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Apples Future Apple Watch Apple TV And Or Apple Car

Solution Id Length Case Author Case Publisher
2105 1478 Words (7 Pages) David B. Yoffie, Eric Baldwin Harvard Business School : 716401
This solution includes: A Word File A Word File

The case study, Apple's Future: Apple Watch, Apple TV, and/or Apple Car, discusses the various choices available to Apple extensively to expand into new areas and develop a competitive advantage in those areas. It also highlights the potential challenges that Apple has faced or may face when entering a new product category, such as competitors, pricing, changing preferences of the target audience, revenue generation streams, etc. This essay focuses on the competitive advantages of Apple as well as the feasibility of the categories-Apple watch, Apple TV, Apple cars, and CarPlay-that Apple is considering entering.

Following questions are answered in this case study solution:

  1. Introduction

  2. The Competitive Advantages of Apple

  3. Pros and Cons of Apple’s strategy for the Apple Watch

  4. Apple TV- A better option or a distraction?

  5. Apple Cars or CarPlay?

  6. Conclusion

Case Study Questions Answers

2. The Competitive Advantages of Apple

Apple has numerous competitive advantages. The foremost is brand equity, which in turn leads to brand loyalty, which aids Apple in maintaining its revenue streams. Apple also has a reputation for bringing innovative products, and the brand displays a commitment to develop new products. It also has a premium pricing strategy. Along with this, the brand has a well-integrated supply chain (Linton, 2018). The business model of Apple is built to accommodate and highlight these advantages. It is a revolutionary brand propelled by non-conformity to conventional gadgets (Ross, 2019). Apple targets mass-market consumers but also has smaller customer segments, which are the niche. It appeals to an aspiring and successful lifestyle (Oakley, 2020). Apple’s mission is to provide the best user experience through innovation, which is why its mission statement is also frequently changing to adapt to the changing needs of the market (Rowland, 2019). As discussed in the Apple case study, the venturing of the brand into new product categories rests on the foundational mission of Apple to develop new products to enhance the customer experience and encourage the presence of the brand in the consumers' lifestyle. A move away from traditional gadgets, the Apple Watch, Apple car, CarPlay, Apple TV are all reflective of the non-conformity of the brand to conventional products available to the consumers. The business strategy of Apple can thus be classified as product differentiation. The focus of the brand is on the uniqueness of design in its products to improve the functionality of those products, as well as strengthening the Apple ecosystem by linking and syncing one Apple product to another (Dudovskiy, 2019). An example of the ecosystem is the Apple smartphone syncing with the Apple watch.

3. Pros and Cons of Apple’s strategy for the Apple Watch

Apple's strategy for the Apple Watch has both pros and cons. A major advantage is that the Apple Watch provides a multitude of an assortment of variations. The design of the watch is elite and not easy to imitate. This can act as a deterrence for other players to enter this market (Mokriya Blog, 2020). Another pro of Apple’s strategy for the Apple Watch is the positioning of the product as not only a piece of technology but also has a fashion item. This helps in appealing to a wider audience and removes the negative connotation attached to wearing watches, thus improving sales. Another pro of Apple’s strategy for the watch is its use as a fitness app. In the contemporary world, health and fitness are of prime significance, and consumers are increasingly using such apps (Robin, 2017). The Apple Watch promises to play a constructive role in this regard. In addition to this, Apple's strategy for the watch includes using the Apple ecosystem to enhance ease and use and connecting the watch to its smartphone (Bajarin, 2014).

There are various cons of Apple’s strategy for the Apple watch. The pricing factor of the marketing mix of the Apple Watch translated into a very narrow customer base. The least expensive Apple watches were more expensive than the most expensive smartwatches from competitors like Samsung and Pebble. Another problem with Apple's strategy was the lack of a single supplier to manufacture the gadget. This became problematic and costly for Apple as it had to recall and scrap its products from the faulty supplier. In addition to this, the functionality of the Apple watch was questionable, such as slow performance, limited battery life, and accommodation of limited apps. The Apple strategy to build an Apple ecosystem translated into a high dependency of the Apple watch on the Apple smartphone, thus creating unease for the customer (Baldwin & Yoffie, 2016).

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