Case Study Apple

940 Words2 Pages

Xiaolong Fu
Dr. Ekin Alakent
Mgmt 4650
February 27, 2014
Apple Inc. Case Study
1. What historically have been Apple’s competitive strengths?
2. How sustainable is Apple’s position in the smart phone market?
Apple is one of the leading company in the electronic industry located in Cupertino, California. This electronic giant, at top of Business Weeks Most Innovative Companies list since 2004, had showed itself by doing so well over the years in not only product design but also make a huge amount of money in the past 20 years especially in revenue and margins. According to “Apple Sales”, in the first quarter of 2011, $26.7 billion in revenue, 70% increase from a year before was reported. Apple was established as a computer company in Mountain View, California, on April 1, 1976 by Steve Jobs and Steve Wozniak. But later diversified to a digital entertainment and software company in 2003 by providing iPod and iTunes which made them “invented a whole new category of digital music player that let you put your entire music collection in your pocket and listen to it wherever you go”. In 2007, the company also competing in the cell phone/smartphone industry by releasing iPhone which combined an Internet-enabled smartphone and video iPod. After they released the first iPad in April 2010, this giant becoming a diversified digital entertainment corporation in all three industries, PCs, consumer electronics and music, which made them taking bites out of the competition on all fronts.
From 1976 to 2003, Apple was defined majoring as a computer company. As the company was funded by Steve Jobs as the visionary and marketer, Steve Wozniak as the technical genius and Markkula Jr. as the businessman, the company set the mission of empowe...

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...ergies and strategic “fit” between different businesses and steer corporate resources.
From 2007 to 2011, the iPhone, 3G and 4 helped Apple sustainably positioning them self in the smart phone market. By creating a strong brand name of not only provide the most powerful device with full of latest technology (iTunes, smartphone with cameras, Face time, tough screen, high definition screen, etc.) but also make their customer’s life easier and better. As Steve Jobs pointed out that “market share wasn’t everything”, by outsourcing manufacturing Apple design their manufacturing efficiency which lower their cost; by historically paid attention to research and development, Apple spent a lot of money on their R&D investment year after year, which made them have the ability to innovation from concept to market. They know what customer want and design base on that.

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