Apple Future Harvard Case Solution & Analysis

Apple Future Case Study Solution

Competitive positioning- value-creating strategy

A shrewd competitive strategy has allowed the Apple to remain at the top of the ladder. ITunes Operating System (IOS)

The operating system specifically designed for Apple’s hardware is hugely liked by the masses,giving it a differentiated look, the operating system provides a friendlier and more unique user interface as compared to the other competitors.

Pricing Strategy

Apple vows to provide the best quality to its customers that no one else has ever given to them. But high quality products carry high prices. Since its beginning, Steve Jobs has never shied away from placing the Apple products at higher prices. Consumers perceive expensive Apple’s products to be of high value and they continue to buy them.

Innovative Design

Apple unlike its other competition has always built the attraction among the masses with its innovative designs.  From great visual display to high-megapixel cameras; Apple has made sure that it is giving the best to its customers. When it introduced IPod and iMac, there was no other product in the market that could match the features provided in one devise.

Swot Analysis

SWOT analysis helps to examine the strengths, weaknesses, opportunities and threats of Apple Inc. By performing the SWOT analysis; the company’s current situation along with the obstacles can be analysed with authority.

Strengths

1. As Apple forms a social status among the users, consumers remain loyal to the brand.
2. Apple has been at the forefront in bringing the most innovative technology. It has revolutionized the technological world.

Weaknesses

1. Apple products are one of the expensive products than any of its competitors. The customers prefer other cheap but high-quality products from Samsung or Huawei.
2. Recently, a 16 year old boy hacked the Apple’s server and reflected upon the weak cyber security of the company. (DORMEHL)

Opportunities

1. Once Steve Jobs mentioned in his interview that he was interested in creating an integrated TV. The TV seemed ripe for disruption.
2. Just like Tesla, Apple’s CEO wanted to venture into the electric cars. As the sector was in infancy; it had become overly attractive for Apple. (WHITE and WILLIAMS)

 Threats

1. The recent threat was imposed by the Chinese giant Huawei. The latest rival was closing in on Apple with the highest revenue. (Browne)
2. The new mobile phones are using Android as their operating phones. Once they overpower iOS, Apple market share will tumble. Exhibit shows the SWOT matrix.

Evaluation of Options

Apple Car

Apple’s CEO saw a great opportunity of penetrating in the car market. With an annual car sales of $1.6 billion, the sector clearly has potential to grow further. Though, now it is looking forward to give a tough competition to electric car producer Tesla. With various market players, it would be tough for Apple to make their mark in the industry. As, Tesla hasn’t been thoroughly successful in the electric car business, Apple might get the opportunity to gain the market share.

Apple Watch

Apple launched its first ever watch back in 2014. According to company’s top management; they wanted to create a fusion of fashion and technology with the introduction of Apple watch. The data revealed that smartwatches captured larger audience attraction with the highest sales in 2015. The researchers estimated that the smart watch market would drastically increase and Apple would control half of the market share. According to them, by the year 2020, the sales would touch 100 million mark with a ratio of 1:20 for every smartwatch to smartphone. (BUSINESS WIRE)

Apple TV

The previous CEO, Steve Jobs had already hinted towards investing in television sector. He was motivated in providing with the simplest user interface. With the rising cable operator prices many consumers were distraught by the cable service. Apple has planned to provide a $30 per month subscription. But by doing so, it would have to face a tough completion from websites providing live streaming. People prefer to watch channels over their high-speed internet connection.

Recommendations

After analysing the three alternatives, it can be seen that Apple has already ventured into its smart watch segment. It has the experience of making the most innovative smartwatches for its customers. The company hasn’t tried two other options and it would be a big risk to dive into the electric car and TV sector, with tough competition from other players. However, as far as smartwatch is considered, the numbers are in the favour of this option. With lower cost of production and expected sales to increase in coming years, it would be better to concentrate on making smart watches,as it already has a great brand image; people won’t be hesitant when buying an Apple watch.

Implementation

The company’s CEO, Tim Cook along with the Developer Jeffrey Grossman should devise how to make the smartwatch independent of iPhone. For a smartwatch not to be connected with a phone, the team has to devise a code that suggests a SIM should be inserted inside the watch. When the apple watch will be liberated from the iPhone, it would create an appeal of its own. People wouldn’t need to carry the smartwatch just like an optional accessory.

The other thing the company should do is to install an LTE radio inside the Apple’s smart watches in order to enabling it to perform a lot of different tasks like getting direction from the map or making a phone call. The built-in-SIM would make it possible for the users to send or receive the SMSs (texts) from wherever they are. To make the smart watches less costly, it should outsource its production to India or China that would provide it with labour cost advantage. (Evans)

Relevance of Emergent Strategy

Learning from previous strategies of IPhone and IPad, the Apple watch will well-position the company. Unlike the other devices, the Apple watch will not be easily copied owing to its miniaturization and software control. The highly priced smart-watches will reinstate apple’s position as a brand that gives a wealthy look to customers. The Apple’s brand power will pull the customers making them buy the Apple watch even at high prices. With high popularity among masses, the watch will generate greater revenues for the firm with attractive profit margins.

Other than this, with the introduction of Apple watch, Apple will get hold on to its lost mojo. No other rival has brought the smart-watch into the market, this will give a competitive advantage over all of its other competitors, especially Samsung and Huawei. (Baker)

The relevance for an emergent strategy in a tech firm like apple will reap unconditional rewards in future for a firm. The outcome of such strategies either disrupt the market or they fail abruptly. Although Apple started at a small scale but due to acceptance of its products, it gained traction substantially and recognition in the market. However Apple was targeting only the niche market but their product started grabbing attention of the mass market. Emergent strategies for such kind of firms has the potential to reap huge returns. For example Tesla adopted emergent strategy to launch their product in the market but it gained traction gradually with time and they had to adjust their strategies which led to wide acceptance in the market. They started off with producing electric cars but then they found an opportunity in the batteries market due to their emergent strategy and started producing batteries as well for different companies which ensured their survival in the market as well. Therefore it can be concluded that such strategies has a profound and potential impact at the bottom-line of tech companies like Apple...........

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