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    Strategic Management Case Analysis: Apple Inc.: Taking A Bite Out of The Competition

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    fahadoh
    Apple Inc. is an American technology company established in 1976 that designs consumer electronics such as the Mac, iPod, iPhone, and iPad. While Apple has strengths in branding, innovation, and customer loyalty, it also faces threats from extensive competition and potential economy downturns. The document proposes that Apple address its low market share by making products more affordable while maintaining its differentiation strategy through superior design and customer experience. It also recommends Apple focus on its niche market and set up a replacement plan for Steve Jobs' eventual succession.

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    Strategic Management Case Analysis: Apple Inc.: Taking A Bite Out of The Competition

    Uploaded by

    fahadoh
    158 views24 pages
    Apple Inc. is an American technology company established in 1976 that designs consumer electronics such as the Mac, iPod, iPhone, and iPad. While Apple has strengths in branding, innovation, and customer loyalty, it also faces threats from extensive competition and potential economy downturns. The document proposes that Apple address its low market share by making products more affordable while maintaining its differentiation strategy through superior design and customer experience. It also recommends Apple focus on its niche market and set up a replacement plan for Steve Jobs' eventual succession.

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    Apple Inc. is an American technology company established in 1976 that designs consumer electronics such as the Mac, iPod, iPhone, and iPad. While Apple has strengths in branding, innovation, and customer loyalty, it also faces threats from extensive competition and potential economy downturns. The document proposes that Apple address its low market share by making products more affordable while maintaining its differentiation strategy through superior design and customer experience. It also recommends Apple focus on its niche market and set up a replacement plan for Steve Jobs' eventual succession.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    158 views24 pages

    Strategic Management Case Analysis: Apple Inc.: Taking A Bite Out of The Competition

    Uploaded by

    fahadoh
    Apple Inc. is an American technology company established in 1976 that designs consumer electronics such as the Mac, iPod, iPhone, and iPad. While Apple has strengths in branding, innovation, and customer loyalty, it also faces threats from extensive competition and potential economy downturns. The document proposes that Apple address its low market share by making products more affordable while maintaining its differentiation strategy through superior design and customer experience. It also recommends Apple focus on its niche market and set up a replacement plan for Steve Jobs' eventual succession.

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    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 24

    STRATEGIC MANAGEMENT

    Case Analysis

    APPLE INC.: TAKING A BITE OUT OF THE COMPETITION


    About Apple

     Established on April 1, 1976 in Cupertino, California, Apple is an


    American multinational corporation that designs and manufactures
    consumer electronics and computer software products
     Known for hardware and software products such as:
     Hardware: Mac, iPod, iPhone, iPad
    Software: OS X, iLife, iWork, iTunes
     Fortune Magazine has named Apple Inc as the “most admired
    company in the world for 2010”
    Current Scenario
    Current Issues
    1Q Market Share08

    22%
    31%
    Dell

    HP
    6%

    Low Market 7%
    Acer

    Share Apple

    9% Toshiba
    25%
    6.6% Others
    External Environment: Opportunities

    Fast growing Industry (Customer Electronics Industry)


    Technological Innovations
    Extend new products to loyal customers
    High Potential music phone market
    Strategic Alliances
     
    External Environment: Threats

    Extensive Competition
    Substitute Products
    Low prices of Competitors
    Technical Advancements
    Economy downfall
    Competitor Environment

    High Competition
    Share of Dell and HP
    Microsoft and Intel-Leaders of Software
    CE Industry- Sony, Nokia, Samsung, Cisco, Motorola
    Competitor Environment
    Internal Environment: Strengths

    Branding
    Innovation
    Differentiated Product
    Ease of Use
    Superior Quality
    Retail Strategy
    Internal Environment: Strengths

    Efficient Marketing and Sales


    High Customer Loyalty
    Online Sales Channel
    Internal Environment: Weaknesses

    High Price Proprietary System

    Niche Market, Less Penetration

    Cannibalization
    Five Forces Model
    Core Competencies

    Differentiation Strategy

    Value Creation
    Differentiation Strategy

     Unique Features and characteristics


     Commands Premium Price Sustainable Competitive
    Advantage
     High Customer Service
     Superior Quality
     Prestige
     Rapid Innovation
    Value Creation Process
    Apple I,II,III Mac

    FF

    Focus On Education

    C
    o eMac
    n
    v Music Strategy (iTunes)
    e
    r Lifestyle Strategy
    Video Strategy (iMovie) Adding Value
    g
    e
    n Internet Strategy (iTools) Digital Hub
    c iMac
    e
    Apple’s Strategy

    Apple employs a Product Differentiation


    Drawbacks as a result of their strategy include:
     Not appealing to Price Conscious Consumers
     Risk of Imitation by Competitors
     Risk of Change in Customer Taste
    Apple’s Problems

    Low Market
    Share

    Low
    Customization

    Prices Too
    High
    Previous CEOs

    Ups and Downs of their own


    Established Identity of Apple
     Jobs’ success rate
    Strategic Alternatives

    Problem Strategy Alternative


    Low Market-Share Price Differentiation Extend their current
    product line to include
    some products with a
    lower price point.
    Ex. Re-launch “Mac
    Mini”
    The Strategy

    Two Fold Agenda

     Continue to focus on niche market


     Set up and prepare for Job’s replacement
    Focus

    Concentrate on current customers


    Expand niche market
    Use iPhone and iPad as gateway
    Replacement Plan

    One year planning phase


    Jobs appoints successor
    Two year mentoring phase
    Chief advisor position
    Proposed course of Action

    • Make Apple products more affordable

    • Innovate

    • Maintain leadership style and vision of Steve Jobs

    • Have the first leader advantage

    • Envision a post-PC world


    Thank You

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