Case Study 1- Apple Inc

1490 words 6 pages

Case Study #1
Apple Inc.
Dixie Corbin
MGMT 670
Fall 2013

What does a competitive strength assessment reveal about Apple's computer business as compared to the leaders in personal computer industry? Use the methodology in Table 4.2 to support your answer. Does it appear that the company's competitive positions in the media players and smartphones are stronger or weaker than its position in computers? Table 4.1 is in Chapter 4, page 65; Table 4.2 is the SWOT analysis, page 71. Apple Inc. has provided many innovative and creative products to consumers over the years. Many industry analysts want to know if Apple can sustain its growth and defend against new competitive threats. Apple lost their CEO Steve Jobs in 2011 to
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The financial sheets show constant growth and financial stability. Net sales grew from $24,006 in 2007 to $108,249 in 2011. Earnings per common share grew from $4.04 in 2007 to $28.05 in 2011. Apple has shown constant growth over the past few years but this does not guarantee constant growth in the future. Apple will need to monitor their competition. Apple will have to do their part to continue to develop innovative technology and maintain customer loyalty. Apple’s current strategy is to “bring its customers compelling new products and solutions with superior ease of use, seamless integration and industrial design”. Based on this explanation it is obvious that Apple’s strategy is to bring a broad range of easy to use, technologically advanced products. They are using broad differentiation as their strategy. All of Apple’s products are similar in some aspects but different in others. For example the iPod, iPad and iPhone use a lot of the same parts in the manufacturing process which eases the production process. They are able to have different but still slightly similar products to meet a broad range of wants and needs. The value chain activities in each of the product lines are similar enough for Apple to justify keeping all of their product lines. The most important of the four product lines to Apple’s future growth and profitability is the smartphone. Smartphones are very high in demand and have a


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