Apple Case
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- Date Submitted: 07/06/2015 03:45 AM
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CASE STUDY: APPLE’S PROFITABLE BUT RISKY STRATEGY
Indicative answer only: there will be other answers to this case.
Note that these indicative answers really only make sense in the context of Chapter 1 ofStrategic Management, sixth edition.
1. Using the concepts in this chapter, undertake a competitive analysis of both Apple and Nokia – who is stronger?
Relevant concepts in the chapter are mainly from section 1.1: value added, sustainability, processes to deliver strategy, competitive advantage, linkages, vision.
Apple strengths: Strong brand name, market leader in music delivery, user-friendly products, design skills, quality, exclusive contracts, profitable, strong vision,etc.
Apple weaknesses is Higher price, limited distribution, small share of large phone market, features can be replicated over time.
Nokia strengths: Brand name, dominant position in mobile phone market, good products, profitable, strong processes to delivery new strategies
Nokia weaknesses: Mature phone market, little involvement in music market to the present, its new music service has no clear sustainable advantage.
Given Apple’s previous profit record, there is no doubt that it has benefited significantly from its move into recorded music and the iPod. However, the extension into Apple mobile telephones remained to be proven at the time of writing. It suddenly faced some very large companies – like Nokia – with both the resources and the desire to take advantage of the market opportunities.
Is Apple stronger than Nokia? In the short term, arguably the answer is that they both have their strengths. However, Nokia is just moving into the recorded music market and it has already produced its own version of the touch phone [with clear advantages over the iPhone according to one independent magazine review]. Thus it is worth clarifying the question of ‘who is stronger’ with respect to the time frame.
In the long run, it may be that Nokia will emerge stronger. At the time of...
Indicative answer only: there will be other answers to this case.
Note that these indicative answers really only make sense in the context of Chapter 1 ofStrategic Management, sixth edition.
1. Using the concepts in this chapter, undertake a competitive analysis of both Apple and Nokia – who is stronger?
Relevant concepts in the chapter are mainly from section 1.1: value added, sustainability, processes to deliver strategy, competitive advantage, linkages, vision.
Apple strengths: Strong brand name, market leader in music delivery, user-friendly products, design skills, quality, exclusive contracts, profitable, strong vision,etc.
Apple weaknesses is Higher price, limited distribution, small share of large phone market, features can be replicated over time.
Nokia strengths: Brand name, dominant position in mobile phone market, good products, profitable, strong processes to delivery new strategies
Nokia weaknesses: Mature phone market, little involvement in music market to the present, its new music service has no clear sustainable advantage.
Given Apple’s previous profit record, there is no doubt that it has benefited significantly from its move into recorded music and the iPod. However, the extension into Apple mobile telephones remained to be proven at the time of writing. It suddenly faced some very large companies – like Nokia – with both the resources and the desire to take advantage of the market opportunities.
Is Apple stronger than Nokia? In the short term, arguably the answer is that they both have their strengths. However, Nokia is just moving into the recorded music market and it has already produced its own version of the touch phone [with clear advantages over the iPhone according to one independent magazine review]. Thus it is worth clarifying the question of ‘who is stronger’ with respect to the time frame.
In the long run, it may be that Nokia will emerge stronger. At the time of...