[10 Mark Question , Answer appropriately ]

( Note - I need answers for exam preparation . so I need easy to understand answers , short ,clear , concise and correct answers . At the same time , Answers should contain all the important points . Answers should be worth of getting 10 marks)

This question is exactly from. the subject , " Strategic Management "

QUESTION -

CASE STUDY -

Apple has a shock. Despite rise in revenues and profits Apple saw its share price fall. What should apple do about it? While the sales of I Phones went up, the sales of Macs and I Pads have gone down. However, its various stories and that mysterious "Other Products" category proved to be successful and gave additional revenues. Its I Tunes, I Could and Stores registered 26 percent rise and other products which include apple watch and Apple TV among others, reported a jump of 62 percent over the first quarter of 2015. Also, the main focus here is still on the iPhone. While the I Phone 6 and iPhone 6 s are a huge success because of its debut in China. Apple needs to do more than simply innovating iPhone. Apple needs to get a few more products selling better. The iPhone will reach sooner or later saturation. Apple needs to address the perceived flaws of its predecessor. These would be better battery life, a simpler interface and a hardware redesign. Sadly a killer app for the smarwatch seems as far a ways as ever. There do nest seem to be anything on the horizon apps- wise that would make customers turnout in their droves to buy the device. And people buying it are seemingly leaving them in the deader to gather dust. The company also needs to take its Apple TV device more seriously than its hobby tag would suggest. Finally we need to know whether or not Apple will actually produce its long-rumored car. Diversification is a must if iPhone shipments continue to fall alongside those of pad and Ac. Questions: (a) Critically examine the situation in which Apple is and evaluate the idea of diversification for the growth of Apple