MGMT 7160 Presenatation

Jeff Baravik, DVM

Apple’s Business Strategy

• Product Differentiation– First Mover– Innovation– Diverse Offerings

Innovative First Mover

• Pioneer in personal computer industry• Introduced first PDA in 1993 (Newton)• iMac and iBook in 1999

Innovative First Mover

• Launched iTunes application in 2001• Introduced the iPod in 2001• Opened the iTunes online store in 2003

Innovative First Mover

• Released the iPhone in 2007

• Apple TV offered in 2007

• Launched the iPad in 2010

Apple’ Corporate Strategy

• Diverse product offering• Strategic Alliances• Vertical Integration

Diversification

• In 2007, Apple Computers, Inc. dropped the “Computer”

• Signified apples new emphasis on consumer electronics

Strategic Alliances

• Historically avoided alliances– Failure to license software – IBM and Apple debacle

• Apple and AT&T 2007– Verizon added iPhone

2011

Vertical Integration

• Limited Vertical Integration– Apple Retail outlets opened in 2001– Distributors fear cannibalization

Strategic Challenges

• Succession Plan• Continued Innovation• Fierce Rivalry• Lack of Openness

Succession Plan

• Steve Jobs takes indefinite medical leave of absence

Ongoing Innovation

• Apple has flourished via innovation• Steve Jobs has driven innovation

Fierce Rivalry

Openness

• Apple tightly controls its environment

Strategic Solutions

• Succession Plan– Need a visionary leader– This guy?

Strategic Solutions

• Continue to compete on innovation• Foster creativity

Strategic Solutions

• Strategic Alliances?