WHAT ARE THE CHIEF ELEMENTS OF APPLES STRATEGY?

Actually three chief elements can be pointed out: Innovation Secrecy Deversification of the product released

Question 1

INNOVATION

First of all, Apple has kept bringing innovative products to the market, realizing that having innovation in all they do would have to be the companys strategy against big companies like IBM and Microsoft.

Set up of a just-in-time R&D

In 2004, the company paid off the all of its outstanding debt to no longer carry long-term liabilities therefore freeing up more funds to reinvest in research and development, highlighting the company's overall focus on innovation.

SECRECY

While most of its competitors have made their technology to any PC company that wanted to incorporate it into their own hardware components, Apple was well-known for closely guarding the secret behind its own one.

Strict restriction on Apple Certified Developed Program No published information are available before the official conference announcing a new product

DIVERSIFICATION OF THE PRODUCT RELEASED

Since 2001, Apple did no longer only focus on the computer industry as such, but broaden its activities to third-party products:

Digital music player: iPod and iTunes Mobile phone: iPhone Touchpad: iPad Hardware, software, service and other sales

Yet, even though Apples revenues have been increasingly coming from noncomputer products , primarly the iPod, the company still sees computers as its core business.

Macintosh products (desktops and portables)

HOW WELL DO THE PIECES GOT TOGETHER? IS THE STRATEGY EVOLVING?

Four types of activity have to be analysed:

The computer The personal media player iTunes The mobile phone and the touchpad

Question 1

SWOT ANALYSIS
Strength
Financial Stability and low debt in recent years. Highly innovative designs provide market niche. Early entry into growing smart phone and digital music players industries. Brand loyalty Low market share in computer industry.

Weaknesses
Unique operating system with strict use guidelines not compatible with most PC's.

Premium pricing and limited variety limit market base.

Opportunities
Sales of laptops, smart phones, and MP3's on the rise. Entrance intro smart phone and digital music players industries exposes consumers to Apple brand.

Threats
Economic recession Lower priced PC's in computer industry Strong competitors in digital music players industry Technology for smart phones progressing very fast with new emerging rivals. Steeve Jobs death

COMPUTER ACTIVITY

Strategy for Apple's computer operations in 2008 still remained the company's primary focus. It maintained handling every aspect of the computer within Apple, which stands apart from the top PC competitors. Apple's computer products consist of a small variety of different models, each intended to appeal to different types users with different functionality and price points.

MEDIA PLAYER ACTIVITY

Apple was not the first to enter the personal media player industry. But its media player, the iPod, was the first player to gain widespread popularity.

2005: Apple dominated 70% of the hard drive MP3 player market and 40% of the flash player market.

By 2008, Apple had released 4 different iPod styles each with different functions and price points, just as with its computer's segment, with the strategy of appealing to a wider market segment. Many analysts also have commented the bridge into the personal media player industry was strategic for Apple to attract more customers to their computers.

ITUNES ACTIVITY

Apple's development of iTunes fell hand-in-hand with its entrance in the personal media player industry. Indeed, it synchronized with iPods and allowed easy-to-use access to music in MP3 format. By establishing itself as the largest legal downloading library early on, it gained the largest market share and thus became the leader while promoting the Apple brand as a whole.

MOBILE PHONE AND TOUCHPAD ACTIVITY

Nowadays, Apple's iPhone and iPad strategy centers on it being a key product for the company. Its development reflects the innovation of the company and its ability to recognize a market trending towards the synergy between computer and mobile phone. It was released to be compatible with many of Apple developments such as iTunes, Safari software, many other Apple applications. This again exposing the Apple brand to more consumers and increasing company awareness as well as adapting to changing market demands.

CONCLUSION

Apple has managed to maintain a strategy focused around innovation that quickly responds to market demands. It continues to gain market share by offering a variety of developments and improvements in its product lines and striving to provide easy-to-use, superior quality products.

Yet, since Steeve Jobs death, Apple has been facing to without doubt their most important ever known challenge.

DOES IT MAKE GOOD STRATEGIC SENSE FOR APPLE TO BE A COMPETITOR IN THE COMPUTER, DIGITAL MUSIC PLAYER, AND MOBILE PHONE INDUSTRIES?

Apple was able to recognize the market's focus shift towards:

the synchronization of mobile phones and computer technology. the development of the MP3 players as new music-listening technology.

Strategically it made sense for Apple, a company focused on innovation, to enter these markets. It enabled it to broaden its horizontal integration, something that many of its competitors already had extensive amounts of. Apple was careful to avoid the threat of cannibalization of its products. In this way, it clearly differentiated them via capabilities, price points and phases of market introduction.
Question 2

ARE THE VALUE CHAIN ACTIVITIES THAT APPLE PERFORMS IN COMPUTERS, DIGITAL MUSIC PLAYERS, AND MOBILE PHONES VERY SIMILAR OR NOT ?

The value chains for Apple computers, digital music players, and mobile phones are extremely similar given Apple's adherence to its strategic plan.

The main value chain for the companys products is depicted below:

Question 2

ARE THE VALUE CHAIN ACTIVITIES THAT APPLE PERFORMS IN COMPUTERS, DIGITAL MUSIC PLAYERS, AND MOBILE PHONES VERY COMPATIBLE OR NOT ?
R&D Design Production Marketing activities

As we said, Apple focusses on innovation in all they do and does it in an homogenous way. All the products happen to be in a same spirit:

Researched and developed: The technological findings for one product can be a basis for the others.
The iTouch was a basis for the iPhone which was itself a basis for the iPad.

Designed: a common touch can be find through the Apples range of products.

Produced: Different products can be made of some same components as the results of same R&D

Marketed: Apple advertising campaigns can be esaily recognized due to a same model.

Question 2

ARE THE VALUE CHAIN ACTIVITIES THAT APPLE PERFORMS IN COMPUTERS, DIGITAL MUSIC PLAYERS, AND MOBILE PHONES VERY COMPATIBLE OR NOT ?

Distribution and Customer Service activities

Unlike competitors, Apple develops all its products in-house and then sells them online, in their retail stores or with strict contracts to Apple product certified retailers. It also provides customer service for its products in its retail stores in the now famous Apples Bar.

Conclusion

Finally, all the value chain activities that Apple performs in its different activties can be considered as compatible .