Seminar_5_-_Case_Keys_to_Apple

Seminar_5_-_Case_Keys_to_Apple - Suggested: depending on...

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Apple Computer: Taking a Bite out of the Competition Case Analysis
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30 - 2 Apple Q 1. Competitive Analysis Competitive Intelligence: Define and understand a firm’s industry Identify rivals’ strengths and weaknesses - Intelligence gathering (data) - Interpretation of intelligence data Helps a firm avoid surprises
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30 - 3 Apple Q 1. Competitive Analysis, cont. Rivalry High Substitutes Threat High Buyers’ Power High New Entrants Barriers Med-High Suppliers’ Power Med-Low Suggested: many rivals compete for market share. Ongoing consolidation as quest for lower prices pushes down margins. High technology obsolescence puts a premium on innovation. Suggested: corporate customers demand customization and price breaks. Switching costs are minimal, loyalty to a given brand cannot be assumed. Suggested: most components are readily available. Assembly and distribution is easy. Price sensitive customers always looking for a deal and local service means entrepreneur could easily carve out a niche.
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Unformatted text preview: Suggested: depending on the commodity, lots of competition keeps supply up and prices down - except for memory Suggested: substitutes for the Mac computer include the smart phones, PDA’s, Windows based computers. Substitutes for media players include mobile phones. Substitutes for iPhone include traditional phones. 30 - 4 Apple Q 2. Internal Analysis, cont. Apple has both tangible and intangible internal resources: • Financial - financial assets appear to be available for R&D • Physical - hard to assess, certainly historically adequate • Technological- capable, motivated, highly creative employees insure Apple will keep up with technology innovation • Organizational- strategy of focusing on digital “lifestyle” opens up what are functional “silos” in other companies • Human - workforce continually revitalized • Innovation- Apple’s major strength • Reputation- Apple’s most significant strength...
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Seminar_5_-_Case_Keys_to_Apple - Suggested: depending on...

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