question archive How has Apple performed in the PC industry? What is your evaluation of its performance in the PC business? Assess Apple's iPod, iTunes, iPhone, iPad, iWatch and ApplePay strategies and performance
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Apple, a trusted companion in the PC industry and a trusted brand during Steve Jobs' second stint at Apple Inc. By exploiting the gaps between its operations and its competitors, Apple has been successful. Apple has also developed its brand as the Nordstrom of technology" Analysts (Kim, p.7). Apple is so committed to its brand that it is capable of selling the product to its loyal consumer base at a high price. Apple has been able to market its goods at a premium, thus benefiting from financial benefits. For 2009, a gross margin of 40 percent was the main financial gain. Dell (18%) and Hewlett Packard (24%) are comparable to the biggest rivals in the PC development market (Exhibit 5). Apple's strategic role as a pioneer in the premium-priced PC (PC prices over $1.000) segment helped Apple become the U.S. fourth-biggest PC supplier. The strategy of Apple to switch from just a PC business to a "digital hub" that aims to help add value to customers who are rooted in a digital lifestyle has also helped in their sales of PCs. With the launch of new Apple devices such as the iPod and iPhone and their ease and reliability for consumers, the sales of Mac computers have helped to start jumping during this period. There is one field with regard to the PC industry in which Apple is above all a rival and that is their investment in research and development and innovation. His vision has been to build Apple as a cultural force during Steve Jobs's second go-around as CEO. (Kim, p.4) In order to create Apple as such, Jobs claimed that Apple had to remain ahead of the PC industry curve, on average Apple dedicated 7.5% of its revenue to research and development. On average, Apple's competitive businesses commit just 4.5 percent to R&D. Although Apple has 4.2 percent of PC manufacturing goods with the lowest market penetration (Figure 6), other factors need to be considered to assess the PC industry's performance. They will grow the demand for premium PCs, their creative PC products, and their importance to the PC industry from the Apple brand.
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Steve Jobs' view on Macintosh for customers who were embedded with digital cameras, portable music players, and digital camcorders, without considering telephones in a digital lifestyle. The Mac could be the preferred hub to integrate and give these devices added value. (Kim p.6) Both their hardware and software have been managed by Apple to establish the creativity needed to manufacture the three products listed above. All three in their valued markets are the first of their kind. Apple's investments in research and development helped it to develop the iPod, iTunes, iPod, and iPad-enabled software. In accordance with the ability of Apple to sell these goods, it is worth noting that as they are the first of their kind, none of them ever had a market. Apple has successfully developed and commercialized the products iPod, iTunes, iPhone, and iPad for their user base. As for the segments in which all four items are distributed, Apple is the market leader.
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Success and industry position:
This portion of the SWOT analysis framework describes the strengths that enable the organization to solve vulnerabilities, take advantage of opportunities, and face challenges. There are internal factors that are special to the company's circumstances. In this situation, Apple Inc.'s most important strengths are:
1. Good brand image
2. Long profit margins
3. Effective and quick innovation methods
One of the most precious and powerful brands in the world is Apple. Centered on the positive brand image of the company, this SWOT study enables it to introduce successful new products. In addition, Apple's marketing mix or 4P requires a premium pricing strategy that provides high-profit margins. This strategic internal component is of significant importance because while revenue volumes are limited, profits are maximized. In addition, Apple Inc. is an efficient and quick innovation part of its overall strategy and intensive development strategies that lets it stay up to date with the latest developments in order to gain competitive advantages. Based on this aspect of the SWOT analysis of Apple Inc., the strengths of the company are hard to confront and promote continued leading role in the global market setting.
Threats:
Threats are external factors restricting or reducing a company's financial efficiency. In the case of Apple, the following risks are the main:
1. Aggressive rivalry
2. Impersonation
3. Increased labor costs in various countries
In the industry, the aggressiveness of corporations is partly due to stiff competition. In the context of this SWOT analysis, aggressive rivalry affects Apple Inc. It is critical that the violent actions of competing firms provide a firm basis for maintaining competitive advantages. The company also faces an imitation possibility. This danger is significant because of the large number of local and multinational companies which copy Apple's designs and features.
Recommendations:
The company can also exploit these strengths to leverage opportunities, including expanding its distribution network. The company will also use its strong brand recognition and fast innovation processes to effectively develop new product lines and launch it. Apple is nevertheless under serious threats of aggressive competition and imitation, which are major obstacles to players worldwide in the marketplace of consumer electronics, computer hardware, and software and digital content services online.
The suggestion is to continue the energetic and rapid innovation involved in the company's product growth. Such an innovation minimizes the negative impact of imitation on sales. It also advises that the organization, in order to address the growing labor costs of Apple product producers, further improve the automation of its production processes and facilitate the automation of its contract manufacturers.
In the case of Apple, the key prospects are:
1. Extension of the delivery system.
2. Higher market rates due to increased demand.
3. New product lines are produced.