Apple Inc. is one of the most famous technological company in America. The company is headquartered in California, which develops, designs, sells consumer electronics, online services, and computer software. The company is considered one among four big technological companies, three are Amazon, Facebook and Google. T

he company has the success history in consumer electronics and computer technology market, despite the challenges it faced with the changing business environment across the globe. Such performance records have revealed the use of core competencies by the company that are determined in VRIO analysis (Newton, 2019).

The VRIO model helps in evaluating the value, rarity, imitability, and organization of company. The company’s ultimate goal of this analysis is to identify the competitive advantages and core competencies of the company on the basis of VRIO variables. Apple successfully exploits the core competencies for achieving the competitive advantage for long term against the aggressive rivals. Here is the detailed VRIO analysis of Apple Inc.

Value

The first component of VRIO analysis is Value. The new product development of Apple Inc like iPhone has targeted the incorporation of phone communication with internet, computer dissemination, and data storage capabilities. It also planned to incorporate the PDA’s features such as compact and quick access. They also made the product fast and easy to use. The company has also combined the different features of the products like music playback iPod photo view. Thus, Apple has created value product because of the combination of different features in one product as per the consumer needs (UK essays, 2018).

Rarity

The second component of the VRIO analysis is Rarity. Apple has successfully launched iPhone as a brand name of phones. The brand name of iPhone and it is easy to use feature provides the company with temporary competitive advantage as other competitors also has brand name and access features. However, the brand name is a rare feature for the Apple.

The easy to use mainly targets the smooth touchscreen interface, synchronization ability and compatibility with iTunes. Such features are easy to be copied by the rivals who have already manufactured phones with their own software and functions. However, iPhone is still rare because consumers still prefer it over other phones in terms of use (Antonio, 2020).

Imitability

In the telecommunication industry, Apple’s iPhone is a big shot with the features provided by the rivals’ products. There are many competitors of Apple iPhone like Samsung, LG, Huawei, etc. This is aggressive and tough competition particularly when it involves imitation of the features like multimedia, camera, video recording, touch screen, etc. No phone is up to the standard of iPhone and could not imitate its features. As the iPhone is developed and design for the use of multiple things in one go, but its competitors are trying hard to combine all such features of iPhone (Pratap, 2020).

Organization

The last component of the VRIO analysis is Organization. Apple has successfully achieved its biggest competitive advantage in terms of Organization. The company has carefully exploited its brand name. Its brand name is always associated with functions like long lasting battery, easy to use, nice interface, trouble-free hardware, and best camera in the phone. Its malfunction items are easy to replace. Despite of this, Apple is exploiting the application market to force consumers to buy and use the provided programs. Apple used this tactic on iTunes and iPod. However, this tactic was not successful in iPhone (UK essays, 2018).

Conclusion

Apple has maintained value, rarity, imitability and organization very well. The company is successful in making its brand name and loyal consumer base. The company has given tough competition to its competitors and enjoying the leading market position and market share.

	V	R	I	O
Supply Chain	✓	✓		✓	Competitive Parity
Bargaining power	✓	✓		✓	Competitive Parity
Inventory management	✓	✓	✓	✓	Sustainable advantage
Brand Equity	✓	✓	✓	✓	Sustainable competitive advantage
Marketing	✓	✓	✓	✓	Sustainable advantage
Product quality	✓	✓	✓	✓	Sustainable advantage
Product range	✓	✓	✓	✓	Sustainable advantage
Talented HR	✓	✓	✓	✓	Competitive parity

References

• Antonio, W. 2020. Apple Inc, and the telecommunication industry. [Online], Available at: https://www.academia.edu/9254033/Apple_Inc._Executive_Summary_1_Contents, [Accessed on: 3rd March, 2020].
• Newton, V. 2019. Apple Inc. VRIO Analysis – Core Competencies & Competitive Advantages. [Online], Available at: https://www.rancord.org/apple-inc-vrio-analysis-core-competencies-competitive-advantages, [Accessed on: 3rd March, 2020].
• Pratap, A. 2020. Apple VRIO analysis. [Online], Available at: https://notesmatic.com/2020/01/apple-vrio-analysis/, [Accessed on: 3rd March, 2020].
• UK Essays. 2018. Apple Strategic Analysis. [Online]. Available at: https://www.ukessays.com/essays/marketing/strategic-analysis-for-apple-computers-marketing-essay.php?vref=1, Accessed on: 3rd March, 2020].