Apple Inc., 2008 Case Study - 1170 Words

Executive Overview Apple has been established for over 30 years since Steve Jobs and Steve Wozniak founded Apple Computer in 1976. During Steven Jobs’s tenure as CEO, Apple’s mission was to bring an easy-to-use computer to market. However, Apple was not performing as good as Jobs projected, so he resigned in 1985. In the following 12 years, Apple experienced three different CEO’s and still could not be brought back to life. Under John Sculley, Apple worked to drive down costs by switching much of its manufacturing to subcontractors. But these efforts were not enough to sustain Apple’s profitability. During the Michael Spindler years, international growth became a key objective for Apple. Yet despite Spindler’s efforts, Apple lost†¦show more content†¦Retail Strategy After Jobs returned to Apple, he revamped Apple’s distribution system, removing relationships with many smaller outlets and extending its presence in national chains. In 1997, Apple also started a website to sell its products directly to customers. Its retail strategy was regarded as a huge success. More importantly, people who visited the stores for iPod products usually checked the Mac too. This â€Å"halo effect† greatly benefited Apple’s Mac business. Porter’s Five Forces Analysis of Apple Current Competition Apple’s current rivalry is very competitive and intense. The PC industry has quite low switching costs, so the current competition is pretty high. Apple confronts tough competition from IBM, Dell, HP, and etc. Threat of Substitute Products The more differentiation of the product, the less likely the change to a substitute will happen. Apple’s operating system differentiation can always require higher pricing. However, owing to technology improvement, the â€Å"digital convergence† of PC and CE (consumer electronics) products has become more substantial in the PC market. Many different alternative devices have started to replace PCs. Therefore, this threat is becoming higher to Apple. Threat of New Entrants This threat is low since the existing companies have established powerful brand awareness. The computer industry is very saturated and new entrants wouldShow MoreRelatedStrategic Management Case Analysis: Apple Inc. Essay1027 Words   |  5 PagesStrategic Management Case Analysis: Apple Inc. Veronica R. Hart Kaplan University Strategic Human Resource Management Unit 1 GB 520 p. 1-6 March 9, 2011 The 2008 Harvard Business Case Study on Apple Inc, describes the very popular corporation with 24 billion in revenue as of 2007 and how the company has had some problems yet sustainability over the years. The status of the company was examined in detail by the article which revealed a number of strategic moves under the leadership ofRead MoreA Business Study of Apple Inc1120 Words   |  4 PagesCase Study: Apple, Inc. Introduction The case study will follows examines Apple Inc., which launched its iPad on 4 April 2010. 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