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Innovatioin: They evolved throughout the years into an organization that is very much a representation of its leader, Steven Jobs. Apple made several hugely successful product introductions over the years. They have also completely fallen on their face on several occasions. They struggled mightily while Jobs was not a part of the organization. Apple reached a point where many thought they would not survive. When asked in late 1997 what Jobs should do as head of Apple, Dell Inc.'s (DELL) then-CEO Michael S. Dell said at an investor conference: "I'd shut it down and give the money back to the shareholders.” (Burrows, Grover, and Green)

Apple rarely introduces a new type of product. Thus, instead of being the pioneer, they are an expert “second mover” by refining existing products. Portable music players and notebook computers are examples. Apple increases the appeal of these products by making them stylish and more functional. They now appear poised to make significant strides in the home computer market and to creating a total digital lifestyle whereby the home is a multimedia hub

Product diversificatioin:

Apple’s products are trendy and stylish. After Jobs returned in 1997, Apple retained designer Jonathan Ive to differentiate their computers from the typical beige box. Ive’s design of the iMac included clear colorful cases that distinguished Apple computers. (Linzmayer, 295-6) Apple’s iPod (with the trademark white ear buds and simple track wheel) commands a 15%-20% premium over other MP3 players. (Yoffie)

Apple positions its Macintosh computers as higher quality and higher price. HP, Dell, and other PC manufacturers are pricing many systems under the $1,000 threshold. “Apple is struggling to meet demand for its new MacBook Pro laptop despite a $1,900 price tag that is nearly twice that of garden-variety rivals.” (Burrows) Likewise, the iPod Shuffle was Apple’s first entry into the lower-end ($100 range) of flash-memory-based portable music players.

Product differentiation they were sued by micosoft for perceived similarities between similar products

Research and development is a key component to Apple’s sustained competitive advantage. Apple is currently taking legal action against several popular technical web sites for releasing proprietary product research. Sites such as appleinsider.com have allegedly posted verbatim content from documents protected by employee non-disclosure agreements. (McCullagh) Release of critical insider information could give Apple’s competitors a jump in producing rival products.

Strategic alliance:

There is economic value in strategic alliances. (Barney, 370-84) In the case of Apple, there was the opportunity to manage risk and share costs (Barney, 373-4), facilitate tacit collusion (Barney, 374-5), and manage uncertainty (Barney, 378-9). It would have been applicable to the industries in which Apple operated. Tacit collusion is a valid source of economic value in network industries (Barney, 380), which the computer industry is. Managing uncertainty, managing risk, and sharing costs are sources of economic value in any industry (Barney, 380). Although Apple eventually realized