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On page 36 in the text book, it is stated that “competitive advantage accrues to companies that possess distinctive capabilities.” Apple focused on rolling out new products every six to twelve months, keeping them ahead of the competition.
Brand loyalty is one of Apple’s leading competitive advantages. In 1990, “the majority of IBM and compatible users ‘put up’ with their machines, but Apple customers ‘love’ their Macs.” If a person falls in love with a product, they will continue to be loyal to that company until their needs and desires are let down.
By 1990, Apple’s worldwide market share stabilized at about 8%...

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