Open Case Structure (Total 20 marks)

Requirements-

1. Industry analysis- Porter's five forces model ( Total 5 marks)

• Threat of new entrants (why threat of new entrants is high or low? Show the logic.)
• Bargaining Power of Supplier (why Bargaining Power of Supplier is high or low? Show the logic.)
• Bargaining Power of Buyer (why Bargaining Power of Buyer is high or low? Show the logic.)
• Threat of Substitutes (why Threat of Substitutes is high or low? Show the logic.)
• Industry Rivalry (why Industry Rivalry is high or low? Show the logic.)

2. Company analysis: SWOT analysis ( Total 5 marks)

• Strengths (You can give maximum 3 strength, Such as What are the strengths and why in the case? write down in a complete sentence, 1 or 2 or 3 line)
• Weakness (You can give maximum 3 Weakness, Such as What are the Weakness and why in the case? write down in a complete sentence, 1 or 2 or 3 line)
• Opportunities (You can give maximum 3 Opportunities, Such as What are the Opportunities and why in the case? write down in a complete sentence, 1 or 2 or 3 line)
• Threats (You can give maximum 3 Threats, Such as What are the Threats and why in the case? write down in a complete sentence, 1 or 2 or 3 line)

3. Problem identification (Total 5 Marks)

(a) Primary problem (what is the primary problem in the case and why?)

(b) Secondary problem (only point out the problem)

4. Problem solutions (Total 5 Marks)

Apples with High Innovativeness against Competitors Ability

The corporate level strategy of apple is mainly innovation of the various products through the internal process, corporate classical innovation, and merchandise innovation. An example of this model is the iPod. The internal processes of business comprises of reengineering internal processes by ensuring the construction of a complete diverse market to counter the wants of the new customers as well as their desires. An example of the companys internal innovation of the business model is the mixture of the companys iTunes and iPod store, becoming the first music-downloading gadget. Innovation is also the means of maintaining the competition level.

The core competencies of apple are its technology which is based on software and the innovative designs. The companys latest products include iPad, iPod, and iPhones. The features of these products are more innovative as well as colorful. The company also has also invested on highly qualified staffs who take part in research and development. Moreover, the companys core competencies are robust and this makes it to be ahead of its competitors.

Good leadership has enabled the company to leverage these competences across its different business products. The succession of Steve Jacobs by Tim Cook in 2012 has enabled the company continue witnessing a massive growth. The cut its supply of iPhone for Asian market in 2013 and this made the investors get worried. The result was a drop of the price of Apples stock to almost 24%. However, the company has maintained its position as the leader in innovation of the products as well as in revenue generation through its diverse products. The company has introduced other products such as notebooks and personal computers into the market and this has enabled it to continue generating more capital. They include iCloud, iPod touch, and Apple TV.

Apples primary activity which is shared across its products is research and developed. Prior to its introduction to the market, intense research is conducted to ensure that the product is of high quality compared to those of its competitors. Apart from that, the company has continued partnering with other corporations such as Microsoft to produce new products. This has led to the generation of more finances.

Following his return to the company, Steve Jacobs first role was to ensure a strengthened relationship between Apple and third party developers of software. The alliance with Microsoft in 1997 enabled the generation of Mac version. Apart from that, Jacob also negotiated with other developers such as Adope to ensure that they produced programs that are compatible to Mac.

The company ensures the production of superior and unique products. The company has also included operation execution by introducing retail stores meant to offer better services to the customers. By December 2014, the company had opened 437 stores, 178 of them being located internationally. The design and the layout were distinct and this helped in attracting more customers. The agreement with key components suppliers helped the company to have a lower manufacturing cost.

Since 2005, Apple Inc has become a leader in digital entertainment and has no fear over its rivals. Apart from having high sales from its computers, the iTunes, the iPod, and the iPhone have gained substantial growth. Despite this, Samsung enjoyed higher sales of Smartphone compared to Apple. The intense competition from its rivals has enabled Apple to reintegrate its operations by introducing its own stores worldwide instead of relying on third party retailer. In order to gain competitive edge over Dell which had enjoyed monopoly for a long time, Apple entered agreement with the various key components suppliers. Product design, supply chain, manufacturing efficiency formed part of the companys competitive superiority. Moreover, an increase in research and development also enabled the company to remain ahead of its competitors.

The future of Apple is dependent on its ability to enter new markets and coming up with products that are superior to those of its competitors. These products will continue helping the company to outsmart its competitors. The company should consider manufacturing new products in the future including a system of solar power, automobiles, magnetic locks, as well as other products that are eco-friendly.