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How iCloud provides advantages to Apple Inc. Customers Essay

Innovations in Information Technology expanding rapidly and synergistic with the development of modern society that has the characteristics of high mobility, look for a flexible service, easy-paced and satisfying. The need for systems and methods reliably to the individuals or companies are increasing due to globalization where the business movement is growing so fast.

Apple included in the top 25 company in forbes magazine The assessment is based on their Rankings for sales, profits, assets and market value. In 2012, Apple posted quarterly revenue of $36.0 billion and quarterly net profit of $8.2 billion, or $8.67 per diluted share. International sales accounted for 60 percent of the quarter’s revenue. During the quarter, the company sold 26.9 million iPhones, 14 million iPad, 4.9 million Macs and 5.3 million iPods.

iCloud is a cloud computing based technology of apple which seamlessly integrated into devices that allows users to synchronize data such as photos, music, and documents into an iPhone, iPad, iPod Touch, Mac and the computer automatically at the same time. Users can access anywhere and anytime without the need to back up data manually. Furthermore, the system will automatically sync music or applications that have been purchased through Apple’s iTunes on all devices connected to the account. Not only that, iCloud also stores all the data of purchase on iTunes. It allows users to download music or apps back ever purchased using any device without having to buy back.

During the fourth-quarter of 2012, Apple announced that iCloud has 190 million users, which increased significantly from 150 million users in July and the 125 million in April. In terms of accessing iCloud, Apple customers just need to register or sign up iCloud with their Apple ID and password, and then a free storage of 5GB will be theirs unconsciously. This storage space can be use for anything that customers want from hottest music’s, latest photograph, articles, and eBooks.

Users who need more can purchase $20 per year for 10GB of additional storage (for a total of 15GB), $40 for 20GB and $100 for 50GB. Similarly there are also numerous advantages that are security, easy of access even situated in remote places as long as you have your ID and password, trouble-free development, and most of all friendly to the surroundings or environment. Besides that, iCloud is also eco-friendly which helps you to cutback the operating cost of electrical energy.

Based on Porter’s Three Generic Strategies, iCloud system for apple devices adopted differentiation competitive advantage. Apple strong echo-system of cloud sharing and product integration could guarantee success, as apple products is unchallanged by its competitors. Apple Inc. key success is every product that apple release compliments the next with great sinergy, so innovation not only create excitement of long lines at new product launches, but also can become foundations for entire ecosystems.

In terms of 5 Forces, Apple Inc. has a power to bargain with suppliers (games and application developers, etc.) and buyers as well. Buyer power influences the price that firms can charge, and also the cost and investment, this is due that powerful buyers demand costly services. As for the RBVF analysis, Apple has position itself as the leader in technology industry by influences a firms demand curve with the loyalty of their customers.

Peter and Barney, 2003, said that A firm that has conquered a competitive advantage has created economic value than its competitors which shown by create greater benefit at the same cost compared to competitors (differentiation-based competitive advantage). The competitors for iCloud are Microsoft Windows Azure, Amazon-Aws, and Google Cloud.

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