Strengths o Apple Love: “The majority of IBM and compatible users ‘put up’ with their machines, but Apple’s customers ‘love’ their Macs” o Perception of being a “hip” alternative & cultural force o Multimedia & design capabilities/software o Now compatible with Windows/Microsoft Office suite, and supports plug and play “peripherals” such as printers designed for Wintel PCs o Intel allowed Macs to run Windows and thus remove a long-standing disadvantage o Dominance in designing UI technology (intuitive, attractive design and interface) o Digital convergence/entire Apple platform, not just a single PC or device o Retail channel strategy o Economics of Mac/Apple devices
Weaknesses o Lingering perception that Apple computers are not intuitive to use, or are not compatible with Microsoft Windows systems/software o Perception that Macs are over-priced as compared to other PC options o Limited scale/penetration within PC market (largely concentrated market)
Opportunities o PC product offering(s) with lower price point o Obtaining more of the mainstream consumer base o Large consumer base with iTunes/iPods – convert more to Mac with additional engagement? o Expand availability of iPhone/providers
Threats o Smartphone platforms – particularly Android o Other music platforms – subscription & streaming, both paid and free
UI/design aesthetic could be copied, with resulting products sold at lower price
Questions
1. What were Apple’s competitive advantages? o “PFM.” Or “Pure F’ing Magic” o Ready “out of the box” o Multimedia & design capabilities, and sought-after proprietary software such as iLife suite o Perception of being a “hip” alternative to the PC, and being a “cultural force” o Apple Love: “The majority of IBM and compatible users ‘put up’ with their machines, but Apple’s customers ‘love’ their Macs” o Superior operating system (OS X) and frequent