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Apple - Case Study Example

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Apple Case Study (Add (Add (Add Date) 1. The case writers clearly specify that Apple’s overall competitive strategy involves “a winning business model, competitive products, an innovative marketing strategy, and an efficient operational model” (Marino & Gamble, 2010)…
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Apple Case Study
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Download file to see previous pages The Apple’s product lines mainly include iPod and iTunes, desktop and laptop computers, the revolutionary iPad and iPhone, and the OS X operating system. The company frequently comes up with innovations in its product designs. The Apple follows its traditional Macintosh marketing strategy and always gives specific focus on innovative promotional efforts. Although these four elements were crucial to Apple’s success, frequent product innovations have greatly assisted the company to outsmart its competitors in no time. The organization’s potential competitive strategy significantly aided the management to survive many contingencies, including 2008 global financial crisis. 2. Well developed product differentiation approach and industry leading innovation are the core elements of Apple’s strategy on computers, personal media players, and smartphones. Although Apple’s major portion of revenues is generated from non computer products, the company still considers computers as its core business segment. The differentiation strategy has greatly assisted Apple to attain a competitive position in the personal computer industry. For instance, referring to Marino and Gamble (2010), innovative features like a proprietary operating system and strong graphics-handling techniques benefited Apple to differentiate its Macs from PCs. In addition, Apple offered a variety of computer models in various configurations. Apple practices skimming pricing policy in personal media player industry with intent to capture consumer surplus. According to Marino and Gamble (2010), Apple priced $399 for the iPod when the company launched the product for the first time and the Apple management eventually reduced the price over time. This pricing strategy was greatly beneficial for the company to establish its iPod products in the market. The iPhone 3G was a great product innovation of Apple. The company frequently diversifies its smartphone features also. While analyzing the smart phone sector, it is obvious that Apple’s product innovation and differentiation strategies have significantly contributed to its market competitiveness. 3. Potential Resource Strengths and Competitive Capabilities While analyzing the Apple computers, the global presence is identified as one of the competitive strengths of the company. Since the organization has strong brand image, Apple computers are well recognized in the market. Synergies of combined operation assist the company to reduce operating costs and to improve value chain operations. Evidently, strong media relation and innovativeness are other potential strengths of Apple. Potential resource weakness and competitive deficiencies Undoubtedly, low returns represent a potential resource weakness of Apple computers. Market surveys indicate that many people hesitate to purchase Apple computer because of the company’s premium pricing. Furthermore, the firm increasingly depends on others for the key components. Potential market opportunities Increasing demand for wireless products seems to be a potential opportunity for Apple computers since the company already has a range of products in this area. Similarly, Apple’s new digital platform (integrating iTunes video content into television screens and portable devices) would enhance its growth in computer industry. Potential external threats to Apple’s future profitability Strong competition raises a series of potential challenges to ...Download file to see next pagesRead More
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