Essay on Corporate Level Strategy of Apple

1074 WordsMay 14, 20125 Pages
CORPORATE LEVEL STRATEGY OF APPLE COMPUTER INC. Low level of diversification (1976-1996) To examine what strategies have been used by Apple, we divided the period into two ages. The first age is in between 1976 until 1996 were we can observe that all the products sold by Apple were computer related. They started with Apple 1 and continuously developed their products up until the evolutionary of Macintosh. However, their development restrained only to computers, chips and software which indicates low diversification applied by Apple at that time. Apple is considered as a Dominant Business type of diversification where between 70% and 95% of their revenue comes from a single business. From this case, the dominant business is the…show more content…
The introduction of various digital products by Apple shows that Apple has diversified its computer business into many digital products. Apple’s adaption of moderate to high level of diversification is classified as Related Constrained diversification where less than 70% of revenue comes from the dominant business , & all businesses share product, technological and distribution linkages. Apple are said to be sharing the product, technological and distribution linkages because Apple’s products are seen to be closely related and their innovation are coming from the same technology, resources and ideas. Moreover, all products also share the distribution channel through Apple Store. Impact The diversification strategy suits Apple very well as being evidenced as follows: • Diversification into music download industry boost the sale of computers, iPods, iPhones and Apple TV. Net sales in 2007 of Desktops increased by 59%, 40% (portables), 17% (iPod), 27% (music related), 29% (peripherals & hardware), 81% (software & services) • Change from only computers to digital product enhance Apple’s market powers. In 2007, Apple controlled more than 70% of the digital music market. Closest competitors to Apple’s iPod had only 8% of the market share, leaving Apple with vast majority. In 2008, iPhones stole 1% of the mobile phone market share SUGGESTIONS AND

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