Role of Capabilities

QUESTIONS

1. In your own words, how would you describe ‘capabilities’, (in a

strategic sense)?

2. From a review of the above information, plus your own knowledge

of Apple, what capabilities do they have in the marketplace?

3. Attempt to analyze Apple’s capabilities using VRIO model.

4. How easy/difficult is it for Apple’s competitors to copy/duplicate

these particular capabilities?

5. Therefore, what competitive advantages can a firm gain from

developing its capabilities?

Answers:

1. Capability refers to the ability of an enterprise to use all of its skills,

capabilities and resources to gain a competitive advantage, so as to

survive and increase its value over time.

2. Have its own system and application store, and let all third-party

software developers comply with Apple's rules. Leading the trend of the

electronics industry, is being imitated by various other manufacturers.

Attaches great importance to customer feedback and after-sales service,

has a complete service network.

3.

Core Value Rarity Imitability Organization

Capabilities

✓ ✓ ✓ ✓
Research

✓ ✓ ✓ ✓
Innovation

✓ ✓ ✓ ✓
Product Line

✓ ✓ ✓ ✓
Product quality

✓ ✓ ✓ ✓
Brand Equity

✓ ✓ ✓
Supply Chain

✓ ✓ ✓
Global sales and

Distribution

4.First of all, the system of Apple product are uncopiable. Secondly, as a

global company, its industrial chain and service network are impeccable.

At the same time that the new product was launched, Apple's patent team

had also solved the patent problem. The only problem for Apple is the
selling price, which is what other technology companies can do. Lower

prices and increase sales. However, even if Apple has a high price, people

still like to buy it. If they don’t have enough money, they can even

borrow money to buy it.

5.

 Brand Strength

 Innovative products

 Strong Integrated supply chain

 Premium pricing Strategy