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Apple Inc In 2015 Case Solution

Solution Id Length Case Author Case Publisher
1785 1111 Words (5 Pages) David B. Yoffie, Eric Baldwin Harvard Business School : 715456
This solution includes: A Word File A Word File

The most important thing that Apple Inc. can do to ensure that its growth and position is sustainable is to constantly innovate and push the boundaries. Offering something unique and high quality is very much on-brand for Apple. The digital world is innovating and developing at a much faster rate. Consumers also want new things constantly and it is this mindset which means that no company can become complacent, even a giant like Apple. The company must keep the culture of innovation alive and maintain the drive it had when it came back from near bankruptcy and turned things around completely.

Following questions are answered in this case study solution

  1. How has Apple performed in the PC industry? What is your evaluation of its performance in the PC business? 

  2. Assess Apple’s iPod, iTunes, iPhone, iPad, iWatch and ApplePay strategies and performance. How would you compare them to its Mac strategy? 

  3. How durable is Apple’s current success and industry position? What threats does it face? What would you recommend?

Case Analysis for Apple Inc In 2015 Case Solution

1. How has Apple performed in the PC industry? What is your evaluation of its performance in the PC business? 

Apple Inc. was established in 1976 by Steve Jobs and Steve Wozniak. Jobs, the face of Apple in years to come, envisioned a device that could be used at home and one that was user-friendly. Initially, computers were huge and their use was limited to the corporate sector. This made Jobs vision all the more revolutionary. From the get go Apple adopted a strategy that deviated dramatically from that of its main rival, Microsoft. While Microsoft produced software that is sold to third parties, apple kept its software exclusive to its pc, the Apple I and the Apple II (Yoffie & Baldwin, 2015). This hurts the company initially, especially when IBM entered the game in 1981. The IBM PC utilized Microsoft software and an Intel microprocessor. Apple, on the other hand, had been doing everything in-house. While IBM was superior in that it was easy to operate, was faster and more affordable, Apple had the edge of practicing vertical and horizontal integration. Not only did Apple's refusal to outsource designing and license its software made it unique, but it also made their Pcs impossible to replicate. Apple also had more control over its image and this came in handy when it launched the Macintosh in 1984. Still, the company's PC sales were slow. The Mac was overhauled in 2001 upon the return of Steve Jobs, with a new operating system and Intel microprocessors.

Overall, the pc market has seen a dip in recent years. And while Apple has traditionally underperformed in the industry for PCs, it has been able to carve a niche for itself. The company has improved and perfected its PCs over the years so they are now able to compete with PCs made by other companies, like Lenovo, Hewlett-Packard, and Dell, with one critical distinction; the Mac has its OS. The unique and elegant design of the PCs and the distinct OS has set Apple's PCs apart within the industry. This is the reason why the company has been able to maintain a premium price point as well as a loyal customer base that refuse to switch to Windows. Apple's position in a saturated market for PCs remains stable as a consequence.

2. Assess Apple’s iPod, iTunes, iPhone, iPad, iWatch and ApplePay strategies and performance. How would you compare them to its Mac strategy? 

With the development and introduction of the iPod, iTunes, iPhone, iPad, iWatch, and ApplePlay, the company entered the consumer electronics market in a big way. The iPod, in particular, was a major success for the company. An extension of Jobs vision of having a computer in every home, these products were aimed at providing an overall entertainment experience to users. The iPod was launched in 2001 and the device could be synched to a computer, the critical point being it could be synched with any computer, not just a Mac. This is a major departure from the strategy of exclusivity the company adopted for the Mac which enabled it to charge the premium price.

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