Apple Case Synopsis

1068 WordsSep 16, 20135 Pages
Case - How Apple’s Corporate Strategy Drove High Growth a. Which strategic management concepts are useful in the analysis of this case? I found many strategic management concepts elaborated in the book and lectures to be relevant and useful for the Apple case. In particular, I have chosen the following concepts to analyze Apple’s corporate strategy: 1. Blue Ocean Strategy; 2. Complementary Resources; b. Why do you think each of your selected concepts is useful for understanding this case? Apple’s huge success has already been much discussed and analyzed by business schools, academia and fans. A lot of emphasis in these analyses is given to Apple’s technological innovation, which is peculiar about the technology-based industries…show more content…
The conclusion is – if innovation is appropriable through a patent, copyright, or lead-time advantage, there is advantage in being an early mover. Otherwise, 78% of the chances are that you are better off to the followers – though you might be opening up a new Blue Ocean, your followers may manage to take the biggest share of profits. This being said, how did Apple manage to benefit from its innovation? Particularly, based on figure 9.2 in Chapter 9, in the smart phone industries, innovators get a very modest share of the returns on innovation while the followers, customers and suppliers are the three biggest winners of the returns on innovation. Answer to this mystery is found in Apple’s strategy to expand into the retail business. Apple’s technological innovation is mainly based on its value innovation – ipod, iphone, ipad, they are much more than just electronic gadgets, but fun and interactive platforms to gain access to almost inexhaustible resources of music, applications and entertainment provided in AppStore. Having struggled with retail stores with poorly trained staff and tasteless appearance, Jobs decided to open its own sleek retail stores with well-trained passionate young staff. This strategic decision not only ensured a unique and pleasant purchase and after-sale experience of its customers, more importantly from business point of view, it helped Apple to ensure the new
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