Strategic Management

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1. (a) What are the key elements of Apple’s strategy in computers and Smartphone’s?

The key elements of Apple’s strategy in computers and Smartphone’s is to create innovative products that are user friendly and engineered to be so unique from other Smartphone’s. They offer excellent customer loyalty by allowing individuals to go into their stores and either play or explore their technology before purchase, while offering customer service. (b) Have its strategies in its Smartphone business yielded success? Explain.

Apple’s strategy in its Smartphone has yielded success as the launch of the IPhone was named Time Magazines Invention of the year for 2007. Apple’s IPhone has accounted for more than half of the Smartphone sales in the United States last quarter with Apple reporting 51.2% of mobile phone transactions, selling nearly 48 million IPhone units in its fourth quarter.

(c) Does Apple have any sustainable competitive advantages? If so, what are they?

Yes Apple has sustainable competitive advantages such as the innovative styles of the IPad, IPhone and IPod all featuring touch screen and numerous downloadable applications. Brand loyalty, recognition and great customer service has also made Apple a very successful company.

(d) Which of the five strategic approaches in Chapter 1 does Apple employ? Explain your reasoning.

Apple employs the broad differentiation strategy whereby designing their products so different from their rivals. Launching small, compactable products with operating systems which require no anti-virus protections has made it difficult for competitors to succeed further than Apple.

2. (a)Does it make good strategic sense for Apple to be a competitor in the computer, personal media player, smartphone, and tablet computer industries? Are the value chain activities that Apple performs in computers, personal media players, tablet computers and smartphones very similar and “compatible” or are there very important...
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