It brought about different changes to the industry; these changes are still visible in the present. Summary of Apple Case Study Analysis 1.0 Introduction 1.1 Introduction of Apple: Apple Inc. is the most famous name in the technology sector, it is an innovative electronics manufacturer, which is giving benefits to the consumers and to the suppliers, and the company is using successful strategies in the market so the best results could be achieved. It is easy to search for any application or software by using Appstore. Required fields are marked *. Case Study on Apple’s Business Strategies, Becoming a Successful Learning Organisation: Case Study of Apple, Five Common IT Problems Encountered by Small and Medium Enterprises, Case Study of Steve Jobs: The Ultimate Intrapreneur and Entrepreneur, Porter's Generic Strategies - Differentiation Strategy, Case Study: Apple iPod Silhouette Ad Campaign, Effect of Relationship Marketing on Customer Retention, Case Study of Apple Inc: An Apple for Your Enterprise. This generic strate… The company offers various products for the different market it targets. The company most revered brands are Mac, iPad, and iPhone. They can also “synchronize” and update the songs in their iPhone with a laptop. The company’s products were used as a basis by other computer company’s in designing the specifications and physical characteristics of their product. Some customers think that Apple products are not cheap but also not high-priced products because the value of Apple products bring to them is never disappointing. In terms of design, Apple came out with an ultra-thin Macbook Air which is extremely thin compared to those existing laptops. Furthermore, Apple also created a substantial value in highly competitive market and industry which help them to achieve competitive advantages in an industry with stiff competition. Required fields are marked *. Learn how your comment data is processed. Harvard Business Case Studies Solutions – Assignment Help. Managerial freedom within broad decision-making guidelines will resolve the institutional control dilemma. The only person who’s qualified to run this company was crucified 2,000 years ago.”. It means that Apple will be more focused on looking outwards, market and business drivers rather than at the products or services that already exist. When organizing for strategic alliances, a firm must consider whether the alliance is non-equity or equity. Full strategic case analysis for Apple incorporation including industry , competitor's and firm's self analysis. He pulled the plug, essentially killing its largest licensee (Power Computing). Beside this, Apple also emphasizes customizability on the part of entertainment that offer computer-build for high performance such as gaming. A massive reversal occurred in 1997 and 1998. We can describe Apple’s business strategy in terms of product differentiation and strategic alliances. Apple does not produce laptops in various colors like Dell or Hewlett Packard to increase the choices for consumers. Sculley and Spindler were hoping IBM would buy Apple and put them in charge of the PC business. But you’d need to recruit God to get it done.” Michael Murphy, then-editor of California Technology Stock Letter, stated, “Apple desperately needs a great day-to-day manager, visionary, leader and politician. The differentiation in operating software gives Apple a competitive advantage in the personal computer industry. iPhone App Store ” blocks innovation, blocks competition,” and “allows Apple to charge monopoly rents.”. Apple prides itself on its innovation. The company’s strategy was. Since Jobs took over as CEO in 1997, Apple seems to have resolved the innovation dilemmas, evidenced by their numerous innovations. SWOT Analysis of Apple. If there is no direct, easy duplication and there are no easy substitutes, the strategy is difficult to imitate. This is due to the self esteem where consumers feel good by carrying Apple products because it somehow shows their status as being up-to-date and their taste is better than others. Time will tell whether that happens. Through thebroad differentiation genericstrategy, Applestands out in the market. However, the difficulties with these drive the formation of strategic alliances. In 2013, the company annual revenue was … This completed their “product matrix”, a simplified product mix strategy formulated by Jobs. However, to those consumers who are concerned about technology and high performance, Apple is still the preferable choice. Combining the old with the new resolves the connection to the past dilemma. Therefore, Apple is … Apple has a history of shunning strategic alliances. It released a highly stable operating system in 1999, and updates following 1999. “If we had licensed earlier, we would be the Microsoft of today.” – Ian W. Diery, Apple Executive VP, I am aware that I am known as the Great Satan on licensing…I was never for or against licensing. To realize our ambitious plans we must focus all of our efforts in one direction.” This statement was in the wake of Apple divesting significant software holdings (Claris/FileMaker and Newton). But my approach was stupid. The company does not own and operate manufacturing or production facilities. The entrepreneur manages the innovative unit(s). Even the MacBook and iPhones … Apple then opened its own stores, in spite of protests by independent Apple retailers voicing cannibalization concerns. He also focused their business and IT strategy on customer center experience. Macbook users are satisfied with Macintosh performance because it is very energy saving where the processor will automatically “close” those programs which are not in use when it is in standby mode. Today Apple Inc. is very well known in the world because of their advanced technology in products such as iPods, iPhone, Macbooks, Apple TV and other professional software. Thus, Windows’ users might have to charge the laptop more often due to the battery consumption is higher than Macintosh. For instance, Apple pioneered the PDA market by introducing the Newton in 1993. Major HBR cases concerns on a whole industry, a whole organization or some part of organization; profitable or non-profitable organizations. What we should have done was calculate an appropriate price to license the operating system. This marked the beginning of Apple’s new strategy of making the Mac the hub for the “digital lifestyle”. As CEO in Apple, Steve Jobs carefully evaluated competitive pressure and opportunity in market place by continuously pursuit customer experience innovation. This case study is about innovation at Apple Inc. (Apple), one of the most valuable companies in the world in terms of market capitalization. Apple turned the corner in 1993. This allowed iTunes Music Store online to offer over 200,000 songs at introduction. It is vital to remember, “Commitment, coordination, and trust are all important determinants of alliance success.”, Your email address will not be published. Jobs despised licensing, calling cloners “leeches”. Apple's Profitable but Risky Strategy 2540 Words | 11 Pages. Since a company with a differentiated product competes as a quasi-monopoly in its market segment, there is a reduced threat of buyers. The sponsor procures, advocates, and champions. A business strategy is a deliberate plan that helps a business to achieve a long-term vision and mission by drafting a business model to execute that business strategy. Now, let us discuss about the current expansion strategy that used by Apple that make the company has greater success in marketplace. For example, elegant design and user-friendliness ofproducts, combined with high-end branding, effectively differentiate the technologybusiness. Case Study of Steve Jobs: The Ultimate Intrapreneur and Entrepreneur, Case Study on Apple's iPod: The Marketing of an Idea Project, Case Study: A Phenomenon Called Steve Jobs, Effect of Relationship Marketing on Customer Retention, Porter's Generic Strategies - Differentiation Strategy, Organizational Success through Creativity and Innovation, The Concept of Entrepreneurial Opportunities. Please give me a call.” In 1987, Sculley refused to sign licensing contracts with Apollo Computer. In 1997, when Apple was seeking a CEO acceptable to Steve Jobs, Jean-Louis Gassee (then-CEO of Be, ex-Products President at Apple) commented, “Right now the job is so difficult, it would require a bisexual, blond Japanese who is 25 years old and has 15 years’ experience!” Charles Haggerty, then-CEO of Western Digital, said, “Apple is a company that still has opportunity written all over it. Business Strategy. By using iTunes, consumers can choose their preferable album cover for their songs. If suppliers increase their prices, a company with a differentiated product can pass that cost to its customers, thus reducing the threat of suppliers. To those consumers who prefer lighter and thinner laptops will definitely be attracted to the Macbook Air. Gaming plays important roles to help Apple to customize in features and specification to make the products more attractiveness and creativity. Later, Apple introduced the easy-to-use iMac in 1998, and updates following 1998. iTunes allow consumers to categorize and download songs easily. AppleInc.’s generic strategyis broad differentiation. Activity 3 - Outsourcing (20 minutes) Apple outsource the component creations of its product to many overseas businesses. Build a formidable competitive advantage in the next section on strategic alliances a. Stage was set for Jobs to resume Power following 1999 difficulty challenges to Apple product! 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