Q2: What are the chief elements of Apple’s strategy? How well do the pieces fit together? Is the strategy evolving? The chief elements that we found when analysing apple case study was performance, position in the market and innovation. 1. Performance apple needs the performance of the company to be good as there is no place for under performance in this industry as there is a lot of competition and they can copy the new ideas innovated within the industry easily.
As we can see from the case study apple were making considerable amount of losses for a few quarters.
The many cause of these losses was products being introduced to the market but not selling or products being introduced with high manufacturing cost such as the apple Lisa. “Due to excessive cost, the Lisa never performed up to apples expectation and was retired from the market soon after it was introduced. ” Apple have changed there CEO a number of time in these periods and have since increased there revenue and have introduced more product into the company such as the ipod, imac and the iphone.
In 2000 jobs announced that he was the new permanent CEO of apple. From the moment jobs returned to the company, he had idea after idea for how to improve the company and turn its performance around. He not only consistently pushed for innovation new ideas and products but also enforced several structural changes, including ridding the company of unprofitable segments and divisions. ” 2. Innovation with the broad differencetion strategy that apple are currently pursuing they are being innovated when introducing new ideas and product in the company.
For example the Ipod something new that they introduced that no one had seen the likes of before. In this industry products can be easily copied by your competitors. There are so many competitors such a Microsoft on the PC range of products. “ Apple kept bringing innovative products to the market, realising that innovation would have to be the company’s strategy against the big companies like IBM and Microsoft, especially since Microsoft had made its technology available to any PC company that wanted to incorporate it into their own hardware component”.
Also Apple got into a legal dispute with Microsoft. Therefore “Microsoft paid an undisclosed amount to Apple to quiet the allegations that it had stolen Apple’s intellectual property”. All mobile phone companies such as blackberry, Samsung, and Nokia have already created the similar products to the Iphone and similar apps. Apple’s revenue and d performance increase when the Iphone 3G was introduced to there product range. “Iphone 3G quickly sold out in 21 states in the US and some customers agreed to wait up to four weeks for delivery”.
3. Positions in the market- In 2008 it were announced that Apple was in third places for the largest PC maker in the US. “Gartner, a leading analyst in the PC industry, announced that in the second quarter of 2008 Apple had overtaken Acer to become the third largest PC maker in the United States, capturing 8. 5% of the market. While innovation and performance would be important we feel that sustaining there position in the market is equally important Apple has a well known brand name world wide and as technical product such as some of apples are easily copied it could be difficult to keep there market position.
To prevent any of apple innovative ideas and product being copied they employees would have to be very secretive. “Apple was well-known for closely guarding the secrets behind its own technology”. We can see after analysing the case study that the pieces do fit together excellent as they are innovating new products and ideas improving the company’s great performance in the last few years and in turn providing the company’s great market position. Since 2000 when Jobs took over the CEO job in apple.
The revenue of the company has continued to increase in each quarter and he has also continued to innovating new products such as the Imac, Iphone and Ipod. “The revenue has increased from €6,207 in 2003 to €24,006 n 2007 across all product range”. Apples strategy has continued evolving because of some of the following we found in the case that in 2007 controlled over 70% of the hard drive MP3 player market and more than 40% of the flash memory player market.
Apple have conquered this market share with only four iPods styles Ipod shuffle, Ipod nano, Ipod classic and Ipod touch. “2007 a customer by PC magazine showed that apple Ipods ranked significantly higher than other brands in terms of overall quality, sound quality, ease of use and overall reliability. ” Also “apple advertised that with a catalogue of more than 8 million songs and with more than 5 billion downloads from iTunes stores since 2008”.
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What Are the Chief Elements of Apple’s Strategy?. (2017, Mar 15). Retrieved from https://graduateway.com/what-are-the-chief-elements-of-apples-strategy/