Q1 - Q2 Apple case.pptx

7/29/2019 Q1 - Q2 Apple case.pptx

1/15

WHATARETHECHIEFELEMENTSOF APPLES

STRATEGY?

Actually three chief elements can be pointed out:

Innovation

Secrecy

Deversification of the product released

Question 1


2/15

INNOVATION

First of all, Apple has kept bringing innovative products to the

market, realizing that having innovation in all they do would

have to be the companys strategy against big companies like

IBM and Microsoft.

Set up of a just-in-time R&D

In 2004, the company paid off the all of its outstanding debt to

no longer carry long-term liabilities therefore freeing up more

funds to reinvest in research and development, highlightingthe company's overall focus on innovation.


3/15

SECRECY

While most of its competitors have made their technology to

any PC company that wanted to incorporate it into their own

hardware components, Apple was well-known for closely

guarding the secret behind its own one.

Strict restriction on Apple Certified Developed Program

No published information are available before the official conference

announcing a new product


4/15

DIVERSIFICATIONOFTHEPRODUCTRELEASED

Since 2001, Apple did no longer only focus on the computerindustry as such, but broaden its activities to third-partyproducts:

Digital music player: iPod and iTunes

Mobile phone: iPhone Touchpad: iPad

Hardware, software, service and other sales

Yet, even though Apples revenues have been increasinglycoming from noncomputer products , primarly the iPod, thecompany still sees computers as its core business.

Macintosh products (desktops and portables)


5/15

HOWWELLDOTHEPIECESGOTTOGETHER? IS

THESTRATEGYEVOLVING?

Four types of activity have to be analysed:

The computer

The personal media player

iTunes

The mobile phone and the touchpad

Question 1


6/15

SWOT ANALYSIS

Strength

- Financial Stability and low debt in recent years.

- Highly innovative designs provide market niche.

- Early entry into growing smart phone and digital

music players industries.

- Brand loyalty

Weaknesses

- Unique operating system with strict use

guidelines not compatible with most PC's.

- Low market share in computer industry.

- Premium pricing and limited variety limit market

base.

Opportunities

- Sales of laptops, smart phones, and MP3's on

the rise.

- Entrance intro smart phone and digital music

players industries exposes consumers to

Apple brand.

Threats

- Economic recession

- Lower priced PC's in computer industry

- Strong competitors in digital music players

industry

- Technology for smart phones progressing very

fast with new emerging rivals.

- Steeve Jobs death


7/15

COMPUTERACTIVITY

Strategy for Apple's computer operations in 2008 still

remained the company's primary focus.

It maintained handling every aspect of the computer within

Apple, which stands apart from the top PC competitors.

Apple's computer products consist of a small variety of

different models, each intended to appeal to different types

users with different functionality and price points.


8/15

MEDIAPLAYERACTIVITY

Apple was not the first to enter the personal media playerindustry.

But its media player, the iPod, was the first player to gainwidespread popularity.

2005: Apple dominated 70% of the hard drive MP3 player market and 40% ofthe flash player market.

By 2008, Apple had released 4 different iPod styles each withdifferent functions and price points, just as with its computer'ssegment, with the strategy of appealing to a wider market

segment.

Many analysts also have commented the bridge into the personalmedia player industry was strategic for Apple to attract morecustomers to their computers.


9/15

ITUNESACTIVITY

Apple's development of iTunes fell hand-in-hand with its

entrance in the personal media player industry. Indeed, it

synchronized with iPods and allowed easy-to-use access to

music in MP3 format.

By establishing itself as the largest legal downloading library

early on, it gained the largest market share and thus became

the leader while promoting the Apple brand as a whole.


10/15

MOBILEPHONEANDTOUCHPADACTIVITY

Nowadays, Apple's iPhone and iPad strategy centers on it

being a key product for the company.

Its development reflects the innovation of the company and its

ability to recognize a market trending towards the synergybetween computer and mobile phone.

It was released to be compatible with many of Apple

developments such as iTunes, Safari software, many other

Apple applications.

This again exposing the Apple brand to more consumers and

increasing company awareness as well as adapting to

changing market demands.


11/15

CONCLUSION

Apple has managed to maintain a strategy focused

around innovation that quickly responds to market

demands.

It continues to gain market share by offering a variety ofdevelopments and improvements in its product lines and

striving to provide easy-to-use, superior quality

products.

Yet, since Steeve Jobs death, Apple has been facing to

without doubt their most important ever known

challenge.


12/15

DOESITMAKEGOODSTRATEGICSENSEFOR APPLETOBEA

COMPETITORIN

THE

COMPUTER

,DIGITAL

MUSIC

PLAYER

,ANDMOBILEPHONEINDUSTRIES?

Apple was able to recognize the market's focus shift towards: the synchronization of mobile phones and computer technology.

the development of the MP3 players as new music-listeningtechnology.

Strategically it made sense for Apple, a company focused oninnovation, to enter these markets. It enabled it to broaden itshorizontal integration, something that many of its competitorsalready had extensive amounts of.

Apple was careful to avoid the threat of cannibalization of itsproducts. In this way, it clearly differentiated them viacapabilities, price points and phases of market introduction.

Question 2


13/15

ARETHEVALUECHAINACTIVITIESTHAT APPLEPERFORMS

INCOMPUTERS, DIGITALMUSICPLAYERS, ANDMOBILE

PHONESVERYSIMILARORNOT ?

The value chains for Apple computers, digital music players, and mobile

phones are extremely similar given Apple's adherence to its strategic plan.

The main value chain for the companys products is depicted below:

Question 2


14/15



PHONESVERYCOMPATIBLE ORNOT ?

R&D Design Production Marketing activities

As we said, Apple focusses on innovation in all they do and does it in an homogenous way.

All the products happen to be in a same spirit:

Researched and developed: The technological findings for one product can be a basis for the others.The iTouch was a basis for the iPhone which was itself a basis for the iPad.

Designed: a common touch can be find through the Apples range of products.

Produced: Different products can be made of some same components as the results of same R&D

Marketed: Apple advertising campaigns can be esaily recognized due to a same model.

Question 2


15/15



PHONESVERYCOMPATIBLE ORNOT ?

Distribution and Customer Service activities

Unlike competitors, Apple develops all its products in-house and then sells them

online, in their retail stores or with strict contracts to Apple product certified

retailers.

It also provides customer service for its products in its retail stores in the now

famous Apples Bar.

Conclusion

Finally, all the value chain activities that Apple performs in its different activties

can be considered as compatible .

Q1 - Q2 Apple case.pptx

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