Apple prides itself on its innovation. Apple was founded by Steve Jobs and Stephen Wozniak in 1976; Apple Computers revolutionized the personal computer industry. Those that are relevant to Apple are product features, product mix, links with other firms, and reputation. Apple Inc. and how, through its technologically advanced abilities and electronic sharpness, it has propelled and introduced the world to a essentially new era of multimedia innovation. This move allowed Apple to have a desktop and a portable computer in both the professional and the consumer segments. Apple Corporation: Case Study on Pricing Strategies Apple is an American multinational company best known for developing and selling electronic devices and software worldwide. One of the major concerns of Apple is that if it tries to get an alternative to production in China, it will increase the cost of production, resulting in an increase in prices of Apple products. The Causes of the Problem Two critical issues stand out in the case of Apple and have a direct relationship with the underlying problem. Focus on the high end. A business strategy is a deliberate plan that helps a business to achieve a long-term vision and mission by drafting a business model to execute that business strategy. We can describe Apple’s business strategy in terms of product differentiation and strategic alliances. Later, Apple introduced the easy-to-use iMac in 1998, and updates following 1998. That was a mistake. Tacit collusion is a valid source of economic value in network industries, which the computer industry is. However, Spindler nixed Gateway in 1995 due to cannibalization fears. Think different in the world of technology and bring greater revenue. To resolve these dilemmas, there must be an appropriate organization structure. Apple is headquartered in Cupertino, California and was founded by Steve Jobs. In the case of Apple, there was the opportunity to manage risk and share costs  facilitate tacit collusion , and manage uncertainty. Contents Afterwards several strategic alliances were formed: * The first strategic alliances … But you’d need to recruit God to get it done.”   Michael Murphy, then-editor of California Technology Stock Letter, stated, “Apple desperately needs a great day-to-day manager, visionary, leader and politician. It covers all the strategic issues facing the industry and Apple inc. as well as the recommended solutions for these issues on business and corporate levels. Case Study on Apple’s Business Strategies We can describe Apple’s strategy in terms of product differentiation and strategic alliances. Not only does a company have to bear the cost of standard business, it also must bear the costs associated with overcoming the differentiation inherent in the incumbent. “If we had licensed earlier, we would be the Microsoft of today.” – Ian W. Diery, Apple Executive VP, I am aware that I am known as the Great Satan on licensing…I was never for or against licensing. Bargaining power of buyers or customers: Strong force 3. The company has been providing robust technology products and exceptional software services. Bargaining powe… Analysis of Apple Inc. business Strategic Unit (iPad unit) There are four primary organizing dilemmas when considering product differentiation as a strategy. Supportive Communication - Meaning and Attributes, Understanding Different Types of Supply Chain Risk, How to Motivate Your Team Through Mobile Messages, Supply Chain Integration Strategies - Vertical and Horizontal Integration, Apple Computers Inc is considered to be one of the innovators in the computer industry. That explains why the top three mobile handset unit sales ‘leaders’ (Nokia, Samsung, LG) are outselling Apple in raw units an astounding 23.5 to 1, yet for all of that effort, combined they are garnering only 82 percent of Apple’s profit level. Although Apple eventually realized the economic value of strategic alliances, it should have occurred earlier. This case study is to begin with a situational analysis that will encompass the industry structure, competitive situational analysis and the firm's self-analysis. The Story of an iPhone Video. It is vital to remember, “Commitment, coordination, and trust are all important determinants of alliance success.”, Your email address will not be published. Apple Inc. founded a brand new method in which microchip technology was to be created and used for industrial, Planning Process of Apple Inc. to achieve its Objectives Set This role also resolves disputes, particularly among the other leaders. Business-Level and Corporate-Level Strategies  There is economic value in strategic alliances. Product Differentiation Apple prides itself on its innovation. Required fields are marked *. Since companies pursue niche markets, there is a reduced threat of rivalry among industry competitors. A U-Form organization resolves the inter-functional collaboration dilemma if there are product development and product management teams. In 2003, Apple released the world’s fastest PC (Mac G5), which had dual 2.0GHz PowerPC G5 processors. The critic challenges investments, goals, and progress. Analyze the business-level strategies for the corporation you chose to determine the business-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. There is economic value in product differentiation, especially in the case of monopolistic competition. An equity alliance should have contracts describing the equity investment. Apple turned the corner in 1993. For instance, Apple pioneered the PDA market by introducing the Newton in 1993. In 2003, Apple released the iLife package, containing improved versions of iDVD, iMovie, iPhoto, and iTunes. I just did not see how it would make sense. Five leadership roles will facilitate the innovation process:   Institutional Leader, Critic, Entrepreneur, Sponsor, and Mentor. Product differentiation is a viable strategy, especially if the company exploits the conceptual distinctions for product differentiation. Apple is buying those inputs in a large volume and it allows Apple to negotiate good terms and pricing with its suppliers. Apple Inc. in 1997 vs. Apple Inc. in 2013 were in two completely different scenarios. Summary of Apple Case Study Analysis 1.0 Introduction 1.1 Introduction of Apple: Apple Inc. is the most famous name in the technology sector, it is an innovative electronics manufacturer, which is giving benefits to the consumers and to the suppliers, and the company is using successful strategies in the market so the best results could be achieved. The company’s strategy was. Apple subsequently acquired Power Computing’s customer database, Mac OS license, and key employees for $100 million of Apple stock and $10 million to cover debt and closing costs. In 1998, Jobs stated that Apple’s strategy is to “focus all of our software development resources on extending the Macintosh operating system. What we should have done was calculate an appropriate price to license the operating system. A strategic alliance can be a sustained competitive advantage if it is rare, difficult to imitate, and the company has an organization to exploit it. Read about "Apple differentiation strategy" Initially under Steve Jobs Apple’s long-term strategy was “to bring an easy to use computer to the market” (Yoffie & Slind, 2008). This case study focuses on the mass enterprising activities of a world’s leading consumer electronics and software company, i.e. 4 Key Things Employees Are Looking for From Their Next Workplace, Supportive Communication – Meaning and Attributes, Supply Chain Integration Strategies – Vertical and Horizontal Integration, Understanding the Importance of International Business Strategy, Employee Participation and Organization Performance, PRINCE2 Methodology in Project Management, Evolution of Logistics and Supply Chain Management (SCM), Case Study on Entrepreneurship: Mary Kay Ash, Case Study on Corporate Governance: UTI Scam, Schedule as a Data Collection Technique in Research, Role of the Change Agent In Organizational Development and Change, Case Study of McDonalds: Strategy Formulation in a Declining Business, Case Study: Causes of the Recent Decline of Tesla. In 1997 Apple Computer was in deep trouble. Differentiation………………………………………………………………………………………………. 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