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‘Apple in 2010’ Case Team Memo

‘Apple in 2010’ Case Team Memo

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An essay for the 2012 Undergraduate Awards Competition by JingWen Su. Originally submitted for Business Study at None, with lecturer Regina.McNally in the category of Business & Economics
An essay for the 2012 Undergraduate Awards Competition by JingWen Su. Originally submitted for Business Study at None, with lecturer Regina.McNally in the category of Business & Economics

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Published by: Undergraduate Awards on Aug 30, 2012
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05/13/2014

 
 
MG4037 STRATEGIC MANAGEMENTSPRING SEMESTER 2012
MG4037 Strategic ManagementSpring Semester 2012
‘Apple in 2010’ Case
Team Memo
 
Submitted by:
Antonio Moldovan 0856304Brian Foody 0877654 Jingwen Su 0804908 Yunxiang Zhang 0800031Shane Quaid 0842877
By signing below, we hereby certify that the work in this document is our own original work.
Names (print): Signatures: _______________________________ _______________________________  _______________________________ _______________________________  _______________________________ _______________________________  _______________________________ _______________________________  _______________________________ _______________________________ NOTE: Teams are not allowed to comprise more than 5 students.
 
 
MG4037
‘APPLE IN 2010’ CASE
ANALYSIS TO:
MR. TIM COOK, APPLE CEO
DATE:
11/13/2012
SUBJECT:
APPLE TO ENTER GAME INDUSTRY WITH NEW IGAME CONSOLE We recommend that Apple should play to its strengths which we have deemed to be the ability tocreate user friendly products possessing software and hardware that is synchronized seamlessly withexisting Apple products and services.
 Apple should implement the production of the
 Apple iGame
console” for the Game
industry. The superb usability and synchronization of Apple
‟s
iGame will allow customers to continue gaming, watching movies, working etc. in different locations on multiple Appledevices from the exact same point at which they last paused or saved the game, movie, song or file on theiGame. Implementing this recommendation
 whilst utilizing the company‟s most valuable strategic
capabilities, will allow Apple to differnetiate itself from compeditors and ensure the company gainssignificant market share with the launch of the latest
innovative product the „
 Apple iGame
. The Gamesector is forecasted to exceed a total global net worth of $112b by 2015 (Exhibit 1.0).Our analyses is based on identifying Apple
‟s most significant starte
gic capability using the
„VRIN‟( 
 Value, Rarity, Inimitable and Non-substiutability) framework. Several capabilities emerged such as
„fashion/image, quality, inn
ovation and design. After conducting market research and intensive qualitativegroup analysis we concluded that Apple
‟s ability to create products
and services which offer asynchronized, user experience across all of its main devices, coupled with the outstanding useability of their products, emerged as the essential strategic capabilities in order to create value for the customer andultimately drive
the company‟s succe
ss. Apple
‟s t
echnological synchronization and useability offerunparalled value to the customer as was most emphatically highlighted by Steve Jobs in 2001 when heoutlined his
 vision for the Macintosh as a
Digital Hub for controlling, integrating and adding value to other Apple devices, thus ofering the customer a real advantage 
”.
The iGame will be technologically harmonized with this
„Digital Hub‟ thus offering customers further value in the Game industry.
 Apple
‟s ability to sync its
technologies and establish exceptional useability throughout its product and service range is something  which is extremely rare.
In 1978 Apple brought an easy-to-use computer to market...Apple became the industry leader in less than three years 
”.
Both the Computer and iTunes service which focused on useability andtechnological syncronization led to Apples outstaning success in these Industries(Exhibit 1.1).Incorporating these capabilities in the iGame will provide customers with phenominal value and ensure Apple
‟s success
 within the Game industry. Apple
‟s useability 
and synchronization has been something which compeditors have foundextremely difficult to imitate. In a qualitative FYP study carried out by a former Univeristy of Limerick student in 2011, thirty people were enlisted to compare and test the useability of leading smart mobiledevices, namely the Apple
„iPhone 3‟
and
„HTC Wildfire‟. Users found the iPhone much more
efficent interms of speed and useability. Strikingly tests involving the HTC did in fact take 2.15hrs longer than thosecarried out with the Apple iPhone (Exhibit 1.2-1.4). Compeditors have been unable to imitate the quality of Apple
s user experience. Furthermore, Apple filed a lawsuit against HTC for patent Infringment onMarch 2nd 2010, compounding compeditors struggle to compete in terms of usability. Apple can onceagain draw on its strenght of creating user friendly and inimtable products with the iGame.Finally Apple
‟s competence in creating user friendly products
and services is based solely on
individual expertise within the company; “
 
We’re pretty good at having the right discipline to think through whether a lot of other people are going to want it. That’s what we get paid to do
.”
-Steve Jobs. The competence thereforecannot be substituted or made obsolete by machines or systems and thus will give Apple the assurancethat they can realy on this skill to overcome compeditors with the iGame.In order to impliment this reccomendation Apple must establish several R&D departmentsfocusing on key value chain factors specific to the game industry including hardware and software. Applemust maintain the distinct Apple characteristics in terms of desgin, image and quality, while focusing onthe technological synchronization and useability of the console with innovations such as synchronizing the product with other existing Apple products and services via Wi-Fi and the iCloud.The useability of the product is paramount to its success and will contain features allowing customers to use their iPhoneas an easy to use hand held wireless contoller for the console. In conclsuion,
 Apple‟
s ability tosynchronize its latest product with other existing Apple devices & create an extremly useable product willallow the company to sucessfully capitalise upon the opportunities that exist in the game industry.
 
 
 APPENDIX/EXHIBITS:Exhibit 1.0 Source:
Gartner, 2011
Exhibit 1.1 below displaying Apple’s dominance of the portable music player by
2007, afterentering the market in 2001 with the iPod.Exhibit 1.1 Source:
NPD Group, 2007
 
Table 1: Total Gaming Market Spending, 2010-2015 (Millions of Dollars)
 
2011
 
2013
 
2015
 
Gaming Hardware
17,797 24,621 27,354
Gaming Software
44,730 51,129 56,512
Online Gaming
11,899 21,453 28,298
Total
 
74,426
 
97,204
 
112,163
 

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