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Q: How sustainable is Apple's competitive position in PC and

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Jonathan Choo

on 10 April 2014

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Transcript of Q: How sustainable is Apple's competitive position in PC and

Q: How sustainable is Apple's competitive position in PC and smartphone markets? Evaluate your answer using Miles and Snow Typology
Defender
Defender
To be able
SUSTAIN
it position, a business must be strong in a key functional area in order to maintain competitive advantage over time
PC Industry
Apple OS vs Windows OS
Top PC vendors: HP, Dell, Lenovo and Acer
Mostly people in the world use Windows OS
Start widely knownfrom windows 98 – XP – Vista – 7 – 8
Smartphone Industry

Nokia Motorola Samsung acquire 60% of market share
Due to technological advancement, samsung become the biggest contenders in smartphone industry
Android represent 80% profit of smartphone sector of Samsung

Analyser
Makes fewer and slower product-market changes than prospector, usually second or third entrant in product market
Attempts to maintain a stable, limited line of products or services
Often with a lower cost or higher quality product or service offering

How sustainable? (PC Market)
The iPad is currently dominating the tablet market.
The first available Internet tablet in the market (FIRST MOVERS)
Apple successfully brought their iOS software from their Smartphones to their iPads.
HARDWARE
Slick design
Largest market share = HP
Apple also faces stiff competition from Dell & Lenovo
PC market sales declining, tablets & smartphones cutting sales.
SOFTWARE
Apple's unique strength =
Digital hub
strategy
Integrated with other devices.
Simple user interface.
The Miles and Snow Typology
1) Defender

2) Analyser

3) Reactor

4) Prospector
Concentrates on protecting its current markets
Appropriate when units a profitable share of one or more major segments in a relatively mature, stable industry
Consistent with improvement for the product
Analyser (Apple vs Samsung)
Phone Accesories, cable and packaging
Samsung wallet and Apple passbook
Analyser (Apple vs Asus)
Reactor
Lack of well-defined competitive strategy
Does not have consistent a product-market orientation as its competitor
Not as willing to assume the risk of new product/ market development as its competitors
Not as aggressive in marketing established products
Responds when forced to by environmental pressures.

Reactor (Blackberry)
Smartphones unsold, eg. Z10
Z10 launched in March 2013
$5.9billion Annual Loss (BBC News, 2014)
Loses its competitive advantages

Prospector
Highly innovative companies that focuses on growth and risk taking
Constantly seeks new markets and opportunities
Their strategies:
Differentiated strategy
Innovative products
Unique features and functions
Cost not so much an issue
Prospector = Apple
Examples:
Macintosh
iPod
iPhone
Apple Store
Patent wars
How sustainable? (Smartphones)
Brand loyalty
Revolutionised the Smartphone & its OS.
Smartphone market growing due to changes in:
Technology
Customer preferences
However, faces stiff competition from Samsung & Chinese manufacturers.
Able to connect software to hardware.
Full transcript