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Apple Business Model

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Apple’s Business Models Analysis and Suggestion with Web 2.0 Strategy

Contents 1. Abstract 3 2. Apple’s Business Model 4 2.1. Elements of successful business model 4 2.2. Apple’s innovation on its business model 4 2.2.1. Customer Value Innovation 4 2.2.2. Profit Pattern Innovation 5 3. Challenges Analysis 6 3.1. Apple’s challenges 6 3.2. Porter’s Five Force Model analysis 6 3.2.1. Threat of new entrants 7 3.2.2. Threat of substitute products or services 7 3.2.3. Bargaining power of customers (buyers) 7 3.2.4. Bargaining power of suppliers 8 3.2.5. Intensity of competitive rivalry 8 3.3. Innovation Matrix 9 4. Suggestion and action plan 10 4.1. Apple’s Fishbone Diagram 10 4.2. Monetizing for Apple with Web 2.0 strategy 11 4.2.1. N-sided platform 11 4.2.2. Multiple revenue stream 11 4.3. Platform Innovation 11 4.3.1. Production 11 4.3.2. Creative and Media 11 4.3.3. Accessories 11 4.4. Online Promotion 12 4.4.1. Action Plan: 12 4.5. Sustainable Competitive Advantage 12 4.5.1. R&D input 12 4.5.2. Better customer value 12 4.5.3. Sustainable profit pattern 12 5. Business Model Canvas 13 Conclusion 14 Reference: 15

1. Abstract
Apple’s huge success set off a global widely discussion on its secret. According to this essay, it is not difficult to find its success story was attributed to its unprecedentedly innovative business model, which was not rare in the typical case analysis of Walmart, BestBuy, and Amazon who are the leader of corresponding industry due to the innovation of business model.
Status shows 11 out of 27 new entering Fortune 500 companies from the year 1998 to 2007 considered their success was owing to the innovation of business models. The percentage approach 50% which is a huge evidence to prove the significance of business model, especially for

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