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Apple Case Study
Apple
Competitive strength assessment of Apple's computer business
A competitive assessment of Apple reveals that Apple has these factors everything ready devices, design and innovation, R&D oriented, and greater vertical and horizontal integration. Apple has made its devices be everything ready, which reduces the consumer's headache in sourcing for software or additional hardware to suit their individual purpose. Ensuring that the devices are ready for the consumer's use also offers the consumer the confidence to purchase and use the computers. Consumers are willing to pay premium prices provided they know they can get all they need in one device (Pavlou & El Sawy, 2010), and they will not have to search for additional hardware and devices. This differentiation has offered the company competitive advantage over its computer rivals. The design of the computers are attractive, and they are easy to use. Innovation has ensured that the company is able to offer its consumers products that are ahead of time, and they have undergone market research. The innovativeness of the company has allowed it to have computers that challenge the market trends, but are liked and appreciated by the consumers.
Apple is oriented towards research and development. This factor has enabled the company to improve continuously on its computers. R&D orientation has allowed the company to challenge the market and offer products that its competitors do not have. Apple has a greater vertical and horizontal integration, which enables the company to reduce its production costs and control production of its hardware and software. Integrating the development of its products ensures the company can effectively have components...
This integration is vital to the company's competitiveness, since most if its rivals lack integration.
Is the company's competitive positions in the media players and smartphones are stronger or weaker than its position in computers?
In the personal computers market, Apple has a market share of 10% and is ranked third. In the media player market, the company holds 73%, while, in the mobile market, Apple controls 24% and is ranked second (Goasduff & Pettey, 2012). This does reveal that the media player and smartphone have a stronger market share than in the personal computer industry. Since 2007 when the company launched the first iPhone, the smartphone has attracted a greater number of consumers. With subsequent releases, the smartphone has increased in popularity and consumer base. This demonstrates the company has a stronger competitive position in this industry than in its personal computers industry. The product offerings the company has allowed it to differentiate itself and capture a significant portion of the market. Product diversification ensures the company is able to meet the needs of different consumers. The hardware design of its smartphone is unique and demonstrates the company's innovativeness.
The digital players market is highly competitive with various brands that are cheaper than iPods, but Apple has managed to maintain a 73% market share. All the other rivals have not managed to an achieve market share greater than 5%. This demonstrates the company has a stronger competitive position in this industry than in the PC industry. Incorporating and coming up with an integration platform that no other rivals have managed to…
References
Al-Debei, M.M., Aloudat, A., Al-Lozi, E., & Al Asswad, M.M. (2014). The Role of Value Networks in the Design of Mobile Platforms: The Case of Apple iPhone. Approaches and Processes for Managing the Economics of Information Systems, 123.
Goasduff, L., & Pettey, C. (2012). Gartner says worldwide smartphone sales soared in fourth quarter of 2011 with 47% growth. Visited April.
Pavlou, P.A., & El Sawy, O.A. (2010). The "third hand": IT-enabled competitive advantage in turbulence through improvisational capabilities. Information Systems Research, 21(3), 443-471.
XM has taken a more target product strategy, attempting to increase depth of programming services over the pervasive offering of devices. Industry analysts have commented that Sirius is now competing with Apple and their iPod series based on the breadth of their devices (Sirius Satellite Radio Investor Relations and SEC Filings 2008). Sirius' approach to personal satellite players has only been marginally successful and clearly given the operations expenses
Alternatives and Solutions Clearly, Apple is a successful, multidimensional and global corporation. Sales have more than doubled between 2005 and 2009 domestically and more than tripled internationally. The company has adequate income to fund R&D, but could reduce cost of sales considerably and funnel those funds into future projects and/or advertising. Solutions for their issues may be broken down into four general areas: Reduction of COG through outsourcing, Improving Market Share
Apple Inc. Organization's Product Life Cycle Samsung, Google, and Microsoft are the three predominant competitors for Apple Inc. These giant firms are fundamentally auspicious in making Apple Inc. lose its market share. They are utilizing price competition methodologies and more current and quick line expansions. The rivalry is exceptionally extreme because of current players and the presence of substitutes, which have the capacity to snatch ten percent of the market share
Apple in the Enterprise -- their role in B2B Markets Apple in the Enterprise: How They Are Succeeding in the Business-to-Business (B2B) Marketplace Apple Inc., has shown through the consecutive series of innovations in the smartphone, MP3 and tablet markets that their propensity to create profitable business models is now a core competency. While investment and analysts debate just what the critical catalyst of their successes are, nearly everyone agrees on the ability
Competitive Strategies of Google and Microsoft The Battle for the Future of Search: Comparing the Brilliant, Competitive Cultures of Google and Microsoft Both Microsoft and Google have emerged as catalysts of remarkable growth in the high technology industry. Each of these companies have a very unique, finely-tuned series of strategies for managing the innovation processes, including the steps each rely on for creating new services. Each also has shown remarkable success at delivering
74 and a cash ratio of 2.03. Apple has no long-term debt and a 2-to-1 debt ratio (MSN Moneycentral, 2010). Apple has relatively few weaknesses. The company's emphasis on software, marketing and design has left it with a weakness in hardware. Apple products do not have the superior lifespans one would expect from a product commanding a premium price tag. Another weakness is the dependence on leadership. Apple without Steve Jobs simply