Business Strategy

MBA2020-21 Case No. : 3

Group Number : 3

Assignment Submission
Group Members:
# Student Name Student ID
1 Rushi Abheeshai Modugu WSBY161826643
2 Jakkidi Aishwarya WSBY161804954
3 Praveen Kumar Munari WSBY161805875
4 Gayathri Kalva WSBY161652661
5 Sandhya Reddy WSBY161744123
6 Shravya Namala WOUMBA2036979
7 Nukavarapu Sowmya Lakshmi WOUMBA2048412
8 Shivam Shandilya WSBY161805746
9 Gajulapalli Lakshmi Saraswathi WSBY161652949
10 Nukavarapu Lalita Aditya Patel WOUMBABA.AI.ML2047894
11 Vineeth Kumar Kandula WSBY161774318
WSBY161805885
12 Nalla Vishnu Vardhan
Business Strategy – MBA 2020-21 – September 2020 – 2
 INTRODUCTION

Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976 to
develop and sell Wozniak's Apple I personal computer, though Wayne sold his share
back within 12 days.
It was incorporated as Apple Computer, Inc., in January 1977, and sales of its
computers, including the Apple II, grew quickly. Within a few years, Jobs and Wozniak
had hired a staff of computer designers and had a production line. Apple went public in
1980 to instant financial success.
Over the next few years, Apple shipped new computers featuring innovative graphical
user interfaces, such as the original Macintosh in 1984, and Apple's marketing
advertisements for its products received widespread critical acclaim. However, the high
price of its products and limited application library caused problems, as did power
struggles between executives.
In 1985, Wozniak departed Apple amicably and remained an honorary employee, while
Jobs and others resigned to found Next.

Business Strategy – MBA 2020-21 – September 2020 – 3

 NAME HISTORY

 According to Steve Jobs, Apple was so named because Jobs was coming back from an
Apple farm and he was on a fruitarian diet. He thought the name was fun spirited and not
intimidating.

Business Strategy – MBA 2020-21 – September 2020 – 4

 1. What, historically, have been Apple’s competitive advantages?

 Brand Strength - The company has built a very high level of trust from customers and market.

 Innovative Products – Apple has a good reputation for innovation and a commitment towards developing and
bring new products to market each passing year.

 Product Range – Large product involves from MacBook to newer versions of iPhones as well as Apple
Watch, Apple TV, Mac Mini etc.

 Financial Performance – Its financial performance over the last several years has remained strong and Apple
has made a strong comeback with new iPhone, iPad models while many of the industry analysts believed that
Apple has become weak.

 Customer Loyalty - The premium quality of Apple products is a major strength that has helped it build strong
customer loyalty. Its products enjoy a very high level of popularity despite their premium prices. They buy most
of these products from Apple which is because of their inter compatibility as well.

 Global Presence - It manages its business mainly on a geographic basis. The reportable segments of Apple
include the Americas, Europe, Greater China, Japan, and Rest of Asia Pacific.

 Go Green Initiative - Using low carbon materials and processes.

Business Strategy – MBA 2020-21 – September 2020 – 5

A key competitive advantage for the company is its ability to develop innovative
products that share the same operating system , software and applications

• Difference in design.
• The creation of Mac
boasted Apple sales.
• Apples don't need
drivers.
• Collaboration with
Educational sector.
• Digital Hub
• Ipod set Apple on the • First ever touch screen
high growth path. phone with high market
• Good design, large share.
storage and a simple • Security – compared to
user interface. competitors
• Apple had more than • Sustainability in three ways,
70% of the MP3 market Hardware and Software ,
share. iTunes, and Digital Asset
• iTunes Management.

Business Strategy – MBA 2020-21 – September 2020 – 6

• Apple relied on its own
designs and refused to
authorize its hardware to third
parties.
• Powerful Processor
• User friendly to Artists
• Fitness oriented, health-oriented
capabilities, wireless telecommunication.
• Certain variants co-branded with Nike and
Hermès.
• More convenient compared to other smart
wearables.
Business Strategy – MBA 2020-21 – September 2020 – 7
Business Strategy – MBA 2020-21 – September 2020 – 8
 2. How do you assess Apple’s competitive position in smartphones –
how sustainable is the position?

Core Valuable Rare Inimitable Organized Result

Yes Yes Yes
Brand Yes SCA

Global Yes No No No
CP
Presence
Yes Yes Yes
Software Yes SCA

Product Range Yes Yes Yes Yes SCA

Ease of Use
Yes No No No CP

Compatibility
Yes Yes Yes Yes SCA
with 3rd party
App Store Yes Yes Yes Yes SCA
Research &
Yes Yes Yes Yes SCA
Innovation

Business Strategy – MBA 2020-21 – September 2020 – 9

• One of Apple’s most valuable resources and capabilities is indisputably its strong
brand name and marketing strategy.

• Product and service integration is another core competency of Apple.

• Will have a sustainable competitive advantage in the smartphone division as along as

it continues to follow its core business model of being different.

• Research and development (R&D) is another crucial factor of success. Apple’s

strategic foresight capability in combination with their ability to bring innovations from
concept to market

• The global smartphone market is very volatile and highly competitive. In third-quarter
2011 Samsung overtook Apple in smartphone shipments as well as market share for
the first time in its history.

Business Strategy – MBA 2020-21 – September 2020 – 10

 3. What do you recommend to CEO Tim Cook?
 Keep focus on R&D identify what innovative things will work in digital world.

 Use of cloud services in mobile is still evolving – take a lead in this area.

 Keep focus on Hub strategy where device can control other hardware integrated like home
appliances etc.

 If they can make their older editions available they can sustain well ahead of all smart phones in
terms of price.

 Continue the expansion of Apple stores: The stores represent an important source of revenue for
Apple and serve as an interactive advertisement for the Apple brand.

 Apple should continue to support the educational andcreative professional markets.

 Increase Battery Power - While every other phone company provides battery capacity of 4000-
5000mah, iPhone is providing highest of 3650mah for their recent iPhone 11 Pro.

 Enforce better copyright laws to stop design imitation.

Business Strategy – MBA 2020-21 – September 2020 – 11

Business Strategy – MBA 2020-21 – September 2020 – 12