Apple Computer: Case study
- Qn 1. Describe the key strategic challenges facing Apple Computer
- Qn 2. Describe the dimensions along which company success can be measured
- Qn 3. Describe the critical external and internal environmental factors that have strategic implications for Apple's future
- Qn 4. Describe how Apple's strategy stands up against industry rivalry
- Qn 5. Describe the recommendations you would make to enhance the effectiveness of the company's strategy or to change its strategic approach for better results
The iPhone basically provides its users with three features which include a mobile phone, an Internet device that can also be used for communication and an iPod that would allow its users to download and listen to music from the iTunes Music Store. The iPhone offers its users a different user interface that is entirely based on a multi-touch display. The phone does not make use of QWERTY keypads or the conventional keypads that are found in most phones. The touch display therefore allows users to experience the many features offered by the iPhone improving user interactivity and allowing users to control the functions of the phone through their fingers. The additional talk time as well as the 24 hours allocated to audio playback will allow the phones users listen to iTunes without having to recharge the phone's battery (Ireland et al, 2009).
The Apple TV was created to revolutionize the Internet video industry as the Apple iTunes Music Store revolutionized the music download industry over the Internet. The Apple TV offers users the ability to download movies, music videos and TV shows through the iTunes online service and also through YouTube. However, industry analysts have noted that the Apple TV will flop like the Power Mac Cube which was unable to download movies from the iTunes store directly to the television set. Some of the cons that made the Apple III and the Power Mac Cube to be unpopular amongst consumers were that they required a high definition TV to download the movies but because the movies were of a lower screen resolution, the pictures ended up looking fuzzy and unclear (Ireland et al, 2009).
[...] Staying on top of its marketing game will be one of Apple's major challenges as the company continues to develop a wide range of products to meet the ever changing needs of technologically savvy customers. The company also faces the internal challenge of balancing the demands of its shareholders and running a company that is successful. The company launched into full marketing activities during the launch of the iPhone in 2007. The successful nature of the company made it possible for the product to be well received in the market which in turn increased investor and customer expectations thereby boosting the company's stock price. [...]
[...] However, industry analysts have noted that the Apple TV will flop like the Power Mac Cube which was unable to download movies from the iTunes store directly to the television set. Some of the cons that made the Apple III and the Power Mac Cube to be unpopular amongst consumers were that they required a high definition TV to download the movies but because the movies were of a lower screen resolution, the pictures ended up looking fuzzy and unclear (Ireland et al, 2009). [...]
[...] The introduction of the iPhone and Apple TV by Apple Computer in May 2007 was seen to be a major move by the company in terms of developing innovative products that would appeal to a large demographic market. The iPhone together with Apple TV demonstrated the focus on innovation that the company has been able to achieve over the years since it established itself as the number one manufacturer of Mac computers. The recent innovations were meant to ensure that the company continued to have a competitive advantage over its rivals in the technological market such as HP, IBM, Samsung and Dell. [...]
[...] The usability of a product basically encompasses the effectiveness, efficiency, accuracy and completeness of a product or service and how these aspects can be used to determine the success or failure ratio of the product or service (Vuolle et al, 2008). Usability can be measured by determining the number of tasks that have been completed and then deriving the percentage of these tasks. competence is calculated through the quantity of human, fiscal and monetary resources that have been exhausted in achieving a particular product level effectiveness. Efficiency is measured through the amount of time that has been taken to complete certain tasks and the estimations of subjective workloads. [...]
[...] Some of these websites such as 4shared music.com and Kohit.net allow users to download music free of charge. This presents a major challenge to the company's strategy of expanding its iTunes music store where it allows its consumers to download music legally. Another strategic challenge that the company faces is the introduction of cheaper and lower priced alternatives to the iPod, iPhone and the Apple TV such as the smart phones produced by mobile companies like Nokia, Samsung, Sony Erickson and LG. [...]