Written Case Analysis: Case #4 Apple Bites Back

Few companies have fans who sleep outside its doors in order to be the first to snag its newest products, but this is common at Apple, Inc. In 1997, Apple was near bankruptcy with a share price of $3.30. By comparison, in 2020, Apple stock reached more than $500 a share before a 5-for-1 stock split. Apple is one of the worlds most valuable companies more valuable than Microsoft, Alphabet, and Amazon and has a cult-like status among tech enthusiasts.

Many companies have tried to copy Apples strategies, but none have discovered what it is that makes Apple such an icon. Some believe that Apples success stems from a combination of several factors, including the leadership qualities of former CEO Steve Jobs, a corporate culture of enthusiasm and innovation, and the revolutionary products for which Apple has become known. While every organization must acquire resources and develop a business strategy to pursue its objectives, Apple has excelled in its management. One of the companys most important resources is its employees, and the company has effectively recruited, trained, and compensated employees to create loyalty. Another resource is suppliers, and Apple has created a highly efficient and effective supply chain with most of its production in China. Apple has also mastered core research and development skills that have allowed the company to translate its technological capabilities into products that consumers want and are willing to pay a premium price to acquire. The capstone of Apples strategy is its retail stores that have become a role model for its competitors to sell consumer electronics. Such factors have allowed Apple to revolutionize the technology and retail industries.

Complete a case analysis using the written case guidelines.

The Overarching Strategic Question (to be answered by the completion of your case analysis):

How can Apple stay on top by continuing its marketing program based on product innovation, premium pricing, tightly integrated supply chains, and catchy advertising?

Sub-Questions (to be answered within the Responses to the Case Questions section of your analysis):

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?