Apple

In: Business and Management

Submitted By vtto18
Words 2538
Pages 11
1. Apple did better in its iPod business than it did in its PC business. Explain why. Justify your answer through the application of industry analysis and other strategy concepts discussed in this course.
In the early years, Apple focused on manufacturing low cost computers, working together with IBM, cooperating with Novell and Intel to create a new operating system that run on Intel platform. However, these projects had not achieved success until Steve Jobs became the CEO and refocused the original strategy for Apple. Jobs was able to create a competitive advantage for the company through restructuring and innovating software, hardware, marketing, digital asset management, retail strategy, and product differentiation. With these advantages, Apple was saved from bankruptcy and has gained a positive reputation, more customers, and large profit margin.
The struggle of Apple incorporate in the PC industry was mostly due to the company’s inability to utilize Porter’s Five Forces. Porter’s Five Forces analysis is a powerful tool for understanding a company competitive position in the industry. The first three CEOs of Apple (Scully, Spindler, and Amelio) failed to address these forces and led the company to the edge of bankruptcy, which largely contribute to the reason why Apple’s PC industry suffer more than its iPod business.
Intensity of Competition
The present of several large PC manufacturers such as IBM, Dell, Hp, Acer, etc. substantially increases the intensity of competition. Additionally, when the Windows operating system combined with an Intel processor, it created a new standard known as “Wintel” which dominated the PC industry. This trend turned every personal computer into a commodity, and the competition turned into a battle of lower prices, which greatly severe the profit of all companies.
Power of Buyer
There are five categories of buyers, include…...

Similar Documents

Apple

...NANYANG BUSINESS SCHOOL AB311 STRATEGIC MANAGEMENT GROUP STRATEGIC REPORT ON APPLE INC. SEMINAR GROUP 2 TEAM GENIE Instructor: A/P LAI SI TSUI-AUCH Word Count: 5,999 Done by: CHAN ZHE YING GOH CHUWEN LEE KOK CHONG TEO KOK MIN JOHN 1 Table of Contents I. EXECUTIVE SUMMARY ............................................................................................................... 3 II. MAIN REPORT............................................................................................................................... 5 1. Introduction of Apple Inc. ........................................................................................................... 5 1.1 1.2 2. 2.1 History................................................................................................................................. 5 Current Business Strategy ................................................................................................... 5 SWOT Analysis ........................................................................................................................ 10 Promising Opportunities ....................................................................................................... 10 The Shift from the PC to Mobile Era ............................................................................ 10 Emerging Markets ......................................................................................................... 11 Consumer Digital......

Words: 8330 - Pages: 34

Apple

...Apple Computer, Inc.: Maintaining the Music Business while Introducing iPhone and Apple TV Leave a reply Topic: Apple Computer, Inc.: Maintaining the Music Business while Introducing iPhone and Apple TV Subject: Business Details: 1. Strategic challenges facing Apple Computer. 2. Dimensions along which company success can be measured. 3. Critical external and internal environmental factors that have strategic implications for Apple\’s future. 4. Dow Apple\’s strategy stands up against industry rivalry. 5. Recommendations you would make to enhance the effectiveness of the company\’s strategy or to change its strategic approach for better results. Abstract: Apple computers were started some 35 years ago by Steve Jobs and Steve Wozniak in the garage of Steve’s home. It has achieve tremendous growth and is currently one of the largest companies in the US marketing electronic technological produces such as the iPad and many other such items that are used extensively by consumers. The company is dedicated to providing its customers the best know-how and understanding through its original hardware, software, and computer related devices along with the best possible services. The major tactical challenge that Apple computer is facing is that the company’s competitors try to surpass its accomplishments and that they are bringing into the market comparable products that are much cheaper than the products marketed by Apple Inc. Introduction             Apple Computer was......

Words: 1402 - Pages: 6

Apple

...The Apple Company is launching a new fall campaign titled, “The Big Apple!” to promote the sales of its new laptop computer, the Mac Book Pro. Featuring the campaign in New York City, Apple stores will be selling the new MacBook Pro laptops with three new cover designs. Known for its simplicity in computer design, Apple expects to ‘wow’ audiences with a departure from the usual look and a venture into new creative territory. Aimed at (but not limited to) the creative personalities that make up fast-paced and glamorous New York City, the campaign is expected to be a big success. The campaign will consist of a city-wide contest where applicants can design a cover that involves some of the elements that represent New York City and then send their idea in to Apple. The judges will then pick one of the designs to be featured alongside the two other covers which will be created by two different icons in New York city which Apple will have personally picked. One will be an up-and-coming designer, the other an artist. By doing this, Apple creates a connection between the people in the city, the culture, and their own brand. The campaign will run from September through till December, during which time the contest will be held, the designs finalized, and the new Mac Books will be available for purchase. Target Audience/Market: In terms of the target audience that Apple is looking to focus on with their campaign, there are a few demographics that the company would like to......

Words: 1957 - Pages: 8

Apple

...Suppliers(o) Apple company mainly focus on their technologies and innovation, which lead to the company reduce attention on the production of internal parts of iphone. So according to statement of Apple company, it builds close relationship with its more than 150 suppliers. It is worth mentioning that the Apple company always requires their suppliers to take responsibilities for the public with the highest standards of public responsibility. For example, some suppliers were employing under-age workers in poor conditions and paying minimal wages, if the Apple company finds like these serious irregularities in the suppliers, it will requires these suppliers correct irregularities to make sure health, safety, human rights for workers. Of course, Apple company will track correcting behaviors from these suppliers. http://www.ifanr.com/34177 Marketing intermediaries(T) Resellers: The resellers in China, they have to undergo very rigorous controls from Apple company. This means that the resellers should abide strictly by the sales strategy and price strategy of the company. In effect, it is unfair to resellers. For example, when the Apple company announced the price cut in the Apple store or online store. But the Apple resellers have not right to cut the price, so the customers want to return their phone, which will lead to economic losses for resellers. http://zuiwufengchen.blogchina.com/1256053.html Competitors(0) The intensity of competitive rivalry: A research report......

Words: 507 - Pages: 3

Apple

...Purpose The purpose of this report is to present a relevant Discussion Forum and Blog to Apple Computer, Inc. Apple Computer, Inc is the one of main manufacturer of a line of personal computers under the Apple Macintosh brand name, peripherals, and computer software. Two interest groups that focus on services of Apple Company are introduced in this report. The first one is a Discussion Forum named ¡°AppleInsider-Forum¡±. This is a web page concerning all the products of Apple Company, such as iPod, ITunes and Mac computer and let people discuss about these product. The visitors of this discussion forum usually are current and prospective users of Apple¡¯s products. This forum offers people a place to exchange their opinions and experiences in using Apple¡¯s products. The other one is a Blog named ¡°The cult of Mac Blog¡±. It is a news and opinion about Apple and the Mac community. This Blog is powered by Leander Kahney who posts news and threads about Apple on this Blog and viewer may follow their comments. APPLEINSIDER-FORUM Description AppleInsider launched in 1997 and quickly grew to become one of the Internet's premier sources of information for all things about Apple. This forum¡¯s nine different sections cover every aspect of Apple¡¯s products, from hardware to software, from purchasing advice to tech support. Everyday many fans of iPod mp3 player or Macintosh computer gather in this forum to......

Words: 1068 - Pages: 5

Apple

...computer, the single-board Apple I, in a garage workshop in 1976. After selling 200 or so of the computer, Jobs attracted the attention of some investors, co-founding Apple Computer with Wozniak, and introducing the Apple II computer in 1977. Steven Wozniak and Steven Jobs had been friends in high school. They had both been interested in electronics, and both had been perceived as outsiders. They kept in touch after graduation, and both ended up dropping out of school and getting jobs working for companies in Silicon Valley. (Woz for Hewlett-Packard, Jobs for Atari) Wozniak had been dabbling in computer-design for some time when, in 1976, he designed what would become the Apple I. Jobs, who had an eye for the future, insisted that he and Wozniak try to sell the machine, and on April 1, 1976, Apple Computer was born. Hobbyists did not take the Apple I very seriously, and Apple did not begin to take off until 1977, when the Apple II debuted at a local computer trade show. The first personal computer to come in a plastic case and include color graphics, the Apple II was an impressive machine. Orders for Apple machines were multiplied by several times after its introduction. And with the introduction in early '78 of the Apple Disk II, the most inexpensive, easy to use floppy drive ever (at the time), Apple sales further increased. With the increase in sales, however, came an increase in company size, and by 1980, when the Apple III was released, Apple had several......

Words: 462 - Pages: 2

Apple

...Running head: ETHICS BEHIND APPLE AND FOXCONN RELATIONSHIP 1 Ethics Behind Apple and Foxconn Relationship Maryana Didovych The College of Westchester ETHICS BEHIND APPLE AND FOXCONN RELATIONSHIP 2 Abstract This paper examines Apple, Inc.’s relationship with one of its biggest suppliers, Foxconn Technology Group. Recent growth in suicide incidents at Foxconn factories again caught media’s attention. Whether Apple’s decision to stay in business with Foxconn despite these incidents is ethical or not is examined using Traditional 5-Question approach. Contradictory evidence is also examined. Based on the result of 5-Question approach and reviewed evidence it can be concluded that Apple’s decision may indeed be unethical. Recently published evidence suggests Apple and Foxconn are addressing several issues, but close monitoring of the improvement process is required to ensure success. ETHICS BEHIND APPLE AND FOXCONN RELATIONSHIP 3 Ethics Behind Apple and Foxconn Relationship One of the biggest suppliers and manufacturers of Apple Inc’s (Apple) products recently has been involved in scandals concerning working conditions of its factory workers. This company is called Foxconn Technology Group (Foxconn). It operates in more than 40 research and development centers as well as manufacturing facilities in Asia, Russia, Europe and the Americas. According to Pratap, Radhakrishnan and Dutta (2012), Foxconn is “the world’s biggest contract electronics manufacturer,......

Words: 3108 - Pages: 13

Apple

...Ahmed Alashwal Case#1: Apple Computer. Course No.: TM583. I- Some of Apples’ Biggest Success and Failures 1- 5 biggest Successes iPhone: Apple released this product in 2007 as all-in-one device. The new look, new browsing features and the advanced OS along with deploying 3G wireless technology made this user-friendly a very successful products. It also has all the features of an iPod. iPod: First launched in 2001 and included a hard drive along with a variable product line with different media capabilities. It can also sever as an external data storage device. iPad: Can be considered as 10’’ iPhone. With a very light weight of 1.5lbs and designed to thinner than many magazine, this is the top contender versus the current notebooks. Apple II: Introduced in 1977. That was one of the earliest PC computers and it put Apple as a computer company in the market. Rapidly, it appeared in many public schools labs and it remained in manufacturing line till 1993. Itunes: Since 2001, Apple made this FREE media player is available for everybody. It’s combined with music and video online store and it as an interface to manage the contents of iPod, iphone and iPad. 2- 5 biggest Failures: Apple III: Released in 1980. After the very successes AppleII , this new Apple III with high cost and technical problems like chips coming loose and melted floppy disk. Apple fixed the problems but the time was over for this product. Apple Lisa: Presented......

Words: 564 - Pages: 3

Apple

...The multi billion-dollar corporation, Apple Inc., designs and manufactures some of today’s highest technological gizmos and gadgets. Among their best known products are the Apple and Macintosh computers, iPods, iTunes, iPhones and iPads. Apple is one of the most powerful and influential high tech companies in the world. The success of Apple Inc. stems from the innovation and visions of co-founder and entrepreneur, Steve Jobs, the excellence of the stylish, user-friendly products, and the ability to create innovative products that consumer’s desire. The development of Apple Inc. came during the unstable economic times of the 1970’s. Best friends and college dropouts, Steve Jobs and Stephen Wozniak pooled their electronic and business skills to market what was to become the first personal computer. Stephen Wozniak had designed a small computer, the Apple 1, for the enjoyment of some friends at a Homebrew Computer Club meeting. The Apple 1 developed in Steve Jobs’ bedroom and garage, while he envisioned the commercial potential of a personal computer that could help families with personal finances and small businesses with day to day tasks. Vision, drive and creativity allowed this entrepreneur to take the risk to create a business. The challenge of building that business and the desire to control his destiny required passion and perseverance along with innovation. Apple’s first personal computer, the Apple 1, took six months to design and 40 hours to build with an initial......

Words: 1680 - Pages: 7

Apple

...strengths Apple launched iPod music player which is a great innovation and also it surprised the people. Apple iPod not only increase the company sales but also influence the people to get experience of Apple notebook and operating system. Brand create perception of product in the customers mind. Apple has been amongst the well reputed brands in the industry of information technology. It also stood up to its name by introducing new products such as iPod, iPad and laptops in the market to impress customers with its innovation, portable and attractive designs. Apple products have strong design, this attribute attract lots of people to buy apple products despite of high prices. It have strong and reliable eco-system. Apple computers are well known for its quality hardware and software’s. iTunes is the online service for providing music to customers at minimum price. Exploiting the opportunity of online business work for apple and now they are generating good revenues from this source. It had signed partnership with agreement with few IT giants such as Intel. Apple come up with the innovative products, it only because of strong research and development department, Weaknesses Most visible weakness of Apple are high prices of products. Apple has to do some work to reduce the prices. Apple operating system support limited software which push the people to use Microsoft Windows to run different applications. Limited hardware upgrading option in Apple......

Words: 355 - Pages: 2

Apple

...Hase BUSS 508 October 21, 2014 The Apple Corporation has become one of the largest corporations in the world. There are a lot of companies that would like to be mentioned in the same breath as Apple. Many companies want to emulate their success. In this paper I will examine Apple current position and reputation, regarding ethical and social responsibility. According to Crane and Matten (2013) “One of the basic tenets of the Corporate Social Responsibility (CSR) movement in business has been it being voluntary and meeting social expectations above and beyond the law.” The Apple Corporation has been publishing its CSR report on its website since 2007. On Apples website it states “Workers everywhere should have the right to safe and ethical working conditions. They should also have access to educational opportunities to improve their lives. Through a continual cycle of inspections, improvement plans, and verification, we work with our suppliers to make sure they comply with our Code of Conduct and live up to these ideals”. Living up to the previous statement concerning apples commitment to ethical and social responsibility has not been an easy one. My position on whether Apple has met their responsibilities would be no because with their brand being the world’s best global brand, they should be held to a higher standard. When you are the leader in your field other corporations are looking at you to ensure all the rules are being followed. Apples 2013 Supplier Responsibility......

Words: 2168 - Pages: 9

Apple

...Marketing Opportunities for Apple Name: Institutional Affiliation: Date: Table of Contents Introduction 3 History of apple 3 Market Presence and Revenue Standings 4 Market research 4 Secondary market research 5 Apple brand review 5 Market segmentation 5 Research analysis of consumer needs and wants 7 Summary on the client's wants and needs 9 Research analysis on apple products Preferences 9 Summary 10 Conclusion and recommendations 10 Reference: 11 Introduction History of apple Apple lnc was founded in 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne. The main idea of establishing the Apple lnc at the time was to sell Apple 1, which is a personal computer kit. Steve Jobs during the establishment was one of the majority shareholders with approximately 45% of the total shares, Steve Wozniak also had share as Steve Jobs of 45%. Wayne owned the remaining 10% ownership (bott.org, 2014). During the formation of the Apple, Inc. Company, both Jobs and Wozniak were young entrepreneurs with no asset to their names. They were therefore not afraid of taking any risk. On the other hand, Wayne was a little bit older and had his own personal assets. Due to his fear of undergoing a huge risk, he sold his company ownership stake to Steve and Wozniak for 800$. The valuation of Wayne’s ownership compared to today’s company’s market value, it would be exceeding 3...

Words: 2457 - Pages: 10

Apple

...UNIVERSITY OF AGDER | Term Paper - Apple | ORG 409-1, INTERNATIONAL MANAGEMENT | Ole Erik H. Larsen 25.09.2015 | Innhold 1 INTRODUCTION 1 2 COMPETITIVE ADVANTAGE 2 3 PORTER´S STRATEGIC GROUPS 3 4 SWOT - ANALYSIS 5 5 CONCLUSION/REVIEWS 6 5.1 Future research 7 6 SOURCES 8 6.1 Guidebook 8 6.2 Internet 8 6.3 Pictures: 8 1 INTRODUCTION Apple is an American multinational technology company that constantly designs, develop and sells consumer electronics, online services, computer software and personal computers. Its best known products are the Mac line of computers, the iPhone smartphone, iPad tablet computer, and the Apple Watch smartwatch. Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne on April 1, 1976, to develop and sell personal computers. By revenue Apple is the second-largest information technology company in the world, after Samsung Electronics. On November 25, 2014 in addition to being the largest publicly traded corporation in the world by market capitalization, Apple became the first U.S. company to be valued at over US$700 billion. As of March 2015, Apple employs 98.000 permanent full-time employees, maintains 453 retail stores in sixteen countries, and operates the online Apple store and iTunes Store. ITunes are otherwise the world’s largest music retailer. Apple has in recent years enjoyed an outstanding success in technology, and the company has grown to become one of the most valuable brands in the......

Words: 2556 - Pages: 11

Apple

...Apple in the digital age from the iPod to the iPad Apple Inc. The Case Study 2000 - 2010 Foreward John Ashcroft Welcome to this Apple case study. I have always been something of a computer geek. My first computer was a Commodore Pet in 1978. It had 8k of RAM and a cassette player for storage. Programmed effectively, a two dimensional pencil sketch of a rocket would take off and zoom off screen. Beyond that and a few simple games, I don’t recall it did much at all. My first experience of Apple was the Apple II in the early 1980’s. The combination of Apple and a Visicalc spreadsheet, greatly enhanced financial and business plan modelling. Business models were more easily produced and what-if simulations were available at the click of a button. It was a great step up from the pencil and calculator. Seven years ago, I abandoned Microsoft and converted entirely to Apple. Apple Macs, MacBooks, MacBook Air, iPods, iTouch, the iPhone and the iPad, I had to try them all and never looked back This is the case study of Apple in the digital age. The great era of the iPod, the discovery of the digital hub and Apple’s move into the mainstream consumer market with the iPod, the iPhone and the iPad. It has many great examples for enthusiasts of marketing, leadership, organization, financial analysis and strategic management. The story begins almost ten years ago. In 2001, Apple sales fell by a third and the company reported an operating loss of $350 million some 6% of sales. The......

Words: 5086 - Pages: 21

Apples

...About Apples History The history of apples stretches back to the days of Adam and Eve, when it is believed to have been the “forbidden fruit” described in the Bible. Despite this long standing history, apples did not always grow naturally in New England. While the first apples are thought to have grown on the lower slopes of Tian Shan, a mountain range separating Kazakhstan and Krygystan, they also grew wild in Central and Southwest Asia, China, Italy, Switzerland, Spain and Greece. Through conquest and exploration, apples were spread when Romans conquered England and when Spaniards brought them to Mexico and South America. It wasn’t until the mid 1600’s that the Pilgrims cultivated them in Massachusetts. It is believed that John Endecott, an early governor, was the first to bring an apple tree to North America, and the first orchard was planted on Beacon Hill by a clergyman named William Blaxton. It is Blaxton who is credited for growing the first named apple, the Yellow Sweeting. Once apples were established in New England, they played an active role in everyday life. As a fruit which was easily stored through the winter, as well as being very beneficial to settlers’ health, apples were a main staple in early settlers’ diets. Despite the fact that apples were not initially from North America, and have been growing disease-free for centuries in their native habitats, the early settlers found that the long, hot summers and cold winters of New England grew apples......

Words: 1318 - Pages: 6