Apple's Case Study: Strategic Analysis Of Apple

Apple Case Study Throughout Apple’s history, the company has experienced an enormous amount of growth in the computer industry with its implementation of the strengths, weaknesses, opportunities, and threats analysis. It all starts with Apple’s position in the market and how they upheld a competitive advantage against other competitors. Apple’s specific competitive advantage during “1976 to 1990” was based upon the ideals of having a “strong brand image, consistent innovation, and differentiation” (Yoffie). To begin, Steve Jobs provided Apple the building blocks to have a competitive advantage over other competitors. For differentiation and innovation, Apple focuses on products with superior quality, provides an outstanding customer service

markets. It was all because of the network. Apple made a grave decision that would be costly because they went from a 3G network to a 2 or 2.5 G network. This decreased the popularity with Apple because of the slow network speeds and people like fast when it comes to computers. Also, the other key contributor why Apple had to change their plan so fast was because the iPhone was priced way too high against its competitors in the market because Apple did not make AT&T subsidize their iPhone product. Lastly, Apple’s failure to “expand the iPhone into foreign countries quickly because of demand in high share of service revenue resulted in many iPhones being sold in this “gray market” with a loss of service share revenue valued at $1 billion over a span of three years” (Kharif). This forced Apple to change to a different strategy because the iPhone was not selling like they intended. Apple had to create the iPhone to run on 3G networks, because iPhones were slower compared to its competitors on a 3G network environment. Next, “Apple had to lower the price of the iPhone by subsidizing from AT&T and by giving up its share of iPhone subscription revenue because the handsets that cost more than $300 accounted for only 5% of the market” (Wingfield). Apple then had to expand its retail chain to help boost sales. Last but not least, Apple then launched the iPhone 3G in the world market and had to give up share of the service revenue to prevent the leakage into the gray market and later found a new source of revenue from their Application Store from third-party