CASE ANALYSIS: APPLE INC. IN 2010
but it still relied on old Macintosh OS that made Apple’s sales limited as Microsoft had
already launched couple of new Operating systems. Apple turned around again to be a profitablecompany when it started focusing to
position itself as an Innovation company
from 1997. This movewas supported by moving distribution system from smaller retail outlets to national chains,launching website to set up the direct sales and increased spending on R &D.
Did apple have KSF for the P.C. industry when it started? Does apple have it now?
Apple didn’t have any critical success factors apart from having talented people when it started.
Later on Apple started developing critical success factors and these are,
Technology related KSFs
are expertise in technology and product innovation capability.Capability to use internet for all direct sales
Distribution related KSFs
are company owned retail outlets, space in national chains.Network with service provider like Verizon
Marketing related KSFs
are breadth of product line, visual merchandising skills, attractivestyling and packaging and clever advertising like Think Different
Skills related KSFs
are superior workforce having design expertise. Ability to developinnovative products and products improvements
Organizational capability with good leaders that responded to the market changes
Favourable brand image and reputation with buyers
Apple’s competitive position:
Apple has built a truly sustainable competitive advantage and isdefinitely worth the current valuation premium. It is harder and harder to beat Apple with its deepintegration between apps, OS and devices. Apple is building a fortress around its suite of product/services/experiences and it is almost impossible to break that and it is not in the space of music and devices but Apple is also foraying in other categories of products. Every single Appleproduct complements every other. Apple recently reached third place in personal computer sales inthe U.S., selling more Macs the past few quarters than analysts expected. Also, Apple is the leader inthe tablet space with its populariPad.Many iPad buyers are first-time Apple customers. Just asmany of the nearly four million buyers who purchased Mac computers in the most recent quarterare first time Apple customers. The reason for Apple's compounding, growing success is a simplemultiplier factor involving customers. Once they buy one product, like an iPad, Apple's otherproducts like the iPhone or a laptop computer become a natural.Apple positioning changed from just a PC company to Apple Inc. covering wide variety of productsand then to digital hub with foraying into other innovative product categories.