Apple Competitive Strategy

orchard apple tree Competitive StrategyApples practices, procedures and policies reflect the differentiation dodge to target the all-embracing range of customers as the overall private-enterprise(a) strategy of the family. The telephoner serves a wide range of differentiated harvest-feast to the customers ranging from the classy power user to the juvenile first time users. The differentiation is based on unique design, reliable quality and customer services driven by high customer prys.The existence strategy allows the improvements in new product development and development in the existing products. The differentiation strategy provides much(prenominal) innovative products to a wider range of customers. by the integ symmetryn of these strategies the company aims to construe the demand evolving in the marketplace. The implementation of unique designing and development of operating system and software has been a source of hearty competitive advantage.The company has diver sified its market to digital electronics and computer market in addition to personal media player industry as the target market which proves that the strategies of the company are still at evolving stage due to new diversified market. Apples has also entered to the tablet industry through the products such as iPad and fluent industry through the products such as iPhone (Masi, 2009). brain 2What are the key elements of Apples strategy in computers, personal media players, and Smartphone? Have its strategies in its core businesses yielded succeeder? Explain.AnswerThe business strategy of Apple aims to design and develop its own OS, hardware, software applications and services uniquely which facilitates the customers with the innovative and new product solutions having unique features such as easy usage, flawless additions, and innovative designs. The companys strategy of continual improvement and research and development leads to the development of new innovative product which enhan ces the market bureau of the company. With the integ proportionalityn of the strategy, the company consistently builds and hosts the dynamic platform for identifying and releasing the third party digital content and its application through various repositions of iTunes. This store comprises of the Apps store and iBookstore which helps the users to use and access the third party applications either in MAC or through iPhone, iPad, or iPod touch. The company strategy also includes the expansion of scattering channels so as to enhance its wide customers reach, high quality services and after sales services to the customers. The company has also uniquely positioned itself as a superior and extremely incorporated digital lifestyle and productivity solution provider (APPLE INC FORM 10-K (Annual Report), 2011).Question 3What does a competitive violence assessment reveal about Apples computer business, as compared to the leaders in the personal computer industry? Use the methodology in Table 4.2 to yield your answer. Does it appear that the companys competitive positions in personal media players and Smartphone or stronger or weaker than its position in computers?AnswerCompetitive strength assessment of the company reveals following factors as the strength of the companyHighly Differentiated Business StrategyThe company provides highly differentiated product to its wide range of customer in highly diversified market including personal computer, Tablets, mobile, portable media player industry. It also provides highly innovative and new product integrating with its own hardware, software and designs to solve the problems of the customers and meet their demands (Danesi, 2011).Diversified Product OfferingApple provides its various products in multiple market segments i.e. MP3 players market, PC market, Tablet Market, and other wireless communications market inwardly the digital and consumer electronic industry. Apple is considered as the true innovator in the consum er electronic industry and this has exposed the existing products to gigantic market opportunities (Danesi, 2011). early(a) strengthsOther strengths of the company as per the advisors and critics are as followsApple Hardware Design.Apple Marketing.Leadership.Competitive Advantage (Apples Competitive Advantage, 2004).The market analysis suggest that the Apple stands at 3rd position in the PC market with the market mete out of 10.6 % spell in the mobile market, it stands at second position with 24.2 % of market share. The company holds the share of 78 % in the overall media player market. This reveals that the market share of the company in this industry is much stronger than the personal computer industry (Slivka, 2012) (Keene, 2012) (Macale, 2011)Question 4Does it make good strategic sense for Apple to be a competitor in the computer, personal media player, Smartphone, and tablet computer industries? Are the value chain activities that Apple performs in computers, personal media p layers, tablet computers and Smartphone very similar and compatible or are there very important differences from product to product? Which of the four products linescomputers, tablet computers, personal media players, or Smartphonedo you think is most important to Apples future growth and profitability? Why?AnswerThe value chain of the Apple Inc suggest that the company is efficiently handling the chain of activities in innovative and design leading to management of all the activities and operations which provides it a great competitive advantage.The procedure at Apple Inc is moved in following mannerAs per the market growth and stock report, the iPhone generates 42.1 % of the total revenue for the company while iPad generates 21.8% of the total revenue. Mac Contribution to the total revenue is 18.9 % while iPod contributes for the generation of 7.3% of the revenue and other peripheral services contributes 9.8 % of the revenue. From this data, it is clear that the Smartphone market and revenue share is the highest contributing segment for the company. However equal emphasize should be given to all the other segments also in order to achieve the total competitive advantage (Danesi, 2011).Question 5What is your assessment of Apple Computers financial performance the past three years?AnswerThe above graph depicts that the profitability of the company increases form 25 % to 40 % consecutively from 2006 to 2009. The graph also depicts that the revenue of the company have been increased from 10 billion to 17 billion in due course of time which depicts that the company is continuously growing with the total competitive advantage of the global international market. The ratio analysis suggests thatThe current ratio of the company is continuously increase showing the increase of current assets and decrease in current liabilities with some downturn in the year of 2009.Debt equity ratio remains the same with small fluctuations which shows that the company is balancing eff ectively between the current liabilities and the shareholders wealth.Efficiency ratio and debtor turnover ratio is continuously change magnitude with a certain down turn in the year of 2009 which shows that credit sales are going down and cash sales are increasing (Apple Inc).Question 6What recommendations would you make to allow Apple to uphold its position in its most important markets? What steps should it take to ensure that the iPad becomes a conquest in the marketplace and a major contributor to the companys overall performance?Answer pursuance recommendations are being recommended for the company in order to strengthen its position in the marketThe Ultimate Convergence Device.Modern Medical Device Platform.Environmental and social efforts in partnership.Dual Band GSM/ CDMA iPhone Worldwide.Collaborative recycle benefits.Capturing Convergence Device Market.iTune Stores eBook Distribution.Implementing First party quality check in OEM Factories.Productive use of unused cash.C ontinues implementation of expansion strategy.Differentiated Lifestyle Branding.Following strategies are recommended for iPadFlash player should be added as one of its feature.It should also be comprised of USB and camera.It should be compatible with the iPhone applications.Develop a separate marketing strategy for iPad.