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Submitted By dvallejo17
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Strategy and Competition
Final Exam: 50%
Students are required to read the “Apple Inc. in 2010” case study and answer FIVE (5) of the following questions. They are required to submit their answers within the stipulated time frame.
1- What, historically, have been Apple’s competitive advantages?
Apple’s competitive advantages are its innovation, strong brand and rapid growth.
In the Sculley years, Sculley pushed the Mac into new markets, most notably in desktop publishing and education. Apple’s desktop market was driven by its superior software and peripherals. In education, Apple grabbed half the market. Apple’s worldwide market share recovered and stabilized at around 8%. By 1990, Apple had $1 billion in cash and was the most profitable company in the world. Macintosh’s loyal customers allowed apple to sell its products at a premium price. That shows apple’s competitive advantages included customers loyalty.
Spindler killed the plan to put the Mac OS on Intel chips and announced that Apple would license a handful of companies to make Mac clones. He tried to slash costs, cut
Apple’s workforce, and pushed for international growth.
Amelio proclaimed that Apple would return to its premium-price differentiation strategy.
Apple’s failure to produce a new OS keep it ahead of Microsoft Windows 95.
Steve Jobs acquired NeXT Software and develops OS based on it. Jobs abruptly halted the Macintosh licensing program. Other restructuring efforts involved hiring Taiwanese contract assemblers to manufacture Mac products and revamping Apple’s distribution system from smaller outlets to national chains. Apple launched a website to set up direct sales for the first time. Internally, Jobs focused on reinvigorating the innovation. Apple increased its spending on R&D. Job’s first real coup was IMac in 1998 posted $309 million profit, reversing $1 billion loss.
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