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iPod's Competitive Advantages

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Do you think Apple Computer can continue its remarkable performance in the iPod business? What are the iPod's competitive advantages over its rivals? Are they sustainable in the future? Explain and justify your answer

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Solution Summary

This solution evaluates the iPod's potential long-term for success and the competitive advantages of Apple over their rivals. It applies Harvard Business School's Michael Porter's framework of generic strategies to Apple and discusses the strategies the iPod undertakes to be sustainable. All references used are included.

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Yes I think that Apple can continue with its remarkable performance in the iPod business. This is on the condition that it will continue the strategy of product differentiation and innovation. Harvard Business School's Michael Porter developed a framework of generic strategies that can be applied to strategies for various products and services, or the individual business-level strategies within a corporate portfolio. The strategies are (1) overall cost leadership, (2) differentiation, and (3) focus on a particular market niche. The generic strategies provide direction for business units in designing incentive systems, control procedures, operations, and interactions with suppliers and buyers, and with making other product decisions. In a company there are resource strengths represent competitive assets. Moreover a company having particular strengths and the competitive capabilities in which they can engage in competitive advantage will allow the company to perfume well in the marketplace. Furthermore, these ...

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