Group Assignment
APPLE COMPUTER
Strategic Management (MRC2213)
Prepared by
Norhayati Sulaiman (MR111202) Ahmad Akmal Mohd Idris (MR121007)
Nor Fadillah Md Ali (MR 11150)
For
Dato’ Dr. Mohd Padzil Bin Hashim
International Business School
UniversitiTeknologi Malaysia
Introduction
Apple Computer Inc was established by Steve Wozniak and Steve Jobs in April 1976. It all started after Wozniak made a box called Apple 1 computer, it has no keyboard and no power supply but it was sold by 50 units in San Francisco Bay for $666. In 1978, it has 100 dealers across the United States. Apple 2e and Apple 2c came about. 1980s Macintosh was launched, but the sales decline due to high price and limited range of software titles.
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Apple should find mechanism to keep the end users’ needs paramount as they have expanded their web retail business.
e) Increased competition and stakeholders – One of the inspiring attributes of Apple has been its consistent focus on the customer rather than the competition. This has served them well when it was just Apple vs. PC. Today Apple has to compete with Google, HTC, Samsung, RIMM, Sony, Amazon, Electronic Arts, PC, etc. After Itunes there might be more challenges to come vibrant companies with plenty of smart people, money, lawyers and lobbyists to challenge Apple. They will go to great lengths to protect their business as well as challenge Apple in new ones.
Strategic Major Decision a) Price products to customer segments.
When Apple launched its most recent iPhone a year ago, it reduced the price of its 3G version to $99. During its most recent launch of the new iPad, it reduced the price of the iPad 2 by $100. In both cases, Apple established a market for additional customer segments. This strategy allows Apple to capture high margins with early adopters and drive penetration among a broader, more price conscious audience at a later date.
b) Continuous innovation
As Apple continues to launch innovative products, the expectations rise. Each Apple event seems to be met with more anticipation than
With Apple the Growth has been substantial and it can be stated that the Products have reached a maturity stage and hence there is a chance of decline. This has also been evidenced to certain extent as Samsung has taken over as the market leader in the mobile phone segment. The emergence of cheaper brands like Lenovo etc has also been a challenge for IT products of Apple. However it is also true that Apple has always focussed on consumer trends and demands and thus has been capable of avoiding the decline stages. Further market development and diversification strategies have been suitably implemented
It is quite obvious from the case that Apple is facing many obstacles. It has way more competitors today than it had two or three decades back. Part of it has to with the highly globalized environment that companies are operating in these days. Another major obstacle is the technological environment which is rapidly changing compared to the one that Apple experienced when it first emerged on the global scene. But the most important of it all seems to be a mental thing. It appears that Apple, over a period of time, developed a rigid mental model that related success of Apple with sheer innovation. This same mental model has lead to demise of many companies in the past, Xerox Corporation being the prime example of that.
One key element of Apple’s strategy in computers, personal media players, tablet computers, and smart phones is product innovation, diversification and development. Over the years Apple has been very successful in integrating software and hardware in new developing products. Despite the struggling economy in recent years, Apple has been able to grow their market share and stay ahead of the game.
Since 1976 Apple’s innovation has helped the company become a market leader in computer and mobile electronics. Through this time the company has faced a number of challenges either it be an internal power struggles or criticism from the media for certain aspects of their business model. This report covers five different issues that the company is facing or may face in the future.
This additional elasticity in Apple’s business strategy shows its aspiration to conquer Dell, HP and Microsoft, done with a exceptional and groundbreaking mixture of digital media and personal computer creations.
Apple as explained above was founded by Wozniak and Jobs who began with the first edition of the Apple computer where for startup cash, they sold a van and used Job’s family garage as their shop premises in Los Altos, California This same garage harbored the great development of ideas and innovation techniques that resulted in the success of Apple till today (Mittan, 2010). Wozniak was the brilliant mind that invented the Apple computer while Jobs advertised and located a buyer for their first computer. From the same garage, they made and sold fifty computers that represented the commencement of Apple’s product line
Apple Inc. commonly known as Apple has effectively managed to be a successful company in a very competitive consumer electronics industry by been innovative and differentiating the company’s products with similar products in the markets by offering high quality products and good customer service while the actual manufacturing of the products is outsourced to trusted third party suppliers. On a wider perspective, the company has set high standards that even the company itself has to be on its level best to maintain the standards that it has set. Over the last few years, the consumer electronics market has
Apple was established as an IT company dealing in exclusively in computers. However, competition in the technology sector forced the firm to focus on other consumer products. The diversification strategy has seen Apple’s sales grow tremendously in the last decade, earning the firm the No. 1 brand position at Forbes. The Apple brand is recognized on an international scale and enjoys a strong recognition thanks to its aggressiveness when it comes to creativity and innovation (Tar, 2013). It has a large number of loyal customers who would purchase the new products regardless of the market price, which guarantees profits from the new division.
Technology change has naturally been a major factor in Apple's success. The company played a major role in the shift to a mobile computing society, by developing the personal technology devices that would
I learned that Apple is a juggernaut when it comes to their technological products and marketing goals. Apple focuses on the needs of customer’s light years ahead of their competition and even before most consumers have realized they want Apple’s products. Through their innovative marketing involving social media, word of mouth, Apple Stores they have convinced consumers about the high value of their product even lending to the formation of a “Mac cult” for its diehard fans. The way ahead for Apple is not to lose sight of its brand loyalty and continue to service the customers and entice them with the brand’s prestige. Even with the death of Steve Jobs, I believe Apple forge ahead to differentiate itself from the markets they are in.
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.
Steve Jobs and Steve Wozniak founded Apple in California in 1976. Their mission was to introduce an easy to use computer to market, which led to a computing revolution and quickly became the industry leader by selling more than 100,000 Apple IIs in 1980. After IBM entered PC market, IBM PCs, which used Microsoft’s DOS (OS), gained more market share and became the new standard for the PC industry. At the same time, Apple introduced the Macintosh in 1984. However, Apple’s net income fell 62% due to the Mac’s slow processor speed and lack of software limited sales. In 1985, Steve Jobs was forced out and John Sculley took charge of the Mac. Under the direction of Sculley, Apple
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.
Apple prides itself on offering innovative technology to a society that has become dependent on it. In markets inundated with companies offering similar products and services, Apple has had to rise above and distinguish itself from the masses. While their products have a cultivated a devoted-customer following (our family is one of them), their organization and the values it espouses are what will help them to remain a relevant and successful company in the tech world.
Nowadays, Apple has positioned itself to be an innovator in the personal computer industry and Apple has developed by offering modern products compared to its competitors. According to Apple’s mission statement last year, “Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App store, and is defining the future of mobile media and computing devices with iPad.” (Business Management,