Avoid Foods

CASE STUDY

(Chapter 1- Corporate Strategy)

CASE STUDY 1.1

“Apple’s profitable but risky strategy”

What do you think of Apple’s strategy? What would you do next if you were responsible for Apple?

Answer:

I think of Apple’s corporate strategy was and is surely unique in its sense to build a company in the 80′s just on the perception that people would pay a premium price for a innovative and other designed PC product. Which indeed people did but as the case graph indicates but it also indicates that cost was an issue over the sold hardware. Apple’s corporate strategy framework in internal capabilities, external environment, and added value. Apple’s corporate strategy framework includes skills, knowledge, technology and capital.

1. Internal Capabilities

Having an innovative product such as Apple PC and Mac OS (which advance usability in comprising to Windows) and having a strategic alliance with IBM to build a RISC based processor (Intel is a CISC based) was not good enough to challenge the Wintel (Windows and Intel) alliance. Even expert saw Apple’s products were far more it did not went into market leader ship position due to its selective and premium customer marketing.

2. External Environment

Having a selective marketing strategy signal’s that is was not Apple’s intention in the first to win a larger market share among standard PC users and maintain its exclusive and niche image. Apple did work together with IBM and the hardware side but did not worked together on a global tactic to break the monopoly of Wintel  in shipping out their operation system (instead IBM developed OS/2) that also indicates that Apple wanted to maintain its exclusive product environment that Software and Hardware is a bundle where “Apple did not sell or share the software to rival companies” (Lynch 2006) Apple choose a confronting strategy with Microsoft to protect its invention “it would not use Mac technology in Windows 1.0“ (Lynch 2006) and instead of building an...