The Key Strategic Challenges Facing Apple Computer

1162 WordsJan 30, 20135 Pages
Describe the key strategic challenges facing Apple Computer Apple Computer is currently facing many strategic challenges, the first challenge is competition from new and existing companies. Apple’s iTunes, an online music store, faces competition from companies that seek to begin offering online music and video downloading services whether legally or illegally, and from existing companies that plan to modify its current strategies to become better aligned with the strategy of Apple. Many of Apple’s brands including the iPod, Apple TV, and iPhone face competition from rivals who are beginning to offer lower-prices and substitutes (Hitt and Hoskisson and Ireland, 2011). Apple Computer also faces the strategic challenge of keeping up with…show more content…
Another internal weakness of Apple are product recalls that may hinder Apple’s reputation. The products that Apple sells are highly complex and from time to time they experience quality problems because of defects in design and manufacture. Unfortunately, Apple can not detect and resolve all defects in software, services, and hardware before products are released to consumers (Datamonitor, 2011). The factors external to Apple that have strategic implications for the future include their competitors within the industry. Apple’s competitors consist of several existing and new competitors who are focused on obtaining strong market share. Apple’s entrance into the mobile communications field with the creation and launch of the iPhone has put Apple into another highly competitive market, where many large competitors already exist like Motorola. In order for Apple to gain an edge, consistent product evolution and design must occur, and rapid implementation of technological and product advancements will be essential (Hitt and Hoskisson and Ireland, 2011). Describe how Apple’s strategy stands up against industry rivalry Apple’s strategy stands against rivals in the way they focus on revealing drastic concepts and attractive designs, which make their products different. The differentiation of its products improves brand loyalty and reduces price sensitivity. Also, Apple’s strategy to be first movers in the industry by introducing ground-breaking
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