...Porter’s four competitive strategies does Apple engage in? Explain. Scope | Broad | Cost Leadership | Differentiation | | Narrow | Cost Focus | Differentiation Focus | | | Cost | Differentiation | | | Source of Competitive Advantage | Figure 1.0: Porter’s four competitive strategies Porter’s four competitive strategies does Apple engage in are cost-leadership strategy, differentiation strategy, cost-focus strategy and focused- differentiation strategy. Explanation is as below. 1. Cost-leadership Strategy Apple used to identify customers’ specific needs and designed to meet their needs. The cost strategy here can be clearly shown when Apple design iMac computer and iBook computer for the basic computer buyers. Those computers’ price is lower compare to the iMac Pro. Besides that, Apple use information systems to lower the operational cost in order to lower product prices or gain extra profits. This will directly let the traditional competitors and new market entrants difficult to match the prices. Moreover, efficient customer response systems provide a company and its suppliers with an integrated view of customers. These systems provide instantaneous information to the company and its suppliers. Every staff member can have access to the information in the system to help reduce costs and prices well below that of the competition. Processes such as supply replenishment are automated between companies and suppliers. When products reach a certain...
Words: 3511 - Pages: 15
...Confusing Product Brands and Company Brands It's obvious that Procter & Gamble is a company brand, but what's an Apple? Like P&G, Apple is a company brand. But unlike P&G, the Apple company brand is a powerful motivating force for buying Apple product brands including the iPod, the iPhone and the iPad. Every company should have a powerful company brand, but they don't. Except for a handful of companies like Johnson & Johnson, most company brands influence very few consumers. How many consumers go out of their way to buy Procter & Gamble products? Or Unilever products? Or PepsiCo products? Or General Motors products? Not very many. How do you build a company brand? Many marketing pundits have a lot to say about this subject. Some typical approaches include: * Communicating culture, concern for the environment and sustainability programs. * Purpose-driven marketing, based on social responsibility and standing for something that inspires consumers. * Through innovation, by launching new products and services that are on the cutting edge of design and performance. All of these things are worth doing, but they don't do much to build a company brand. The problem is the noise level. It's not just the Fortune 500 that are causing the problem. That's just the tip of the corporate iceberg. It's the Fortunate 17,509. There's nowhere near enough room in the average consumer's mind to file away facts about all of these companies, or even a tiny fraction...
Words: 975 - Pages: 4
...It will research Apple, Inc., and explain their strengths, weaknesses, opportunities and threats. The paper will show how these aspects impact the company. It will provide methods that management can use to overcome their weaknesses and threats, as well as how to take advantage of opportunities and strengths. The importance of a SWOT analysis A SWOT analysis is important to an organization because it analyzes the climate of the company overall. It provides a candid look at the strengths and weaknesses of the organization. This allows management teams to decide how to best use the strengths of the company, and how to improve the weaknesses. When goal setting and long-term planning, these are areas that either can be exploited, or need improvement. When reviewing opportunities and threats, an organization must look at its corporate environment. The opportunities are aspects of the environment that a company can take advantage of such as a way to expand or grow customers. Threats to an organization can come in many forms. A company must make every effort to avoid or minimize threats to its bottom line, or even its mere existence. A SWOT analysis helps to identify what is good and what needs improvement in a company. While strengths and weaknesses are the internal indicators of an organization’s need for improvement, opportunities and threats are the external forces that determine needed changes within a company (Jurevicius 2013). Explanation of Apple, Inc.’s SWOT and...
Words: 1913 - Pages: 8
...SWOT Analysis of Apple as per its position in market in 1980’s Strengths: 1. Easy to use machine 2. It offers a complete desktop solution including softwares, peripherals, hardware, etc 3. Very strong R&D ( 9% sales to R&D) 4. Differentiation in design and technology ( allowed higher price) 5. Strong team of technical, visionary and businessman. Weakness: 1. They have lesser 3rd party or compatible softwares 2. Slow mac processor 3. Closed system that other producers cant clone with Opportunities: 1. Desktop publishing and education market 2. Customer lock-in 3. Target rich customers Threats: 1. Lower prices can hurt its sales. ( left only with installed base) 2. IBM market share i.e. strong competition with IBM 3. New players can enter in this growing industry Answer 1. Along with the internal attributes (i.e. firm’s strengths and weakness), we have analysed the the competitive environment Apple is facing in 1980’s. (i.e. the opportunities and threats) . Apple used its firm’s resources and capabilities to develop, manufacture and deliver its products to its customers. It used its strengths to grab the opportunities to enter into the market. In 1978, Job’s mission to bring ease to use computer came true, when the company launched Apple 2. It was a relatively simple machine which people can use straight out of the box. It sparked a complete revolution in the industry and Apple quickly became the...
Words: 1088 - Pages: 5
...Apple – Merging Technology, Business, and Entertainment Anonchai (Anand) Madan Corpus Christi College Management Information System 03/02/2016 Table of Contents 1.Introduction…………………………………………………………………………….3 2. How does Apple apps give them competitive advantage?……….……………………3 3. Why are data, information, business intelligence, and knowledge important to Apple?………………………………………………………………………..…………..5 4. Apple’s use of Porter’s Five Force Model………….……….……………….…………6 5. Conclusion…………………………………………………………………………….8 6. References…………………………………………………………………………….9 Introduction This paper aims to answer the following questions: Do you agree or disagree that Apple’s iTunes, iPhone applications, and iPad applications give the company a competitive advantage? Be sure to justify your answer? Why are data, information, business intelligence, and knowledge important to Apple? Give an example of each type in relation to the iPad. Analyze Apple using Porter’s Five Force Model. Which of the three generic strategies is Apple following? Which of Porter’s Five Forces did Apple address through its introduction of the iPhone? Which of Porter’s Five Forces did Apple address through its customer-developed applications? How does Apple apps give them competitive advantage? There are various factors that brought Apple back from near extinction. One of which, was its ability to...
Words: 546 - Pages: 3
...citizenship is a very important topic within the global business environment today. Consumers have much more hands on access to company data and can question the actions of corporations much easier than before. The access to the Internet and forms of social media has been some of the reason that corporation’s feet are being held to the fire. They cannot get away with social irresponsibility. In 2012, Apple was the largest publicly traded company in the world (Lawrence & Weber, pg. 156). They are a company that is always in the limelight. The way they operate and the decisions they make that effect the environment and their consumers does not go unnoticed. Apple has had issues with their manufacturing suppliers. They have had to make many hard decisions to be sure their products were being made in safe and healthy working environments. This has lead to many supplier issues, because it seems as though Apple takes corporate citizenship much more seriously. As we look into this issue further we see that Apple not only wants to be seen as strong corporate citizens, but they will hold any business associated with them to the same standards. Introduction Corporate citizenship is a topic among businesses large and small. The affect corporations have on employees, consumers and our financial and global environment has shaped the way these businesses operate. Companies are held to higher standards whether they like it or not. They are forced to be more transparent than they have ever...
Words: 1231 - Pages: 5
...Apple Inc. Company Overview: Apple Inc. is an American multinational corporation that designs and sells consumer electronics, computer software, and personal computers. The company's best-known hardware products are the Macintosh line of computers, the iPod, the iPhone and the iPad. Its software includes the Mac OS X operating system; the iTunes media browser; the iLife suite of multimedia and creativity software; the iWork suite of productivity software; Aperture, a professional photography package; Final Cut Studio, a suite of professional audio and film-industry software products; Logic Studio, a suite of music production tools; the Safari web browser; and iOS, a mobile operating system. As of July 2011, Apple has 364 retail stores in thirteen countries, and an online store. It is the largest publicly traded company in the world by market capitalization, as well as the largest technology company in the world by revenue and profit, more than Google and Microsoft combined. As of September 24, 2011, the company had 60,400 permanent full-time employees and 2,900 temporary full-time employees worldwide; its worldwide annual revenue in 2010 totaled $65 billion, growing to $108 billion in 2011. Headquarter: The Apple Campus is the headquarters of Apple Inc., a consumer electronics and PC corporation, located in Cupertino, California. The facility is referred to as a campus because its design resembles the campus of a university, with the buildings arranged around green spaces...
Words: 1591 - Pages: 7
...Chapter 2: 1) Market oriented mission statement defined in terms of satisfying basic customer needs. Important questions that should be taken into consideration are what is our business, who is the customer, what do customers value and what should our business be? 2) Business portfolio planning involves two steps (1) the company must analyze its current business portfolio and determine which business should receive more, less, or no investment. (2) it must shape the future portfolio by developing strategies for growth and downsizing. First marketing provides a guiding philosophy- the marketing concept that suggests the company strategy should revolve around building profitable relationships with important consumer groups. Second marketing provides inputs to strategic planners by helping to identify attractive market opportunities and assessing the firm’s potential to take advantage of them. Finally within individual business units, marketing designs strategies for reaching the unit’s objectives. 3) True market orientation does not mean becoming marketing driven; it means that the entire company obsesses over creating value for the customer and views itself as a bundle of processes that profitably define, create, communicate, and deliver value to its target customers to create value. 4) Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs. Involves...
Words: 2272 - Pages: 10
...Cast study of Apple Company Apple is undoubtedly the world's largest and most innovative companies. Their products can always call attention from all over the world, which can promote the company's rapid growth. However, as the market become more mature and there is more competition involved, Apple’s investors should not only pay attention to the company’s opportunities, but also guard the possible threat. Now, the largest threat which Apple is facing is how to develop itself after the Steve Jobs era. Facing this challenge, the best practice for Apple is realizing the pressure and keeping in step with the times. People generally believe that Steve Jobs is the foundation and the driving force of Apple's innovation culture. It is Jobs who bring Apple from the brink of collapse to a global industry leader and one of the most respected brands. From Apple's perspective, we believe that the company's future product blueprint has been basically established within the following two or three years. So the death of Steve Jobs will not affect short-term operations. The main longer-term challenge for Apple depends on whether it can continue to foster the same culture of innovation and the policy of consumer-oriented development approach. Culture is one of the buzzwords of business school, although it cannot be measured, designed or institutionalized. However, we all know that a strong culture always plays a huge role to the company's success and brand recognition. Over the years, Steve...
Words: 707 - Pages: 3
...Apple SWOT Analysis Jamaal Piper MGT 521 July 4, 2011 Dr. Julie Ballaro Introduction Apple Computer, Incorporated have gone through many up and downs to become the successful company that it is today. Co-Founder and current Chief Executive Officer Steve Jobs has been an innovator and strong leader in the direction of the company. A mutual fund manager should invest in Apple due to the track record Apple and Jobs has demonstrated. The following SWOT (strengths, weaknesses, opportunities, and threats) analysis of Apple will illustrate where the company has been and where it is going. Apple has set high standards for their products, which continues to challenge its competitors. History Steve Jobs and Steve Wozniak on April 1, 1976, both college dropouts, started Apple Computers. Jobs was a 26-year-old working at Atari and Wozniak was 21. Their partnership began several years earlier when Wozniak, a talented, self-taught electronics engineer, began building boxes that allowed him to make free long-distance phone calls. Several hundred boxers were sold and in 1976 Wozniak was working on another box--the Apple I computer, without keyboard or power supply--for a computer hobbyist club (Finkle & Mallin, 2008). Their original partnership began years earlier when they were designing a box to that could make free long distance phone calls. In 1976 Wozniak was already working on the first Apple Computer, the Apple I. Later that year the Wozniak began developing...
Words: 2526 - Pages: 11
...Apple Inc. Executive Summary Apple was not just innovative; the company was disruptive. The ability of the tech giant to go from an electronics company on the fringe of obscurity to creating an ecosystem of “must-have” products has been nothing short of amazing. The company did it by being disruptive. When Apple launched the iPod, Steve Jobs created a device that changed not only how the consumer listens to music, but also how he or she communicates, takes pictures, reads, or just passes time. Apple took smartphones to a new level, creating something sleek and innovative. Jobs created a cool new music player for “cool” people. The company established a high-cost narrow-focused market segment (Baltzan, 2011). The iPod and Apple would end up with a high perceived-value that meant, while the consumer always paid a premium price, he or she also always received an operationally superior product and great customer service. Applying Porter’s Five Factors Model, Apple demonstrates its superiority in the smartphone/tablet industry. While the company does not dominate the global market, it does dominate in profits. As a result of large profits, Apple has more financial leverage in negotiations with suppliers and manufacturers. Rivalries and substitutes are generally not an issue among existing Apple device users. Brand loyalty is extremely strong among Apple users. The examination of Apple through Porter’s lens reveals a company that is sustainable. Do you agree...
Words: 1846 - Pages: 8
...1- What might have happened to Apple if its top executives had not supported investment in iPads? Answer- The idea of an iPad took the market by storm. If Apple’s executives had not supported the investment in iPad, then any of their rivals would have launched a tablet. Just like Samsung, HP, Microsoft did just after Apple launched their iPad. If that would have happened, then Apples share in the electronic industry would be limited to mobile phones and computers only and Apple would have lagged behind from its rivals and the scenario of today’s electronic market would have been different. 2. Why would it be unethical for Apple to sell its iTunes customer information to other businesses? Answer- If Apple ever tried to sell its customer information to any third party institution, then it would be really unethical act because Apple is carrying the trust of millions of its customers and if they sold that information to someone then that information can be used for many illegal ways, because it contain both financial and personal information of the user. So by doing this Apple will be breaking the trust of millions of its customers. 3. Evaluate the effects on Apple’s business if it failed to secure its customer information and all of it was accidentally posted to an anonymous website. Answer- Although, the protection of this type of information is among the top priority of it companies, but still if this information is leaked someday then it will be proved as a disaster...
Words: 1020 - Pages: 5
...technological age, there are two companies that stand out on top in my mind. California-based Apple, Inc., led by CEO Tim Cook, has the highest market capitalization of any technology company in the world. Profiting off its high successful iPod and iPhone products, as well as its growing MacBook and iMac personal computing products, Apple’s is known for its high quality electronics. Like Apple, Samsung Electronics is also profiting off its smartphone product line. Based in Seoul, South Korea, Samsung Electronics is led by CEO Geesung Choi and the company is ranked 5th globally in market capitalization. With the release of its Galaxy SIII in 2012, Samsung is proving to be a very strong competitor to Apple, although it still has a long way to go to catch up. Neither Apple, nor Samsung Electronics is unionized. Both companies also distribute their products the same way; both directly and through retailers. When looking at the strengths for Apple, it’s easy to see why they are one of the most profitable companies in the United States. In March of 2012, Apple’s stock reached the $600 mark, which gave them a $560 market capitalization (Kessler, 2012). This is more than double than Wal-Mart’s $210 billion market cap (Kessler, 2012). For a company that was on the verge of bankruptcy in the 1990’s, I find these numbers to quite astonishing. Having such a high value allows Apple control the music and book markets, as record labels and book publishers work with Apple to set prices. I believe...
Words: 1688 - Pages: 7
...MMWHTI Assignment 15 Design thinking and Innovation at Apple A Write-Up Abhiroop Mankin(1311072) Why has Apple been so successful? What do you attribute it to? What are the key reasons for Apple's success? Are Apple product so successful because of the brand status and premium pricing? Many believe that Apple is so successful because of their marketing and brand status. Is it really true or there is something else? Do Apple products really stand out amongst all its competitors? I'm no expert in Apple products nor am I what is called an "Apple fan-boy" but I will highlight the reasons why I think Apple is successful: 1. Simplicity One of the things that fascinated me about Apple products was its sheer simplicity. A device which is an audio/video player, and has several additional features can be operated with the help of two buttons. An inner round button coupled with the outer "click" wheel could in essence operate the whole device. Apple has exported this outlook to all their other products, and tries to make them as simple as possible; products which the Average Joe could operate with ease. Apple is a classic example of simplicity and ease of use over everything else. 2. Beauty Aesthetic value is of prime importance when it comes to Apple. When was the last time you looked at an Apple product and thought it was ugly? The built, design and form factor of their products along with the choice of material used is usually spot on. More than a Samsung Galaxy S5...
Words: 1706 - Pages: 7
...Analysis of Apple Inc Apple Computer Company originated on April 1, 1976 by Steve Jobs and Steve Wozniak, dropped out of high school. At the time of forming their partnership, Steve Jobs worked for Atari and Steve Wozniak worked at Hewlett-Packard. Their company initially started in Steve Jobs’ garage. The first computer was the Apple I, followed by Apple II which launched in 1977. By 1980, Apple III was released and they were able to employ several thousand people. Apple or “the company” is engaged in design, development and marketing of personal computers, media devices, and portable digital music players (Research and, M. 6). The company also sells a variety of related software, services, peripherals, networking solutions, and third-party digital content and applications. The two master minds behind the Apple branding has lead to $65.23 billion dollars in sales in 2010. The amount of technical devices this company has produced over the years has earned superior creditability in the technology field for stationery and portable devices. Today Apple’s annual review is more than 60 billion, making them the largest technology company in the world. Apple aims to continually invest in research and development for products that best serve the needs of the market. It is very important in the role as a mutual fund manager, to evaluate the business analysis of Apple Inc. before making the decision of whether or not to invest into this company. In doing...
Words: 1165 - Pages: 5