Apple Inc. in 2012 Case Solution

The iPod is the MP3 player produced by Apple. The launch of the iPad marked the initiation of a digital age. The company charged a premium for the product because of its innovativeness. Because the basis of the product was innovation, the sales of the product generated huge profits for Apple. The company did not need to differentiate from the competitors because the innovation itself was a differentiating factor. The company was enjoying a competitive advantage based on the blue-ocean strategy that it showcased in the case of iPods. Whereas, comparing the position of the PC segment, the company had to consistently innovate in order to maintain sustainability. In the iPod market, the position of the company was sustainable because of the strong foothold in the industry and the title of being the pioneers of a new segment and the initiators of the digital age. Also, the company had a cost benefit because of the company being a powerful buyer of the suppliers. This had led the company to develop low-priced versions of the iPod that enabled it to compete with the other mp3 manufacturers. This meant that the company offered iPods at all price levels strengthening its position in the market and making its strategy sustainable for the company. However, in the long run, the sustainability of this product line is challenged by the integration of mobile phones that include inbuilt music players. 

In the smartphone industry, Apple faced tough competition from established companies such as Nokia, LG, Samsung, HTC, and Motorola. The introduction of the Android software in the market by Google toughened the competition for Apple, and it resulted in Samsung becoming one of the major competitors because of their adaptability to the Android software. The Google play store was also a competitive basis for Apple since it provided a source for customers to download mobile phone applications.