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Apple Case Study

1102 words - 5 pages

CASE ANALYSIS
APPLE COMPUTER, INC.

I. PROBLEM STATEMENT

What recommendations may be proposed to further improve the company's performance?

II. AREAS OF CONSIDERATION

1. Mission

• Apple Computer is committed to protecting the environment, health and
safety of its employees, customers, and the global communities where it
operates

• The company strives for continuous improvement in environmental, health, and safety management systems and in the environmental quality of its products,
processes, and services.

2. Objective

• To offer technologically innovative products and services while conserving
...view middle of the document...

5. Weaknesses

• the company's suite of products is no longer based on its internally developed hardware and software, but depends upon the ability to secure media content, which has its own competitive forces, dimensions of entertainment value, and proprietary issues.

• Absence of a reliable succession plan and a pool of equally-talented brand champions.

• Incompatible software - computer and digital music format.

• Unpopular Apple TV features.

• Inadequate management team.

6. Opportunities

• Broad range of products allows possible navigation to more markets.

• Its customer base is now more diverse – with possible added needs that may be filled up.

• International growth and expansion may open market opportunities.

• Licensing brand name with accessory manufacturers.

• New ways to integrate electronic devices and change the way they are used in customers' daily lives may result to bigger demand.

• Product line extensions and new content distribution systems may be coupled with market development.

• Growth in new user segments.

7. Threats

• Difficulty in balancing stakeholder demands. Managing the conflicting expectations of customers, investors, suppliers, partners, legal/governmental entities, and other stakeholders puts an increasing amount of pressure on Apple's management team.

• New competitors, low-priced rivals, and potential substitute products threaten to reduce the perceived value of Apple products and the success of its strategy.

• New sets of competitors may have a wider variety of strengths and strategies.

• The technology and entertainment industries are constantly and rapidly changing. It is uncertain whether Apple will be able to sustain its brand's reputation for innovative design, technological breakthroughs, and new products offerings.

• A multitude of existing and new competitors may adversely affect company’s market share.

• The markets for consumer electronics, personal computers, related software and peripheral products, digital music devices and related services, and mobile communication devices are intensely competitive.

• A variety of new products with competitive price, feature, and performance characteristics are being introduced into the marketplace.

• Competitors selling personal computers based on other operating systems aggressively cut prices and accept lower product margins to gain or maintain market share. This puts continuous downward pressure on Apple's margins.

• As the industry and its customers become more reliant on Internet connectivity, alternative devices that are becoming increasingly smaller, simpler, and less expensive than traditional PCs compete for market share with Apple's...

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