Apple Inc Case Study Strategy

Strategic Management; Apple and Nokia Case Analysis

6157 WordsOct 6th, 201525 Pages

Strategic Management Apple & Nokia Case Analysis

1. Table of Contents
1.0 EXECUTIVE SUMMARY OF APPLE AND NOKIA CASE 2
2.0 QUESTION 1 3 2.1 Competitive analysis of Apple and Nokia – who is stronger? 3 2.1.1 Competitive Analysis 3 2.1.1.1 SWOT Analysis 5 1.1.1 Strengths of Apple 6 2.1.1.2 Value Chain Analysis 9 2.1.1.3 Resourced Base View Tool 11
3.0 QUESTION 2 14 3.1 PESTEL analysis tool 15 3.2 Porter’s Five Forces 17 3.3 The Implications for Strategic Development are; 21
4.0 QUESTION 3 21 4.1 Critical Analysis Lessons from Apple’s risky but profitable strategy 21
5.0 REFERENCE: 23…show more content…

It will also assess the problems associated with predicting the changes in market competition and its implications for strategy development.

2.0 QUESTION 1

2.1 Competitive analysis of Apple and Nokia – who is stronger?

It is inferred from the case study that as an organisation, Apple consistently relied on its brand strength and reputation. The culture of offering high quality products underpins its high pricing strategy as it concentrated on niche market.

From the onset in 1976, the organisation has adopted a non-cooperative approach to its rivals and to some extent the supply chain by limiting copyrights of its technology. This possessiveness or full ownership, particularly in computing technology was meant to stifle competition.

Whiles doing this, it failed to recognise the emergence or strength of its competitors like Microsoft as it launched the Windows 1.0 which had similar functionality as Apple Macintosh. Windows, unlike Apple Macintosh, was a mass product with a wide customer base and comparatively lower priced. This made it more appealing to customers giving Microsoft a large market share than Apple.

In the mobile phone sector, the dominant competitor to Apple was Nokia which had matured in the industry by the time Apple entered. With about 350

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I. EXECUTIVE SUMMARY

Incorporated by Steve Jobs and Steve Wozniak in 1977, Apple Computer, Inc. wasincorporated with a net worth of US$250,000. It has since grown leaps and bounds to theApple Inc. of today, employing close to 50,000 employees worldwide, with a net worth of US$209,379 million in 2010, placing it 56

th

among the Fortune 500 companies. From theiPod revolution in 2000, to the iPhone in 2007 and most recently, the iPad in 2010, Apple hasintroduced, amidst much fanfare, ground-breaking products that revolutionized the marketssince the start of the 21

st

century.

This report serves to provide some insight of a firm that has been named Fortune magazine‟s

most admired company in the world for three consecutive years from 2008 to 2010. Astrategic analysis of the firm will examine the opportunities and threats in the general

environment and the firm‟s strengths and weaknesses.

Apple operates in many aspects of consumer electronics, such as personal computers (PCs),mobile communication devices, digital music and video devices. The industry presents thefirm with ample growth opportunities such as the emerging economies, the shift towards themobile era and increasing consumer digital lifestyle. However, global markets for consumerelectronics are highly competitive

as Apple‟s competi

tors are quick to respond to its majorproduct launches. As Apple operates across many geographical locations, the firm is alsoexposed to international operation risks and risk of product imitation.

Apple‟s strengths put the firm in a prime position to t

ake advantage of the opportunities andminimize the impact of inherent risks. With its commitment to research and development,

Apple‟s Digital Hub strategy, coupled with strong brand marketing and retail efforts, has

resulted in the success of many Apple p

roducts. An integral ecosystem is also one of Apple‟s

competitive advantages. However, many industry observers believe that Apple may be too

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