Apple Inc - Companys Vision and Strategy - Case Study Example

Apple Inc. sees innovation and products with superior ease of use as its major competitive advantage.

The second quarter of 2008 has shown Apple’s growth rate to be 31.8% since the previous year. At that time Apple becomes the third largest PC manufacturer in the US, coming after Dell Inc. and Hewlett-Packard – the greatest competitors of Apple Inc. As for the personal media player industry, Apple’s iPod was a great entry into the market of consumer electronics, where Apple became a leader. Furthermore, the iPod/iTunes combination is still holding Apple at the top of the industry, which is continuously growing and developing. Similarly, the iPhone industry of the US, and especially its smartphone and low-cost handset markets, are also growing.

Since Apple’s competitive advantages are mass-produced innovation and high-quality electronics, its industry is not likely to be taken over by a competitor. It is especially true because Apple keeps its technologies secret. In addition, it is rather expensive to enter and compete in a particular market for new companies.

Though Apple has competitors in its markets, the innovations of Apple Inc. lower the intensity of competitive rivalry. However, the rivals are starting to offer several substitute products and services. At the same time, Apple has the advantage of relatively high bargaining power for both customers and suppliers.
So, the greatest strength of Apple Inc. is the innovations they introduce into the market. However, as Marino et al (2008) outline, the success of the company is very dependent on its management. While Apple is still having the advantage of being innovative, its competitors are also working on developing and launching similar or even more innovative products.

The revenue of the company cannot be said to be lowered. Nevertheless, the gross margin for the third quarter of 2008, as well as the stock price, decreased. Still, Apple continues to invest great sums into research and development to be able to continuously offer its customers new and innovative products and services.
The latest information shows that after 2008 Apple Inc. has become even more successful. Their products are being waited for and purchased. For instance, almost 21 million iPhones were sold in 2009 only, and the sales increased by 100% in the first quarter of 2010 (iSellMac.com, 2010). Therefore, though the company does have certain weaknesses and experiences technical problems from time to time, its strategy of innovation is still effective and successful. Read More