Steve Jobs has done a good job as Apple’s CEO. He helped Apple to establish a huge loyalty customers market, and survived it from the competition with Microsoft. Steve Jobs develops a strategic vision of where the company needs to head, which is to make Apple competitive advantage sustainable and continue to lead the technology market. Apple’s objectives is “think different”. It does very well by creating innovative products. Other companies had tried before to replicate the design of Apple, none have succeeded in the manner of Apple. When Steve Jobs was named the CEO in 1998, he re-revolutionized the entire company.
He expended the segment Apple’s products to fit different demand by customers. Apple continues to forge ahead in design with the introduction of the iPod digital music player and iTune website. 2. The chief elements of Apple’s strategy are performance and innovation. a. Performance: Since the performance can be replaced and even copied by other competitive industries, Apple has to keep a good but not place for under performance in the industry. Apple had been taken some amount of losses for a few periods. The main cause is because the products are introduced but not selling until a long time after.
Also, the products prices are to high to customers. Apple turned to profitable and the leader after Steve Jobs returned to the company as CEO. He had idea after idea about how to improve the company performance and make it turning around. He consistently pushed for new idea innovation and several structural changes. b. Innovation: Apple has built a strong broad differentiation strategy. Its innovation of new ideas and product is always hard for other competitors to catch up. The innovation could be the key element for the industry keep competitive advantage sustainable. 3.
Apple was used to be just in the personal computer and software industry. After Apple lost the exclusive right to use its own GUI, it had been struggled for a while. In addition, because of lacking contracts with application industry, Apple’s personal computer couldn’t get a big share of market. The system was not capable enough. After Steve Jobs returned to Apple, he was trying to utilize the differentiation strength and expanded the business to the entertainment industry. Apple started to product digital music players and online music service in 2001, and mobile phones in 2007.
In the value chain, there are inbound logistics, operations, outbound logistics, marketing or sales, and services. In the inbound logistics, alliances with major suppliers in limited, most of the parts are produced by Apple itself, such as software and interface. But for the personal computer industry Apple has to get more suppliers in order to compete with Microsoft. In the part of operation, Apple very pays attention on design and innovation. Its technology is always ahead of other competitors and the new idea comes up quickly. In addition, Apple began to collaborating with other leaders, such as Microsoft.
That not only expends its market share, but also gets a win-win situation. Apple does a good job on marketing and sales. It provides customers a chance to use it and also play with it. IPod, IPhone and ITunes combo gives brand awareness a push. The value chain is not much difference from products to products. Instead, Apple was able to command a premium in the market and gained above average returns from utilizing the compatible across the products. 4. Computer industry: It is seem to be more intense for Apple. By the second quarter 2009, Apple has gained only 8. 7% of the total market shares.
Dell. Inc has 26% and Hewlett-Packard has 25. 7%. Apple’s core business is no computer products. Apple’s proprietary operating system and strong graphics handing capabilities differentiated Macs from PCs, but many consumers and business users who owned PCs were hesitant to purchase a Mac because of Apple’s premium pricing and because of the learning curve involved with mastering its proprietary operating system. Digital music players industry: Apple is used to be just in the computers and software industry. It expanded its business to the digital music players industry.
Even though the total market share for iPod is about 71% in the 1st quarter 2008. Other competitors like SanDisk, Creative, and Microsoft are catching up quickly. SanDisk and Microsoft all gain 1% from the 1st quarter 2007. It’s easy to copy the new technology and new idea. Apple has to always come up innovation sustainability. Also, the price is higher than average for iPod, it gives other competitors opportunity to attract customers. 5. As compared to the leaders in the personal computer industry, Apple’s competitive strength are: design and innovation oriented, greater horizontal and vertical
integration, R&D orientated. In addition, Apple’s operating is in a fast-cycle market, replacement always happened. As the new technology comes up, customers will throw away the old version and get the new one. The film’s capabilities that contribute to competitive advantage aren’t shielded from imitation, where imitation is very fast and in expensive. Apple’s products and services have more restriction than its rivals. It will limit the customers or even force users to change their habit custom.
Acer is in the weakest overall competitive position, most of its revenue was rely on the mobile phone industry, but mobile phone industry have very intense competitive such as Apple and Nokia. Acer is also a multinational manufacturer outside U. S. , shipping and tariff need to concern about too. Innovation plays a dominant role in the competitive dynamics in fast cycle markets. Having a strong brands value is the basis for whatever competitive advantage it has. 6. As compared to other main players in the digital music industry, Apple has the highest overall rating according to PC Magazine Customer satisfaction with MP3 players.
The comparison includes sound quality, eras of use, and reliability. Apple also has iTunes to sell music, application, and video. Sony has the strongest competitive position right now. Sony has the best designed hardware and user-friendly performance. Microsoft is also strong, even though its operating system is the core business. iRiver and Archos are probably the weakest overall competitive position. They have less market share, and digital music player industry is their only one product, which is different from Toshiba, Samsung, and Sony. Their market is limited.