question archive How sustainable is leadership and creativity at Apple in keeping its competitive

How sustainable is leadership and creativity at Apple in keeping its competitive

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How sustainable is leadership and creativity at Apple in keeping its competitive

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  • Apple started out simply as a computer company producing Macintosh computers and software, but has since evolved over the years to manufacture other products. It introduced iPods in 2001 for music players, in 2007, it started producing iPhones. Its products are consumer oriented and this has contributed to the success of the company. Apple also views innovation as basis of survival and business development (Yoffie, 2012). What historically have been Apple's competitive advantages? Apple Inc. has rare case of building a real sustainable competitive advantage in comparison to other brands. These include brand appeal, and strong customer loyalty (Barney, 1991).
  • Apple has successfully enabled strong customer loyalty through effectively fulfilling their customer needs using their unique designs and product innovations. This has given it apple a competitive edge in relation to its rival. They are able to keep their customers up to date with inform of the updates in the existing products and new product innovations. Apple uses a vertical integration strategy that enables it to develop its software and hard ware apps, and own operating system (IOS). This allows apple to have control over all the users that are hard to replicate by its rivals (Meyer, 2012).
  • The android version has large number of users from Samsung, HTC and Sony, make it difficult for them to keep all users up to date with the latest versions for instance lollipop, which only a small percentage use.The protected ecosystem gave a competitive edge to apple therefore making Samsung want to create their own Tizen (a closed ecosystem). It could only be installed in limited smartphones appliances that most users did not own.

 

Reasons Apple is becoming a sustainability leader

 

  1. It's embracing the renewables revolution
  • Apple aims to power all its corporate offices, retail stores and data centres entirely with energy from renewable sources. The corporation is designing new buildings - such as its new headquarters in Cupertino - and updating existing ones to reduce energy consumption. Earlier this month, Apple announced it had committed to a 280MW solar farm at its new headquarters to meet the sites energy needs. It is also sourcing renewable energy for its other facilities from third-party suppliers. In 2013 Apple achieved a 169% increase in the use of renewable energy which powered 73% of all Apple facilities; rising to 100% of the energy at Apple's data centres.
  • In addition to its innovative products, Apple's pricing method has also contributed to its success. Apple products are priced high with respect to competitors and this provides Apple with a prestige image and also creates value for targeted customers where Apple promises to offer the best convenient products to its specific segmented consumers. In terms of promotion and distribution, apple encourages the demand of its product through the word of mouth marketing in order to stimulate the emotional buying. Moreover, its advertisements are often simple, arty and recognizable. In terms of place, Apple took the concept of retail stores to a new direction where customers can try the products before buying them.

 

2. It's embracing the renewables revolution

  • Apple aims to power all its corporate offices, retail stores and data centres entirely with energy from renewable sources. The corporation is designing new buildings - such as its new headquarters in Cupertino - and updating existing ones to reduce energy consumption. Earlier this month, Apple announced it had committed to a 280MW solar farm at its new headquarters to meet the sites energy needs. It is also sourcing renewable energy for its other facilities from third-party suppliers. In 2013 Apple achieved a 169% increase in the use of renewable energy which powered 73% of all Apple facilities; rising to 100% of the energy at Apple's data centres.

 

3. It's enforcing a proven sustainable supply chain

  • According to the Supplier Responsibility 2015 Progress Report Apple published earlier this week, it carried out 633 audits of supplier facilities in 19 countries in 2014 - 182 more than in 2013. Fifteen factories had production completely suspended for "seriously polluting fresh water supplies and air". Apple said it will terminate its contract with these 15 suppliers if a solution cannot be found to these breaches. 

 

4. It's moving into the electric car market (possibly)

  • Apple is reported to have 100 engineers developing a battery-powered electric minivan vehicle that could potentially shake up the electric car market. While Apple is refusing to confirm or deny the rumours, it has hired several people who have experience in vehicle design. The car is expected to be a rival to Tesla, whose electric vehicles aim to enhance the driving experience through technology. 

 

5. It's committed the resource efficiency of its products

  • Today's Mac Pro uses 74% less aluminium and steel than the previous design and the newest iMac is made with 68% less material than the first iMac. Moreover, every Apple Retail Store in the world takes back Apple products for free recycling. It has also set up recycling programmes in cities and university campuses in 95% of the countries where Apple products are sold, diverting more than 190 million kilos of equipment from landfills since 1994. In 2010, Apple set out to achieve a worldwide recycling collection rate of 70% of the total weight of the products sold in 2003. It has achieved 85% every year since. It has even won over Greenpeace by removing hazardous toxins from its products.