1. What are the chief elements of Apple’s overall competitive strategy? How well do the pieces fit together? Is the strategy evolving?
Apple Corporation, Capital requirement degree of completion, Brand identifies the product price; demand, and the apple users. Supplier power, Barriers, Rivalry, Treat of Substitutes, and Buyer Power represents Apple’s overall competitive strategy. Music, Internet, and Computer is an n innovation for long term development, technological improvement with a unique design, it transcended the barriers of computer industry to cross many aspects of industries such as itunes, ipod, and iphone. It’s evolving due to a loyal customer base and ambitious leadership.
For now, Apple is secure in industry position, which is demonstrated in the financials. From 2006 to 2009, the company’s market value went from $72,900 to $189,917.But, with stiff competition and different variables within the industry, though, we cannot be sure that Apple will maintain this. Apple must, above all else, monitor their competition. The competition is going to drive them to do be better because they have to stay out of reach. Apple also has to remain the technology leader. They have to be proactive in continually developing new, innovative technology that appeals to everyone, even those that have previously been PC-loyal. By doing these two things and managing the business end well, they will maintain their place in the industry. Apple worked very hard to get to where they are and they will have to work hard to stay on top, too.
4. Does it make good strategic sense for Apple to be a competitor in the computer, personal media player, smartphone, and tablet computer industries? Are the value chain activities that Apple performs in computers, personal media players, tablet computers and smartphones very similar and “compatible” or are there very important differences from product to product? Which of the four products lines---computers, tablet computers, personal media players, or smartphones---do you think is most important to Apple’s future growth and profitability? Why?
Yes, Apple’s current strategy is to “bring to its customers compelling new products and solutions with superior ease-of-use, seamless integration and innovative industrial design”. Based on this explanation it can be determined that Apple is utilizing a “broad differentiation” strategy to stay competitive in its industry. Basically, Apple provided a specific strategy based on a generic one that was just used as a guide. According to Bowman (Bowman, Cliff), generic strategies should be used as a tool to help form a solution instead of being the solution itself. To be a competitor in the computer, digital music player, and mobile phone industries, Apple must used to be just in the personal computer and software industry and also utilized its strengths and expanded its business to the entertainment industry. Apple introduction starting from digital music players (iPod) and online music service (iTunes) in 2001 and it’s another introduction of mobile phones (iPhone) in 2007. Yes, the value chain activities are very similar, but they have their own level of convenient for each. Smartphones will be most important to Apple future due to the demand and the convenience.
5. What is your assessment of Apple Computer’s financial performance the past three years?
(Use the financial ratios in Table 4.1 on pages 94-96 of the text as a guide in doing your financial analysis.)
Based on the ratios, we can see the differences of ratios in Apple, Inc. financial statistics from 2005 until 2007. In their gross profit margin, ratios showed that profit margin are decrease from...