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Analysis Of Apple Business Strategy

4625 words - 19 pages

Analysis of Apple Inc. business Strategic Unit (iPad unit)

Contents
Introduction .................................................................................................................................................. 2 1. Strategic position of Apple Inc .................................................................................................................. 2 1.1 Competitive strategic position ............................................................................................................ 2 1.2 Strategic group mapping ......................................................................................................................... 4 2. External ...view middle of the document...

............................................................................................................. 8 2.2.1 Threat of new entrants ................................................................................................................ 8 2.2.2 Threat of substitutes .................................................................................................................... 9 2.2.3 Bargaining power of suppliers ..................................................................................................... 9 2.2.4 Bargaining power of buyers ......................................................................................................... 9 2.2.5 Competitive rivalry ....................................................................................................................... 9 3. Value adding activities of Apple’s iPad business unit ............................................................................. 10 3.1 Resource analysis of Apple, iPad business unit ................................................................................ 10 3.2 Value Chain analysis of Apple’s iPad business unit ........................................................................... 11 4. Sustainability of Apple iPad business unit’s strategic position ............................................................... 13

Introduction Apple is an American-based multinational company that deals in the sell and design of personal computers, computer software plus a range of hand-held gadgets. Apple Inc. is best known for its hardware products branded as Macintosh. Started in 1976 by Steve Jobs, Apple has grown to become one of the current day’s iconic designers of consumer electronics. Although Apple deals in a wide range of products, the company treats every product line in a unique way. Each product of Apple is treated as a standalone business unit. This report singles out the Ipad product of Apple Company and analyses this business unit in terms of its strategic competitive position, its external environment and the value addition proponent of its strategic position. This report is based on the UK market.

1. Strategic position of Apple Inc 1.1 Competitive strategic position Nilsson and Rapp (2005) state that when a firm is able to sustain profits that are above its average expected income then the firm can be termed to have gained a competitive advantage over its competitors. Competitive advantage is the ability of a company to identify and come up with a difference in the way it operates: a difference that competitors may never find easy to emulate (Nilsson and Rapp, 2005). A business’s strategic competitive position can be explicitly analyzed using Bowman’s strategic clock (Thomson and Baden-Fuller, 2010). The strategic clock enables business managers and all other business stakeholders to think and act strategically in an effort to ensure that they attain the desirable differential advantage. Strategic clock...

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