Measuring Brand Equity Across Products and Markets - Case Study Example

Apple Case Analysis Student’s Name: Instructor’s Name: Course Code: Date of Submission: Table of Contents Table of Contents 2 1.0 Introduction 4 2.0 General environment analysis 4 2.1 Political and Legal aspects 5 2.2 Economic aspects 5 2.3 Technology aspects 5 2.4 Demographic and socio-cultural aspects 5 3.0 Industry Environment Analysis 6 3.1 Threat of new entrants 6 3.2 Rivalry among firms 7 3.3 Bargaining power of buyers 9 3.4 Bargaining power of suppliers 9 3.5 Threat of substitutes 9 4.0 Competitors Environment Analysis 9 4.1 Portable media player (MP3) 9 4.2 PCs market 11 4.3 Mobile phones market 12 4.4 Competitors SWOT analysis 14 5.0 Internal environment analysis 16 5.1 Resources 17 5.1.0 Tangible 17 5.1.1 Intangible 18 5.1.2 Capabilities 19 5.2.0 Engineering and technical development capabilities 19 5.2.1 Creative capability 19 5.3 Competencies 19 5.3.0 Core Competencies 19 5.3.1 Distinctive Competencies 20 5.4 Competitive advantage 20 5.5 Value Chain Activities 21 5.6 Financial condition 21 5.7 Current Strategies and Objectives 23 5.7.0 Business strategy 23 5.7.1 Product differentiation strategy 24 5.7.2 Investment strategy 24 6.0 SWOT Analysis 24 6.1.0 Strengths 24 6.1.2 Weaknesses 25 6.1.3 Opportunities 25 6.1.4 Threats 25 7.0 Recommendations 25 8.0 Conclusion 26 9.0 References 27 Shiu, E. (2005). Factors of Market Performance Of Apple Ipod: A Preliminary Desk-Based Study. Journal of Business Case Studies, vol.1, no.3, p. 23-67. 28 1.0 Introduction Apple’s operations have been not smooth sailing over the years. Its brand has not been always strong. It has experienced business ups and downs over the last two decades. In 1994 -1997 it was faced with a tough decision of updating outdated Macintosh compared to outstanding profits in 2012. Apple has sailed through competition storms and court battles to become the company it is today. Its present success is based on redesigning the existing products and converting the traditional technology into exciting new gadgets. Apple’s resources, capabilities, core and competencies have been particularly contributed to its success. Although Apple is still faced by numerous challenges in terms of sales, market share and growth its success is a strong indicator that it has been able to command a huge customer following through customer satisfaction. In this discussion of the Apple Incorporation, Apple’s market strategies and share will be reviewed and compared with its main competitors. Apple’s and competitors’ strength, weakness, opportunities and threats (SWOT) analysis will also be carried out so as to identify points of differences. The analysis aims at identifying gaps and offering recommendation that the company can adopt to resolve these gaps (Steven, 1994; Apple, 2012). 2.0 General environment analysis The politics, demographic, economic, socio-cultural, technology and legislation factors represent the environment in which companies operate in. These factors are particularly important in the marketing systems of firms. In its operations Apple Incorporation is affected by these environmental factors. 2.1 Political and Legal aspects Apple Incorporation operates in numerous countries across the world. In these countries there are diverse political and legal environments. The company has to work in accordance with the set framework in these countries. For instance, in the United States Apple Incorporation is expected to adhere to the pricing law under the Pricing Surveillance Authority (Apple, 2012). The law acts as an identifier and control of excessive pricing and restrains selected companies from charging excessive prices. 2.2 Economic aspects Apple operates in the global economic environment. Therefore, the global economic trend affects the operations of Apple in the market; demand and sales. The effect of economic environment has particularly been experienced during the global economic crisis; the willingness to buy a product and purchasing power of consumers is affected (Apple, 2012). 2.3 Technology aspects Innovation is the backbone of Apple Incorporation. Recently (March 2013), the firm has acquired a Silicon Valley startup, WiFiSlam which makes mapping applications for smart phones. Apple holds in high regard and invests a lot in research and development. It has also outstanding research and development design teams to ensure continuity in innovation. The firm also cooperates with foreign electronic companies such as Foxconn in Asia in boosting Apple’s products design. 2.4 Demographic and socio-cultural aspects In its quest to offer a first-class service to as many customers as possible, Apple has continued to expand its market outreach campaign across countries in the world. Its market operations are undertaken in multicultural environments. Due to the diverse environment they operate in the firm has developed products and websites in different languages. It is predicted that in a few decades, it would be possible that 75% or even 90% of Apple’s proceeds will come from outside of the United States (Apple, 2012). China, India, Eastern Europe, Latin America and some parts of Africa all have an emerging middle class. 3.0 Industry Environment Analysis Apple Incorporation designs, manufactures and markets mobile communication and media devices, personal computers, and portable digital music players, and sells a variety of related software, services, peripherals, networking solutions, and third-party digital content and applications. The Company's products and services include cell phones (iPhone), portable digital music players (iPod), desktop and notebook computers (Mac), iPad, Apple TV, a portfolio of consumer and professional software applications, the iOS and OS X operating systems, iCloud, and a variety of accessory, service and support offerings. Apple also manufactures printers and storage devices; peripherals of its products (Shiu, 2005). The firm also sells and delivers digital content and applications through the iTunes Store, App StoreSM, iBookstoreSM, and Mac App Store. It sells its products globally through its retail stores, online stores, and direct sales force, as well as through third-party cellular network carriers, wholesalers, retailers and value-added resellers. 3.1 Threat of new entrants The electronics industry operations are particularly very risky and have high price patents. This limits the entry of new firms or new products from already established firms. Apple is seen as a pace setter in the phone and computer accessories. Its continuity in innovation of products presents a stiff competitor in the industry compared to HP, Dell, Toshiba, and Lenovo among others. For instance, Apple has been particularly keen in developing software for its mobile phone devices, Android. The software makes phone devices faster, easier and more user friendly and better internet connectivity than the iPhone’s OS software (Apple, 2012). This has necessitated Nokia to develop its competitive software (Ovi Store) so as to remain relevant in the market. Apple has also developed iPad and iPhone 4 which have done extremely well in their market segments. In response competitors have developed and launched their own versions. The alteration of security APIs on the iPhone led to the development of iPhone 4 which boosted its differentiation in the market. Further, Apple’s competitiveness has been boosted by the introduction of iPhone 5, full sized iPads (2) and iPad mini. This has presented huge barrier for the entry of competing devices (Shiu, 2005). 3.2 Rivalry among firms The computer industry is very competitive with many players being involved. It involves high risks and high price patents therefore have very low switching cost. Apple’s main PC competitors are HP, Dell, Lenovo and Acer (Shiu, 2005). In the third quarter of 2012 HP was the market leader followed by Dell while Apple was third. However in the first quarter of 2013 Lenovo has grown its market share to overtake Apple and Dell, ranking second after Hp in terms of market share. The other competitors of Apple include Microsoft with windows OS and media player, Linux with Mac OS X, Samsung with MP3 player and Napster with online music stores similar to iTunes stores (Shiu, 2005). In ensuring it attracts more customers, Apple creates switching costs by ensuring they make their products user friendly. The firm offers one to one training to assist customers on how to use Macs. The rivalry among these market players in various segments is expected to persist. 3.3 Bargaining power of buyers Apple’s pricing policy is keyed in the consumer quality perception, ‘high price high quality perception’. Apple is considered a quality brand and design in the market. Therefore, with this trend of high pricing the consumers seek for alternative seemingly similar products. The wide variety of products from competing companies offers ease in switching. However, the power of consumers is highly checked by products differentiation of Apple (Aaker, 1996; Aaker and Jacobson, 2001). 3.4 Bargaining power of suppliers Apple buys raw materials and components in large quantities thus giving it ability to exercise considerable leverage over suppliers. This leverage empowers Apple to bargain for favorable terms and pricing. For example, it has been alleged that Apple reached at a special agreement with Samsung to acquire flash chips at price levels less than market rates (Shiu, 2005). This favorable pricing has made Apple to operate in lower cost structure for most of its products compared to competing products thus higher margins for the firm. 3.5 Threat of substitutes In the current market, there exist many products of competitors that Apple has. Nonetheless, Apple has been able to create a competitive edge into integrating the iPod with the music store, this is not offered as a whole in the market (Shiu, 2005). Zune HD is the iPod’s substitute with music store rhapsody; however its interface and standing of the iPod has boosted Apple’s competitive advantage. The threat of substitutes has been minimized by brand quality of Apple and customer loyalty (Aaker, 1996; Aaker and Jacobson, 2001). 4.0 Competitors Environment Analysis 4.1 Portable media player (MP3) Even though Apple was not the first firm to unveil portable media player (MP3) it did set a standard on the MP3 Player; the features that ought to be linked with it. Apple has capitalized on its ability for rapid product innovation and marketing. Apple’s tactic in consideration to the is fast product innovation and marketing. In the revolution of MP3 market consumers were critical in shaping it. They wanted small fashionable devices with large memory storage and longer battery life (Shiu, 2005). In addition, consumers were looking for a device that would integrate all hand held devices into one. Firms were competing in fulfilling these customer needs. This implied the designers and manufacturers had to take the phone, camera, music, and Personal Digital Assistant (PDA) and amalgamate them into one ordinary device that customers can bring instead of carrying about separate devices. Apple has been dominant in the MP3 Players market. Its main rivals are Sony, SanDisk, Dell, iRiver, Archos, and Creative. The competition in this market is such that a leading competitor can drop to the bottom place in a matter of the next big invention. These competitors have the Patons, money, and technology have the ability to drive a new entrant out of business. The main competitive force for Apple is the threat of substitutes but Apple has high brand loyalty. The ipod has built a absolute diversity concerning a range of other marketplaces including via sound businesses which utilize mp3 player link assistance inside vehicle receivers, clothing firms making ipod device pouches, as well as other third party organizations creating abundance of ipod gear, like docking channels, defensive flashlight sleeves, bags and other great tales. The diversity has created a wide range of choice making the iPod rule the market. The Apple iPod products continued to lead in the portable media players market, it garnered more than 70% of market share during the fourth quarter of 2012. The Sandisk Sansa, Microsoft Zune and Creative are the closest competitors coming second, third and fourth after Apple; 10, 4 and 2% respectively. The acquisition of a Silicon Valley startup, WiFiSlam which makes mapping applications for smart phones in March 2013 is expected to boost Apple’s competitive edge in the industry. Figure 3: MP3 market; Source: http://www.gartner 4.2 PCs market In the first quarter of 2013, global PC shipments were 79.2 million units which represented a 11.2% decline compared to the same period in 2012. According to Gartner, Inc. worldwide PC shipments were below 80 million units for the first time since the second quarter of 2009. Consistency was observed in all regions which recorded decline in shipments. This has been explained as a likely shift from use of PCs to other connected devices like tablets and Smartphone. However, the professional PC market segment has recorded growth due to persistent PCs refreshes and accounts for approximately 50% of the total world shipments. HP was the market leader in the first quarter of 2012 followed by Lenovo, Dell, Acer, and Asus respectively. During the first quarter of 2013 HP maintained the lead but Lenovo closed, the difference between the two was 0.1%. All the main brands recorded negative growths with only Lenovo remaining more or less constant (Figure 4). Figure 4: Global shipments market share for PCs; Source: http://www.gartner 4.3 Mobile phones market The competition in the mobile phones market has also been high. In 2011 Nokia was the market leader with 23.8% followed by Samsung which commanded 17.7% market share while apple was third with 5%. ZTE, LG, Huawei, TCL, Research in Motion, Motorola and HTC had 3.2, 4.9, 2.3, 1.9, 2.9, 2.3, and 2.4% respectively. However, the following year (2012) competition stiffened and Nokia was ousted by Samsung as the mobile phones market leader. Nokia had 19.1% compared to Samsung’s 22% market share in 2012. Apple retained its competitiveness at the third position in 2012 but increased its market share to 7.5%. On the other hand, ZTE, LG, Huawei, TCL, Research in Motion, Motorola and HTC had 3.9, 3.3, 2.7, 2.1, 2, 1.9 and 1.8% respectively (Figure 5) (HP, 2013; Apple, 2013; Dell, 2013). Figure 5: Mobile Phones market share http://www.gartner.com/newsroom/id/2335616 In the Smartphone operating system market (Figure 6), Android accounted for than 50 percent of the OS market in 2011 and 2012 to be exact 51.3 and 69.7 percent respectively. This indicated a significant gap against Apple’s iOS which had23.6 percent in the fourth quarter of 2011 and 20.9 percent in the same period of 2012, an indicator of decline. A huge growth and decline of Android and RIM was recorded in the fourth quarter of 2012; growth 87.8 percent and decline of 44.4 percent respectively. Microsoft recorded growth in the fourth quarter of 2012, with its share growing 1.2 percentage points. Microsoft’s Smartphone sales increased by 124.2 percent in 2012 compared to 2011 (HP, 2013; Apple, 2013; Dell, 2013).  Figure 6: Smartphone Market share by operating system 4.4 Competitors SWOT analysis Lenovo Strengths Vertical integration Knowledge of China’s market Low cost production Strong patents portfolio Competency in mergers and acquisitions Synergy of knowledge and diverse workforce Opportunities Growing India’s Smartphone market Growth of tablets market Obtaining patents through acquisitions Tablet market growth Weaknesses Poor brand perception in the developed economies Low differentiation Commodity (computer hardware) products Threats Profit margin decline on hardware products Slowing growth rate of the laptops market Saturated Smartphone markets in developed countries Rapid technological change Intense competition HP Strengths Strong brand recognition Good operation efficiency Efficient supplier chain management Leading position across end-users Broad geographic coverage Opportunities Expansion in alternative client computing architectures/solutions Innovation in mini-notebooks and other emerging mobile computing devices Expansion in all-in-One desktops Develop new channels Professional PC replacement cycle and Windows 8 deployments in 2013 Weakness Inability to react quickly to the changing market Weak Positions in alternative client computing architectures Struggling in innovation and remain low-cost Complexity of their channel management against their competitions Organization structure based on product portfolio Threats Continuous price pressure Expansion of Acer, Asus and Samsung Decline in enterprise PC purchases Reduction of ASPs/Revenue associated With Mini-notebooks Dell Brand name valued at $7.5 billion Product customization Environmental record Competency in mergers and acquisitions Direct selling business model Expand services and enterprise solutions businesses Obtain more patents through acquisitions Strengthen their presence in emerging markets Tablet market growth Commodity (computer hardware) products Poor customer services Low investments in research and development Weak patents portfolio Too few retail locations Low differentiation Growing demand for Smartphones and tablets Profit margin decline on hardware products Slowing growth rate of the laptops market Intense competition 5.0 Internal environment analysis Apple’s current strategy is to create innovative products and services aligned with a “digital hub” strategy. The innovation and design are built on the platform of Apple’s branding strategy that target on psychology which is about lifestyle, innovation, dreams and aspirations (Apple, 2013). Internal environment analysis is interwoven in distinctive competencies that shape the strategies that the firm pursues by employing its resources and capabilities efficiently, which lead to competitive edge and superior profitability. 5.1 Resources Apple has a wide range of resources that differentiate it in the industry in design and product innovation. 5.1.0 Tangible Apple capitalizes on technological resources to make its various products. In Apple, advanced technology is not only used to speed up product manufacturing process but also to incorporate Apple’s internal and external communication network. Tangible resources in Apple include technological resources, financial resources, physical resources and organizational resources (Nath, 2004). Table 4: Tangible resources Tangible resources Technological Resources •Stock of technology, such as patents, trade-marks, copyrights, and trade secrets Financial Resources •The firm’s borrowing capacity •The firm’s ability to generate internal funds Organizational Resources •The firm’s formal reporting structure and its formal planning, controlling, and coordinating systems Physical Resources •Sophistication and location of a firm’s plant and equipment •Access to raw materials 5.1.1 Intangible Intangible resources are the non-physical that is it’s more towards psychology. Apple’s intangible resources lie in its strong branding strategy, which is pegged on the emotion and ease. Apple’s brand is created on the basis consumer needs and preferences. In addition, Apple’s human resources are intangible resources with soft skills, knowledge, initiative, and experience enable the firm to maintain its high product quality and services and to build its unique competencies. Some of the Apple’s intangible resources include human, innovative and reputational resources (Nath, 2004). Intangible resources Human Resources Knowledge Trust Managerial capabilities Organizational routines Innovation Resources Ideas Scientific capabilities Capacity to innovate Reputational Resources Reputation with customers Brand name Perceptions of product quality, durability, and reliability Reputation with suppliers For efficient, effective, supportive, and mutually beneficial interactions and relationships 5.1.2 Capabilities Apple’s capabilities include ability to organize all of its resources and optimization in their use so as to achieve productivity. 5.2.0 Engineering and technical development capabilities This competency allows the company to continuously produce innovative product which increase product-to-market cycles. It also used to improve the quality and functionality of Apple’s products (Apple, 2013). 5.2.1 Creative capability Creative capability helps the firm to design hardware, software and other components of the products. As a result, a wide range of distinctive products are produced and differentiated from competitors’ products. 5.3 Competencies 5.3.0 Core Competencies A company’s core competencies illustrate the internal strongholds of a firm. For instance, Apple has been able to excel in innovation and engineering excellence which ensures continuous technological development and invention. The company has also capitalized on creativity and design which has boosted the firm’s ability to manufacture a wide range of distinctive products. In addition, Apple has an outstanding strategic human resource management policy which is tasked with identifying, selection, recruitment and retention of talented and skillful personnel who ensure consistency in the company’s success (Shelley et al., 2011). 5.3.1 Distinctive Competencies Apple’s distinctive competencies are reflected by its product design and innovation, digital entertainment, and educational skill. The firm has fostered the development of graphical user interfaces, networking, and several other areas. This has in turn contributed to Apple’s nurturing of creativity leading to excellence and ability to differentiate itself and gain a competitive edge over other competitors in the industry (Nath, 2004). 5.4 Competitive advantage Firms achieve strategic competitiveness and earn above-average returns when their core competencies are effectively acquired, bundled and leveraged. With time, the benefits of any value-creating strategy can be reproduced by competitors therefore a firm should always be way ahead of competitors (Shelley et al., 2011). The ability of a firm achieving competitive edge sustainability is a function of core competencies rate of obsolescence, availability of substitutes and inimitability of core competence. In order to maintain its leadership position Apple has adopted three key criteria, that is valuable, rarity, and costly to imitate its products (Nath, 2004). Apple’s competitive advantage sustainability Valuable Capabilities • Help a firm neutralize threats or exploit opportunities Rare Capabilities • Are not possessed by many others Costly-to-Imitate Capabilities • Historical: A unique and a valuable organizational culture or brand name • Ambiguous cause: The causes and uses of a competence are unclear • Social complexity: Interpersonal relationships, trust, and friendship among managers, suppliers, and customers 5.5 Value Chain Activities Apple’s value chain activities involve primary and support activities, which incorporate distinct objectives. Apple’s value chain is comprised of nine steps that essentially move from raw content to the listener. All the steps of the value chain include content, advertising, production, publishing, hosting/bandwidth, promotion, searching, catching, and listening (Shelley et al., 2011). Each step in the value chain that adds value in distinctive ways has its own sets of challenges and opportunities. The only variable to manage in Apple’s case is the consumers’ preferences. 5.6 Financial condition The net sales of desktops, portables, iPhones, iPads, and iPods (Figure 7) show a consistent increase trend in sales. For instance, in 2011 there were huge sales of iPhones compared to 2009 and 2010. This could be from the introduction of iPhone 4, the sales almost doubled in 20111 compared to 2010. iPads net sales also shot up in 2011 compared to the previous year (Gartner, 2013). Figure 7: Net sales of Apple products The net revenues for 2010, 2011 and 2012 have also consistently been on the rise (Figure 8). In 2012, the net revenue for Apple was $156508 million compared to $108249 million in 2011 and $65225 million. This is an indicator of customer loyalty and to some extent ability to meet the customers’ needs. The net incomes also progressively rose in these periods (Shelley et al., 2011). Figure 8: Net revenue of Apple for 2010, 2011 and 2012. Apple believes that this continuous growth is the result of heightened consumer interest in Apple’s brand, continued expansion in its customer base of iPod and iPhone, the expansion of third-party audio and video content available for sale and rent via the iTunes Store, and the continued interest in and growth of the App Store. Accordingly, Apple continues to expand its iTunes content and applications offerings around the world (Shiu, 2005). In comparison to its competitors Apple has been able to oust HP as the net revenues leader in the market. In 2010, HP was the market leader in sales but has since been overtaken by Apple. In addition, Dell’s revenues remained somehow constant over the three years period (Figure 9). Figure 9: Net revenue of HP, Dell and Apple. The net incomes of HP, Apple and Dell have showed diverse results of 2010 to 2012 period. Dell has been consistent with minimal improvements compared to Apple which has been on the rise from 2010. HP’s net income grew in 2011 but slammed to record a net loss of $12650 million in 2012 (Shelley et al., 2011). Therefore, in comparison with its close competitors Apple is on the right track in the computing industry (Figure 10). Figure 10: Net income for HP, Dell and Apple. 5.7 Current Strategies and Objectives 5.7.0 Business strategy The business strategy of Apple is founded on its quest to provide the best personal computing, mobile communication and portable digital music and video experience to its wide range of clients; businesses, government agencies, students, and educators. The firm aims at reaching out to its consumers with its innovative hardware, software, peripherals, services, and Internet offerings. The firm endeavors to take advantage of its ability to design and develop its own products, software and other related OS so as to provide its customers with greater ease in using its products and innovative industrial design. Apple has unmatched interest in research and development which it believes is vital in the development and enhancement of innovative products and technologies while retaining high quality (Apple, 2012; Nath, 2004). 5.7.1 Product differentiation strategy Apple has strategically placed its brand in a distinct manner in the market, this has been propelled by continued research and development and innovation. The firm has been able to track its differentiation strategy by developing distinct products which rivals are unable to match. Apple’s product differentiation strategy has been particularly established through an established reputation in innovation and also by offering user friendly products that cut across numerous market segments. This strategy has enabled Apple to gain a competitive edge. The firm has been able to retain high brand loyalty by being able to integrate consumer desires with the product design (Kahney, 2002; Gobe, 2009). 5.7.2 Investment strategy In its investment strategy Apple is particularly keen in investing in research and development for long term benefits. It has also invested and continues to invest in customer service, marketing and broadening differentiation. In enhancing the company’s investment strategy, it has set in place strategic acquisition of companies that have products, services, personnel, and technologies that complement the company’s strategic direction and would add value to Apple (Apple, 2012). 6.0 SWOT Analysis 6.1.0 Strengths Apple Incorporation is a multinational company with worldwide presence. Therefore, it has a large distribution network across the world enabling it to reach more and more customers. Once a product is launched by Apple it becomes easy to create awareness and increase accessibility from all over the globe. The customer loyalty and brand reputation is also strength in the company’s expansion prospects (Shelley et al., 2011). This has enabled the company to continue growing. Apple is also a leading innovator in mobile and computer devices that has enabled itself to differentiate in the market. The company has also a strong financial base, its net income standing in $41.733 billion and has no debt. 6.1.2 Weaknesses Incompatibility of some of its products with different OS is a great weakness to Apple because it may limit consumers to buy the product. Apple’s products are highly priced which limits the purchasing power of consumers. This may have a long-term negative effect on the sales of the company’s products as it may be beyond the affordability of many willing buyers (Apple, 2013). 6.1.3 Opportunities Apple’s iPad mini and iPhone 5 have been experiencing high demand over time. This is a short term opportunity for Apple that should be exploited as the needs of the consumers are prone to change over time and especially with the next big launch of seemingly superior products to the two products. iTv launch is also a good opportunity in growing the sales of the company. In addition, tablets and Smartphone market have also been recording growth. Therefore, Apple tablets and smartphones are an avenue of company’s improved performance (Apple, 2013). 6.1.4 Threats The mobile and computer devices technology has been rapidly changing where even before a company can breakeven its innovation investments another technology that is more superior arises. There has been quite has increases of Foxconn workers salaries which could be a threat to the sustainability of Apple’s earnings. There has been increasing competition as Apple’s main competitors become more innovative. Some companies are moving to online music market while Apple is facing high price pressure from Samsung over its key components (Apple, 2012). 7.0 Recommendations Although Apple has shown tremendous growth and success it can still make some improvements. For instance, Apple should consider launching a new DVD player which can integrate both HD-DVD and Blu-Ray formats. This would be a good opportunity for Apple to design a player which can integrate both the technologies in a single player. Secondly, there are broad opportunities that have not been tapped in the African and Asian markets. In these regions there is increasingly emerging middle class who can be targeted to increase company revenues and profit sustainability. Apple needs to eliminate the technical hitches through research and development teams of Apple. The trend of increasing complains concerning Apple’s products may result to consumer dissatisfaction and the seemingly quality and value perceptions diminish. Therefore, the research and development and customer service personnel should be more prompt to consumers’ demands and complains. 8.0 Conclusion As the above discussion could highlight competition and the rate of technological change are the most vital issues presently facing Apple Incorporation? Apple is also confronted by the need to retain its core competencies; innovation, relationship building, brand management and marketing as it endear to manage a wide range of products and market participation. Apple’s customers are increasingly becoming diverse and new competitors with notable strengths and strategies are joining the market (Gobe, 2009). The technology and entertainment industries are also frequently and rapidly changing. In the face of this it is unpredictable whether Apple will be in a position to sustain its brand's reputation for innovative design, continually release technological breakthroughs, and launch new products that will "hit the consumer mark". 9.0 References Aaker, D. (1996). “Measuring Brand Equity Across Products and Markets,” California. Aaker, D. and Jacobson, R. (2001). “The Value Relevance of Brand Attitude in High-Technology Markets,” Journal of Marketing Research, vol.38, no. 4, p.85-93. Apple Inc. (2013). Apple three-year financial history. Viewed on 22nd April 2013 from http://investor.apple.com/financials.cfm Apple Incorporation. (2012). 2011 Annual Report. Viewed on 22nd April 2013 from http://investor.apple.com/secfiling.cfm?filingID=1193125-11-282113&CIK=320193 Dell. (2013). 2012 Annual Report. Viewed on 21st April 2013 from http://i.dell.com/sites/content/corporate/secure/en/Documents/FY12_Form10K.pdf Gartner Inc. 2013. Gartner Says Worldwide PC Shipments in the First Quarter of 2013 Drop to Lowest Levels Since Second Quarter of 2009. Viewed on 22nd April 2013 from http://www.gartner.com/newsroom/id/2420816 Gobe, M. (2009). Emotional Branding: The New Paradigm for Connecting Brands to People. (Updated and Revised Ed.). New York: Allworth Press. HP. (2013). 2012 Annual report. Viewed on 22nd April 2013 from http://h30261.www3.hp.com/phoenix.zhtml?c=71087&p=irol-reportsAnnual Kahney, Leander. (2002). “Apple: It’s All About the Brand.” Management Review, vol.38, no. 3, p.102-120. Nath, I. (2004). The Internal Environment: Resources, Capabilities, and Core Competencies. Viewed on 22nd April 2013 http://www.nathonline.com/UoW/SM/ch03-hitt.pdf Shelley, G., Hayter, J. and Dahl, J. (2011). Valuing the apple brand: an empirical analysis of laptop computer prices. Viewed on 21st April 2013 from http://www.wired.com/gadgets/mac/commentary/cultofmac/2002/12/56677 Shiu, E. (2005). Factors of Market Performance Of Apple Ipod: A Preliminary Desk-Based Study. Journal of Business Case Studies, vol.1, no.3, p. 23-67. Steven, L. (1994). Insanely Great: The Life and Times of Macintosh, the Computer That Changed Everything. New York: Springer. Read More