Competitive Advantages
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Competitive Advantages
Innovation is among the critical elements that can be used to help a company increase its competitive advantage over its rivals. One of the ways that innovation matures a company is through the development of new ideas to create new products (Autio et al. 2014). These products can help a company gain a competitive advantage by acquiring a new market that had not been explored. The second way that innovation matures a company is through the improvement of the quality of products (Ngo, & O’cass 2013). Products that are of high quality meets the needs of the consumer. Therefore, the company will attract a high number of consumers who will increase the revenue earned.
Apple Inc. has managed to successfully establish itself as the market leader in smartphones from the production of its iPhone. There are various dimensions that the company can undertake to sustain its competitive advantage in the market. One of these dimensions is the cost advantage which refers to the lowering the price below that of the competitors (de Oliveira Teixeira, & Werther Jr 2013). Apple Company should ensure that the price of its products are lower as compared to its rivals such as Samsung. The dimension will ensure that Apple gains more customers who will help in to earn more revenue. Therefore, the company will be able to maintain its competitive advantage. The second dimension that Apple Company has to consider is differentiation (Goldsmith, 2013). Differentiation refers to the production of products that are unique from its competitors, the marketing strategies and branding. These factors have to be unique from other smartphone companies so that Apple can be able to attract more customers. These customers will ensure that the sales of the company are high helping it to maintain a competitive advantage.
References
Autio, E., Kenney, M., Mustar, P., Siegel, D., & Wright, M. (2014). Entrepreneurial innovation: The importance of context. Research Policy, 43(7), 1097-1108. Retrieved from: https://www.sciencedirect.com/science/article/pii/S0048733314000717
Ngo, L. V., & O’cass, A. (2013). Innovation and business success: The mediating role of customer participation. Journal of Business Research, 66(8), 1134-1142. Retrieved from: https://www.sciencedirect.com/science/article/pii/S0148296312000938
De Oliveira Teixeira, E., & Werther Jr, W. B. (2013). Resilience: Continuous renewal of competitive advantages. Business Horizons, 56(3), 333-342. Retrieved from: https://www.sciencedirect.com/science/article/pii/S0007681313000104
Goldsmith, D. (2013). Rethinking the company’s competitive advantage. Financial Executive, 29(6), 14-18. Retrieved from: https://go.galegroup.com/ps/i.do?id=GALE%7CA336617656&sid=googleScholar&v=2.1&it=r&linkaccess=abs&issn=08954186&p=AONE&sw=w