper outline on Apple, take a look into the key takeaways of this article. Apple has adopted the differentiation approach to achieve its competitive advantage. The company has differentiated itself in terms of brand image and product design and experience. The unique brand image of Apple is associated with its superior quality, ease of use, better user experience and high aspirational value. On the other hand, in terms of product design, the company has differentiated itself by creating products that can offer the best inimitable experience for the consumers. By creating its own user interface and product ecosystem, Apple has strongly differentiated itself, which plays a major role behind its growth and success.

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