Apple's Profitable but Risky Strategy

2518 words 11 pages

Case Study

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A long term plan and action that is formulated to help a company to setback and achieve a competitive advantage against its competitor and rival is called competitive strategy. This type of strategy is frequently used in marketing, promotion and advertising operations by somehow questioning the rivalry's service or product. Competitive strategies are vital to businesses which are competing in markets for the leading position, the market which is deeply saturated with substitutes for consumers. (Porter,2008).
This case study is truly about the competitive strategy of Apple. Apple was
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Stepping into a download music market, Apple has made huge revenue and profit. Anyhow, its mobile phones are still need to be improved. (This is at the time of this case study). Apple’s software is the biggest strength of the company which will help it to lead in the market. While Nokia also has its own strengths and spirit to lead and it is struggling hard for this. Rob Wells, senior vice president at Universal for digital music, said that stepping of Nokia into music industry is a great jump and that the market will be awake in coming time and there will be access to the jukebox to each device and consumer. ( Pfanner,2009).
While focusing at mobile telephone industry, iPhone 4 is only launched by Apple in 2007 which also needed some improvements. While Nokia is known for its durable hand phone sets and Nokia is the front line leader in mobile phone industry and is really very struggling. Nokia is also finding interest in the market of internet stepping into the field of internet and making worthy progression towards it. (Grant,1991).
So it seems that although Nokia is front line leader in the mobile market but the way Apple has start-up and initiated is excellent. It has transformed mobile industry into new shape. And it seems that in upcoming years Apple will be the one who is leading and will be strong although it has risky strategy but more the risk, more will be the profit. Apple


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