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Apple strategy analysis

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Apple strategy analysis, blue ocean strategy, comparison with Samsung,ie. Samsung VS Apple

Apple strategy analysis, blue ocean strategy, comparison with Samsung,ie. Samsung VS Apple

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  • 1. SM ASSIGNMENT –By MonikaBansal, 119 Ques.3 a) Innovation came from Apple only. They decided its products by keeping the needs of its customers and also analyzing the needs that customer doesn’t know at that point of time but they will need it afterwards as Jobs said “We figure out what we want. And I think we’re pretty good at having the right discipline to think through whether a lot of other people are going to want it, too. That’s what we get paid to do.” So they are developing product accordingly. b) Apple cares more about its existing customers than anyone else. They listen only to their best customers and they designed their products according to the feasibility of their recommendation. c) Apple pursued more towards differentiation strategy as Apple offers a wide range of products in personal computers field like the iMac and iBook product lines for basic computer buyers and PowerBook and G series computers for advanced purchasers. Apple concentrates more on innovative product lines and quality rather than releasing products at lower prices. Only one time they offered a computer aiming for the mass market, but soon came back to their differentiation strategy. Apple computers work on Macintosh operating system which is unique in the industry where most others rely upon Windows. Apple has diversified its product range off late through iPods, the success of which has further enhanced Apple's brand identity. None of Apple's competitors have been able to replicate its unique product quality, reliability and design. Because of the differentiation strategy, Apple is able to charge premium prices for their products. Ques.4 a) Sony problem in terms of i) Profit- Sony’s profit is declining due to decreased demand and intensified pressure on pricing resulting from the slowdown of the global economy, appreciation of the yen, and a significant decline in the Japanese stock market. As a result, both an operating loss and a net loss have been recorded in Sony’s financial reports. The company is drowning in debt and historical net losses. As its share price hit a 32- year a low in November 2012. There is 70% business loss in televisions.
  • 2. ii) Value Sony’s value is decreasing and it has substantially decreased as compared to year 2007. Sony's market value is now only about $13 billion. iii) People- Need to eliminate extra workforce for non- core businesses.Sony is cutting down its workforce to a great extent in order to reduce their operating expense that’s why Sony is implementing the following employment-related measures at Sony Corporation to respond to the significant deterioration of operating results: Remuneration • Corporate Executive Officer and Corporate Executive bonuses for the fiscal year ended March 31, 2009 were substantially reduced. In addition, fixed remuneration was decreased from April 2009. • In particular, the three Representative Corporate Executive Officers as of March 31, 2009 waived their entire bonuses for the fiscal year ended March 31, 2009.
  • 3. • With regard to management level employees, bonuses were reduced significantly and base salaries were reduced from April 2009. Early Retirement Program • In order to optimize human resources, Sony has implemented an early retirement program supporting employees who take up new opportunities beyond the Sony Group. b) E-R-R-C Grid for Sony Eliminate Workforce from non-core business Products that customers don’t care about Reduce Focus from Non-core businesses Operating cost of television business Raise Strengthen core businesses-digital imaging by launching high end professional cameras & also range of products which supports 4K high definition for high-end consumers etc, game , mobile Business in emerging markets Optimize resources Transform electronic business Value engineering in existing products like PSP’s etc Create Turn around the television business New businesses and accelerate innovation Non- android devices

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