Apple Inc 2012: Strategic Management

4
Putri Amandhari 64 INT B | Strategic Management Case of Apple Inc in 2012 Apple Inc. In 2012 : Can it Sustain Its Growth and Defend Against New Competitive Threats Apple Inc. is an international American company that produces computer software, cell phones, personal computers and consumer electronic products. The wellknown products of Apple include: the iPod, the iPhone, the Macintosh line of computers and the iPad . 301 retail stores in 10 countries are operated by Apple in August 2010. The software of Apple consist on the Mac OS X operating system, iWork suite of productivity software, Final Cut Studio, Logic Studio a music production tool’s suite, iOS; a mobile operating system, the iTunes media browser, the iLife suite of multimedia and creativity s oftware, Aperture; a professional photography package, AirPlay, Airprint, etc (Business Insider, 2013). Started as a computer developer then it leads to massive success of technology in use, especially personal gadget in nowadays. What really Apple did in 1987 creating their own products, while offers wide open opportunity for profitable and rapid growth with a new demand and type of product offering. This is what they called by implementing Blue Ocean Strategy that offers growth in revenues and profits by discovering or inventing new industry segments that create altogether new demand. Apple with their new Operation System, Macintosh are turned and beat Windows Operation System through years. Apple system is the only one who generates and runs both softwares and hardwares. It allows consumers to buy and share contents (applications, music and movies) via Apple devices (iPad, iPhone, Mac and iPod) by a exclusive selling media platform called iTunes. Moreover, the sales of iPad, Mac and iPhones have increased by 188% and 7%, correspondingly. On the other hand, iPod sale was down by 15%. The numbers in Q2, 2012 are down as compared to Q1, 2012 when Apple smashed all its previous records as you can see in Figure 1. In that period Apple sold 5.2 million Macs, 15.43 million iPads and 37.04 million iPhones, even iPod sold well with 15.4 million units By taking chance and opportunities to the “new market” Apple Inc, successfully develop their product into some tremendous success. Started with a computer PC and integrated iMac system, Apple Inc. could create their business into a maximum level of satisfaction

description

Weekly assigenmentpersonal summary

Transcript of Apple Inc 2012: Strategic Management

  • Putri Amandhari 64 INT B | Strategic Management Case of Apple Inc in 2012 Apple Inc. In 2012 : Can it Sustain Its Growth and Defend Against New Competitive Threats Apple Inc. is an international American company that produces computer software, cell phones, personal computers and consumer electronic products. The well-known products of Apple include: the iPod, the iPhone, the Macintosh line of computers and the iPad . 301 retail stores in 10 countries are operated by Apple in August 2010. The software of Apple consist on the Mac OS X operating system, iWork suite of productivity software, Final Cut Studio, Logic Studio a music production tools suite, iOS; a mobile operating system, the iTunes media browser, the iLife suite of multimedia and creativity s oftware, Aperture; a professional photography package, AirPlay, Airprint, etc (Business Insider, 2013). Started as a computer developer then it leads to massive success of technology in use, especially personal gadget in nowadays. What really Apple did in 1987 creating their own products, while offers wide open opportunity for profitable and rapid growth with a new demand and type of product offering. This is what they called by implementing Blue Ocean Strategy that offers growth in revenues and profits by discovering or inventing new industry segments that create altogether new demand. Apple with their new Operation System, Macintosh are turned and beat Windows Operation System through years. Apple system is the only one who generates and runs both soft-wares and hard-wares. It allows consumers to buy and share contents (applications, music and movies) via Apple devices (iPad, iPhone, Mac and iPod) by a exclusive selling media platform called iTunes. Moreover, the sales of iPad, Mac and iPhones have increased by 188% and 7%, correspondingly. On the other hand, iPod sale was down by 15%. The numbers in Q2, 2012 are down as compared to Q1, 2012 when Apple smashed all its previous records as you can see in Figure 1. In that period Apple sold 5.2 million Macs, 15.43 million iPads and 37.04 million iPhones, even iPod sold well with 15.4 million units By taking chance and opportunities to the new market Apple Inc, successfully develop their product into some tremendous success. Started with a computer PC and integrated iMac system, Apple Inc. could create their business into a maximum level of satisfaction

  • Putri Amandhari 64 INT B | Strategic Management Case of Apple Inc in 2012 that point out into loyalty. Means that, the growing market share started with iPod, and continue to iPhone, MacBook and also iPad are become a bundled of high brand trust to consumer to adopt this gadgets. THREATS Personal Computers:

    Hewlett-Packard (HP) . that also offers diversified segment of computer industry that focused on IT consulting services, large enterprise system, software and personal computers, printers, and other imaging devices. HP become the leading of PC Vendors and positioned as the number one rank with the highest market share. Dell Inc. was the worlds second largest seller of personal computers, that offered a wide range of desktop computers and portables, ranging with low-end, low priced models to state-of-the-art, high priced models. Dells has Android based streak tablet and a Windows Phone 7 smartphone. Smart Phone Competition Samsung leads through the highest shipment volumes and market share compare to Apple, Nokia, RIM, HTC and others. While Samsung developing Android operating system that actually allowed vendors such as HTC, Motorola and Samsung to offer models that matches many of the features of iPhone. Android own biggest market of the most wanted phone with reachable price and wide range product variances from differentiate brand.

    COMPETITIVE ASSETS Apple Inc. products have certain competitive assets to compete with their opponents. Bringing the level of satisfaction of consumers for example that could create brand loyalty is the critical aspects on developing Apple to keep in sustain growth. Offering an equally good or better product at a lower price. What Apple did is vice versa, because actually they sell their products through premium price started from 499$-1500$. Compares to the other brand, consumer could easily find any substitute products with lower price and demanding capacity. But, the level of prestige that Apple built is giving their consumer more value of using their products compare to the other brand.

    Leapfrogging competitors by being first to market with next generation product. By entering and create their own system of operation and system, Apple considering exclusive toward their opponents. The different style and user-friendly system is bring the innovative points of system and gadget development ever since.

  • Putri Amandhari 64 INT B | Strategic Management Case of Apple Inc in 2012 Pursuing competitive innovation to draw sales and market share away from less innovativeness. The innovation that Apple leads are not only about the how fast and other market demand that already pursued by Apple opponents. Adopting consumer experience is one of the best example why iPod iTunes become a big hit, how iPhone are development of iPod that allows user to access the Internet wirelessly at twice the speed of the previous version and also adopting some features that interface the user of giving true meaning of satisfaction.

    Adopting and improving good idea of rivals. As we know the market for smart phone, computers, tablet and music player are tight. Become the first mover is giving Apple more opportunities to tested their market at first. And continue to develop their market with the what market wants while the rivals are still growing at their first pace, Apple already comes like rockets with the new version of gadget ready to be launched soon. Launching a preemptive strike. Make a continuous promotion of their products with the different segment, improved products of computers, phone, music player and also tablet give Apple more opportunities to strike at the first stand to acquire their competitive assets that rivals cant readily match. By securing Apple variances of products with the Apple logo behind, it already giving Apple prime position from their rivals. CONCLUSION Become a market leaders are somehow vulnerable. To keep the position stand up high, while the competitors are ready to attack and replace the position. High treat and risk might. We can conclude that Apple are try to strengthening a Companys Market Position and developing futuristic gadgets that could meet consumers demand. Within forward integration, Apple also engage their consumer through some medium of sales to utilize their brand positioning and strengthened up their market of smartphone and tablets computers. Furthermore, Apple still have to feel caution about market situation and not only stand at their comfort zone. Googles entry are considered as threat cause they will also massively entering market of smartphone handset and tablets that surely will impact the iPhone and iPad sales. Otherwise, from the write point of view, strong market position and consumer loyalty could boost Apple performances which increases due to closed ecosystem and user friendly products makes different to Apple Company from its competitors. Another most important factor is that the Apple Company is the First most admired company in the world. Whereas, it is also credited to first sustainable music downloading business model in history by its iPod and iTunes online media store could also give Apple set of beneficial advantages.

  • Putri Amandhari 64 INT B | Strategic Management Case of Apple Inc in 2012 REFERENCES Book: Gamble, J. E. (2012). Google's Strategy in 2010. In A. A. Thompson, M. A. Peteraf, E. J. Gamble, & A. J. Strickland, Crafting and Executing Strategy Concepts and Cases (pp. C-187). New York: McGraw-Hill. Online References:

    Anon. Apple the most admired company. (online). http://www.powerfulwords.co.uk/sample-assignments/marketing/apple-the-most-admired-company.php, accessed March 20, 2015. Apple Insider, 2013. Apples iPhone grew to 25.1% global market share in 2012. (online). http://appleinsider.com/articles/13/01/25/apples-iphone-grew-to-251-global-market-share-in-2012, accessed March 20, 2015.