(solved) Apple Case Study
12 Pages2711 Words569 Views
Added on 2020-03-28
(solved) Apple Case Study
Added on 2020-03-28
ShareRelated Documents
Running head: APPLE CASE STUDYApple Case StudyName of the student:Name of the University:Author Note:
1APPLE CASE STUDY1. Industry analysis of smart-phone industryThe smart-phone industry is one of the budding industries in the modern world. Theadvent of smart phones replaced the laptops as well as the computers and brought technology onthe palm top of the people, at an affordable price. The smart phone industry is a highlycompetitive one. This is because, with the increase in the use of the smart phones, thousands ofcompanies all around the world started developing smart phones (Boone & Kurtz, 2013). Thecompetition in the quality, along with the company providing the lowest price of the smartphones flooded the markets all over the world. Apple is one of the key players in the smart phoneindustry. The smart phones of Apple use the Mac operating system (Apple, 2017). They havejoined the revolution of the smart phone industry with their exclusive features and launched theiPhone (Pitelis & Teece, 2015). Most of the smart phones that have flooded the industry includethe use of Android as the operating system (Danaher, Sajtos & Danaher, 2016). However, someof the phones use Windows by Microsoft as the operating system. Apple created a revolutionwith the use of the Macintosh Operating system in the smart phones that they launched.IBM , launched the first smart phone in 1995, named the IBM Simon. In the year 1996,Nokia launched Nokia 9000. This was the first attempt of Nokia to launch the smart phones. Inthe year 2000, Ericsson released their first smart phone (Danaher, Sajtos & Danaher, 2016).After these first attempts, the smart phone industry started flooding with the smart phones ofvarious companies. In 2007, Apple launched the iPhone with iOS, which marked the introductionof an iPhone (Apple, 2017). Thus, the smart phone industry is an ever-growing industry and is astrong platform for business (Boone & Kurtz, 2013).
2APPLE CASE STUDYEffectiveness of the neutralization of the threatsWith the increase in the number of competitors in the smart phone industry, the iPhonesand well as Apple faced various threats from the other smart phone companies. After variousthreats faced by Apple from the PC industry, in 2007, the attempt of regaining the leadership,position was by the launch of iPhones. Apple and it’s the then CEO Steve Jobs expected that thelaunch of the iPhone would be a successful attempt to ensure a secure position in the business ofsmart phones, as well as technology (Boone & Kurtz, 2013). The company and its employeeshad invested two and a half years, under high secrecy to develop the iPhone. The estimateddevelopment cost was around $150 million (Apple, 2017). Apple’s entry in the smart phoneindustry was welcomed with major threats and high competition from the various players namelyNokia, Samsung and Motorola (Danaher, Sajtos & Danaher, 2016). These three companies hadbeen holding 60% of the market share. Moreover, the products of Apple had short product lifecycle, with the use of sophisticated technology. However, Apple had very little experience in theuse of such technologies (Pitelis & Teece, 2015). Moreover, the smart phones of Apple alsofaced strong resistance from the cellular carriers. Thus, the entrance of Apple in the smart phoneindustry was not welcomed warmly. However, Apple has been able to neutralize the threats as well as the capitalization on theopportunities that were posed by the various forces of the smart-phone industry. However,iPhone changed the rules of the industry. A revolution was brought it, with the introduction ofthe smart phone by Apple (Boone & Kurtz, 2013). The phone could be operated usingcommands and typing was done without physical keyboards. The entire iPhone operated on aspecially adapted version of the OS of Apple, known as the iOS (Apple, 2017). The companyinitially gave the iPhone to only one network named AT&T (Danaher, Sajtos & Danaher, 2016).
3APPLE CASE STUDYThe network provider agreed to an unprecedented revenue sharing with Apple, thus giving Applethe sole control over the distribution and pricing (Pearlson, Saunders & Galletta, 2016).The first generation of the iPhone itself created a revolution, and it sold over 6 millionunits over five quarters (Danaher, Sajtos & Danaher, 2016). This established Apple as the leadersin the smart phone industry. with this success, the company upgraded their systems to be thinner,faster as well as incorporating new features, to make it even better. In the next few years, Appleupgraded and released iPhone every 12 to 15 months, thus expanding gradually (Apple, 2017).The release of iPhone 6 and 6 plus had the screen of 4.7 inches and 5.5 inches respectively andgave a tough competition to the best selling android smart phones in the market (Boone & Kurtz,2013). Thus, the threat is neutralized and Apple overcomes the capitalization of the opportunitiessuccessfully. 2. Business strategy pursued by AppleOne of the key drivers behind the success of the iPhone is the launch of the Apple AppStore. The strategy that Apple took in order to enhance its iPhone business includes the extensiveuse of innovation, incorporation of the latest technology, along with ensuring a closed ecologybeing maintained for production and distribution of the products of Apple (Danaher, Sajtos &Danaher, 2016). InnovationOne of the most essential business strategies that are taken up by Apple to ensure thesuccess in the iPhone market includes the extensive use of innovation (Boone & Kurtz, 2013).
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Organizational Behavior & Management - Essaylg...
|9
|3554
|395
Business Strategy Case Study 2022lg...
|7
|1952
|16
Core Competencies of Apple's Product: Innovation and Business Developmentlg...
|27
|5249
|215
Organization Change and Developmentlg...
|15
|3786
|61
Why did Motorola lose the phone market?lg...
|4
|884
|152
Management Economics-2lg...
|11
|3315
|81