Competitive advantage refers to the factor that enables a company to produce superior or more cost-effective products or services when compared to its competitors. This allows the company to generate more sales and profit margins in the market. Apple's brand equity is one of its core strengths, as it offers high-quality products and services that are trusted by customers. Apple not only ensures a seamless customer experience, but also creates a unique and innovative product line that is different from its competitors, thus gaining a loyal customer base.

Innovation and creativity have been the driving force behind Apple's popularity, along with its exceptional customer service, which has won the trust and loyalty of many customers. Apple accepts customer feedback and compliments, swiftly addressing any issues that arise. However, the high price of its products has also contributed to the brand's distinct image, making it unaffordable for many.

Apart from Apple, two other multinational companies that enjoy a competitive advantage are Xiaomi and Samsung. Xiaomi's competitive advantage lies in its low-cost products and services, coupled with innovative ideas that set it apart from other competitors. This includes unique features such as camera and software, constantly upgrading products with cutting-edge technology to provide a strong edge over competitors. Samsung, on the other hand, is committed to product innovation and design, enabling customers to test their latest products, and prioritize customer feedback.

Apple's vertical integration in software, hardware, and services is a key contributor to its unshakeable market presence, allowing it to control end products and parts and maintain strict quality control standards. Forward integration refers to a company gaining control of leading business activities in the value chain, while backward integration occurs when a company gains control over business activities behind its value chain. Horizontal integration is common, where competitors in the same market merge their businesses and assets, giving the acquiring company monopoly characteristics in a particular region.

Lastly, I/O analysis focuses on the external market and the attractiveness of competitors, while RBV focuses on internal resources and organizational analysis. This means that I/O analysis is more concerned with market and competitor analysis, while RBV focuses on strengths and weaknesses within the organization.

Market penetration is often referred to as the "red sea strategy," while market development is known as the "blue ocean strategy." Market penetration is considered to be a safer strategy as it involves selling products in familiar markets, whereas market development is a riskier strategy since it involves entering unknown markets.

Market penetration can be achieved through pricing adjustments, promotional tactics, and the implementation of new distribution channels. Meanwhile, entering new geographic markets or targeting a new customer base in a previously untapped market are ways to adopt market development.

Q3(a)

i. Promotions, retirements and promotions are governed by specific criteria.

ii. The company's buildings, facades, and physical spaces have been designed to reflect its ethos.

iii. Leaders actively engage in role shaping, mentoring, and teaching.

iv. Employees are provided with a clear incentive and status system.

v. The company has a story, legend, myth, or fable about important events and personalities.

vi. Leaders focus, measure, and control specific aspects of the organization.

vii. The company's leadership responds effectively to critical events and organizational crises.

viii. The organization is designed and structured in its unique way.

ix. The organization adheres to specific systems and procedures.

x. The company has a formal statement of its philosophy, charter, creed, mission, and vision.