Originality Score 5%
Name: Donna Caesar-Roberts
Professor: Jon Gettman Subject: MGMT 670 Date: 04/06/2014
Case 14: Apple Computers in 2012
Apple computer Inc. is a multinational corporation that creates consumer electronic, personal computer, computer software, commercial servers and digital media. Apple‘s core product lines were iPhone, smart phones, iPads, tablet computers iPods, portable media players and Macintosh computers. The founder, Steve Jobs, and Steve Woziak started Apple Computers in 1976 and incorporated it into a company on January 3, 1977 (Cusumano, 2002). For more than two decades, Apple Computers predominantly manufactured computers, which included the Apple II and Macintosh computer product lines. The company upon establishment was successful, but later faced a slump in sales and low market share in the 1990s. Jobs, who had been ousted out of the company in 1985, returned to Apple in 1996 after his company NeXT was purchased by Apple. The following year he became the company’s interim CEO, and afterwards became the CEO. Because of his leadership style and philosophy, Job subsequently instilled a new corporate philosophy of products and simple design, which began with the introduction of the Mac computer. Apple success can be attributed to the aggressive business strategy to become a leader in the computer industry mainly due to the effort input in product innovation and development. Apple computer product expansion and competiveness enables them to become successfully in order to meet the demand of the consumer. Through Steve Job leadership, Apple introduced products that were considered new entrants in the market (Siameki, pg 50 2012). Some of competitors introduced products that were similar to Apple’s, but the company products were different, due to the fact that they had unique features, in which the products made were of high quality. The features were of the highest quality in materials and industrial design which made Apple a leader in the computer industry. . In 1987, with the introduction of the Mac book, it failed to be successful because there were only limited features and only targeted specific segments of the population, such as, business professionals that had interest in desktop publishing and other programs. When the Mac book failed to obtain the intended market share, he examined consumer behavior and advanced the business strategy tone, then applied competitive strategies, which would allow them to beat rivals and introduced products to the consumers that were easily accessible. Because of Steve Job leadership qualities he was the driving force towards innovation and the ability to revamp the computer business industry because he foresaw the need for constant innovation. With the introduction of the iPod player in 2001, and iTunes Store in 2003, Apple established itself as a leader in the consumer electronic and media industries. The company is also known as a leader in smart phone, media player and tablet computer products that started with the iPhone, followed by the iPod Touch and then the IPads. As of 2012, Apple was the largest publicly traded corporation in the word with an estimated value of 626 billion in September 2012. And Apple’s worldwide annual revenue is larger than Google and Microsoft worldwide. Strategy
1. In reviewing the basic generic strategies that apple implemented, I concluded that apple use a broad differentiation strategy. According to (Thompson, Gamble pg, 115,) this strategy seeks to differentiate the company product offering from rivals in ways that would establish a brand name for the new products. Apple was able to use this strategy by offering a variety of products with the attributes not offered by...
References: Azadi Siamek and Rahimzadeh, E. (2012). Developing Marketing Strategy for Electronic Business by Using Porter’s Five Competitive Forces Volume 2 pg 47-57
Cusumano, M. (2002). Technological Strategy and Management. The Puzzle of Apple Inc. Harvard Business School Press, Boston MA.
Renko. N. Sustic I. (2004). Designing Market Strategy Using the Five Competitive Forces by Michael Porter International Journal of Management Cases. Pg 376-382
Thompson, A and Gamble. J (2006) Strategy, Core Concepts and Analytical Tools: Copyright the McGraw-Hill Companies.
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