Apple Computers

Assignment 2: Apple Computer, Inc.

Tracey D. Battle

Professor: Edwin Martinez del Rio

Sr. Seminar in Business Administration

January 20, 2011

1. Describe the key strategic challenges facing Apple Computer.

Response:

1. Key strategic challenges facing Apple are

1. Security

2. High Control

3. Services

4. Increased competition and stoke holder

1. Security – Mac is mostly ignoring by the virus, malware and 5% of P.C market. Apple is lacking strong experience in enterprise computing where security issues are paramount. For example recently AT&T email address breach on the I pad. Due to Macintosh platform mobile device and application don’t enjoy the end to end control.

2. High control- Apple remains critical because the control of user experience is differentiating apple from others. Apple ability to innovate the new business model in music especially iTunes and now cellular underscore which is their most frequently ignored strength. Apple cell phone was driven by AT&T unperfected willingness to give apple control over what was on the handset.

3. Services- Apple services provide enormous influence but contribute minimally to apple revenue. From the serve of 2009 shows that the music market in US, iTunes accounted 25%and 69% of digital downloads. Traditional apple product were patents, copy protection and design provide protection services are easily copied.

Apple services such as iTunes, apps are tightly bounded with their products, while every company talks about making solution rather than products except apple.

4. Increased competition and stoke holder - Apple is focusing on the consumer rather than competition Wall Street and other stake holders. Before it was only Apple vs. P.C, but now its Apple vs. Google, HTC, Samsung, RIMM, Sony, etc. In contrast the last gasps of the music industry after ineffectively combining piracy with lots of smart people, money, lawyers and lobbyist. All competitive companies willing to work hard to...