Apple Business Strategy Analysis

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Brief description of PC and Smartphone’s industry

Smartphones|
Company| Market share| Key success factors|
Android| 68,1%| * software * innovation * synchronization with google account| Apple| 16,9%| * design * style * size * capacity * software * download facility * distribution| Blackberry| 4,8%| * reliability * carrier friendly * design| Nokia| 4,4%| * price efficiency * reliability * distribution * client's service| PC|

Company| Market share| Key success factors|
HP| 17,2%| * reliability * client's service * hardware * fingerprint reader| Lenovo| 13,0%| * design * price friendly|
Dell| 12,1%| * design * extended product line * worldwide client's support * reliability| Acer| 11,2%| * price effiency|
Asus| 5,9%| * design * price friendly|
Tablets|
Apple| 61,4%| * design * processor * weight * storage * capacity * style| Samsung| 7,5%| * innovation * design * capacity |

The worldwide sales of tablets are almost doubled in 2012 and PC market slightly decreases as a whole. With the launch of iPad2 more customers switched to buying alternative device or PC looks like tablets. Apple iOS takes 61,4% of worldwide tablet sales. Samsung is on the second place with 7,5%.

Resources of Apple. Potential for scale, experience and scope economies

Strong know-how, RFS, RMS, new Product Development Programme, together with skilled human resources represents well integrated resources of the company.

Diversified product line and high quality software and hardware allow sharing the resources of the company among existing businesses. This may create economies of scope, which saves costs. The size of the company, level of innovations, design and strong brand name gives to Apple competitive advantage. Company uses economies of scale, having achieved multi channel marketing and mostly cut the middleman and...
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