Managing Differences: Apple’s Future Strategy Harvard Case Solution & Analysis

Industry Analysis

The computer industry is unattractive from the perspective of profitability and growth in the long term. Firms are competing in a highly competitive market scenario to gain a competitive edge over the competitors. Apple has performed tremendously well over the last decade via its innovative and creative approach in the industry. Other firms in the industry are competing with Apple’s latest technologies to increase the market share. The industry is extremely competitive, and the threat of new entrants is low due to high initial setup cost, economies of scale and established brands in the industry. Although there is immense competition in the industry for the existing as well as new players, but strong brands are performing tremendously in the industry on a consistent basis.

The established players in the market, generating 50 percent of market share and the rest are contributed by the various smaller players. Microsoft and Intel have high supplier power over the industry because of their unique and different products.  Buyers have sufficient power over the industry because of the decrease in the prices of the components and related mechanisms. There are several substitutes in the computer industry as well, such as smart phones, personal video games, etc. that are affecting on the firms including Apple. There is no doubt that there is an immense competition in the industry, but another fact is, it was extremely profitable in the past as well that keep the firms motivated to enter into the industry. During 1980’s there was less competition in the computer industry as compared to now, Apply and IBM were leading at that era from quite a long time. The computer industry was extremely profitable due to fewer barriers to entry, but after 1990 manufactures started to capture the market, and as a result rivalry in the industry, customer and supplier power all increased significantly.

Apple’s Market Position

            Apple has efficiently positioned itself in the computer industry as compared to other rivals in the market. Apple has adopted various strategies to increase the market share; they have differentiated the products as per the customer’s need and market trend. The good thing about Apple’s approach is its operating systems, launching its retail division and offering unique products and applications. Second, Apple has organized itself efficiently as compared to other players in the industry. Though, Apple also needs to think strategically for the future because there are still enormous opportunities available for Apple to be utilized in order to grow the business in the long term. Apple is facing immense competition with some personal computer manufacturers and heavily relied on Microsoft and Intel as suppliers.

Leadership of Apple’s facilitated it in a positive way to compete in the industry under the supervision of Steve Jobs. Steve has introduced various innovative and technology based products for Apple to become a leader in the industry. Apple has performed incredibly well to promote its product in the computer industry and to make tougher for the competitors to survive in the market. Apple launched several innovative products in the industry such as iPhone. At the initial level, fair play facilitated iPod in order to raise the market share; they also implemented and offered several products in the mobile phones as well in a highly competitive environment. Apple always believes in innovation and technology based products to operate in the industry, which covers both software and hardware products.

AAA Strategy of Apple

In this age of globalization and competition, every firm wants to design its domestic and global strategy efficiently to successfully compete in the market. AAA strategy refers to the adaptation, aggregation and arbitrage; it is up to the firms how they organize their strategy. Firms can choose a combination of two or one while making their strategy to compete in the industry. However, it is not feasible for the firms take all these A’s while making their strategy. Taking about Apple’s strategy, it believes on adaptation to compete in the market. Apple is considered as leading innovative organization in the world with its focus on innovation and development.  Apple brings new designs and innovations in the products and creates innovative business model as per the customer needs. Apple facilitates the customer in a significant way and the innovative leadership qualities in the organization results in an enormous amount of success.

Future of Apple

Though Apple has performed comparatively well in the personal computer industry, but it does not guarantee long term success due to the rapid increase in the competition. They need to be more innovative in its approach to keep competitive in the market. Because the industry is growing, and several new players are entering into the industry at a rapid pace, so Apple should consider this fact and take it as a challenge for the future prospect. In order to keep remaining the success, Apple needs to continue its focus on technology based products in the industry. For future prospect, product differentiation will be a vital factor for Apple to overcome the threat of a substitute and also buying power of the buyer.................................

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