Strategic analysis of Apple products

Bowman and Boston Business Strategies

Use Bowman's Strategy Clock identify the clock positions for at least four products. Remember there are eight positions in Bowman's Strategy Clock. Be sure to provide a rationale for your decisions.

Designed to expand on competitive strategy expert Michael Porter's threefold path to success in business, Bowman's Strategy Clock has become a useful addition to the arsenal of tools analysts use to gauge the success or failure of a given product. By examining the product lines produced by Apple Inc. within the context of Bowman's Strategy Clock, one can develop an accurate assessment of each product's particular status within the overall market. For example, Apple's iPod Shuffle was initially released to provide an inexpensive alternative to the more fully functional iPod, and thus this product would be aligned with the first position on Bowman's Strategy Clock: Low Price & Low Value. The product is priced at a significant discount in comparison to Apple's premium products, but it is also designed to offer only a few of the primary product's most attractive features. The iPad, on the other hand, would be aligned with the third clock position (Hybrid), because the device was intended to expand on the iPod and iPhone ideas by combining their most desirable features. The introduction of the MacBook Pro-in 2006 allowed Apple to differentiate its product line from competitors attempting to mimic the iPod phenomenon, meaning this product is aligned with the fourth clock position (Differentiation). Finally, Apple's release of the iPad Mini represents Focused Differentiation, which is the fifth clock position on Bowman's Strategy Clock, because the device diverges slightly from an established template while appealing to a particular segment of the overall consumer base.

Use the Boston Consulting Group Matrix identify a product for each of the four cells. Those four cells are known as cash cows, dogs, questions marks and stars. Again be sure to provide a rationale for your decisions.

The analytic focus applied to Apple's product line can also be shifted to incorporate a tool known as the Boston Consulting Group Matrix, which uses a four-celled system to determine a product's current status within the marketplace. The first cell in the Boston Consulting Group Matrix describes products which are known as "cash cows," and clearly with the overwhelming success enjoyed by the company's iPhone line, this now ubiquitous device represents Apple's most popular and profitable product. The fact that consumers regularly replace their iPhones with updated models, while also purchasing accessories and downloading content for a fee, lends the product to cash cow status. Apple's current "star" would have to be the iPad, as educators and businesses are integrating the device into their operations at an astounding rate. Chambers of Commerce around the country use iPads for digitized registration, waiters carry them to each table for instant and accurate order recording, and even children are gifted with the device as a combination of their favorite media. A current "question mark" for Apple concerns its Apple TV product, as the advent of Netflix and DVR technology has shifted the way in which people view television shows and movies. Finally, the "dog" for Apple is clearly its Lightning to USB Cable (1 m), based on the overwhelmingly negative reviews provided by loyal customers since the product's release. The fact that this product represents an unnecessary alteration in connection ports for consumers who have grown accustomed to using the same cords and plugs, while also remaining relatively expensive at a $19 price point, has made the Lightning to USB Cable (1 m) one of Apple's most unpopular products to date.