Running head: CASE STUDY: APPLE INC. 2010
Case Study: Apple Inc. 2010 1. What are the chief elements of Apple’s overall competitive strategy? How well do the pieces fit together? Is the strategy evolving? Apple uses a unique strategy that differentiates it from its competitors. Not only do they develop new products they also are continuously improving on existing products. They have three basic product lines in which they stay focused: phones, computers and personal media players. The pieces fit together well as they synthesize the digital electronics products with the computer products. Apple is also very wise in its strategy as it has created its own operating systems and software ...view middle of the document...
Consumers have come to love the appearance, the unique software and the consistency that comes with an Apple personal computer. They also have loyalty because of the user friendly interfaces between the computer and personal media devices. It should be noted that Apple has a strong competitive advantage in personal computing but not in the business world. While Apple pioneered the first usable “personal” computing devices, it was IBM that brought PCs into the mainstream in the 1980’s. Thousands of manufacturers—ranging from Dell Computer to no-name clone makers—built PCs around standard building blocks from Microsoft and Intel. Growth was driven by lower prices and expanding capabilities. The overall industry continued to boom through the early 2000’s, propelled by Internet-demand and emerging markets such as China and the Middle East. By 2010, more than one billion PCs were in use around the world (www.businessinsider.com). Dell and HP also offered a customizable pc which became very appealing.
Key Elements of Apple’s Strategy in Personal Media Players Apple consistently is number one in leading the competition to market. They are the quickest to develop new features to include the newest fashion. Not only are they creating innovative options such as the touch screen, they make it look good. This is a huge draw for consumers. They have also launched their itunes store for downloadable music to their device. Partnering with businesses has made this a huge success. This has become part of pop culture and it is the “in thing”. They further solidified their place in the market by offering itunes to Windows users. Apple has done everything right when it
Case Study: Apple Inc. 2010
comes to their media players. While they were not first to market, their focus on support, innovation and great marketing have provided customer loyalty that serves them well.
Key Elements of Apple’s Strategy in Smartphones Exhibit 8 clearly shows that the iphones innovative touch screen coupled with 100’s of thousands of application and added to the itunes revolution have moved the iphone into a market in 2009 with a market share of over 24%. This has remained relatively stable through May 2010. As stated with the mediaplayer, ipod, Apple;s Iphone is a fashion statement. To be in the “in crowd” one must be the owner of an iphone. The best strategic move from Apple is to make a seamless system between their three product lines – this now allows a smartphone owner to utilize itunes and the multi thousands of applications not just for their ipod but now their iphone. Brand loyalty is a result. The iphone does sport some areas of opportunity. It has a relative inability to meet the needs of businesses. It has not created enough application technology to compete with the BlackBerry and while currently, there is change, this case study shows iphone in an exclusive relationship with AT&T.
3.What does a competitive strength assessment reveal about Apple’s...