Apple's Business Model and Sources of Competitive Advantage
Apple (NASDAQ: AAPL) apart from being a leading technology brand is also the first company in the world to have touched the market cap of $2 trillion. Despite the pandemic and the resulting economic turbulence, the market cap of Apple has kept growing. It is just an indication that its competitive advantage has grown a lot stronger over time. Founded by visionary Steve Jobs and Steve Wozniak, Apple has grown into the world’s most popular brand of smartphones and wearable devices. The credit of its popularity goes mainly to the company’s consistent focus on product quality and the pace at which innovation is carried out inside Apple. The business empire of Apple is spread throughout the world and it is a familiar name in most corners globally. The largest market of Apple products is the United States. Apple has its headquarters at Cupertino, California in the United States and is currently led by CEO Tim Cook.
The fast-paced and aggressive culture of Apple has also undergone a major change under his leadership and even after the visionary leader Steve Jobs, the company has been growing very fast under Tim Cook's leadership. In fact, Jobs would have felt very proud to see his company in its current shape. In this regard, Apple has been performing better than analysts’ predictions and apart from faster growth in its market cap, the company’s financial performance has also remained strong over the last several years. The release of the iPhone 11 also drove impressive growth in sales and revenue. Moreover, Apple has become the leading and most reliable brand of wearable devices.
The business of Apple has several sustainable sources of competitive advantage. Its competitive advantage has also kept growing stronger over the years primarily due to its focus on technological innovation and customer experience. The business model of Apple is also hailed among one of the world’s strongest. Its business model enables faster innovation and is highly resilient, which offers the company a stronger edge against rivals. Here we will discuss the business model of Apple, its core strengths, and how it has helped the company achieve solid business growth and faster international expansion. Apart from its focus on innovation, Apple's business success also depends on some other pillars like its sales and distribution, marketing strategy, and supply chain management.
Business/Product Segments of Apple