Question

Your answers for each question should be between 400 to 500 words.

4. To what extent do you think Apple has sustainable competitive advantage, especially without Steve Jobs?        [20 marks]

Answer 1

Apple has pretty much everybody, from other tech giants to little new businesses, gunning for them. Notwithstanding this, they have to prevail regarding supporting keeping up their leadership position in the top of the line cell phone market. They have gigantic edges, a dedicated base, and produce colossal promotion measures with each cell phone discharge. The two speculators and buyers give heaps of consideration to these deliveries. My theory depends on the possibility that equipment matters little to Apple's long haul achievement and that their product is the way to looking after leadership. For quite a while, Apple has made a separate, separated biological system and a solid value brand. These things have prompted a competitive advantage, yet they are starting to be disintegrated away. Keeping up this competitive advantage will be vital to keeping their situation as the market chief in the top of the line cell phone market. I will apply the VRIO framework to Apple to look at the off chance that they have a practical competitive advantage. VRIO represents Valuable, Rare, Imitable, and Organized to Capture Value.

One enormous competitive advantage that is incredibly difficult to copy is brand. A solid brand like Apple's requires long stretches of difficult work, an immaculate plan, and various variables. Apple creates more publicity, more breaks, and more interest per telephone discharge than some other organization. One can hear bits of gossip about another iPhone months before its delivery. While the equivalent can be said of Galaxy's, the volume and power of the publicity encompassing iPhones are a lot bigger. This is an unwaveringness that will require long stretches of difficult work and immaculate execution to reach.

Competitive advantage ought to have been considered like a stool. The more legs a stool has, the harder it is to wreck it by eliminating only one. The more advantages Apple has in its utility belt, the harder it is to remove it's by and large manageable competitive advantage. iMessage could be one of Apple's greatest advantages now, yet right now, it isn't so huge. Apple's greatest advantage is its image picture and dedication. However, something like this is difficult to control. Individuals are whimsical and flighty. Apple's stool has 3 legs. They are social highlights joined with bunches of clients, an incredible brand, and its lovely programming. Nonetheless, these legs are unsteady, and steps ought to be taken to add more legs and shore up the ones that exist. The presence of these advantages will possibly proceed on the off chance that they are taken care of by the update to IOS 11.

Apple's reasonable competitive advantage that they have appreciated since they dispatched the iPhone is rapidly disintegrating. Notwithstanding, R&D costs have increment by 4 billion in the course of recent years, so I feel great that they are dealing with something. This something is, the point at which it will be delivered, and what esteem it will add is all obscure. As of February 28th, Apple's PEG proportion sat at 1.68 per Zacks. If Apple doesn't accomplish something critical with the arrival of IOS 11, at that point, they are freeing themselves up to Samsung and Google to take market share. A TTM PEG proportion of 1.68 doesn't precisely mirror this danger. It proposes that individuals figure Apple will become fundamentally more in 2017 than it did in 2016. This conviction is missing any undeniable development factors in 2017. The future estimation of Apple doesn't appear as though it has space to move upwards. In light of the savage rivalry and the vulnerability of Apple's development, this speculation looks unimaginably unsafe, just as the high valuation. 2017 should be the year that Apple demonstrates it can develop without Steve Jobs in charge. Stay away from Apple until this occurs.