1. Historically, what was/were Apple’s major competitive advantage(s)?
Apple played a major role in the introduction of the personal computer in the 1970s, which eventually kicked off the personal computer revolution. Its first big success was the creation of the Apple II. It was introduced in 1977 and was a very popular with home consumers. The Macintosh, released in 1984, was the first commercially successful product to use a GUI. A desktop metaphor was used, in which files looked like pieces of paper; directories looked like file folders; there were a set of desk accessories like a calculator, notepad, and alarm clock that the user could place around the screen as desired; and the user could delete files and folders by dragging them to a trash can on the screen. Drop down menus were also introduced. Apple’s mission was to bring an easy-to-use computer to every man, woman, and child. With this philosophy, the company began to revolutionize the way people and computer companies think about aesthetic design of computers and consumer electronics alike as well as the security and operational ability of the system. Consumer’s had a love affair with the Mac which allowed Apple to sell its products at a premium price. Therefore, between 1985 and 1993, Apple’s sales increased by 5.6 billion and the company held shares of more than 50%. This accomplishment turned Apple into a global band name. Apple also had 1 billion dollars cash and was the most profitable PC Company in the world.
The company practiced horizontal and vertical integration to a larger extent than any other computer company, with the exception of IBM. Apple generally designed its products from scratch, using unique chips, disk drives, and monitors, as well as rare shapes for its computers’ frame. Whil ...