Strategic Plan for Apple Computers

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ABSTRACT

Apple Computers has matured into a media powerhouse with its long tentacles in every aspect of the business. Apple Computers plays a major role in the consumption (iPod and Mac) and distribution (iTunes Store) of music, once thought to be the exclusive domain of giant record tables. The core competency of Apple Computers is to make technology easier to use for its competitors. Apple Computers underlying philosophy is to design products that are easy-to-use and beautifully designed. Simplicity is the mantra. The popularity of this growing market requires manufacturers to be able to create products more innovative, using functional processes still unknown. It is to master the art of combining aesthetics with technology. Apple focuses on both the product development and the product innovation strategies in order to compete in the industry. Apple has a strong focus on research and development (R&D) as continual investment in R&D is critical for the development and enhancement of innovative products and technologies.TABLE OF CONTENTS

ABSTRACTii

SECTION 01: INTRODUCTION4

Thesis Statement5

SECTION 02: STRATEGY6

Beautiful Design6

User Interface7

Low-entry points7

Complete Solutions7

Proprietary Formats8

Support8

Branding8

Buzz9

SECTION 03: CORE COMPETENCIES10

SECTION 04: INDUSTRY DYMNAMICS11

Intense competition may affect revenues and profitability11

Frequent absence of Steve Jobs to impact high growth sustenance levels12

SECTION 07: STRATEGY TO PRODUCT INNOVATIONS17

SECTION 08: CONCLUSION20

SECTION 01: INTRODUCTION

Apple Computers is considered to be the creator of the personal computer and much more. One relegated to a niche, hobbyist computer manufacturer, Apple Computers has matured into a media powerhouse with its long tentacles in every aspect of the business. Apple Computers plays a major role in the consumption (iPod and Mac) and distribution (iTunes Store) of music, once thought to be the exclusive domain of giant record tables. Having expanded in to television and movies, Apple Computers shows no sign of slowing sign.

The company's endeavors into media players have allowed it to take risks and successfully expand the business into set-top boxes and mobile phones, also previously thought to be outside the scope of a so-called traditional computer manufacturer. Apple Computers Inc. is anything but traditional, though. Apple Computers has expanded its expertise across multiple disciplines and into ones where virtually no one could have predicted it would go. Apple Computers as a company, made a huge mark on history. Growing from two employees to a staff of more than 20,000 across the globe, Apple Computers had worldwide sales of more than $24 billion and earned $3.5 billion in profit in fiscal 2007. Apple Computers has no debt and more than $15 billion in cash.

But what makes Apple Computers feat even more impressive is that it should, by all accounts, have gone bankrupt sometime in 1995 or 1996. It was hemorrhaging money and market share and lacked leadership. Apple Computers took a turn for the worse in the early 1990s when quality slipped and it flooded the market with a confusing array of Macintosh models. The problem was exacerbated by licensing the Apple Computers ROMs to third party cloners that were supposed to build market share but instead stole sales from Apple ...