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Copy of Apple Case Study

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guo lingli

on 20 December 2012

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Transcript of Copy of Apple Case Study

Apple Case Analysis Jenny Green, Riley Huskey,
Kelli Johns and Morgan Klipp ALTERNATIVES Keep the same strategy Lower prices THREE CRITERIA Product Price Product Integration Evaluate the competition BACKGROUND OF APPLE April 1, 1976 April 1978 End of 1980’s 1984 1996 Sept. 1997 1998 1998 Next 10 years Oct. 5, 2011 PROBLEM STATEMENT How Tim Cook can ensure Apple maintains and grows market share in its four areas of product focus including computers, MP3 players, phones and tablets. PC Smartphone Tablet MP3 RECOMMENDATIONS Narrow product line offering for iPod products by eliminating the iPod classic and iPod shuffle

Increase storage on iPod touch and reduce price on iPod nano to be more consistent with the iPod shuffle pricing strategy

Cannibalize the iPod product line through continued integration of its benefits in PC, iPhone and iPad products




Keep consistent pricing strategies of existing products, to ensure devaluation of product and brand does not occur

Continue to focus on technical elegance, sleek design and a streamlined user experience

Market product lines separately as well as featuring the integration of the “digital hub” functionality




Continue high investment in research and development to remain relevant and competitive

Reevaluate product sales and trends after two years to consider future narrowing of product lines and innovation of new futuristic products ADDITIONAL
RECOMMENDATIONS Expand Foreign Markets
Increase Combination Products
Expand User Experiences with each device SWOT
Brand awareness and loyalty
Worldwide Innovator and technology leader
Top-of-the-line products
Global reach
Customers buying multiple Apple products
Successful “digital hub” feature with iCloud and iTunes STRENGTHS WEAKNESSES Loss of Steve Jobs
Complicated business plan, introducing new products ALL the time
Majority of corporate world uses Microsoft software
High priced products versus competitors
Lack of presence on Facebook
High research and development costs as industry innovator OPPORTUNITIES Release of upcoming Apple products that are currently under development
Grow share in international markets
Cross product sales could increase from the integration of Apple’s products
Grow product lines to include other industries (i.e. household appliances, jewelry, accessories)
Potential of new customers based on new product lines
Incorporate current products into new industries (cars, locker rooms, kitchen appliances, televisions, airplanes)
A shift in education where more computer labs and classrooms use Macs THREATS Potential for competitors to take advantage of new management’s learning curve
Perception that Apple’s products will not maintain the “perfection” standard formerly demanded by Steve Jobs
Ongoing technological race for new innovation including possibility for start-up companies
Strong competitors with lower prices
Competitors’ online music stores (i.e. Amazon, Yahoo, Walmart)
Free streaming of Spotify, online radio stations, Pandora, etc. EVALUATION OF ALTERNATIVES Same strategy
Price
Integration
Competition Eliminate iPod
Price
Integration
Competition Lower price
Price
Integration
Competition COMPETITIVE FORCES Threat of intense segment rivalry
Threat of new entrants
Threat of substitute products
Threat of buyers’ growing bargaining power
Threat of suppliers’ growing bargaining power PLAN TO
IMPLEMENT 1985-1993 1993-1997 ANALYSIS OF PROBLEM QUESTIONS
Full transcript