This case provides a brief history of Apple and a review of its product line and marketing program. Apple has honed its ability to produce iconic products that consumers desire. The company’s product strategy is based on innovative designs, ease-of-use, and seamless integration. Apple has not only created highly successful products, but also whet consumers’ appetites for yet-to-be-released and rumored products.
Since the main theme of this case is product innovation, students should be asked to explain how Apple has managed to reach the pinnacle of innovation and iconic brand status. Most students will suggest that Steve Jobs, and the culture that he created, is the main reason for Apple’s success. If true, students should be pushed to explain how Apple’s track record could continue without Steve Jobs at the helm.
The case can also be approached from a competitive point of view. Though Apple is currently on top, the quality of competing products (most notably those from Amazon and Google) continues to increase. And, competitive products are released at a much faster rate than Apple releases new products. At the time of this writing, articles are beginning to appear in the popular press that consumers have become fatigued with Apple’s products. Likewise, when the iPad Mini was finally released in late 2012, many experts panned it for its poor camera and lack of retina display. These issues have caused Apple’s stock price to drop well below $600 as concerns mount that Apple may not be able to continue its pace of innovation. Internal executive changes have also heightened this concern. Given the rapid pace of change in the technology sector, instructors should thoroughly update themselves on Apple’s current products and strategies before discussing this case.
1. How has Apple developed extreme loyalty among consumers that has resulted in an almost cult-like following?
2. Describe the role of Apple stores as an important part of its marketing strategy.
3. What will Apple need to do to maintain product innovation and customer loyalty?