Apple Case Analysis

Apple Case Analysis

1) What, broadly, is the case about and what types of information am I being given to analyze?(Key Facts)

a) Focused on innovation

b) Superior Software and peripherals

c) Loyal customers and brand image allow them to sell at a premium price

d) Pioneer of the first usable personal computer

e) Strong competition in all product lines

2) What are the basic problems this manager has to resolve? (Issues)

f) Hypercompetitive Industry

g) Premium Pricing

h) Incompatibility with other OS

i) Decreasing market share

3) Five forces industry analysis

a) Competitive Rivalry: IBM, Amazon Kindle, Dell, Android Market

b) Entry Barriers: High secrecy of product development, expensive technology, secured patents, brand identity

c) Buyer Power: Individual tastes, Price sensitivity, Phone carriers

d) Substitutes: Cheaper products, copy-cat products

e) Supplier Power: Agreements with recording companies for iTunes, long established relationships with chip and other technology parts suppliers

4) SWOT Analysis

j) Strengths- brand name, market leader in music download, strong financial performance, innovation, exclusive contracts

k) Weaknesses- High prices, incompatibility with other OS, patent infringement

l) Opportunities-Large demand for iPhone and iPads, emerging markets, demand for cloud based services

m) Threats-Android OS growth, rapid technology changes, general competition

5) Recommendations

n) Hypercompetitive Industry

Recommendation: Take advantage of its strong financials and buyout smaller competition as well as purchase suppliers, by doing this it will gain wind against the competition.

o) Premium Pricing

Recommendations: Analyze all aspects of the business and cut down costs where their necessary so it can bring product prices down and attract more price sensitive customers while gaining market...