Apple Inc. in 2010 Harvard Case Solution & Analysis

Introduction

Apple is an American multinational company founded by Steve Jobs, Ronald Wayneon and Steve Wozniak on 1st April, 1976. The initial aim of the company was to develop and sell personal computers by maintaining outstanding quality. In less than a year, on January 3, 1977, it was incorporated as Apple computer.  Back in the year 2007 the company was renamed as Apple Inc. so that its focus can be shifted towards the consumer electronics.  Apple’s headquarter is based in California, which is responsible for monitoring the entire operations.

Analysis

Core Strategy and Decision

Apple simply keeps its focus subsequently on refurbishing its extensive product line to increase the customer satisfaction and offer these extraordinary machines that could provide a cutting-edge and most importantly to integrate the user experience. Apple’s founder Steve jobs at Stanford University focused on the element that you need to trust your target of life with complete honesty and dignity which will lead you towards the path of success. He additionally says that one should never lose the element of faith to achieve success. Apple still remains dedicated to the educational market, new personal computer related products which are dedicated towards home consumers’ lifestyle. Basically Apple’s greatest strength is its premium price in almost all of its product categories. Apple’s new “Retail Strategy” and “Digital Hub Strategy” played an exceptional role in making Apple a successful brand name across the world. Apple acquires the digital hub strategy in 2001 when it launched the iPod. The process continued, which resulted in the launch of the iPhone and iPad in the year 2007 and 2010 respectively.  These tremendous innovations based offerings helped Apple in completely becoming a digital convergence company. At the similar span of time back in the year 2007, the company changed its name from “Apple Computer” to “Apple Inc.” which straight away shows the reflection of the official reposition of the company.

Apple inc. In 2010 Case Solution

Moreover Apple’s overall competitive position changed dramatically when the International Business Machine enters the PC market back in the year 1981. IBM gained an exceptional success which forced Apple to come up with a new innovative product. In 1984 Apple launched Macintosh, which indeed became a success. Apple came up with the first Mac PC which was based on the Intel chip back in the year 2006. In the very next year the complete line of Macintosh was based on the Intel chips, which also helped the company to manufacture  better laptops  that were comparatively fast and relatively had low battery usage.

Competitive advantage

Apple has been quiet famous for selling the premium products across the world. According to a leadership expert Simon Sinek, Apple focuses on the word “WHY” and it believe on challenging the status quo by designing the products that are user friendly.  Apple emphasizes on the fact that people only buy electronic products when they are seeming to be innovative and advanced. Apple possesses many competitive advantages which actually makes it quite unique in the entire industry. The exceptional combination of its hardware and software sets Apple apart from its competitors. Other than the outstanding smart phones and iPads, the appearance of Apple iTunes, which is even called Trojan horse by some analyst, gives Apple a gigantic boost in gaining advantage over its competitors...

Moreover the Eco System, which was introduced by Apple on a pioneer basis played an important role in grabbing the additional competitive advantage.  Moreover, the product quality and premium prices attract the customers in the real optimistic manner. These differentiations make its product highly exclusive and sounds attractive to consumers. Apple’s products have always been designed in such a manner that it gives tough time to its competitors and creates outstanding differentiation. One of the best things about Apple’s differentiation strategy is that it helps the company in making people excited about the upcoming product. Regardless of high competition, Apple has flourished quite well in generating demand for its products, by ensuring brand loyalty, innovative advertising and by creating hype before the launch of new products.

SWOT Analysis

Apple’s SWOT analysis has been conducted to analyze internal & external factors and threats associated with the company. This SWOT analysis quickly assess the current position of the Apple.

  • Strengths

Apple Inc. possesses the strongest brand image and reputation within the market and owns a leading position in the entire industry when it comes to the products like smart phones and other entertaining products. Apple actually developed itself as the company committed to offer the premium quality product by charging premium prices across the world and established itself in a leading position in the electronic and digital product industry.......................

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April 4, 2010, the company launched the Apple Inc IPad, the third major innovation the company released in the last ten years under its iconic CEO Steve Jobs. Apple's strategy shift its business into non-PC was still thriving due smashing success of the iPod and iPhone. However, problems abounded. Macintosh sales in the global PC market continues to languish below 5%. Sales growth rate is slowing down. iPhone faced increasing competition in the smartphone industry. And it will be the latest creation of Apple, iPad, take the company to the next level? "Hide
by David B. Yoffie, Renee Kim Source: HBS Premier Case Collection 25 pages. Publication Date: April 13, 2010. Prod. #: 710467-PDF-ENG

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