COMPETITIVE AND CORPORATE STRATEGY
APPLE INC. IN 2012
TEAM:
Daniela Tello Rioja
041314353058
Wisnu Harimurti
041324353024
Ryzkiya Noor Annisa
041324353013
MAGISTER MANAGEMEN ECONOMICS AND BUSINESS FACULTY OF AIRLANGGA UNIVERSITY
Apple Inc. In 2012 Apple Ink is one of the biggest technology industry in the world. Steve Jobs is the one of apple CEO who change apple company on the verge of bankcruptcy to the one of the largegest and most profitable companies in the world. After Steve Passed Away, The New CEO-Jim Cook had an extraordinary Challange, How to sustain Apple’s current Success taking apple to the next level. Apple’s Competitive Advantage Here is the competitive advantage of Apple: High Customer experience, Apple always provide an outstanding value in all aspects of consumer experience Apple designs and develops its own Hardware and Software platforms for its products Cultural make over from steve jobs, like he said “Think Different” Would the Iphone Continue its march to dominate smartphone in the face of growing competition from companies such as Google and Samsung? The threat of rivalvy has high influence for apple (see exhibit 1). Google and Samsung is the most direct competitor for apple. It is because they give limited choices that have high quality and elegance that can easily attract customers to make a choice. One of Apple weakness is closed system (see exhibit 2). All apple device including iphone must integrate with itunes to share data. This condition is different with google or samsung or other android device which easier to share data. Apple has continuously pursued innovation to move into the Broadly Differentiated Strategy segment (see exhibit 3). Apple's competitors are established companies with substantial resources. Any advantage that Apple gains by product differentiation is short lived as competitors have copied them immediately by mobile phone companies like Samsung and Google. As we see from the case that they released their version of touch screen smart phones and tablet computers within months after the introduction of iPhone & iPad. Apple still becoming the first of innovation. So, If apple want to keep the apple as their “Angle”, they have to keep their differentiated and improving innovation. Would Apple’s newest creation, The Ipad, continue to dominate the tablet market? Would new Competitors ranging from Amazone to Samsung, steal share and drive down profit? Apple did to laptops with iPad,and Samsung is trying to do with their Galaxy Note. The same with what amazone did with their Kindle Fire. The
Android based device was sold at a price point at which no iPad was selling. Unfortunately, Amazon is building Kindle devices with a configuration exactly on par or better than the new generation iPad. The weakness of android especially samsung is it lacked the applications and ease of use of an iPad (case : pg 14). This is the advantages for apple to sustain in the market. New competitors will steal share and drive profit. Apple faced with rivalvy among exixting competitors. High rivalvy limits the profitability of industry (Porter, 2008). Ipad can continue to dominate the tablet market as long they do innovation and making upgrade for better iPad. How Apple inc. In the Next Decade, How to sustain Apple’s current Success taking apple to the next level? Differentiation strategy seeks to create higer value for customers by delivering products or service with unique features (Rothaermel, pg : 143). The core competencies of apple is lavereging industrial design to integrate hardware and software in innovative and category-defining mobile devices that takke the user’s experience to a new level. Apple continuously do innovation to move into the Broadly Differentiated Strategy segment (exhibit 3). Apple's success is not because its ability to create innovative products. Creating innovative products gives Apple only a temporary advantage as its competitors have imitated and launched their own versions. Apple can do :
RnD to product development and innovation, makes extraordinary feature to apple Delivering integrated product Keep it unique
Apple also need to be careful not to overshoot its differentiated by adding product features that raised cost but not the percieve value in the minds of customers. Jim Cook can taking apple to the next level and making success as steve job did. The success is dependt and relies on two factors (based on Rothaermel, pg : 155) :
How well the strategy laverages apple’s internal strengths while migating its weaknesses. How well it helps apple exploit external opportunities while avoiding external threats.
List of references Rothaermel, Frank T. Strategic Management Concept & Cases. McGrawHill
Porter, Michael E (2008) . The Five Competitive Force That Shape Strategy. Havard Business Review
Exhibit 1 : PORTER FIVE FORCE FOR APPLE
Threat of New Entrants (Low)
Threat of Buyer (Medium)
s refuse to liciencing their hardware and soAftwareApple so it’sInc notiseasy focusing to imitate on itsbyniche others market. They can influence the bargaining power of the b Change of need , extraordinary function in one smartphone
Threat of Rivalvy (High) Horizontal and Vertical Competitor (Samsung, HTC, LG, Motorolla) Android Smart Phone Other device better quality function and elegance than apple
Threat of Supplier (Low)
rctress, writers, and all people who sells their product on Itunes or Apple Store
Threat of Subtitute (High)
Alternative technology like Xbox, Smartphone with extraordinary function Apple makes their own Ios, Application,software and complementary product. Rapid Technology Growth
Exhibit 2 : APPLE INK SWOT
Weakness
Strength Strong Brand Reputation High Quality Innovation Customer Loyalty
Some Product Failed Closed System
Threat
Opportunities New Product Apple Store arround the world Diversified Features Better Quality Own Software and Aplication
High Competitive Market Rapid Technology Growth
Exhibit 3: APPLE STRATEGIC POSSITION
Strategic Possition
Source : Strategic Management (Rothaermel, pg 143) adopted from M.E porter (1980) competitive strategy. Techniques for analyzing industries and competitors (New York: Free Press)
