Apple In 2012 Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Introduction

Apple Inc. is a worldwide organization based in U.S that was founded by two friends, Steve Jobs and Steve Wozniak. The company sells and designs variety of electronic products that includes a variety of software’s, digital music players, mobile devices, computers and other digital applications. The company sells its product through its direct sales force, retailers, wholesalers, retail and direct online stores.

This case discovers the success and challenges that the company faced. Steve job died of cancer on October 5, 2011.The CEO that is recently retired from Apple Inc. had transformed Apple into one of the largest and maximum gainful companies in the world from the company that was near to the bankruptcy after the death of the Steve Jobs. Furthermore, he had modernized various industries in the process that includes computer tablets, music and phones. After his retirement the new CEO Tim Cook was hired who faced extraordinary challenges.

Statement of Problem

The main problem that the CEO Tim Cook of the company faced is that how to maintain the success of the Apple products that includes computers, MP3 players, tablets and phones while increasing the growth and market shares of the company. Secondly, would the iPhone will continue to maintain its dominant position in the smart phones in the situation of growing competition from the other companies. Finally, whether the iPad which is the newest creation of the Apple continue to dominate the market of the tablets or would the new competitors steel shares from the Apple and drop its profit.

Analysis

The analysis of the case includes PESTEL analysis, SWOT analysis, market segmentations and positioning strategies, customer analysis, competitor analysis and marketing mix strategies.

SWOT Analysis

SWOT analysis that is used to analyze internal and external factors and threats involved in a Business. SWOT analyses quickly assess the current position of the company.

Strengths

Apple Inc. has the strongest brand well known image and reputation with the market leading position around the world. Apple developed the supreme respected company in the world in the year 2012 and established itself as a leading position in the fast growing industry of the electronic and digital products. The other strength of the Apple is the customer loyalty which lower the customer switching cost to another operator and increases the level of customer's satisfaction.

The company has high technology employment to increase their sales and to improve product awareness. The continuous innovation helps the company to differentiate itself from its competitors. The company has expertise in design, marketing and manufacturing.

Weaknesses

The main weakness of the Apple Inc. is that its product is highly priced as compared to other operators in the market which can’t be affordable for several customers. The company has lower market shares in the industry of software than its major rivals. The weakness of the company is that its dependence of the iPhone and the iPad in term of revenue and market growth. The iTunes sales are impacted by the free download free music from the other online source without any cost. The decline in the sales of the Mac Mini and windows desktop is another weakness of the company.

Opportunities

The company can expand its product market by targeting new emerging markets in order to increase the growth and market shares of the company. As the customer's lifestyle and preferences change the customer demand for the media and communication device increases, so the company can enhance its performance by satisfying their needs based on their demands. The company can also develop new designs of the laptop as the laptop market growth is high in order to satisfy the customers need.

Threats

The main threat for the company on the day by day increasing competition from the other players in the market. Another threat for the company is changing in the lifestyle and preference of the customer which may lead the customers to switch into other companies. The patent violation is a threat that the company may face as the intense competition lead to numerous lawsuits in the industry.

PESTEL Analysis

The external macro and micro environment analysis in which business operates is called PESTEL.

Political factor

The political is an important factor that company faces in domestic as well as at international level. These factors include government stability, patent, trade policies and the uncertain political conditions. The Company affected by these political factors largely as the company produces widely held of its products outside the USA.

Economical factor

The economic factors have an important impact on the profitability of the Apple Inc. The recession around the world hugely impact the sales of the company’s product. Other influences that distress the efficiency of the company includes inflation rate, unemployment rate and the currency rate. The Apple products viewed as high price, luxury products as the inflation rate went high while income went low and unemployment.....................