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Apple Inc. Assignment.docx

Apple Inc. Assignment.docx

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Published by Meet Buch

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Categories:Types, Business/Law
Published by: Meet Buch on Jul 16, 2012
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08/28/2013

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By,Meet Buch - 18 
PGDM-IB 2011-13
 
Case Analysis:Apple Inc. in 2010
 
 
CASE ANALYSIS: APPLE INC. IN 2010
 
Q1. Update the Case to date?
The iPad was launched in the US on April 3
rd
2010 and sold more around 500,000 by the end of thefirst week. In May of the same year, Apple'smarket capexceeded that of competitorMicrosoftfor the first time since 1989. Apple also expanded the product line of iPod and introduced iPod Shufflewith buttons which brought back the buttons of earlier generations.In October 2010, Apple shares hit an all-time high, eclipsing $300. Additionally, on October 20, Appleupdated theirMacBook Airlaptop,iLifesuite of applications, and unveiledMac OS X Lion,the latest instalment intheir Mac OS X operating system.On January 6, 2011, the company opened theirMac App Store,a digital software distribution platform. Apple was also featured in thedocumentarySomething Venturedwhich premiered in 2011.During the start of 2011, Apple became the most valuable consumer-facing brand in the world. Lateron, In June, Steve Jobs took the stage and unveilediCloud,an online storage and syncing service formusic, photos, files and software. This was the stage when company operated asmonopsony(onebuyer, many sellers), in that it can dictate terms to its suppliers. On August 24, Jobs resigned hisposition as CEO of Apple and was replaced by Tim Cook. On October 5, Apple announced that Jobshad died, marking the end of an era for Apple Inc. Apple officially released the iPhone 4S on October14. On October 29, Apple purchased C3 Technologies, a mapping company, for $240 million. OnDecember 13, Apple launches iTunes stores in Brazil and Latin AmericaOn January 10, 2012, Apple acquiredAnobit,an Israeli hardware company that developed andsupplies a proprietary memory signal processing technology in a view to improve the performance of flash-memory used in iPhones and iPads for $390 million. On January 13, iPhone 4S arrives in Chinaalong with Hong Kong and South Korea. On January 19, Apple'sPhil Schillerintroduced iBooksTextbooks for iOS and iBook Author for Mac OS X in New York. On Feb 16, Apple releases OS Xmountain Lion Developer preview with over 100 new features. On March 5, Apple announced thatmore than 25 billion apps have been downloaded from its revolutionary App Store by the users of the more than 315 million iPhone, iPad and iPod touch devices worldwide. The3rd generationiPadwas announced on March 7. It includes a Retina display, a new CPU, a five megapixel camera,and 1080p video recording. The New iPad arrived in US with 9 additional countries
Q2) How did Apple position itself initially in 1976, 1981 and thereafter?
Job sparked a computing revolution by introducing the
easy to use computer
to market in 1976-78
and Apple quickly became industry leader. Apple’s positioning changed with the entry of IBM in
1981. IBM gained market share and moved ahead of Apple by introducing DOS operating system
which was a relatively open system as compared to Apple’s OS that
solely relied on its proprietarydesign and refused licensing
. Apple with its technical elegance and industrial design launchedMacintosh in 1984 to respond to IBM but it failed to gain market share due to
Mac’s slow processor
speed
and lack of compatibility software. Apple was following
product differentiation
strategy andwent ahead with
new market development
by entering into new markets of desktop publishing andeducation. By 1990 Apple was the
most profitable PC
company after gaining share in new markets,
by introducing superior software’s and by providing complete package solutions. Till now Apple
devoted 9% of sales to R &D but after 1990 Apple started moving
towards low cost producer
withmass-market appeal. In 1996 though, Apple returned back to its premium
priced differentiation
 
 
CASE ANALYSIS: APPLE INC. IN 2010
 
strategy
 
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.

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