B301A Making Sense of Strategy Apple Case Assignment

Making Sense of Strategy-Apple Case
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Making Sense of Strategy-Apple Case
Marketing is a dynamic process that requires an organization to reach out to both existing and new customers. Marketing involves more than just promotion; marketing serves as the key indicator that determines the failure or success of a product in a competitive business environment (Smither, Houston and McIntire, 33). Apple Company built its reputation as one of the most innovative companies dealing with computers that were user friendly. Apples’ personal computers were flexible and highly priced compared to those of its competitors. When Steve Jobs launched the Apple iPod in 2002 followed by iPhone 2007, he shifted the company strategy from what is considered as a safe market of innovation to a highly competitive market of electronic market.
This paper analyzes how Apple increased his customer loyalty by beating their rivals to gain a competitive advantage in the mobile market and electronic market. The paper presents Apple's strategy to understand a clear view of the market dynamics and how the company can overcome some of the challenges caused by various factors. Even though Apple is considered as the leading company in the field of innovation and electronic, Apple faced several challenges to maintain its position. Apple’s strategic management was unique, thus helped the company penetrate and survive in a high competitive electronic market that is why Apple's approach considered profitable but risky.
The strategy adopted by Apple to penetrate and survive in the highly competitive market of consumer electronics.
With the introduction of iPod in 2001 followed by iPhone and iPad in 2007 and 2010 respectively, Apple revolutionized the music industry by promoting digital music through online music and app stores iTunes. These products made a significant shift in how mobile manufacturers developed their products. Apple made a mark in the electronic industry when it related lifestyle-changing products (Lazonick, Mazzucato and Tulum, 249).
Apple created a substantial value within a highly competitive computer industry. Apple success was because of their core competencies and their dynamic capacity . Apple marketing strategies made consumers more interested in its product features. The product differentiation gave them the market advantage. Given Apple's previous profit record, Apple benefited from recorded music and the iPod, but the mobile telephone was not successful. Apple had to battle it out with larger companies like Nokia who had a similar desire to have a competitive advantage in the market. (Lazonick, Mazzucato and Tulum, 251).
When Apple launched its mobile telephone in 2007, it estimated a class of 10million phones within the first year, Nokia projected a sale of the 350million handsets. Apple's unique product of touch screen made the phone different, which was not limited to dialing fixed, buttons. The small screen made its product more competitive (Lazonick, Mazzucato and Tulum, 252). IPhone sales surpassed its projection. Nokia also launched its downloaded music service known as the digital music. For Nokia, this was a giant leap and believed that the industry would revolutionize. Nokia assumed that consumers would access its extraterrestrial jukebox using various devices. Nokia believed that it would gain a competitive advantage over Apple iPhone (Smither, Houston and McIntire, 273).
Apple Company’s marketing strategy was unique; the company knew exactly what its customers wanted and how to excite them with both products and services. Apple remained the market leader and managed to increase its sales, especially from iPod and iTunes. However, the launch of Apple tablet in 2010 was risky because they did not know how the market would react to the product. Apple redeveloped and launched a new iPod in 2011 after a successful launch of its original iPod, there was certain risk involved. To minimize certain risks Apple negotiated supply contract for its flash memory for iPod, which was cheaper than its rivals were (Lazonick, Mazzucato and Tulum, 259). The new model of iPhone 4 proved that the company was a true innovator.
Apple recognized the importance of being flexible and maintaining innovation in response to the changing market requirements. Apple constantly became alerted by understanding the market dynamics. Another advantage Apple used was to remain a computer manufacturer supplying software and hardware, but continued to develop innovative computers and other related product. Apple early invention like Mac2 and PowerBook and software like page maker, which is the leading, programs in both fashion and publishing industry (Lazonick, Mazzucato and Tulum, 261).
Apple has since enjoyed specialist market where the competition is not stiff and can charge higher prices. Apple made a major strategic mistake when it kept software exclusive, but avoided the same mistake when it launched its new products. However, not all its products have b...