Apple Incorporation was established in January 1977 as Apple Computer Incorporation. It is one of the largest information technology and mobile phone maker companies in the world. It was initially producing only personal computer hardware and software. Since 2007, however; it started producing portable media players, mobile phones and tablet along with personal computers and the company’s name become Apple Incorporation as computers were no longer its main focus but shifted to mobile electronics devices. As a result, it highly succeeds with its new objectives and has set a strong foundation in world’s market.
This report will analyse Apple’s resources, capabilities and its competitive advantages which make the company become one of the most successful company.
According to Hubbard and Beamish (2011, pp. 103-128), Tangible assests are resources which can be easily identified, divided as physical assets such as land and equipment and financial assets such as cash. Apple Inc (2013) reports that it has millions square feet of building space throughout the US, Europe, Japan, Canada, and the Asia-Pacific regions, almost 1,500 acres of land in various locations, manufacturing facilities, customer support call centres, warehousing and distribution operations. The company also owns data centres, research and development facilities and corporate functions and additional facilities for various purposes. In addition, the company has total cash, cash equivalents and marketable securities 146,761 million U.S. Dollars.
As Hubbard and Beamish (2011, pp. 103-128) stated, Intangible assets are resources which can be hardly identified and valued such as knowledge and skills. Apple’s Intangible resources consist of excellent innovation and engineering, outstanding creativity and design and effective human resource management.
According to Apple official website (2014), the company has approximately 80,000 employees worldwide, which just over 50,000 are in the US. They have been selected carefully and trained well before they can perform their jobs.
According to Hubbard and Beamish (2011, pp. 103-128), capabilities are the processes or systems that are used to coordinate with resources for productive use. The company has three major capabilities which allow it to achieve its objectives.
Firstly, Apple has a capability to select, train and develop high skilled employees who are essential to fulfil the company’s needs. As a result, these high skilled workers will benefit the company through their responsibilities.
Secondly, the company has an engineering and technical development capability. This allows Apple to be able to launch new product more often, the better innovation and functionality. For example, Apple released iPhone 5, its smartphone, in September 2012, just almost one year later, iPhone 5s, the better smartphone as announced, was released. Therefore,...