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Apple Inc. Case Analysis

Apple began in a garage but became a multi-billion dollar company known for innovation. They pioneered new product categories like personal computers, iPods, iPads, and iPhones. While competitors copied Apple's ideas, Apple continued developing complementary products and services to strengthen their ecosystem and provide a seamless user experience across all Apple devices.

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331 views2 pages

Apple Inc. Case Analysis

Apple began in a garage but became a multi-billion dollar company known for innovation. They pioneered new product categories like personal computers, iPods, iPads, and iPhones. While competitors copied Apple's ideas, Apple continued developing complementary products and services to strengthen their ecosystem and provide a seamless user experience across all Apple devices.

Uploaded by

Aditya Rathi
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Inc. in 2015 – Case Analysis by Group IX

Introduction:
The case presents how Apple ventured into the high-end computer and electronic gadgets industry and established
itself as a trailblazer. Apple had a culture of innovation and emphasized on simplistic product design. They used
this proposition to bring a dimension of exclusivity in their products. Over the years, it has constantly tried to tap
into the growing consumer segments and provide a user friendly product. The venture which began in a garage,
turned into a multi-billion dollar company which registered a profit of $18 billion in 2014.

Product Development:
Apple was the first mover in every product category it ventured into. Whether it was the personal computer, iPod,
iPad or iPhone. Each time Apple introduced a new product, its rivals introduced a similar substitute catering to
features capitalizing on the weak areas of Apple products. Price was one factor, where consumers were ready to
tradeoff convenience for it. Exclusivity, which is considered to be at the core of Apple products’ was challenged in
the long term for each product it launched. For example, initially Macintosh machines didn’t incorporate support
for other peripherals. But gradually, as Wintel machines gained a competitive advantage over Macintosh in terms of
consumer preference (which includes all non-Macintosh users and half of existing Macintosh users), Apple had to
introduce iMac, which supported peripherals (which were initially designed for Windows machines),

Another example is the replacement of IBM CPUs with Intel chips to boost performance. Macintosh was always
criticized for the low performance of its processor, and consumers constantly demanded an Intel-chip powered
machine. This demand was fulfilled when iMac was launched. A similar behaviour was seen with the iPod. Steve
Jobs initially wanted that iPods should exclusively be connectible to iMacs only. But they had to extend the
compatibility of iPods and iTunes software for Windows based machines also.

Apple also built complementary products for its existing ones. iPod was accompanied by iTunes software (to
manage the songs on an iPod) and iTunes store (to buy songs online) completed the offering in a holistic manner. In
fact iPod sales saw a boost after the launch of the iTunes store.

To integrate the functionality of iPods, mobile phones, and a device capable of Internet communications, Apple
came up with its iconic iPhone, which was labeled as “Invention of the Year” by Time Magazine. Further, it went
on to launch a series of iPhones which garnered huge positive response from the consumers.
Apple also introduced the concept of a digital hub, where the iMac acted as a hub to centrally control other Apple
devices. This, along with Apple cloud offerings (to store photos and other content on the cloud for simultaneous
availability across all Apple devices) increased user experience, compelling them to be a part of the Apple
ecosystem.

iPhones were further succeeded by iPads, Apple Watch and Apple Pay to cater to changing consumer needs.

Bulls Eye Analysis:


Brand Mantra - Think Different.
POP - Hardware and Technology, Pricing Strategy, Touch.
POD - Innovative trends, Marketing strategies, Unique design.

Positioning: “Premium price and products”


Market Development Diversification

· Apple’s product · Launching new and


differentiation diverse products,
strategy such as Apple
Watch, Apple Card
· Huge potential in and Apple Pay
emerging markets
like India and China

Market Penetration Product Development

· Providing · Regular innovation


complimentary and designing of
services like iTunes, new models
App Store
· Variants of same
· Providing discount products to create
offers, on a new diversity and
product launch attract customers

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