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Published by: Muhammad Irfan Zafar on Oct 05, 2011
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Apple – Strategic Position: The Apple Inc .

have become the market leader in their industry by supplying price worthy products which possess high value in terms of their genius technological design from their I-pods, I-phones to Macbook and extending it to their software like I-tunes and games which are at reasonable prices. It is very clear that the company which has adapted or improved wonderful supply chain will mostly successful in their industry. Here the reason for the Apple’s current strategic position is explained using different strategic management concepts for ease understanding of their performance in the context of supply chain. The main competitors in their industry are Microsoft, Blackberry, Nintendo, Sony, Rhapsody, DELL, Nokia, HP, Samsung and LG. The Apple is known for their innovation in the technology and so do is supply chain. The figure below illustrates the product life cycle and the position of apple in that life cycle. We infer from the below figure that apple is in the shakeout stage of its life cycle where their concentration mainly in improving the purchase of their products. At this stage they even concentrate on how they can extend their business in other fields. They also do concentrate on price cutting and increase in productivity to enhance their business with high productivity. In this stage they offer tuff business to the weak competitors and it may results in shakeout of their competitors’ business. In other context of Apple in their PC business, they are in the growth stage of the product life cycle by showing their steady growth in their sales.

Apples Product Life Cycle

Strategic Group Analysis: As per the figure given below, it is clear that Apple’s product line in the industry is comparatively low than Dell, HP, and Samsung. But the price that they offer their product is very high when compared to the above mentioned competitors because their product worth is very high due to their excellent technology offered by them to the industry.

Porters Generic Strategy for Apple: The below figure illustrates the competitive advantage of Apple over its other competitors. It defines that Apple Inc . is in its differentiation phase by offering highly technological products to its customers which are innovative too. When it refers to the Dell and HP, they are the cost leaders in the industry and the Microsoft lies partially in cost leadership and partially in differentiation. Apple can concentrate on their supply chain and improve its processes internally and externally, thereby they may migrate to the cost leadership without compensating their technologically innovative products.

To make sure steadiness in working across all the functions of the business. quality. Apple Inc uses computer assisted information technologies preface of creative quality tools and techniques while ensuring training employees in new skills. .To meet up the customer demands and to go beyond customer demands. Apple Inc with the range of world class supplier base and their involvement all through the project life time helps to attain the world class standards of quality and delivery. Apple Inc uses integrated team work in every stage of project and also to ensure the improve programme objectives for. Apple Inc uses the advance design concepts and product engineering in highly competitive world-wide markets while concentrating on profitable expansion for the business. To attain high levels in process design and assurance. manufacturing and quality. Apple Inc ensures the steadiness in delivery of the product in line with design specifications and quality objectives in launch process. cost and timeliness.

PEST Analysis The developments in the external environment which affect the external organisation are identified using PEST analysis.  The planning and congestion restrictions forced by the government on construction of warehouses and stores considerably affect the choice of site and the location for the warehouses and stores. PEST analysis is done by analysing the Technological. Social Factors  Now-a-days there is a raise in consumer awareness. Customers are demanding for superior quality goods at extremely competitive prices and as a result the company is in constant pressure to supply quality and reliable goods at greatly cheaper prices. Social and Political aspects of the organisation. which gives the customers a chance to expend on alternatives like home improvement. Australia and the Middle East. This has significant impact on the company’s warehouse management policy which sequentially affects the level of customer service provided by Apple Inc . it is necessary to pay close notice to the political climate and also to the regulations and laws in all the countries functions and also to pay attention to regional governing bodies. This has considerable impact on packing cost of goods. This has a major . local and national influence. Apple Inc logistics strategy can be affected by any increase in fuel prices as the increase in fuel prices will directly affect the cost of distribution and transportation which result in decrease in net profit of the company. Political Factors  As Apple Inc functions in multiple countries across Europe.  Decrease in cost of house ownership is due to lower interest rates. Hence low interest rates trigger the demand for home improvement goods and the ripples of this will be visible through the entire supply chain.  Certain environmental policies issued by the government impose the company to use specific kind of packing material and labelling for certain products. Africa. Economical. Currency shifts can associate to lower or higher demands for Apple Inc which in turn affect profitability. trade and investment are reliant on the local government as well as how successful economies and market will be due to regional. Economic Factors   Apple Inc have to notice the fluctuations in currency rates throughout the world. Asia. commerce. Laws governing growth.

By . performance as most of the customers it has fall in the young age category. in addition to that the product should be available in a suitable manner and on time..effect on all the factors of logistics strategy and the company has to re-align its supply chain in order to deliver the expected level of customer service. Strategic Approaches could be used by Apple Inc Logistics Management To reduce costs of operation. products and processes.  In the current years there has been a turn down in the population of the young age group and this would critically affect Apple Inc . Total Quality Management (TQM) Not only physical attributes of a product are related by Total quality management. customer satisfaction and the levels of service provided are also related. This also compels the company to alter its existing logistics strategy. Technological Factors  The rapid expansion of e-shopping has significantly boosted the sales of Apple Inc . The distribution process between the organisation and the suppliers is focused in Quick Response. Total Quality Management involves all the internal and external members to the supply chain to meet all the customer requirements at the lowest achievable cost. notifying the store/warehouse about the order and then deliver it to the door step of the customer. Apple Inc can implement Total Quality Management with the commitment and support from the top management by maintaining a customer centric focus in all of its services. A decrease in their population would mean a decrease in the sales of the company which again would affect its decisions from sourcing to distribution. The development of technology has brought drastic changes in the products in the DIY market. Goods are ordered by the customers over the internet and the company’s supply chain has to deal with the additional burden of processing the order. As customer demand is increasing for these specialised products the company either has to pressurise its existing suppliers or look for new suppliers around the world in order to procure these specialised and unique goods to cater to its customer needs. improve its supply chain and to provide outstanding levels of service to its customers Apple Inc can adopt the below strategic approaches: 1. In the customer point of view it is not that the product should have desired feature. 2 Quick Response (QR) To improve the active logistics strategy Apple Inc can adopt Quick Response approach too. Hence key importance of logistics management is total quality.

it can be more efficient in terms of cost effective and better quality to the customer. These supply chains captures the demand data directly and benefit from understanding the variations in demand and these are fast supply chains in terms of responding to the demands of market. unnecessary movements within the warehouse the waste of defects. not keeping too much of inventory the waste of unnecessary motion. moving goods between processes the waste of inappropriate processing. These supply chains are demand driven not forecast drive. This permits the supplier to track product sales and manage inventory levels. Market Analysis . to have effective information sharing. 5 Vendor Managed Inventory (VMI) Levels of inventory are monitored by the supplier in Vendor Managed Inventory. producing defective products By improving lean management process Apple Inc has. the computer systems of supplier and retailer should be interconnected. 4 Lean Thinking Lean thinking emphasises on operating with minimum wastes in the supply chain. hence whenever refill is required at stock levels supplier will do it automatically. Lean identifies seven wastes namely        the waste of overproduction. not utilising and resources properly the waste of transporting.using this approach Apple Inc can improve the speed of inventory replacement through closely understanding and monitoring the customer buying patters. In VMI information sharing is crucial. Apple Inc can improve its slow activities and respond quickly to its dynamic customer demands by adopting Agile Supply Chain. To implement the QR Apple Inc has to share its sales details with suppliers for specific products across its supply chain to assist the availability of the right level inventory when and where it is required. hence it can deliver the excepted level of customer service. By adopting Vendor Managed Inventory Apple Inc can maintain the availability of stock at all times and refill the inventory with no delays. hence it is customer responsive. incapable of meeting quality standards the waste of unnecessary inventory. producing too much the waste of waiting. 3 Agile Supply Chain Responding to the end customer demands is focused in Agile Supply Chain.

Depending on the product. meaning many people will return to Apple to obtain them. produces its own software as well. For every hardware Apple Inc. and is accessible on Windows as well. it could be a 5th grader as well as a professional filmmaker market mainly resides the cities businesspeople and graphic and moving media professionals. Low debt. In order to find out Apple’s position and define the strategy to be used. and is master of expertise for both. Weaknesses. is also easy to use. the iPod.gives more space to control finance The good brand loyalty of Apple Computers Mergers with Intel Computers since 2006 High developed Research & Development department Steeply growing market The services/products offered by Apple are original. . and is very important of finding out where a business currently is and where it could be tomorrow.Target Market Apple’s target market consists of people with these characteristics: -35 for Music Fans 18-60 for all products quality and better experience educational level is mostly secondary or higher. Strengths:           iTunes is a marvelous revenue source. Weaknesses also express the disadvantages to competition that might not let the business meet the objectives. SWOT Analysis SWOT stands for Strengths. Apple’s price area level provides it with enough room to avoid price competition. Opportunities and Threats. since it also sells its own tool. Weaknesses: Weaknesses of a company or business are the negative elements that could be improved because they are under the control of that business. internal factors (strenghts and weaknesses) and external factors (opportunities and threats) are analyzed. Apple’s so much appealing design.

like the Computer Industry. this implies that the development and production of new products and services has to be constant Low presence in advertising other than products placement in publishing and educational areas Very little market share compared to main competitor Microsoft Opportunities: Opportunities are external factors that influence the company’s current and future position.    Weak relationship with market titan Microsoft Technological products as Apple’s have extremely short lifecycles. which are increasing on PC’s Large and increasing population resulting in more potential customers of tomorrow Increasing bonds and partnerships with other companies Increasing online sales Most demanded and sold Apple products are laptops. depending on the product-nature. they are presented as offers. Apple is active in a number of segments.       In the Laptop market Apple has very strong competition from Dell. therefore producing more types to meet as many needs as possible Threats: Threats are negative external factors the company has no control over. mputers and partially with the Apple TV -phone industry: with the iPhone -music industry: with iTunes -device industry: with the iPod technological tools industry: with devices used for the main products mentioned above.      The production of computer anti-viruses. Mobile-Device Industry etc. which might influence Apple’s sales in the near future Window’s 7 (software). which is segmented in smaller sectors. The long lasting economic recession. trends. Sony and Toshiba Media piracy: iPod users illegally downloading music for free instead buying at iTunes Its product expensiveness threatens Apple being undercut by low-cost imports. . HP. which after the flop of vista is gaining more and more market share The very high speed of technology development How is the current marketplace segmented? Apple operates mainly in the technology industry. In cases of threats most and best a company can do is identify them and prepare scenario’s of how threats can be turned beneficial or at least do no harm to the company. needs that promise beneficial outcomes for the company.

is increasing also.which doesn’t make it the best though. What makes Microsoft Corp. Mac has a cooler technology in designing and arts fields and the operating system called Leopard that HP pc doesn’t have. One of the advantages of Microsoft over Mac OS X is the user number. How does their product or service differ? Comparing Dell with Mac is not easy because they differ from each other in many ways. Apple Inc. needs to make a drastic change. Microsoft is the most used and taught operating system world-wide. They also differ on software. . What I found interesting about the company was not marketing their products and businesses so in my opinion they need to focus more in their marketing and do something that will catch people attention. in the computers industry are the biggest competitors. As Apple introduced Mac OS X operating system Microsoft introduced Windows Vista. Macs are better than Dell’s computers in quality. those who can influence the market. Therefore for the sake of evaluating comparable factors. Operating systems of both companies are very different but still both of them have their advantages and disadvantages comparing to each other. ruled by five great corporations. In other way they need to work harder in their pre-deal abilities because their competitors are much better than them in this part. Also. Another crucial difference between those two is the price. we will only take the market leaders into consideration. and Microsoft Corp. Apple Inc.Who are the five most influential competitors? The Computer market in the technology industry is an Oligopoly market. They don’t need to wait for people buy their products only when they are on sale but they need to focus more on the customer support and improve the areas they already have problems. Microsoft Corp. design. weaker is Bill Gates his own because as being the head of Microsoft he didn’t develop still a band of products for his own company. HEWLETT PACKARD CO Microsoft Corp IBM Are their businesses: Steady? Increasing? Decreasing? As Apple Inc. What are their strengths and weaknesses? The strength part of Dell Inc. Dell inc. production of videos and web page designing. are: Dell Inc. Hewlett Packard Co as all companies has its own strength and weaknesses. IBM as a big company has experience and knowledge in planning A&M and also they benefit from their global relationships with clients to the technology layers. using different operating systems and that is the main reason why it is difficult to compare them with each other. The most influential competitors of Apple Inc. Mac and HP PC also have their differences. HEWLETT PACKARD CO as being a large company and doing business in 170 countries gave them opportunity to dominate in the market by selling printers to their customers and also many other companies. abbreviates multinational differences in more than 60 countries and that make people feel more related to them and comfortable with their services. those other businesses are increasing and trying to do something interesting for their own good. is that they offer to their customer’s direct relationships and that’s why they even were awarded for customer services. being one of them.

and dramatically less imitable." Its Grand Canyonsized flaw is lock-in: Apple's trying to lock people into media "product" in a variety of not-so-clever ways. People were very enthusiastic about the changes and which increases Apple sales. "Openness" means nothing if the price of a can-opener begins in the millions. More to the point. That's why every economy (and sector) that transitions past the industrial era is built on them." Apple's shooting itself in the iFace. say the detractors:the iPad's just another land-grabbing walled garden. Second. As in the other cases the main difference between Mac’s and other competitor’s computers were the operating system they use. But the revolution's biggest roadblock is Apple itself. By building a device that liberates services. Don't buy the hype. But it's trying to benefit from both at once — which is. mega-marketed stuff. through limiting physical connectivity (a lack of USB ports). more significantly. trading in mass-produced. higher skill. It is. which still doesn't have a user-friendly GUI. It's as if Apple wants to step into the hyperconnected network age — but also keep one foot firmly planted in the industrial era. the iPad chains people to "product. The iPad is a revolution waiting to happen. The iPad's like an amazing hairdresser — who wants to monitor your bathroom for authorized shampoo. and water. First. you can access tons of services from beyond the App Store on the iPad: it's connected to the entire Internet. One is the mirror image of the other. remember? But while it liberates people to enjoy services. The result is that service-centric businesses tend to have higher margins and create significantly more value than product-centric businesses. bereft of imagination. Service economics are superior: services are less risky. as media players are finding out the hard way. less capital intensive. strategically self-destructive. The proponents call it a radical new dominant design for computing. Many platforms are "open. The real promise of the iPad is to help the beleaguered media industry." technologically. The iPad's App Store isn't technologically open. simply put. But the costs of development raise steep entry barriers. Here's what's really going on. kickstart the great shift from products to services. Both sides are right — and wrong. Media's been stuck for too long in the the industrial era. Real openness means that the costs of creating iPad Apps are relatively miniscule: Anyone can develop stuff. conditioner. Apple's Strategic iParadox Enter iPad. The iParadox is this: Apple should be striving to commoditize products if it wants to benefit from services (or vice versa). But in a hyperconnected world. economically open: it's an open market for services. mere stuff's a commodity. through file-handling: .In the beginning IBM and Apple computers seemed to be similar just before Apple changed visual operating system. and quickly. but locks down "product. higher loyalty. literally bring it to (the) market. Consider Linux.

iPhone. then you're more likely to take the plunge and splurge on the book's app — the service.based on the fact that Apple has sold 21milion iPod handy media player only in the last quarter. liquid. music. It's possible. for example. And its promise is vast. If. you can grab a copy of the "product" of my next book cheaply. one of the most demanded products the Apple manufactures and sells is the line of mobile phones. Yes. Also this article states that this increase in earnings is the highest revenue growth in the company’s history. So on the same device on which you can access hundreds of thousands of new services easily." File browsing happens through iTunes. perhaps by design.36 million. The company declares that has sold 8. but Apple's made sure it's as painful as possible. muddled "rights management." You can't live in the industrial era and the network age at once. the app. if the service. Third. The announcements for the latest financial results infer that there was a high demand for iPhones. which resulted in strong earnings that increased for 32%. was very profitable. and videos. In fact. But you're unlikely to do both. is linked to an easily transferable.7 million iPhones over the world. products are locked down to a vicious degree. Also the initiative to sell iPhones in international markets such as China. But keeping that promise demands less compromise with yesterday and more revolution for tomorrow. simply. that by locking customers into expensive "product" he would limit the quantity and quality of services he could provide. Conversely. only in the last quarter. Which products/services are in demand The most demanded products of Apple Company today include: iMac – is considered to be one of the most demanded and sold products of Apple. it shouldn't want to lock down "products" like songs." you're more likely to splurge on the app. the software's awesome. If Apple's igniting a services revolution. Moreover the article implies that the actual sales compared to the previous sales. the demand for iMac got higher when there was an increase in shipments in October. and frictionless exchanges of "product" as possible — because that's what creates a thriving service economy. This amount of sold iPods exceeds the amount of 20. . were higher arriving at 3.1 million iPods that were predicted to be sold. iPhone. through obscure. we can assume that the demand was extremely higher. So it is for Apple: I'm less likely to consume services because the iPad locks me into expensive. and video around? Have fun trying.surely. constantly updated "book. The problem for our aforementioned hairdresser would be. immobile "product. The strategic confusion at the heart of the iPad makes it a grandee in revolutionary's clothing. Apple should want to create as open. which is the most popular mobile phone market. books. iPod . it can't even remove files from iPods (talk about lock-in). whose DRM is so backwards. Want to move your books. According to an article of ZACKS analyst.Attachments are a pain on the iPad.

iPad-the latest most advanced product that Apple has launched in the market has reached high demand in the market. The high demand for this touch screen table device is result of its affordable price compared to other products that Apples sells. What are the growth opportunities? The main growth opportunities for Apple are:      Selling products in international markets( such as the case of iPhone in China) Focus on customer needs Create more supporting and protecting programs Use other forms of advertising apart from product placement advertising Open more stores in different places in order to increase sales .

2000 United States United States United States United States Power ComputingClone-Making [note 1] United States Xemplar Education Raycer Graphics NetSelector Astarte-DVD Authoring Software [note 2] bluebuzz Spruce Technologies [note 3] PowerSchool United Kingdom United States United States Germany May 11. 2006 December 4.000 — — — US$268. 2001 February 1.000 US$13. 1989 February 7.000.000 — — — — June 27.00 0 — June 20.000.000. 2002 June 11.000.00 0 US$100. 2000 April 11. 2001 July 9. 2001 Internet service provider Graphics software Online info systems services Special effects software Software Digital effects software Software Music production software Gesture recognition company Software Software Semiconductors Streaming Music United States United States December 31. 1999 November 3.926.000. 1997 January 8. 1988 Company Network Innovations Orion Network Systems Styleware Nashoba Systems Coral Software NeXT Business Software Satellite communication systems Computer software Computer software Computer software Computer programming services Clone computers Software Computer graphic chips Internet software Software Country United States United States Value (USD) — — — — — US$404. 2002 United States Germany 2005 Fingerworks United States October 16.000.A. 1997 September 2.000 — — US$30. 2002 April 4. 2008 December 6. 1988 June 7. 2002 July 1.Mergers and Acquisitions 1.000 Nothing Real Zayante Silicon Grail Corp-Chalice [note 4] Propel Software Emagic United States United States United States US$15.00 0 US$4.000. 1988 January 3. 2006 April 24.000.000 US$15. Semi Lala. 1999 January 7. 2009 Silicon Color Proximity P. Acquisitions Date March 2. 2002 United States US$62.com United States Australia United States United States . 1988 July 11.

17 29.79 38.569 14.57 66.16 40.72 16.88 P/E 18.3 Apple Year to Year Analysis (Refs 28.024 1. 38) Gross profit margin % 38.23 16.578 2.843) 19.11 25.13 53.19 27.93 17.400 MS 2009 $‟000 42.76 20.05 2.01 1.540 P/L after Tax 14.79 Return on Total Assets (%) 24.338) 16.686 Change 26% 2% 93% 7% 2009 ($) 13.4 Net Sales increase by operating segments (Ref 9) Net sales by operating 2010 ($) Change segments: America 24.484 (9.90 64.42 19.48 Total Debt/Equity 0.04 62.233 1.179 Software and Service 2.905 2.000 2010 $‟000 29.15 50.17 2009 42.40 Current ratio 2.34 2008 37.796 8.760 18.381 6.52 15.94 19.28 20.45 1.16 0.208 .79 14.552 9.14 Return on total Asset (%) 24.036) 20.906 12.569 (9.810 2.20 33.72 2.05 37.321 (9.760 (8.35 18.47 36.36 ROCE % 38.75 2.000 Dell 2 $‟ 61 (49 11 3 2 2 (3.35 9.999) 17.225 Current Ratio 2.091 13.61 P/E 18.12 6 2 1 2009 ($) 18.033 2.742 2.88 6.520 6.00 0.113 2.505 Google 2009 $‟000 23. 38) 2010 Revenue ($‟000) 65. of Employees (1.66 25.392 58% Japan 3.000 2009 $‟000 58.650 (7.66 EPS (Basic) 9.616 P/L before Tax 18.91 25.42 3.40 5.00 Solvency ratio (%) 63.51 3.14 Pre Tax Profit margin % 28.235 8.714) 89.70 10.256 160% 3.888) 52.596 25.411 Change 3% 12% 93% 9% 2008 ( 14.: Financial Analysis 3.79 17.498 29% Europe 18.859 8.274 iPhone 25.74 38.01 ROCE (%) 38.400 ( 7 3.573 19.96 2007 24.491 2.75 79.800 2010 $‟000 62.45 19.1 Competitive Analysis (Refs 28.92 50.44 23.83 35.789) 10.14 25.013 P/L for the Period 14.609) Gross Profit 26.479 iPod 8.2 Key Performance Indicator (Refs 28.82 23.013 Research & Dev cost No.62 10.728 2.437 (9.61 35.433 1.01 2.153 6.62 0.905 (24.37 34.00 88.010) 93.73 2006 19.74 3.74 Quick ratio 1.34 3.315 2.13 0.762) 24.066 8.981 11.864) 48.64 40.279 3.285 10.573 3.433 (617) 96. 38) Apple 2010 $‟000 Revenue 65.013 18.28 0.07 79.25 28.333) 36.931 75% Asia-Pacific 8.179 Change 15% 28% 32% 18% 2008 ($) 16.03 54.835 2010 $‟000 52.505 8.38 40.6 Sony – Sales and Operating Revenue (Ref 122) 80.13 24.312 8.31 31.821 14.5 Net Sales increase by products (Ref 9) Net Sales by products 2010 ($) Total Mac 17.782) 49.82 0.520 (2.225 Cost of Goods sold (38.66 4.38 1.902 (42.235 (1.

099.5%) 7.2%) 2.297 (29.5%) 8.041.595.A Europe Other Total 2008 (Yen in million) 2.233 (26.1%) 1.812 (23.2%) 2.219 (24.Year ended March 31 Japan U.8%) 1.0%) 7.862 (25.987. Net Profit Store Graph II: Growth of Apple’s App Source:Retaing:Apple Inc.270 (26.328.016 (22.993 2010 (Yen in million) 2.S.1%) 2. Euromonitor International Graph III: Total Revenue (Country) size ($bn).264.414 2009 (Yen in million) 1.873.874.213.374 (23.1%) 1. 2009–14 Graph IV: Global consumer electronics market .871.692 (25.729. 987 (26.698 (22.6%) 1.945 (25.2%) 1.221.827.7%) 2.644.998 Graph I: Net Sales Vs.056.

Source: One Source Information Service Source: Datamonitor Graph VI: Revenues from Mobile Application (Present & Future) Table 8: Ansoff .

78 81 80 Persistent Self-Confident Tolerant of stress Ownership and Responsibility *Never give up easily .85 Fluent in speaking Knowledgeable * Increasing role in Apple's public relations effort *Good technical skills Table 12: Leadership Style & Behaviour (Steve Jobs) .5) *Net Sales .5) Market development N M E A W R K E T *New market for Apple *Consumers cloud market *Developing a low cost market-Telecom (Macs) Ref NEW PRODUCTS Product Development *Apple pricing decoy *Revolutionary product-ipad *Apple & Microsoft joint force *Apple pushed iPhone for business 57.4 & 3.4 & 3.EXISTING PRODUCTS E X I S T I N G M A R K E T Market Penetration *Development of more apps *Geographically net sale increased 2010 in (America . iPod music player *iPad components Cost Table 10: Leadership Traits (Steve Jobs) *None Adaptable to situation Achievement oriented Vision Energetic * Received lots of awards *A dent in the universe *Enormously energetic – Apple + Disney 77. Japan .increased by Product in 2010 – (Financial Table 3.Aggressive *From start to finish Table 11: Leadership Skills (Steve Jobs) * create whole businesses for application Intelligent development * Leadership position with innovation Creative * High-end technology & fashionable design 83 83 84.58 28 28 Diversification 59 60 61 *First mover advantage-IPods *Multi-Product Strategy *Diversification of apple Table 9: Generic Strategies COST B R O A D N A R R O W M A R K E T M A R K E T COST LEADERSHIP “The Low-Price Leader” iPad 2 crushed its rivals 119 120 Ref UNIQUENESS DIFFERENTIATION iMessage Price-Skimming Strategy App developers caught in iCloud storm FOCUSED DIFFERENTIATION 109 110 111 112 *Focus on Young Generation *Apple release products in China *Apple's Mac joins Windows generation FOCUSED LOW COST *Apple planning Low-Cost version of the IPhone *Little MacBook *Targets the low-end market-Pc.Europe.NeXT *High risk taker *High .Asia specific) –(iPhone) – (Financial Table 3.

Comp) (Ref 93.Autocratic * Everyone Report direct to him *Short-temper *Manipulative behaviour *Creates a sense of fear among employees 72.222 (1999-2010) 38 38 Leader *America‟s young entrepreneur‟s 76 Table 14: Apple Inc.75 73 74 74 Charismatic *Initiative leader *Gifted Speaker * Transformational leader creates valuable & positive change in the follower *Combination of Perfectionism and Vision 68 69 70 71 Table 13: Leadership Effectiveness: (Steve Jobs) Organization *963% growth (1999-2010) (Financial Table) *Company revenue from ($m) 6134 to 65. 100) √ √ √ √ √ √ √ √ x 101 102 92 103 Leadership Problem Solving Decision Making SelfManagement Participative Leadership style Ability to solve problem *Credited with reinventing * Play key role in development strategies of resale 101 102 101 101 Interpersonal *Confidence. Culture * Strategy has to fit with the vision of the company * No formal dress code for the employees * Continuous innovation 41 42 42 * Thinking together * Power culture – US control * Every Monday meeting 41 42 40 Table 15: Comparison of person specifications Tim Cooks Michael Dell COA (CEO of Dell (Ref 92. 94) 101) Experience of CEO √ √ Financial √ √ Technical √ √ Communication √ √ Interpersonal √ x Leadership √ √ Problem Solving √ √ Decision Making √ √ Self-Management √ √ Table 16: Tim Cook (Skills) Experience of *CEO experience of Apple CEO Twice Financial * Managing financial situation in economic crisis Technical *Expertise in logistics and operations Communication *Warm and outspoken Phillip Clarke (CEO of Tesco) (Ref 95. 98) √ √ x √ √ √ √ √ √ Eric Schmidt (CEO of Google (Ref 99.96) √ √ x √ √ √ √ √ √ Sir Terry (Ex-CEO of Tesco) (Ref 97. calm and quite 104 .

Apple should continue pushing the new line of media-centric products. push for economies of scope between media and computers. Apple may want to consider other forms of strategic alliances. Although it should continue. Meanwhile. An effective way for a company like Apple to accomplish this would be in the form of a joint venture. They must continue a stable commitment to licensing.Conclusion We feel that Apple must focus on several key aspects to continue to grow and succeed. . Apple apparently made a commitment to licensing. Apple should not lose focus on its computers. An equity strategic alliance may offer Apple the opportunity to obtain additional competencies. and become a learning organization.

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