Answer the following questions: (4 items x 10 points)

1. How did apple achieve a dominant position in the market as a seller of both songs and
music players?

Apple was able to dominate their market by using its own resources and abilities to develop
software for its MP3 player. The company's software engineers came up with a special
"flywheel" navigation system for the iPod and produced a stylish, portable product that
completely changed the way people listen to music while on the go. The music industry was
revolutionized by this success, which enabled Apple to diversify into other product
categories and create the iPhone, iPad, and Apple Watch.

Apple achieved market dominance by leveraging its internal resources and capabilities to create
software for its MP3 player. The company's software engineers designed a unique "flywheel"
navigation system for the iPod and created a stylish, portable product that revolutionized the
way people listened to music on-the-go. This success allowed Apple to expand into other
product lines, such as the iPhone, iPad, and Apple Watch, and transformed the music industry.

2. Which phase in the evolution of strategic management is present in the given case?

The case demonstrates Phase 3, Externally Oriented Planning, in the evolution of Apple's
strategic management. The company focused on understanding the market and defining
customer needs to design a product that was both elegant and portable. Apple expanded
beyond being solely a computer maker and changed its name to Apple Inc. to reflect this shift.
They recognized an opportunity in the music industry and capitalized on their competitive
advantage by developing a plan for legal digital downloads. With file copying difficulties in the
industry, Apple saw an open opportunity for growth.

3. Which type of strategy is being employed by Apple in the given case study?

Apple has employed a Business Level Strategy, which focuses on how the company competes
within a particular industry. By making decisions on whether to pursue price or differentiation as
the source of competitive advantage and whether to target a broad or narrow market, Apple has
focused on product development, innovation, integration, market development, and
diversification, among other areas. The company has channeled its internal capabilities into
developing software and designing a portable, elegant product, such as the iPod, which
revolutionized the way people listen to music on-the-go..

4. What competitive advantages contributed to Apple’s success?

Apple's competitive advantage is a Benefit and Differentiation Strategy. The company creates
exceptional products people love to use and adapts to trends, as seen with the iPod. Apple's
Differentiation Strategy focuses on software development, creating the innovative "flywheel"
design for navigating the iPod, setting it apart from competitors that relied heavily on hardware.
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