Managerial Apple Casewriteup.pdf - APPLE CASE COMM 491 MOMO DERETIC YUE LIANG Why has Apple been so successful over time Apple competes globally in a

Managerial Apple Casewriteup.pdf - APPLE CASE COMM 491 MOMO...

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APPLE CASE COMM 491 MOMO DERETIC YUE LIANG
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Why has Apple been so successful over time? Apple competes globally in a consumer electronics industry in 2013. In this competitive product market, Apple distinguishes itself from other companies with the ability to continually innovate. The company offers a range of products such as iPhone, iPad, iPod and destructive business models such as Apple Apps Stores and iTunes. Apple maintained its competitive advantage in the market by broadening product lines and expanding geometrically, with a clear strategic focus on the premium segmentation with a high price tag. Sales of Mac notebooks and iPads have helped Apple generate 27% and 68% market share respectively, in the U.S. market and tablets market. In addition, iPad accounts for 91% of web traffic among all tablets. One of the main reasons behind the success of the iPad was that it offered over 700000 iOS applications to Apple users. Such one-stop user experience also attracted large companies to deploy iPads in the workplace, with customized applications that cater to their specific business needs. Comparing with a great amount of money spent by other technology giants, Apple’s R&D investment with a mere 2.4% of total revenue shows how effectively Apple’s innovation process works, making possible a significant return on R&D. In financial terms, the stock performance was at best at over $650 billion in mid-September due to a successful launch of iPhone 5. The stock price then fell tremendously to $370 billion in the next few months due to intensified competition. In qualitative terms, Apple strived to maximize the firm’s value by enhancing its operational efficiency, product range and quality, and customer intimacy. Apple’s integrated value chain enables the company to produce high -quality computers. Such a super-efficient supply chain had allowed Jobs to focus on high-profile product launches, which in turn, also increased the firm’s profitability . At first, Jobs decided to improve operational efficiency by outsourcing manufacturing and scaling down the distribution system by maintaining relationships only with big outlets. He later launched a website to sell Apple products directly to customers online. Jobs tied this in a make-to-order manufacturing strategy to speed up the manufacturing process and simplify Apple’s inventory. Moreover,
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