Apple Inc 2010 Case 10 Teaching Note

Case 10 Teaching Note Apple, Inc. in 2010 10-1

Teaching Outline and Analysis

1. What are the chief elements of Apple’s overall competitive strategy? How well do the pieces fit together? Is the strategy evolving?

Students should recognize that Apple has done an excellent job of developing and piecing together its very distinct strategy through effective innovation that has resulted in new product introductions and the improvement of existing products. Apple has employed a differentiation strategy linked to innovation with its three core products – computers, personal media players and mobile phones. More specifically, Apple attempts to meet the needs of a global market by offering customers innovative new products and improved existing products. A key piece of their strategy involves meeting the needs of the converging digital electronics and computer markets. Finally, students should indicate that Apple has elected to implement its strategy by designing and developing proprietary operating systems and software technologies, thus allowing for strict protection of its intellectual rights.

As technology evolves, so has Apple’s strategy. Initially, Apple focused on the computer industry by introducing innovative products. Apple continues to introduce innovative products in the computer industry but recently has focused a great deal of strategic attention and resources on meeting the needs of customers in the converging digital electronics and computer markets. This, along with the successful entry into the personal media player industry, marks a clear evolution in Apple’s strategy. Also, Apple’s entry into the mobile phone industry with its iPhone and the tablet computer industry with its iPad are evidence of a further evolving strategy.

2. What are the key elements of Apple’s strategy in computers, personal media players, and smartphones? Have its strategies in its core businesses yielded success? Explain.

Students should be able to identify the...