NASIR MEHMOOD

FA-17/PHD MM(Q)-002

ASSIGNMENT 4

QUESTION 1.
Using the concepts in chapter 1, undertake a competitive analysis of both Apple and Nokia
– who is the stronger?

ANSWER
Nokia once was the leader in mobile telephones. When Apple was planning to sell it mobile
telephone , the iPhone, with the target of 10 millions in the first year in 2007, Nokia was already
selling 350 millions of it mobile handsets. This speaks of the Nokia’s supremacy in the world of
mobiles. But later on, Apple made some risky strategy which earned a lot of revenue for Apple.
Apple had achieved what some commentators regarded as a significant technical breakthrough:
the touch screen. This made the iPhone different in that its screen was no longer limited by the
fixed buttons and small screens that applied to competitive handsets. As readers will be aware,
the iPhone went on to beat these earlier sales estimates and was followed by a new design, the
iPhone 4, in 2010.
Now a days Nokia has lost its market share. Apple has taken over. This is due to the innovative
products, new technology incorporation, cooperation with industry and by making the prices at
reach of the consumers. Now Apple is much stronger comparing Nokia.

QUESTION 2
What are the problems with predicting how the market and the competition will change
over the next few years? What are the implications for strategy development?

ANSWER
Strategy and technology go hand in hand. Strategy can not be made by ignoring the technology.
But the problem with the technology is that it is bound to change. When technology changes, it
completely changes the market and the competition. Prediction in the change of technology is
quite difficult subject. Now one knows when the technology will change entirely and new
technology takes place. Here we can take the example of the Nokia, who the world leader in the
mobile telephones. Nokia was oblivious of the changing technology of the touch screen which
changed the market and competition altogether. So in order to develop the strategy one must
keep a close eye on the emerging technology in the relevant fields so that the market and
competition change can be pridicted

QUESTION 3
What lessons can other companies learn from Apple’s strategies over the years?

ANSWER

Following are the lessons form the Apple’s strategy which other companies must understand for
their future course of action regarding strategy development and implementation

1. Apple initially made a mistake by not sharing and cooperating with others. The
Macintosh was launched in 1984. However, Apple did not sell to, or share the software
with, rival companies. Over the next few years, this non-co-operation strategy turned out
to be a major weakness for Apple.
2. Apple made a very risky strategy which was a real success. When Apple’s Chief
Executive – Steven Jobs – launched the Apple iPod in 2001 and the iPhone in 2007, he
made a significant shift in the company’s strategy from the relatively safe market of
innovative, premium-priced computers into the highly competitive markets of consumer
electronics. This case explores this profitable but risky strategy.
3. Apple introduced technology advancement in their products.Apple had achieved what
some commentators regarded as a significant technical breakthrough: the touch screen.
This made the iPhone different in that its screen was no longer limited by the fixed
buttons and small screens that applied to competitive handsets. As readers will be aware,
the iPhone went on to beat these earlier sales estimates and was followed by a new
design, the iPhone 4, in 2010.
4. Be alert always. Five or ten years ago, you would set your strategy and then start
following it. That does not work any more. Now you have to be alert every day, week and
month to renew your strategy.
5. Learn form your own mistakes as Apple did. Unlike the launch of its first personal
computer, Apple sought industry co-operation rather than keeping the product to itself.