Apple Inc. is the leading technology company in the field of computers and mobile phones. It is the maker of iPhones, iPad, iPod, MacBook, Apple Watch. Apple is founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in 1976. Jobs and Wozniak, two collage dropouts, wanted to make computers small enough for people to have them in their homes or offices.

They started the company in Job’s garage where they begin building the Apple I which was being sold without the monitor, keyboard and casing. In 1977, Apple II revolutionized the computer industry with the introduction of the first-ever color graphics. Sale of Apple II computers suddenly jumped from $7.8 million in 1978 to $117 million in 1980 and Apple went public this year.

Woznik left apple in 1983 and Steve Jobs then hired PepsiCo’s John Sculley as the president of the company. This move backfired for the Jobs and after controversy with Scully, Jobs left Apple in 1985. After that Jobs founded a new company, NeXT Software and he also bought Pixar from George Lucas, which would later become a huge success in computer animation of such movies as Toy Story, A Bug’s Life, Monsters, Inc., and Finding Nemo.

In 1985, Scully rejected the offer of Microsoft founder Bill Gates to license its software. This decision later proved to be a great mistake as Microsoft launched Windows operating system (OS) which featured a graphical interface similar to Apple’s and became the toughest competitor of Apple in the late 1980s and throughout the 1990s.

After its peak in 1990, Apple’s profit declined and in 1996, experts believed that the company is to be doomed. Now Apple was desperately in need of an operating system and then it bought out NeXT Software (Jobs’ company) and the board of directors decided to ask for some help from an old friend: Steve Jobs. Jobs then became an interim CEO the company. Jobs made an alliance with Microsoft to create a Mac version of its popular office software. This decision became the turning point for the company. Jobs revamped the computers and introduced the iBook (a personal laptop) followed by iPod, an mp3 player, which became market leader.

In 2007, Apple introduced its touch screen phone, called iPhone, which was a huge success. The company has released several new versions of the iPhone since then. After announcement of iPhone and Apple TV, the company dropped “Computer” from its name and became Apple Inc. The company has extended its products and services further and is offering its credit card (Apple Card), Apple News for news, Apple Arcade for games and the Apple TV+ for streaming original content produced by Apple.

Apple’s Competitive Advantage

Apple has gained competitive advantage in following ways:

Brand Equity

The brand equity is one of the main reasons for its competitive advantage over others. Apple delivers best quality products and services to the customers and has gained trust of its customers by doing so. The brand apple is symbolic of innovation, excellent user experience, quality products & services and premium products. Apple’s products are innovative and a way different from its competitors. Its customers eagerly wait for its new products and are ready to pay premium prices for them. Today, Apple is the world’s leading technology brand with brand value at over $200 Billion. Due to this the customers love this brand.

Innovation

Apples is known for its innovative products. The companies spend a huge number on research and development to cater to the technological needs of the consumer to deliver innovative products. It has produced several innovative products including macOS, iOS, MacBooks, iPhones, iPods, iTunes, and others.

Apple has spent a larger portion of its revenue on R & D since 2003. During the fiscal third quarter of 2019, Apple spent $4.2 billion on research and development. That being said, this is the most Apple has ever spent on R&D during a single quarter. With spending of $4.2 billion, Apple spent 7.9 percent of its total revenue on research and development during the quarter. Just in 3 years, its R&D costs have increased by more than 4 Billion dollars.

Pricing

Apple’s premium pricing policy is also a competitive advantage tor the company. Customers take apple as the premium brand which never compromise in quality of its products and services. Keeping relatively a high price than other brands, Apple has placed itself distinctively over its competitors. It has marked its impact and popularity among rich people or people with high purchasing power.

Premium and wide Variety of Products

Apple delivers wide quality of premium products and services which is a great competitive advantage of the company over its competitors. These products and services earn high revenue and popularity for the company. Its products range from MacBooks to the latest versions of iPhones, iPad, iPods, Apple Watch, Apple TV, etc. iPhone is the best-selling product of apple and contributes majorly to its revenues. MacBook is also a major source of its market cap and revenue. Its service range also includes iPhone OS (iOS), OS X and watchOS operating systems, iCloud, Apple Pay, etc. The premium quality of Apple products has been its major growth driver.

Apple’s Mission and Vision

Apple’s Mission

Apple’s mission statement is “to create technology that empowers people and enriches their lives.” 

Apple’s mission statement has the following components:

Creating technology

Empowering people

Enriching lives

Technology is the target business output stated in Apple’s mission. The company’s purpose in product design and development is to roll out technological goods and services, such as smartphones and online services.

To satisfy its corporate mission statement’s focus on technology, Apple’s strategies account for other technology firms. Many technology firms are not direct competitors. However, these firms’ strategic plans influence industry and market conditions, business performance, and the fulfillment of Apple’s mission statement.

The corporate mission statement also guides Apple’s goals to include empowerment for the users of the company’s products. The empowerment and enrichment components reflect trends in the market, such as shifts in demand for high-quality digital services.

Apple’s Vision

Apple’s vision statement, “To make the best products on earth and to leave the world better than we found it,” drives the company’s ambition to continually innovate with an eye towards providing more meaningful experiences for their users and making a positive impact on society.

Apple’s vision statement has the following components:

Making the best products

The world as the target market

Leaving the world better

The vision statement’s point on “the best products” requires Apple to align its strategic objectives for the business purpose of achieving excellence. To make the best products, the iPhone maker has the organization, resources, and capabilities to do so.

The term, “earth,” in the corporate vision means that the company’s strategic purposes and objectives include excellence at the global level of industries, such as consumer electronics.

This global scope implies that the company develops its products, such as smartphones and laptops, to cater to the diverse needs of customers worldwide.

Conclusion

Apple Inc. is known for its best quality products and services. Innovation, pricing strategy, brand equity and a wide range of quality products & services provide the competitive advantage to Apple. Creating technology, empowering people and enriching lives, these are the three components of the mission statement of Apple. Apple’s vision statement has the three components i.e., making the best products, the world as the target market and leaving the world better. Apple is a good example which shows that the customers love the best quality products and always ready to pay high price for them.

Also read: Amazon Mission and Vision Statement, Core Values