A CASE STUDY

ARCHANA POOVANNA SUMISHA RAINA VIDYA THIMMIAH VRINDA RATHI CHITRAK BANERJEE SARANJIT SINGH CHHABRA SAURABH VIRANI ANKIT COOLWAL KEVIN RAPHAEL ISAAC ROHIT ANAND

INTRODUCTION
y y y y y y y y y y

Appleone of the most renowned brands in the computer industry. They deal with hardware and peripherals, consumer electronic products, system software, applications software, networking and communications software and the internet. To maintain its market dominance it needs to examine the external and internal environment, and identify opportunities and threats in the computer business. Strengths include internal resources, capabilities, strategic model for customer satisfaction, exploitation of overseas markets ,constant innovation etc. Although they has been launching new products in the market like Mac book and iMac, they have no supported way to add features to the software. Competitors are exploiting this shortcoming by slashing prices and lowering their product margins for personal computing products. Apples strategy is to focus on their core strength--- Introducing high tech product and better services for the global markets through efficient distribution. Distribution of products happens through wholesalers, retailers, resellers, national and regional retailers and cataloguers. Their core markets are the USA, Europe and Latin America. The identification of the above facts and implementation of the same in the form of strategic models will help Apple maintain market dominance and survive in a dynamic business environment.

CORE PROBLEMS
EXTERNAL FACTORS
y y y y

Strategic environment of competitors. Dynamic business environment. Uncertainty of their strategic success in the future. Effective marketing communication. INTERNAL FACTORS

y y y

Unwillingness by Apple/to allow its developers to add features to the Operating System. Consistent supply of innovative and competitive products into the market in order to maintain constant attractive profits. Current distribution channels also sell competitors products not full Push to Apples products alone. Modeling and Integration of both external and internal factors mentioned above.

SWOT ANALYSIS
STRENGTHS
y Internal y y y y y

WEAKNESS
y Focusing

Resources and Capabilities. Innovation in the Product Line. Brand Loyalty. FinancialVitality. High Quality Products. Leadership of Steve Jobs.

developing marketing. y Perfect can be the enemy of good. y Difficulties with some products. y Apple does not license into other music vendors.

more rather

on than

SWOT ANALYSIS
OPPORTNITIES
y Growing

THREATS
y Very

Consumer Electronics Market. y Opportunity to reap the benefits of Customer Relationship. y Product Line is attractive. y Music Phone market has very high potential.

high level of competition. y High product substitution effect. y Imitation and technology obsolescence.

TOWS MATRIX
y Internal Strengths-External Opportunities. (S-O) y Internal Weakness-External Opportunities. (W-O) y Internal Strengths-External Threats. (S-T) y Internal Weakness-External Threats. (W-T)

POSSIBLE SOLUTIONS
y Create a differentiation strategy:

The commodity PC market presents a perpetual downward pressure on prices, which erodes firm profitability. Developing and brand image that separates the firm from the competitive rat race will reduce the effect of destructive competition and pad margins.

y Develop close relationships with suppliers:

Because there are few suppliers of key components required in PC manufacturing developing close relationships with suppliers is of utmost importance. Rather than searching for the supplier of lowest cost, maintaining a collaborative and exclusive business relationship will help mitigate the power of suppliers and help to lock in attractive component prices.

SOLUTIONS (CONTD.)
y Consumer electronics diversification:

While the PC market has grown increasingly crowded with competitors and customers saturated other areas of consumer electronics continue to grow. Developing complementary products in other categories provides broader sources of revenue by accessing more customers in markets with less intense competition.

y Focus on differentiated lifestyle branding:

Apple has successfully developed a differentiated lifestyle brand and must continue to build on this foundation while resisting pressure to move to the middle to directly compete with Dell and HP.

BEST SOLUTION
y Create a differentiation strategy:

The commodity PC market presents a perpetual downward pressure on prices, which erodes firm profitability. Developing and brand image that separates the firm from the competitive rat race will reduce the effect of destructive competition and pad margins.

y Focus on differentiated lifestyle branding:

Apple has successfully developed a differentiated lifestyle brand and must continue to build on this foundation while resisting pressure to move to the middle to directly compete with Dell and HP.