APPLE

(Dedicated to Steve Jobs 1955 - 2011)

Exercise 3 TETA-2607 Strategic Management 12 October 2011

Table of Contents Introduction! Differentiation! Product! Supply Chain Management! Customer Service! Value added to the Product! 3 3 3 4 5 5 Resource Based View(RBV)! Sustainability! Opinion! Bibliography ! 6 6 7 7 .

Mac Pro. and Ronald Wayne which manufactured its first personal computer named as Apple I. iMovie. and Media Personal Computer Software(only important were mentioned) Table1: Apple products The below describes the timeline of apple products introduced in the market that gives even more brief idea to the reader(figure1). 2. iMAC. The same strategies has been applied to its other product. Safari. Below is the list of products(table1) that are manufactured by Apple. MacBook Air) Mac OS. This allows them to design their own products more efficiently. iLife.Product Over the years the line of products that Apple has introduced in the market is so spectacular. The latest inventions of the product lines from the apple has attracted wide interests to the customers as well competitors and what makes it so differentiated is discussed below.1.Differentiation Ever since Macintosh has been introduced into the market in 1984 Apple has been consistently maintaining its strategies by integrating both hardware and software and having its own stores. Apple Product iPad iPod iPhone Macintosh (Mac mini. which gets manufactured be multiple suppliers. Aperture. Music player. MacBook Pro.Presently Apple is one the best company for the stockholders. Apple has superior advantage over PC in its differentiation strategy. and have a pricing command.Introduction Apple is an American based multinational company which was established in 1976 by Steve Jobs. Final Cut Studio. 2. MacBook.1.Despite rise and fall of the company continuos reinventions and their strategic planning had achieved them the better position in the market by comprehensively designing aesthetic design with highly functional OS and software. iPhoto. iTunes Application Media Tablet Music Player Phone. and software by other companies. and personal computers. technology pro-consumer. Steve Wozniak. computer software. Unlike PC. But in modern times Apple sells consumer electronics. .

When we ask ourselves how did Apple over years achieve such products in shorter time some say its innovation and returns of steve jobs that made its products so endeared to its customers. Steve Jobs said “Apple success more came when it delivered its product to the customers what they wanted but not introducing new technology/innovation into life's of customers”. 2. iO5. and most of all Siri(which can operate the phone according to the user command through voice). This is the reason why its next competitor in hardwares such as Toshiba.Figure1: Apple product Timelines[1] From the figure1 its very clear that apple has revolutionized in most of its products whereas its next competitors are still focusing on a single product. What makes or considers Apple to have its own stores while other companies more depend on the distributors and retailers? Its apples enormous product lines and net profit that allowed them to have their own Apple stores which sells all the apple products and its accessories. .Supply Chain Management Apple has its own stores across globe. The design. product uniqueness. Through differentiating itself in design. IBM. The success of apple started in late 90’s by completely reinventing the products and designs. support of the Apple are so important for its product success. The latest released product in 2011 is iPhone 4 which has dual core A5 chip. application. Though apple released many other products after the resignation of steve jobs they were not so successful. Customers can directly order the Apple products from the internet and Apple does deliver it on time. Apple has developed brand loyalty and hype around the people has made it far superior. Sony etc and in software Windows do not have their own stores as they produce single or minimum product lines where they may end up closing the stores if any recession occurs.2.

Also. revolution that has spurred its public image. design. 2. 2. Almost.3.4. When someone enters the Apple stores once can almost find the peaceful ambience. selling licensed music online.Another success for Apple was introduction of online stores where the Apple user can directly order music.5.Customer Service Apple has its own customer service and is reachable 24/7. apple never discloses its features of its new products rather it tests throughly only once it is completely confident of its product then it releases with more confidence. Apple has introduced a new product named iCare which has more benefits to the customer though expensive it has its own benefits. iTunes is one of the success of Apple int the music industry. Apple do not charge customers for its defective products if under warranty. Also. in the Apple stores customer service is highly valued. success. 2. Apple provides first 90 days of support to its customer for free. Ever since steve jobs has returned to the company the innovation and cutting edge technology he gave to the customers increased the value of the company. Apple is one of the best companies to invest for the good return of money to its stockholders. Also. showcasing new product lines. all the Apple stores have the same ambiance throughout the world. Comparing to other companies which releases its products through anticipation which has lot of bugs. watch weekly shows.Value added to the Product Many customers are proud to have Apple products because of its uniqueness in design and operations.Marketing Strategies One of the marketing strategies used by Apple is its high devotion in quality. Apple is far good in marketing strategies too. and sales growth. As shown in Figure2: Timeline of Apple releases with price(USD)[2] . Apple has exceed other companies in its value added. play games.

As shown in figure2 despite Apple high price tag customers are ready to pay for the benefits they get buying apple products. 4. The main criterion for the Apple products its innovation and working environment to continuously improve its performance and functionality. Seimens. as said above the growth of Apple grew fast because of decision level at lowest possible level. an american company(global). special features. Customers who cannot afford are buying cheaper products with minimal features. perceptions. It is very difficult for the other competitors to imitate the same pattern. GUI etc. This are very unique to the apple. Siri. That is one of the reason why Apple is highly valued product and company in the present market. unibody laptops. Organization[O]: One of the reasons for Apple’s success is culture introduced into the organization. and personality traits are the vital concepts that shape the individual and Apple has given the liberty to the individuals to be innovative[4]. One of the best example is the operating system(OS). in china their are some legal aspects where they introduce a apple product of same design and performance but without any rights. Rarity[R]: By the time Apple’s competitor introduces its product Apple in no time will introduce a new product that far superior in technology. OS. software. We have seen downfall of many companies such as Motorola. performance without buying the patents. design. The resources it generated in the market is one of the fine example. Values. Though Nokia is trying to be in competitive in market. Innovation of products. They can sustain in the present(as they are into the market since late 1990’s) because of the benefits and advance products it delivered to its customers. Imperfect Imitability[I]: The products of Apple are innovative rather compared to the other products of the same product line.Resource Based View(RBV) From the lecture I shall try to list down “VRIO” framework which shall enhance more depth in how Apple is far better than its competitor and always ahead of its competitor. high definition screens. It motive is that if an individual is self motivated they work hard and are entitled to manage themselves (micro-managing). It entitles for an individual to taker his/her own decision. Nokia. Not only did customers benefits from the . But. functionality. Again. marketing strategies. One can clearly see how the sales of the sales sky rocketed especially in 2008. The only competitor though far is Samsung with its design and other features and most importantly cost. Apple have far more better resources than Nokia. Value[V]: Apple has high value to its products. 3.Sustainability The way Apple is introducing the products are innovative and mind-blowing. Moreover Apple has lot of patents in graphics.

r e u t e r s .scribd. Expiry of Steve Jobs should not impact Apple as he has laid a big and strong foundation to the company. Timeline: Apple milestones and product launches. 6. Read: 12 October 2011.wikipedia. Read: 12 October 2011. Read: 11 October 2011.com/doc/31119712/Organizational-Culture-at-Apple 7 . Products. It Just Works: How Apple’s Planning & Strategy Create Intuitive Interactions and Consumers. Link: http://adamp. future CEO how they are going to deliver the products. The future of apple products depends on how well they are going to develop and be innovative and ahead in the race compared to its competitors. But people are worried about the future of Apple products after the expiry of Steve Jobs. Timeline of Apple Inc. Link:http://www. Read: 11 October 2011.Apple products but also it made them easy as most of the things are inbuilt and performance is greater. Similarly.a p p l e . Nokia is mobile market did rule for around 20 to 30 years but could not sustain because of Apple and Samsung mobiles.org/wiki/Timeline_of_Apple_Inc. He created a huge impact to the Apple products both to the stockholders and technology savvy customers._products [2].Bibliography [1]. L i n k : h t t p : / / w w w.t i m e l i n e idUSTRE72170T20110302 [3]. and if you have all the Apple products its easy to synchronize and life will be easy”. be innovative. in software market there was a time where many Windows based products were introduced but the market for Apple is huge and many companies are building both Apple and Windows based softwares. Link: http://en.Opinion When asked my friends this is the response I received “Apple is simple to use. For example.com/college/it-just-work-how-apples-planning-strategy-create-intuitiveinteractions-for-consumers/ [4] Organizational Culture at Apple Inc. be inspiring. easy to understand how it works. c o m / a r t i c l e / 2 0 11 / 0 3 / 0 2 / u s . Also. 5. most of the softwares are being developed by the Apple both for consumer electronics as well as personal computers. Now its up to the present.

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