39643390 apple-case study-presentation

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39643390 apple-case study-presentation

  1. 1. Developing A strategic vision Setting Objectives Crafting Strategy to achieve Objectives And vision Imprementing And executing The strategy Monitoring Developments, Evaluating Performance, and Making corrctive adjustments Revise as needed in light of actual performance, changing Conditions, new opportunities, and new ideas Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 How well has Steve Jobs done as Apple͛s CEO? Has he done a good job of performing the five tasks of strategic management discussed in Chapter 2? Why or Why no? What grade would you give him? QuestionQuestion 11
  2. 2. Components of Apple͛s Strategy Business Strategy Planned, proactive moves to outcompete rivals (better product Design, added features, improved Quality or service, better e- commerce capabilities, wider product lines, and so on Efforts to build competitive advantage : Lower costs, different or better product, niche market Moves to respond and react to changing conditions in the macro- environment and in industry and competitive conditions Scope of geographic coverage (local, reginal, multinational, or global) Collaborative partnerships and strategic alliances with others Key Functional Strategies - R&D, technology, engineering strategy -Supply chain management strategy -Manufacturing strategy -Sales,marketing,promotion,anddistribution Strategies -Human resources strategy -Financial strategy
  3. 3. QuestionQuestion 33 ‡ Does it make good strategic sense for Apple to be a competitor in the computer, digital music player, and mobile phone industries? ± Used to be just in the personal computer and software industry. ± Utilized its strengths and expanded its business to the entertainment industry. ‡ Starting from digital music players (iPod) and online music service (iTunes) ~ 2001. ‡ And to mobile phones (iPhone) ~ 2007. ͻ Are the value chain activities that Apple performs in computers, digital music players, and mobile phones very similar and ͞compatible͟ or are there very important differences from product to product? Which of the three products lines Ͷcomputers, digital music players, or mobile phonesͶdo you think is most important to Apple͛s future growth and profitability? Why? ʹ The marketplace trend seems to be destroying all the boundaries of each industry. ͻ More than just a digital music player. ʹ More enhanced tool for full-motion videos and data storing. ͻ More than just a mobile phone. ʹ Taking the role as a digital camera, a carry-on PC for memory storing and internet, and an audio device. ʹ The value chain activities are not much differences from product to product. ʹ Instead, Apple has been able to command a premium in the market and gain above average returns from utilizing the similar and ͞compatible͟ of its value chain activities across the products. ʹ Competitive advantages, especially in its mobile phones products. ʹ The most important industries for Apple͛s future growth and profitability.
  4. 4. QuestionQuestion 44 ‡ In which industryͶcomputers or digital music playersͶis competition more intense? ± Computer industry is seem to be more intense for Apple as it can gain only 8.5% of the total market shares. ‡ Dell Inc. (23.4%) ‡ Hewlett-Packard (16.8%) ± Apple is used to be just in the computers and software industry. ‡ Expanded its business to the digital music players (iPod) industry. ± Occupying 71% of the total market shares. » SanDisk (11%) » Microsoft (4%) » Creative (2%) ± Contributed a significant revenue to Apple Inc.
  5. 5. QuestionQuestion 55 ((11//22)) ‡ What does a competitive strength assessment reveal about Apple, as compared to the leaders in the personal computer industry? ± Design and innovation oriented. ± Greater horizontal and vertical integration. ± R&D oriented. ± Everything ready device. ‡ Use the methodology in Table 4.4 to support your answer. Among these competitors, who enjoys the strongest competitive position? ± Dell Inc. enjoys the strongest competitive position. ± Apple͛s operating in a fast-cycle market. ± Firm͛s capabilities that contribute to competitive advantage aren͛t shielded from imitation. ± Where imitation is very fast and inexpensive. ± Apple͛s products and services have more restriction than its rivals.
  6. 6. QuestionQuestion 55 ((22//22)) ‡ Who is in the weakest overall competitive position? ± Acer. ± Most of its revenue (63.8%) was rely in the mobile phone industry. ± But mobile phone industry that have very intense competitive. ± With Apple and Nokia as major players. ‡ Has Apple͛s strategy resulted in a substantial competitive advantage over its rivals in the computer industry? What is the basis for whatever competitive advantage it has? ± Innovation plays a dominant role in the competitive dynamics in fast cycle markets. ± Stronger brands value.
  7. 7. What does a competitive strength assessment reveal about Apple, as compared to other main players in the digital music industry? Use the methodology in Table 4.4 to support your answer. Among these digital music player competitors, which company enjoys the strongest competitive position? Who is in the weakest overall competitive position? Has Apple͛s strategy resulted in a substantial competitive advantage over its rivals in the digital music player industry? What is the basis for whatever competitive advantage Apple has? QuestionQuestion 66
  8. 8. Apple has highest while iRiver get lowest score Previously Sound quality, design, legal MP3 download ͞Sony Music͟ iTunes Legal download (Encrypt password) Best Designed hardware from aesthetic point of view iRiver
  9. 9. Other Apple͛s competitive advantages Marketing Not talk about its features and technology, but better life Best Replacement in TV shows Movie : Chloe Steve Jobs
  10. 10. What is your assessment of Apple Computer͛s financial performance the past three years? (Use the financial ratios in Table 4.1 of Chapter 4 as a guide in doing your financial analysis.) QuestionQuestion 77
  11. 11. What accounts for Apple͛s noteworthy success in the markets for mobile smart phones and digital music players, but its overall weak showing in the computer industry? iPod, iPhone and iPad Mobile phone industry ͞Just work͟ (Best industrial and user interface) Customers who had the problems with technology Basic communication (mobile voice and simple sms) Advanced mobile phone т user interface Synchronization Digital music players Aesthetics and fashion innovative approach to music download (copyright) 99 cents/song Cheap songs with expensive music players QuestionQuestion 88
  12. 12. Factors lead to Apple͛s weakness in computer industry Price and Compatibility Price ʹ Hardware, software and software licensing Higher ownership cost Compatibility ʹ Different application Hugh amount of PC competitors around the world Gartner's Preliminary U.S. PC Vendor Unit Shipment Estimates for 4Q09 (Thousands of Units)
  13. 13. 0.00% 10.00% 20.00% 30.00% 40.00% Dell HP Apple Acer Toshiba Others U.S. PC Market Shares 2nd Quarter 2007 and 2008 Q2 2007 Q2 2008 Apple did a better performance compared to Y-1 but could still penetrate only less than 10% in the market. Is Apple͛s strategy in its computer business strong enough to compete successfully against Dell and HP? QuestionQuestion 99

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