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COHERENT ACTIONSApple implemented its guiding policy with a set of coherent actions. Apple'scoherent action takes a two-pronged approach:1.Apple minimizes the product lineup by applying simple rules "we willonly make one laptop and one desktop model for each of the two marketsthat we serve, professionals and consumers."2.It also disrupted the status quo of the industry through a strongcombination of product innovation and business models, carried out atplanned intervals.With the success of Apple, the more questions, whether Apple is able to maintainits competitive advantage in the present era where many strong competitors areemerging and technology is growing more rapidly. In terms of the mobile paymentsystem (Apple Pay launched in 2014) and music streaming (Apple Musiclaunched in 2015), Apple was a late mover. Apple watch was introduced in 2015,is the first new product category after the launched of iPad in 2010. AlthoughApple continues to capture over 90 percent of profits in the smartphone industry,more than 60 percent of Apple’s $220 billion revenue comes from the iPhone. AndChina account represent more than 20 percent of Apple’s total revenues.4
CHAPTER IIPROBLEM IDENTIFICATIONThe success story of Apple itself makes some questions which courious about the success business model turnover of Apple. These several points are discussed-Explain Apple’s success over the past decade relative to its maincompetitors.Think about which industries has disrupted and how. -Is Apple's success attributable to industry effects, firm effects, of acombination of both?Explain. -What are the greatest challenges Apple is facing? Detail them by internalweaknesses and external threats. How can Apple transform internalweaknesses into strengths, and external threats into opportunities? -Apply the three-step process for developing a good strategy outlined above(diagnose the competitive challenges, derive the guiding policy andimplementa set of coherent actions) to apple's situation today. Whichrecommendations would you have for apple to outperform its competitorsin the future? Be specific.5
CHAPTER IIIRELATED THEORIESThe key success of Apple for almost last two decades was implementing the rightbusiness model innovation strategy, also analyse and recognize their competitivevalues. Competitive advantage is a setof qualities that give businesses leverageover their competition. It allows businesses to offer their target market a productor service with higher value than industry competitors. In the long term, thisboosts the business' position in their industry and drives a greater number of salesthan competitors. (White, 2019)Steve Jobs as the co-Founder was conceptualized by implementing a pontentcompetitive strategy. Jobs combines the innovation in products, services, andbusiness model. The right decision about recognizing the competitive of the branditself become a very good turnover to the Apple strategy. Apple can implementingmore than mere goal or just a company slogan.