Apple Inc. 2015 Harvard Case Solution & Analysis

 Apple Inc. 2015 Case Solution 

What should Tim Cook do?

He should analyze the overall market in order to launch the Apple Watch as the company is facing many problems such as;

  • Decrease in sales of IPods and other products sales
  • High level of competition in smartphones and in music industry
  • Decrease in sales causes loosing of market share in the Industry
  • Regular Management of devices with other brands

The Personal Computer Industry:

The Apple started its business in the Personal computers in 1977; the company lost its competitive position to Dell, Microsoft etc. due to changes in the managements and differential opinions. The Apple PC industry include five basic categories of customers, such as home, small and medium sized business, education, Government and Corporate. The in 1990, the company decided to shift its target customers to business managers and provide them with full service dealing facilities. Along with this, the suppliers of the PC industry include; 1) Those that make merchandise such as memory chips, key boards etc. at highly competitive prices (2) that make microprocessors and operating systems.

Competitive position of apple Inc.in smartphones:

It is analyzed that in 2014 android achieved 81% of market share while IOS achieved 15% of market. It is because of android phones have more variety of sets at lower possible prices and high range of models.

The company has also huge threat from the China based Xiaomi that has increased the sales in 2013 and even doubled in 2014 that shows high success for the future plan. If we look at the Apple Inc.; it launches one new model with the exact same price, therefore, in order to remain competitive the Apple should launch different products or models and some price range that could be affordable for price sensitive customers.

Apple’s strategy for Apple Watch and Tim Cook approach:

The Apple watch is considered as the most personal products as it is attached with the individuals’ body at all times. Therefore, the company should add feature in the apple watch that connects it with the IPhone so that user can start something on the watch and continue to use in later times through mobile phone. Along with this, it should include the feature of adaptability for various users that could bring strong brand loyalty to the Apple users.

It is observed that Tim Cook has taken the right approach for the Apple’s strategy which includes to deliver the unique mix of values that would help the company to control the ownership of the supply chain based on the capitalization; software development by providing premium and delightful products and use of innovative technology for sustaining the growth of the business.

Why:

The current strategy of the company is to make differentiation from those of competitors by using connectivity among devices that would provide competitive advantage in designs. AS, Tim wants to sustain its growth of the businesses by the introduction of truly a new and innovative product named as Apple watch and Apply Pay, that would lead the company at the next level that would compete like IPhone ad ITunes in the Computer industry...................

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