Apple Case Study
Apple
Competitive strength assessment of Apple's computer business
A competitive assessment of Apple reveals that Apple has these factors everything ready devices, design and innovation, R&D oriented, and greater vertical and horizontal integration. Apple has made its devices be everything ready, which reduces the consumer's headache in sourcing for software or additional hardware to suit their individual purpose. Ensuring that the devices are ready for the consumer's use also offers the consumer the confidence to purchase and use the computers. Consumers are willing to pay premium prices provided they know they can get all they need in one device (Pavlou & El Sawy, 2010), and they will not have to search for additional hardware and devices. This differentiation has offered the company competitive advantage over its computer rivals. The design of the computers are attractive, and they are easy to use. Innovation has ensured that the company is able to offer its consumers products that are ahead of time, and they have undergone market research. The innovativeness of the company has allowed it to have computers that challenge the market trends, but are liked and appreciated by the consumers.
Apple is oriented towards research and development. This factor has enabled the company to improve continuously on its computers. R&D orientation has allowed the company to challenge the market and offer products that its competitors do not have. Apple has a greater vertical and horizontal integration, which enables the company to reduce its production costs and control production of its hardware and software. Integrating the development of its products ensures the company can effectively have components...
XM has taken a more target product strategy, attempting to increase depth of programming services over the pervasive offering of devices. Industry analysts have commented that Sirius is now competing with Apple and their iPod series based on the breadth of their devices (Sirius Satellite Radio Investor Relations and SEC Filings 2008). Sirius' approach to personal satellite players has only been marginally successful and clearly given the operations expenses
Alternatives and Solutions Clearly, Apple is a successful, multidimensional and global corporation. Sales have more than doubled between 2005 and 2009 domestically and more than tripled internationally. The company has adequate income to fund R&D, but could reduce cost of sales considerably and funnel those funds into future projects and/or advertising. Solutions for their issues may be broken down into four general areas: Reduction of COG through outsourcing, Improving Market Share
74 and a cash ratio of 2.03. Apple has no long-term debt and a 2-to-1 debt ratio (MSN Moneycentral, 2010). Apple has relatively few weaknesses. The company's emphasis on software, marketing and design has left it with a weakness in hardware. Apple products do not have the superior lifespans one would expect from a product commanding a premium price tag. Another weakness is the dependence on leadership. Apple without Steve Jobs simply
Apple Computer is one of the great corporate success stories of the past decade. On the back of a successive string of hit products, the company has experience rapid growth over the past several years. In its last fiscal year, ended 9/25/2010, Apple earned $14 billion on revenues of $65.2 billion (Apple Inc. Fiscal 2010 Form 10-K). These figures increased 70% and 52% respectively in fiscal 2010. Apple has a
Table 2: Distribution of Revenue by Product Area Source: (Apple Investor Relations, 2008) (Prudential Equity Group LLC, 2006) Planning The cornerstone of Apple's planning processes is the continual development of products and services that compliment the product and services ecosystem shown in Figure 1 (Apple Investor Relations, 2008) (Prudential Equity Group LLC, 2006). Figure 1: Apple Product and Services Ecosystem Source: (Apple Investor Relations, 2008) (Prudential Equity Group LLC, 2006) For Apple, their future planning revolves
Apple iPhone Company) In the achievement of competitive advantages, desired financial resources, and satisfaction of the consumers and employees, business entities need to focus on enhancing effectiveness and efficiency of their marketing strategy. This is because of the role and importance of marketing strategy in the achievement of market share while addressing the needs and preferences of the consumers. There are various marketing strategies adopted and implemented by unique organization
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