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Apple Inc Class Discussion

This document discusses a marketing class that covers three case studies: Apple Inc, De Beers, and Baby Center. The class begins with an in-depth examination of Apple Inc, focusing on its history in the personal computer industry, competitive advantages, and challenges. Key lessons from Apple's struggles in the 1990s include the importance of having a true competitive advantage beyond just a good product, understanding industry forces, and timely execution of strategies. The class will then analyze Apple's strategies in smartphones and smartwatches.

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236 views34 pages

Apple Inc Class Discussion

This document discusses a marketing class that covers three case studies: Apple Inc, De Beers, and Baby Center. The class begins with an in-depth examination of Apple Inc, focusing on its history in the personal computer industry, competitive advantages, and challenges. Key lessons from Apple's struggles in the 1990s include the importance of having a true competitive advantage beyond just a good product, understanding industry forces, and timely execution of strategies. The class will then analyze Apple's strategies in smartphones and smartwatches.

Uploaded by

mdnhll
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Marketing Class

Marketing Management
BLEMBA 25
Dr.Nuri Wulandari
This will be a great day!
1. Case Apple Inc
2. Case De Beers
3. Case Baby Center
Marketing Class
Case 1. Apple Inc

Marketing Management
BLEMBA 25
Dr.Nuri Wulandari
Lets Start With

Apple’s History and The PC


Industry
Apple Inc Case

• What, historically, have been


Apple’s competitive advantages?
List of Apple’s Competitive
Advantages
• Ease of use (user-friendly graphical interface; plug-
and-play peripherals)
• Proprietary environments (especially with its
operating system)
•  Industrial design (clever, innovative, appealing
chassis design and packaging)
•  Buyer loyalty
•  Strong brand
List of Apple’s Competitive
Advantages

• Ecosystem of complements (apps, music, videos,


etc.); In computers, dominance in desktop
publishing, as well as education
• Economies of scale (e.g., one of the largest
purchasers of flash memory in the world)
• Economies of scope (e.g., the ability to cross-sell
iPhones, iPads, and Macs) through Apple Stores
Apple Inc

• Analyze the personal computer


industry. Why did Apple struggle
historically in PCs?
• Analyze the personal computer
industry. Why did Apple struggle
historically in PCs?
Framework for Industry Analysis
Porter’s Five Forces
Buyer Power

• Who buys ? What volumes ?


• How sophisticated are the buyers ?
• How important is service and
support ?
• What drives purchase decision
Substitutes

• What are they? Could these


products and technologies pose a
significant long- term threat or even
replace PCs in the future?
• Are they a threat ?
Complements

• What are they?


• How have they influenced the
industry’s profitability between the
1980s and today?
Role of Suppliers

• Do they have bargaining power ?


• Intel ? Microsoft ?
Rivalry

• Rivalry :
• How bad is price rivalry in this
business?
• Why did competition become so
vicious, despite high growth industry-
wide?
Barriers to Entry

• Barriers to entry:
• How hard is it to enter the PC
business?
• What do you need?
Summary Porter 5 Forces
• Sophisticated, powerful buyers
•  Vicious rivalry
•  Low entry barriers
•  Lots of potential substitutes
•  Complements are moving to the smartphone and tablet
• Suppliers appropriate most of the industry’s residual profits

the PC industry is a terrible business.


Apple Inc

• How sustainable is Apple’s


competitive position in PC?
Challenges

• Declining differentiation between Mac


and competitors
• Software Application
• Operating System
Sculley’s Strategy ?
Failure in Execution or Bad Idea?

Job’s Strategy ? Switching Motorola to Intel?


Apple Inc

• How sustainable is Apple’s


competitive position in
smartphones?
• Can Apple sustain its iPhone
success? Why ??
Reasons for Iphone Strategy
• AppStore
• Economies of Scope
• Economies of Scale
• Buyer Loyalty
• Usage Increase
• Declining price for older model
Future Challenges Iphone
Strategy
• Competition
• Fashion/Fad?
• China Competitor
Launching Apple Watch - Video
Apple Inc. in 2015

• Evaluate Apple’s strategy


for Apple Watch.
• Has Tim Cook taken the
right approach? Would
you suggest any course
corrections?
Apple Inc. in 2015

• Evaluate Apple’s strategy for


Apple Watch.
• How would you innovate
and market the future
product ?
• In group of 6 - Evaluate
Marketing Class
Case 1. Apple Inc – Lessons from Apple

Marketing Management
BLEMBA 25
Dr.Nuri Wulandari
Lesson – Apple’s failure in 90s

• There is a big difference between


having a product advantage and having
a competitive advantage.
• Making a better product is never
sufficient to sustain a competitive
advantage
Lesson – Apple’s failure in 90s

• Becoming too insular and too focused


• Lesson : Companies must have a deep
understanding at the driving forces
within their industry
Lesson – Apple’s failure in 90s

• Coming with the right strategies is not


enough, you also need to implement it
before the window of opportunity
shuts.
Lesson – Apple’s failure in 90s
• Pay attention to the common cyclical
patterns for innovation , which
generally mirrored by total shareholder
return
• Which product will drive the next wave of
innovation for their company ?
• Tim Cook says –
“It’s Coffee Break Time !”

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