Apple starts as a computer manufacture , they have a mission to make the computer easy to use by people , in their early commencement they became a leader in computer market . However , this success collapse due to high cost compared with the competitors who have cheap computers that which led Apple`s to many loss in many periods . After that Apple come again with new way in using technology and strategies that make it the leader in the market and dominate also the mobile market .
Apple strength their starts with changing the way it works ,they introduce iMac computer that have feature capture all what customer need that support plug-and-play peripherals , like printers in design of windows based machine in the first time . Also they make changing in the marketing the name of the company by make it culturally workforce company that contain many different people , that increase the capability for its success especially in china and india .
Apple make their Image as accompany support the environment by using recycle materials in their industry and efficient energy , this promote the image in the global market and attract many customers to its product . Apple attract what customers like and change the market by using a Digital Hub Strategy , they found that the preferences of customers were in digital lifestyle , so they serve that preferences soon in their product and bring the computer market into the hands of consumers. All that success still not boosted the Apple before they launch their IPod , it was the really worth device that differentiate Apple form the other competitors .
IPod is a digital music player , they exploit the technology to make it better than the normal MP3 portable players , IPod storage capacity was up to 1000 songs , with preferred innovative design and suitable price . After that the strategy of Product differentiation come again with the iTunes desktop software that can be synchronized Ipod with computers and has a store of music , they combined this features which enhance the sales of Ipod form 113,000 to 733,000 with a way protect the Intellectual property of the songs providers by DRM system (Fair Play) .
This strategy with their supplier increased their profit by locking the other from playing downloading the music from other computers or devices . As they focus in the Product differentiation their invention of the Iphone to enter the mobile market and changing this market by lead it and make other competitors forced to imitate this kind of mobile . The Iphone versions keep improved till it cost reduced which increase their profit and their market share it gave them revenue of 30% and consider as the device that make the growth in the company .
Their IT strategy that keeping converting the applications in the computers to be in the consumers hands has the big effect of their success , they keep on this way producing their products that attracts the consumers . They introduce the Ipad in 2010 tp combine between the features of smartsphone and laptops , the Ipad design with the touch screen similar to their other products however this product compete with the other bookreader like kindle because it has the A4 chip that has long life battery and its their brand . Their business and IT strategies fit between changing the market and serve the customers with what they need they focus to be a digital leader in the market and they succeed .
2- what do you believe are apple`s Transaction processing systems ?
Apple transaction systems was really key factor to increase their sales , they gave the customers the experience to use their products and try it with an easy way to payments especially with entering the Ipod in the market . IPod increase the sales of music with the combination of the iTunes by customers who like music and download it on pay-per-song . App store also enable apple to sell , distribute and enable customers to access to the applications from their smartphones directly and buy thousands of applications that vary in their contents .
Apple when they face a threat on their music sales they bybassing download from media provider and bought lala.com a music streaming services , this will enhance their sales and keep their direct contact with customers and their payments . However , the credit card fees have their impact on their profit and they improve their system to get a profitable direct chain for their own .
3- how has Apple managed to gain competitive advantages ? do you think Apple should fear substitute products ?Explain .
Apple competitive advantages lies in their strategy of making different products and keeping their costs reduced .They serve the market with low cost products like Iphone in its cost for them and for the consumers , this advantages not every company will can do it . Apple change the market of mobile and computers in their better exploiting the technology with their marketing way , starts from macintosh Pc to the Latest Ipad . Also what gave Apple other competitive advantages that their insisting to have their own hardware and software like their chip A4 with gave the control on their business .
They varied their business from homes to professionals categories also they always enhance the easy way in using their products . Buying form their stores directly with smartphones the applications and programs making customers easy shopping and satisfy their supplier that benefited from increasing their sales . Their concentration on innovation and their knowledge in technology keep them working to improve their products because the market which affected of technology cannot be survive if the company will not keep invest in R&D .
Their staregy to change the rule in the market consider as the most competitive advantage that make them change the industry in their way and creating new market digitally . What I think it that Apple should not fear substitute products because they have the ability and the leader experience in new market that they create , especially that they come in the mobile market as new then they dominate it , however , the innovative strategies that affects decisions should be monitoring the new technologies to keep updated with the latest news about it .
Surviving in market world depend on the ability to change and move quickly with not affecting the customers preferences and needs , keeping in the top a hard job its need focusing on researches that have accurate results in how people prefer their products and behave to use it , what happen to nokia as leader in telecommunications it can happen to any industry with new inventions .
4- what are Apple`s product flaws?
Apple and every company it come with some failures in their products , this lies in some products errors or in bad decisions . in their beginning their strategy was practiced horizontally and vertically in integration , they insist in the past to refuse and license from third parties for their hardware which cost them loss in computer market .
Also as the Iphone dominated the mobile market but this not said that it was without failures , it has limitations by was using in one network and this network have some problems which not satisfies the customers . Some criticisms had it the Iphone as it lack of Qwerty keyboard which limit the use of emails and make it not efficient . Another products like Ipad has the same defect in the Iphone and cant use flash video with battery consume quickly .
In my opinion the most product fail in apple it was the Mac mini because consumers found it expensive with limited memory and no keyboard or mouse and they can use other products from competitors in same options and better with low price . Also the failure of apple products we found it in their TV model that can download from itunes and bring videos direct to consumers but its sales was very low comparing with other products .
5- Explain Apple`s porter`s 5-force competitive model .
Apples porters 5-forces we can find it as the following :-
Traditional Competitors :In case of competitors Apple face a high competition from many frims , in computers Microsoft is the one that the strongest in the market as it has windows 7 in their industry and has high sales volume in the market .in the mobile market we see the galaxy Samsung how has satisfied many customers with easy use and battery and memory can replace not like the Iphone design , so in this case apple should cope with this changes in the market .
New Market Entrants :The iTunes from Apple has untill this days his advantages however we Apple cant guarantee that music can be download on line in future in innovative alternative way from other firms. Also Apple limitations in the Iphone will enhance any new entrants in the market solving this limitations and threat their industry .samsung , HTC and many android mobiles working to attract and withdraw their customer, Despite the competitors the new wireless technology should shift the market like what aplle do in the past so ,focusing on R&D researches and customers preferences will make apple survive especially with exiting of google .
Substitute Products and services :As the market depend firstly in the technology no company seek to be in the top left the market without analyzing the new trends in the customers and competitors . Now there are even watches can be use as hand computers they threats the apple smartphone and even their Ipod , it can contain the music online or other services that will be offer through radio satellite .also Kindle from amazon still attractive product for download ebooks and read it .
Customers :In the matter of customers , they normally may be in financial crisis so they lack the power of spending on the products of apple , also their trends may shift to other product which they find it satisfied for them .Even they may try to directly downlowd music from online servies without need to acces to itunes .So, apple should expand it exiting in this filed with more ready servers that should serve the customers on line needs.
Apple has the products differentiation that attract most of customers in many products they change the mobile market with the new innovative mobile and attract Nokia customers obviously , however they now try to survive and retaining customers a hard tasks , they should make long contracts with them and link direct on line help to serve their needs .
In the supplier apple in its market has to vary their supplier to ensure lowering their cost , the threats also come to apple here is with who provide their raw materials and their diversied labor apple should seek to get the most professional in this market before the competitor catch them , as technology issue always depend on ideas and innovative minds and skills . They use from tiawan assemblers to their prodcust but as globally market they should attract the new technological Indian labor in this sectors .
References :-Apple case study : Apple INC IN 2010“ Harvard business school ““ David B .YOFIE “ ” RENEE KIM”- Management Information systems , twelve Edition .”managing the digital firms” ‘ KENNETH C . Laudon-Jane P.Laudon