Tutorial 2
Case Study 2 - The Apple iPod, iPhone and iPad.
1. What might have happened to Apple if its top executives had not supported investment in iPads?
Ans. If the executives had not supported investment in iPads, the Age of Apple Company would never be arrival. Present day the electronic gadgets like apple’s iPhone, iPad and iPods are dominating in the market, which is thanks to the success of iPads. As shown in the textbook, the introduction of the iPad, a brilliant sample of technology for business and obviously for the entertainment had pulled Apple back to dominate the market. If no executive had not invest in the program of iPad, Apple will stay no longer.
2. Why would it be unethical for Apple to sell its iTunes customer information to other businesses?
Ans. It is unethical for Apple to sell its iTunes customer information to other business because it would break the users trust and decrease the value of Apple in the market.
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.
Ans. The effects on Apple’s business if it failed to secure its customer information and it was accidentally posted to an anonymous website are
Break the users trust, decrease the value of Apple in the market, threats of new entrant’s effect by their new inventions, rivalry of competitors.
4. 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.
Ans. One of the main factors that brought Apple back from near oblivion was its ability to produce, market, and sell IT products such as the iPod, iPhone, and customer developed application...
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...e but to purchase the product from Apple. Unfortunately, Apple could not create an entry barrier and soon many other companies began offering integrated cell phones, which increased buyer power and reduced supplier power.
9. Which of Porter’s Five Forces did Apple address through its customer-developed applications?
Ans. Apple decreased the power of its buyers and increased its own supplier power by introducing customer developed applications. Since the iPhone was the first to market with an internet access, data storage, MP3 player, which could all accept customer developed applications, its buyers had no power and no choice but to purchase the product and the applications from Apple. Unfortunately, Apple could not create an entry barrier and there are more and more companies offering customer developed applications such as Google and its Android operating system.
Apple is a king in the technology world; poisoning every area of the industry that they have introduced a product too. They are slowly weeding their competition out. The only a company thrives in the thorn bush market is if they are in cahoots with apple. Apples co-founder Steve Jobs, started the company with all intention of dominating the market. The only obstacle for them is the Anti-trust law created ages ago. Apple, in their attempt to take the market over, has been racking up evidence against themselves. There reach has leaped boarders and even caught the attention of the European Union. Apple is pushing their boundaries and in the future will eventually cross the line in to monopolistic actions.
This segment can either put Apple on the edge of advantage or decrease the company’s capabilities. Over the years, Apple has proven to be a giant in this field because of its innovative products and services. Apple always takes the led while its competitors follow suit, although this also poses to be challenge for the company, it took Google less than one year to replicate ApplePay, Google called it AndroidPay it has the same capacity to function just exactly like ApplePay. This shows that Apple’s products and services could be copied thereby reducing the uniqueness of the products. Because the short lifecycle of technology, Apple needs to keep upgrading its products and services to stay on the top of the game. “Because the industries in which
Apple management must bridge the perceived innovation gap with some sort of product breakthrough. Otherwise, it is reasonable for the company to accept lower Street expectations built upon the premise that while the company remains an exceptional production, distribution and branded business, the days of unparalleled enterprising innovation and leadership may be ebbing.
Cutting costs by competitors is the most logical way for competitors to be more competitive in the market. By cutting costs, there are more profits to be made and to gain market share by offering lower cost substitute products. The industry is flooded by competition, but no other competitor of Apple really focuses on creating great technical upport or brand loyalty. (Elliot, 2014)Apple’s primary focus is to develop innovative products and create a unique product that consumers can depend on the being the most highly anticipated technological device while offering great service and support for these new products. Apple uses business model innovation which introduces new products that are compatible with each other such as iTunes and the iPhone or ipod. This has proven to be a very effective business model and competitors are trying to replicate the same model to their advantage. (Jakab, 2015) By being an innovator and first mover on this type of technology, it gave Apple the competitive advantage in the market. In order for competitors to be more effective in the industry, they must attempt to gain customer loyalty and offer a simliar business strategy to that of Apple if they are to be the industry
Product;the key is providing a product that appeals to customers in more than way “iPhone is more than just a phone. It combines three devices in one: a revolutionary mobile phone, a widescreen iPod, and a breakthrough Internet device. All that and more makes it the best phone you’ll ever use” apple website.By investing in a phone that is capable to provide all these different functionalities save consumers ...
The company not only produces the number of highly technological devices, but also has a great brand ideology lying behind. The following chapters would review each of factors determining Apple`s success.
One common torment of companies is that they are not renowned. Consumer personal information, including email addresses and telephone numbers, is a panacea for the companies- it provides a way for them to promote themselves by sending junk email or making phone calls.... ... middle of paper ...
is yet to reach its maximum potential. Truly a unique entity in its accomplishments and organization, apple through the conviction and leadership of Steve Jobs its founder and then CEO; have pioneered the revolution of mobile technology. When it comes to strength, apple Inc, has a great marketing team with great marketing and advertisement capabilities, strong brand awareness, a strong and extensive distribution channel, and most of all a vertical integration and the most obvious which is customer loyalty. With the acquisition of valuable companies such as Beats, WhatsApp, mobile payment systems with the IPhone 6, wearable gadgets like the IWatch, apple uses these opportunities to satisfy its loyal
Apple can adopt the strategy to portray a picture of a not so conducive less profitable market, which could discourage new entrants from picking that path as they will be demotivated by the low return on investment resulting from low profitability levels. In order for apple to create a niche for t numerous products, it needs to adopt and implement such bold strategies of defense to protect their interests and continue to be profitable and successful (Ideavist, 2011). Entry of a new company into the technology sector would spell doom for most companies already struggling for market share as better priced and reliable products could imply consumers would shift their preference to the new entrant leading to a negative volume of sales stir for most already established companies. Another strategy that could be employed as part of Apple’s defense could be the pre-entry strategies that make it even harder for new entrants to compete and enter into the sector and this involve continuous improvement for their products, covering
Apple’s SWOT analysis includes strengths that adhere to its great success; such strength is Apple’s marketing and advertising campaigns. Apple incorporates its products to portray a sleek, new, cool, the latest, and must-have technology image to its consumers. Our customer loyalty allows us to continue growing as a corporation and increases our already well-established brand awareness and reputation. Our strong financial performance is an outcome of our internal strengths highlighted. Apple’s weaknesses include, but are not limited to our patent infringements, defects that occur in our products, our declining market share, as well as our incompatibility with other os devices. Realizing our weaknesses allows us to develop goals that will correct these areas we currently need work on. The opportunities of our external environment; such as the ...
Apple is a company that has been round for many years. There are over 55 million people who use an apple product or are considered to have at least one apple product in their home. The apple products range from larger devices such as there amazingly known Mac books which are there computer based system to there much small hand held based device called the iPhone. That device allows a person to make calls all while have the convent amenities that a laptop would have. They also have the very popular iPod as well as Apple TV. They have expanded into an empire that everyone is trying to become as well as beat. As many people know there is history and hard work that has to take place in order for a business to be successful. Many people will refer to the success of apple as the underdog company that made despite the odds. Founder Steve Jobs was a regular person with a dream. He started of building an Apple computer in his parent’s living room and later moved to the garage true to lack of space. Later on in his building career a neighbor of Steve Jobs introduced him to Stephen Gary Wonzniak. Wonzniak was an engineer and Jobs was a market maven and together they have the skills to build and properly promote. The computer they were trying to promote was fairly expensive computer. Jobs was so dedicated to this idea of transforming this computer from what it was to something that is able to be sold to the public he reached out to Bill Hewlett and asked him to donate some parts for a class projects .
Apple Inc. was established by Steve Jobs and Steve Wozniak on April 1, 1976 as a computer designer, developer and seller company. However, the company shifted its focus from only personal computer to include other consumer electronics such as portable media player and mobile phone in 2007. Apple Inc becomes one of the most popular makers in its field since it seems that its popularity has increased according to a report on www.statista.com that Apple Inc’s products sales was generally increasing throughout the first quarter of 2006 to the first quarter of 2014. On the one hand, it has increased its revenue from about 14 billion US dollars to more than 170 billion US dollars in 2013. All in all, the company is highly successful corresponding to its products’ development and their sales growth in world’s market.
It was possible that these serious allegations would influence the sales and success of Apple’s iPhone 6, which was to be released just weeks after the scandal. This was not the case. Anticipation for the event still boosted Apple’s shares to a record close the end of August 2014 at US$102.50, a 28 percent gain that year
Computers and technology makes it easier for entrepreneurs to enter this market. Not only are major tech companies competing against one another, but they are also competing against little programmers that know how to code. In our time you will never know with certainty when a small group of engineers or computer scientists are going to create, “next big thing”. Apple has been able to have a competitive advantage over its competitor by creating the highest quality products and services. Some of Apple’s current competitors are Microsoft, Google, and Facebook, and a few other tech companies as well. Most people strongly people Apple is one of the stronger company its industry, but then again some other people have biased views. Financially, they are the strongest company in the world. Also people are always willing to pay a premium for their products because of their durability, quality, and prior experiences with Apple products. Apple is always on the look at for new innovative ideas and concept that are being produced by self-motivated entrepreneurs. They are always looking to hire bright minds and let them develop within the company. A lot of entrepreneurs, programmers and engineers do not have a problem working for Apple because of their well-established perks. Apple offers its employees of the best benefits in the world. They also fairly compensate their employees that work in the front-end store as
Apple has predominated manufacture of personal computers, the Apple II, Macintosh, and Power Mac lines for more than two decades but faced serious sales and market share downfall during the 1990s. Steve Jobs, who was ousted from Apple computers in 1985 returned to Apple in 1996 and introduced a new philosophy of recognisable products of simple design named the original iMac in 1998. Apple established itself as a leader in consumer electronics and media sales with the introduction of iPod music player in 2001 and iTunes Music Store in 2003 both of which got immense popularity over the years which led to the development of iPhone. The first iPhone was released on June 29, 2007 with its own operating system iOS in selected countries. Further upgrades to the iPhone and up...