Case Write-Up Apple Inc.: Taking a Bite Out of the Competition

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Course: Management and Leadership—Strategic Management Submission date: 02-23-09 Case Background and Problem Statement Synopsis of the case situation This case is set in 2007, when Apple Computer Inc. just dropped the last word in its name and become Apple Inc.. This action is a remarkable milestone which indicates that Apple was no longer just a computer company. It moves into digital music, with the IPOD and with ITunes, and mobile devices, with the IPhone. Apple, Inc. Apple is really involved in two businesses: the computer market and the entertainment and media market. Its approach has been to integrate its new products around its core industry in an effort to construct a digital lifestyle that encompasses not only its line of…show more content…
Therefore, the existence of substitutes have the potential to reduce the future growth of the brand. -Rivalry within the PC industry Apple is facing very tough rivalry. Competing brands involve in price wars. Customers have different needs and wants. No specific market segment is strong enough to justify price premium. Buyers have increasing knowledge about the product. Overview of the industry The PC industry has powerful buyers, vicious rivalry, intense threat from the new entrants, some strong suppliers who harvest most of the industry’s residual profits. Overall, the PC industry is not an attractive business. Analyze the internal environment of the firm For companies to build competitive advantage, they need to examine the entire value system. What really delivers value in Apple? The following analysis will adopt the Resource-Based View. Specifically, Apple Inc. is an effective manufacture and designer of consumer electronics and closely related software product. The tangible resources of Apple may include its flagship products, the current customer base, the company’s current distribution systems, etc. For example, Apple leads the industry in innovation with its award-winning desktop and notebook computers, OS X operating system, iLife and its range of professional applications. Apple also spearheads the digital music revolution with its iPod portable music players and iTunes online music store. The intangible resources of Apple may be the

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