Apple Case Study free essay sample

The mobile personal computer industry and the mobile phone industry Mobile personal computers are PCs that can run on batteries and that are easy to carry on. It can be said that they are an evolution of the traditional personal computers. To describe the industry, it is important to start by defining its segments : The industry is concentrated, with few competitors dominating the market : Apple, Lenovo, Acer, Dell and Samsung. This industry has been suffering considerable changes with the emersion of the Tablets and the decline of the notebooks. However, notebooks are still the most known segment and the largest market share. So, in this analysis they are going to be considered as the main segment. Their key success factors are the following: Key Buying FactorsKey Competition FactorsKey Success Factors Intuitive Familiar technologyIntuitive Software AutonomyDistribution channelsCapacity Price Size Post sale serviceProduct developmentEconomies of scale Customer Support Brand Reliability The Mobile phone industry is one of the most attractive industries to study nowadays: it is growing rapidly and it is in permanent improvement and change . On the behalf of this matrix, we will discuss in detail, how Apple Inc. can rebuild and maintain its reputation. I will explain two ways in existing as well as new market for sale growth. Product development( sell new product in existing market) Product development is selling new products in existing market. Apple has strong reputation in the market. If Apple launch any product related to communication, this will increase market share of Apple. Apple need to target new segment. Apple need to launch new Mobil phone in low price segment. It is also very important for Apple to come up with something new idea to compete with Samsung. Product development is very important for Apple now. Apple Iphone’s series will not work for more time. Samsung is coming with new technology. It will be hard for Apple, may be in the future to compete with Samsung. Diversification:( sell new products in new market) Diversification is a corporate strategy to increase sales volume from new products and new markets. Diversification can be expanding into a new segment of an industry that the business is already in, or investing in a promising business outside of the scope of the existing business. It is very important for Apple to do diversification. Apple Inc. eed to enter into new market like Samsung. Apple’s iPhone is become older concept now. Apple need to launch something different and unique to maintain their reputation. Apple launch its iPhone 5 in August 2012. Apple’s next move is now to launch any new product in this year. It should be unique and little new in the market. Q: Provide three advantages and thr ee disadvantages of each in terms of the organisation priorities and feasibilities. Ans: Product development: It is not to easy to implement product development strategy into the market. This strategy is less risky as compared to other strategies. Following I will discuss I detail about the advantages and disadvantages of product development. Advantages: 1. New to the market/ fresh opportunities: Apple has good reputation in the market. This company is consider as the one of the best in innovation. If Apple inc. like Samsung launch new products in existing market. It will be helpful for the company to gain its market share. 2Competitors may have reached a declining phase, giving your product an advantage: It is another advantage for the company in existing market. It is very helpful to launch a new product when the competitor’s product is at declining phase. knowing the existing competitors and there over all market share and strategys : Now Apple already knows, what strategy is adopted by Samsung to compete in the market. All communication equipment market is adapted Mostly By Samsung. It is very helpful while product development. Disadvantages: 1 competitors- (dominance in the market ) This is an disadvantage of produ ct development strategy. It is sometime difficult to compete with the existing market. Samsang have very strong dominance in low price segment market. It may be difficult for the company to compete in this segment. Risks on failing to achieve sales and the product being unsuccessful: This is another disadvantage of product development strategy. Product can be fail in the market. Diversification: Following I will discuss in detail about the advantages and disadvantages of the diversification. Advantages: 1. (low risk, high returns) The unrelated diversification which is carefully developed and undertaken only after thorough analysis of the environment and the company? s own resources usually brings very good financial results. However, in all cases it should be a low risk investment with a potential for high returns. 2. Good source of funds during seasonal slowdown) In some cases of company acquisition, this diversification can secure funds on hand during a seasonal slowdown, adding to the cash flow for the main business activity. 3. Spreading the risk through different sectors of the economy. It is very important to identify industries in which the business activity slowdown does not coincide with the slowdowns in the main business of the company. Disadvantages: Achieving successful unrelated diversification requires good management skills, closely following each of the business activities and timely identifying and solving even the smallest problems. The greater the number of business activities, the more difficult is the total management task. 2. In many instances the overall performance of the unrelated business activities does not exceed the individual ones. Sometimes it is even worse, unless the managers are exceptionally talented and focused. 3. As a rule, the implementation of unrelated diversification strategy requires allocation of significant financial and human resources and there is always the risk of harming the main company business. Q: Conduct a risk assessment of above selected strategic options. Ans: It is very important to doing risk analysis before putting any strategy into effect. Following I will discuss in detail about the risk assessment of above selected strategic options. 1. estimate likelihood and impact of risk 2. quantitative vs qualitative 1. estimate likelihood and impact of risk 2. quantitative vs qualitative Identification of risk and their caues Identification of risk and their caues Risk Risk Identification Assessment Actions and mechanism to minimise risk. Actions and mechanism to minimise risk. Continues monitoring of risks and actions to control them Continues monitoring of risks and actions to control them Monitoring Risk treatment If Apple wants to put any strategy into effect , before that it is very important to careful consideration of the risk associated with the strategy. Risk identification: It is very necessary to identify the risk associated with the strategy. If Apple Inc. wants to do product development and diversification, than, there are many risks are attached to it. Following are the some ways to identify the risks associated with the strategy. Following are some examples of the risks related with the Apple Inc. strategy. 1. The first risk for the Apple Mobil phone is the risk of about the image. Is the customer will accept the Apple in low price segment? It is like a risk for the company. 2. Apple company is good in making computers and mobil phones. If Apple diversify its operations in other businesses, may be , it is not easy for the company to handle the businesses. It is the another risk for the company. Risk assessment: It is very necessary to examine the risk impacts on the company. If Apple implement these strategies in the company, what would be the effects of these strategies? It is important to know the risk results. Following some of the results we will get after these inputs. Apple Inc. might will lose its high status symbol in the market. Apple is known as the expensive segment phones. Apple may lose its more reputation. It might be the risk for the company. Risk Treatment: This sections cover all the things about the company can do to treat with the risks. It is very important for the company to do something to minimise the risks of the strategy. Following are the some example what Apple Inc. can do before putting the strategy. Innovation is the key of success of the company for Apple. Customers are always expect something new from Apple. Apple need to create good product as well as some innovative features to success of the product. What apple can do to treat with the risk is the high promotion of the product before launching the product in low price segment. Monitoring/ review: It is very important monitor the strategy after implementation for the effective results. Comparisons of the results with the standards is the good way of monitoring. Q: Justify the two selected strategic options? Ans: I selected two strategic options for the Apple Inc. is the Product development and differentiation. At this time, company needs to do something to maintain its reputation to survive in the market. They cannot cheat customer for long time. They do some little changes and sell their products. No doubt, Apple was the best phone when they launch first Iphone. Now Company needs to do something to build its reputation. Following I wioll give some points in favour of my selected strategic options to justify my points. 1. If Apple launch some Mobil phones in low price segment with innovation may will lead to market share leadership. Now Apple is at 3rd position in market share. Earlier Samsung was not doing well. They implemented these strategies and they come at second position. Apple need to follow these strategies to be a market leader. 2. Product development is very necessary for Apple because they did not make much changes in their iphone. It is very important for the company to innovate something to maintain its reputation. Samsung is not behind Apple now in terms of technology. Samsung is doing research now on technology. Samsung launched very innovative stretchable screen. These are the some thing that makes leaders in the market. If apple wants to stay in the market, they need to produce new technology to compete with others. 3. It is good for the company to sell their products to different segments. It is good to increase market share. 4. Customers are expecting new technology from Apple. If Apple launch any new technology in the market. It will be good for company reputation and for market share.