Apple Inc. 2008 Case Analysis

After three tumultuous decades, Apple recently surpassed Microsoft to become the largest technology firm in the world. Since his return 13 years ago, Steve Jobs has steered Apple through profound changes to create completely new product lines, such as: iPod, iTunes, iPhone, Apple TV and Macbook Pro. According to the Boston Consulting Group’s growth-share matrix, Apple’s growth coupled with a steady market share is elevating them into “star” status. The company’s ability to dominate the marketplace and reinvent entire industries has strategically positioned Apple and relatively insulated them from the competition (Exhibit A, B). This “Apple bubble” in the market has yet to be penetrated. To avoid repeating historical mistakes, Apple needs to tread carefully on licensing, partnerships, and premium pricing—factors that served as significant obstacles in the founding stages of the company.

Alternative Courses of Action

Based on Apple Inc’s financial health, large cash reserves, high growth rates, and global brand recognition, it would appear the immediate marketing and competitive threats to the company are relatively minor (Exhibit F). However a long-term horizon view of the company reveals emerging threats, potential loss of market share, and missed business opportunities (Exhibit G). The following is an overview of the marketing arenas Apple should consider focusing on to mitigate competitive threats and increase its product and service market share.

Reintroduce Mac Products to the Business Market. Most companies prefer to use traditional PC technology due to its broad compatibility with business software, customer familiarity, and competitive pricing. Apple needs to focus on creating an opening for businesses that would be interested in switching to a more user-friendly and elite Mac, but currently worry about Apple’s premium pricing and the difficulty of conversion to a new system.

Education. Apple should move to reestablish its position in the educational arena to market product bundles to school systems. By adding user support and adapting familiar educational software for Mac use, Apple could reinvigorate the stale education technology world. Apple can safely rely on its existing brand equity with the younger generation of students who are already familiar with Apple’s other products, such as the iPod and iPhone making a jump back into education viable.

Apple TV. A technological revamp of the struggling Apple TV product could help to reverse its disappointing sales. An evaluation of the marketing channels used to promote Apple TV and the partnering with major television manufacturers to include Apple TV’s operating system in their products are tactics Apple should consider to transform Apple TV into a more practical product.