Table of contents
Apple competitive advantage ……………………………………………………………… p 3
The personal computer industry ………………………………………………………….. p 6
Apple’s competitive advantage in PCs …………………………………………………... p 9
The introduction of IPhone as a blue ocean strategy ……………………………………. p 13
Apple’s competitive position in smartphones …………………………………………… p 19
How does the death of Steve Jobs affect Apple’s overall strategy for the next 5 years …. P
References list …………………………………………………………………………….
I. Apple’s competitive advantage
In order to explain Apple’s competitive advantage, we need to look at Porter’s generic strategies. Porter defines 3 strategies: * Differentiation focus * Cost focus * Cost leadership
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Nevertheless, Apple is outdistanced by low quality music players, which are cheaper. That is the reason Apple decided to create IPod shuffle, an IPod low cost. In 2005, after music and video, Apple creates an IPod video.
IPod Touch is the most evaluated version of IPods. It has a touch sensitive screen. Consumers can download applications on ITunes store.
In 2007, Apple brings its new innovation on the market: the IPhone. It was one of the first smartphones on the market, and knew a huge success. IPhone is more than a phone. It is also an IPod and allows videos; consumers can download applications on ITunes. It has a touch-sensitive screen.
Apple makes improvements on IPhone, and every year a new version of IPhone is present on the market. In 2011, the new version of IPhone (IPhone 4S) is the most evaluated smartphones on the market.
In 2010, Apple creates IPad. It is a touch sensitive tablet screen. Apple was the first company to offer a tablet. Nowadays, IPad is not alone on the market but it is the most successful one. Such as for IPhone and IPod touch, consumers can download lots of applications on ITunes store such as books, music, movies.
II. Analyze the personal computer industry
First of all, we can say that the personal computer industry is really fast changing. The prove is the growth shows on the global PC market during the Q2 2011, illustrated by Epstein in “Global PC market shows growth in Q2; Lenovo wins globally,
Apple Inc, best known as Apple is an American based global company that designs and sells electronics, PCs and computer software. The company was established in 1976 by Steve Jobs and Steve Wozniak and was incorporated in 1977. Some of the Apple’s best-known products are the Macintosh range of personal computers, iPod, iPhone, and iPad. By 2012, Apple reported to have more than 300 retail stores located in more than 10 countries in the world and more than 60, 000 employees on permanent employment, and about 2,800 on temporal employment. Despite the success the company, Apple has faced hard competition from other electronics manufacturing companies. The objective of this paper is to develop a strategic plan that will enable Apple improve its position in the personal computer industry. The paper will use Michael Porter’s forces; key success factors, SWOT analysis and the competitive strength to point out specific, workable recommendations that will allow Apple stay afloat and improve its position in the personal computer industry (Gamble & Marino 2012).
BusinessWeek, 2005. Commentary: Apple 's Blueprint for Genius. Handling its own design work is one reason for best-sellers like the iPod and Shuffle. Steve Jobs is the
New top-end mobile phones such as the Apple Iphone are allowing a new class of mobile to emerge in the world today. Combined with its ease of use, rich design, and well-organized application system through Apple App Store makes the Iphone an appealing platform for development of other smartphones. The Apple IPhone was released on June 29, 2007 by CEO of Apple Steve Jobs (Honan). The IPhone offers many of the innovative features found on competing devices, but it also differs from other smartphones on the market.
4.7. Which of Porter’s four competitive strategies does apple engage in? Explain. Out of the four competitive strategies according to Porter, Apple engages in a focused differentiation strategy. Apple has been very successful by creating different products and services from competitors that are innovative, high quality, and user-friendly. From their unique product designs, to their state-of-art development of operating systems and software, Apple’s has continuously exceeded the evolving consumer demand in the current market. Furthermore, due to their open and inviting sales floor at their retail locations, genius help desk, and well trained sale peoples, Apple has welcomed more than a billion customer
Apple Inc. has been dedicated to innovation ever since the company was first formed. Apple's recent breakthroughs were a result of a new technologies convergence upon the "digital hub" strategy (Mortensen, 2010). This strategy has served Apple well; especially during the last few years. The iPad, iPod, and iPhone were all born from this strategy. Furthermore, producing these innovative, user friendly, and design oriented products has earned them a considerable amount of customer loyalty.
Apple Inc., together with subsidiaries, designs, manufactures, and markets mobile communication and media devices, personal computing products, and portable digital music players worldwide. The also sell a variety of related software, services, peripherals, and networking solutions.
The shifted new strategy of Apple was initiated by the release of iPod in 2001, followed by the iPhone in 2007, then by iPad in 2012. It was the iPod that brought significant growth in Apple. Initially, the iPod was just another MP3 but soon became the icon of the digital age due to its sleek design and user friendly interface. Moreover, iPod could sync with Windows as well as a Mac and offered accessory markets. Soon enough all the competitor in MP3 market had to face the challenge of consumers comparing their model with iPod. However, the greatest challenge that the competitors had to face was the introduction of iTunes store.
In 1997, Steve Jobs returned to Apple as an advisory and with the purposes of reshaping the product line. The changes made by Jobs resulted in increased sales and $309 million in profits. Job changed the mindset of Apples management and development team. He encourage them to have the “think different” management style that promotes the development of products that are ahead of the technology and design curve, and a creative retail strategy. It is this strategy that would eventually make Apple the best-selling company in the PC industry.
Even though Apple has encountered many setbacks, it continues to bring new and improve products to the market. Apple’s competitive strategy has been innovation. They have made an extraordinary effort developing, implementing, and executing its very unique strategy through innovation which has resulted in new product, and the enrichment of the existing ones. More specifically, Apple attempts to meet and supply the needs of a global market, by offering eager and enthusiastic consumers with innovated and high-quality products and services. Apple has employed a differentiation strategy linked to innovation with its three core products (computers, personal media player, mobile phones, tablets and other accessories). A key piece of their strategy involves meeting the needs of the converging digital electronics and computer markets. Apple has elected to implement its strategy by designing and developing proprietary operating systems and software technologies, thus allowing for strict protection of its intellectual rights.
The iPhone was introduced in January 2007 by Steve Jobs after months of rumors and anticipation. Prior to the launch of the iPhone, Apple dominated the digital music
Once again Apple has been the first to the market when it comes to new features such as the touch screen, which has helped to keep its competition at arms length. Like all other Apple products, the smartphone is seen by many consumers in the industry as fashionable and a must have. Also Apple’s online music store support has also been a huge lift to its smartphones, as consumers can download music and thousands of applications.
Apple was the first to integrate a MP3 player into a cell phone. After Apple invented the iPhone, downloading music on ones phone became common. With the unbelievably sharp screen, iPhones took over the gaming market. The phones highly technological A7 chip delivers the type of detailed graphics and multifaceted visual effects that in the past only Mac computers, PCs, and gaming consoles could display (“iPhone” 5). IPhones also introduced the on screen keyboard which were previously unheard of. In addition, Apple launched the touchscreen revolution (Elgan 6).
Apple Inc. has launched its iPhone in January 2007 (telegraph) as a new product in the market with latest technology and it was the first multi touch smartphone adding the feature of iPod and received an overwhelmed response by selling 270000 units. It had created a new record for a new company like apple, iPhone had laid a stepping stone for the success of Apple and till this time iPhone is the best seller product of Apple Inc. during first quarter of 2016 apple has sold over 74 million iPhones worldwide. (statista, 2016).
Apple Inc. is globally renowned as one of the leading companies, especially for its specialization in the personal computers and consumer electronics industry. The company is most well-known for the iPod, a digital music player and Macintosh, a personal computer released in 1984.
Apple Inc. is a manufacturing company that produces and markets mobile and media devices, personal computers, and portable digital music players. In addition to these devices, they also sell a variety of software, services, peripherals, networking solutions, and third-party digital content and applications that can be accessed through the devices. Some of these popular devices that are manufactured and sold by the company include Macintosh computers, iPhones, iPods, and iPads. The Macintosh computer may be the most popular device that has been created by Apple. When it was released in 1984, it became the first computer to successfully use a Graphical User Interface. This allowed users to navigate the device by selecting pictures on the screen by using the click of a mouse. The success of this creation inspired the development of modern computers. It helped to launch the use of the Graphical User Interface that most modern-day computers use today.