Question 1

How well has Steve Jobs done as Apple s CEO? Has he done a good job of performing the five tasks of strategic management discussed in Chapter 2? Why or Why no? What grade would you give him? Phase 5 Phase 4 Phase 3 Phase 1 Phase 2 Developing A strategic vision
Crafting Strategy to achieve Objectives And vision Monitoring Developments, Evaluating Performance, and Making corrctive adjustments

Setting Objectives

Imprementing And executing The strategy

Revise as needed in light of actual performance, changing Conditions, new opportunities, and new ideas

Components of Apple s Strategy

Efforts to build competitive advantage : Lower costs, different or better product, niche market Planned, proactive moves to outcompete rivals (better product Design, added features, improved Quality or service, better ecommerce capabilities, wider product lines, and so on Moves to respond and react to changing conditions in the macroenvironment and in industry and competitive conditions

Key Functional Strategies

- R&D, technology, engineering strategy -Supply chain management strategy -Manufacturing strategy -Sales,marketing,promotion,and distribution Strategies -Human resources strategy -Financial strategy

Scope of geographic coverage (local, reginal, multinational, or global)

Business Strategy

Collaborative partnerships and strategic alliances with others

Question 3

Does it make good strategic sense for Apple to be a competitor in the computer, digital music player, and mobile phone industries?
Used to be just in the personal computer and software industry. Utilized its strengths and expanded its business to the entertainment industry.

Starting from digital music players (iPod) and online music service (iTunes) ~ 2001. And to mobile phones (iPhone) ~ 2007.

Are the value chain activities that Apple performs in computers, digital music players, and mobile phones very similar and compatible or are there very important differences from product to product? Which of the three products lines computers, digital music players, or mobile phones do you think is most important to Apple s future growth and profitability? Why?
The marketplace trend seems to be destroying all the boundaries of each industry.
More than just a digital music player.

More enhanced tool for full-motion videos and data storing.

More than just a mobile phone.

Taking the role as a digital camera, a carry-on PC for memory storing and internet, and an audio device. The value chain activities are not much differences from product to product. Instead, Apple has been able to command a premium in the market and gain above average returns from utilizing the similar and compatible of its value chain activities across the products. Competitive advantages, especially in its mobile phones products. The most important industries for Apple s future growth and profitability.

Question 4
In which industry computers or digital music players is competition more intense?
Computer industry is seem to be more intense for Apple as it can gain only 8.5% of the total market shares.
Dell Inc. (23.4%) Hewlett-Packard (16.8%)

Apple is used to be just in the computers and software industry.

Expanded its business to the digital music players (iPod) industry.
Occupying 71% of the total market shares. SanDisk (11%) Microsoft (4%) Creative (2%) Contributed a significant revenue to Apple Inc.

Question 5 (1/2)
What does a competitive strength assessment reveal about Apple, as compared to the leaders in the personal computer industry?
Design and innovation oriented. Greater horizontal and vertical integration. R&D oriented. Everything ready device.

Use the methodology in Table 4.4 to support your answer. Among these competitors, who enjoys the strongest competitive position?
Dell Inc. enjoys the strongest competitive position. Apple s operating in a fast-cycle market. Firm s capabilities that contribute to competitive advantage aren t shielded from imitation. Where imitation is very fast and inexpensive. Apple s products and services have more restriction than its rivals.

Question 5 (2/2)
Who is in the weakest overall competitive position?
Acer. Most of its revenue (63.8%) was rely in the mobile phone industry. But mobile phone industry that have very intense competitive. With Apple and Nokia as major players.

Has Apple s strategy resulted in a substantial competitive advantage over its rivals in the computer industry? What is the basis for whatever competitive advantage it has?
Innovation plays a dominant role in the competitive dynamics in fast cycle markets. Stronger brands value.

Question 6
What does a competitive strength assessment reveal about Apple, as compared to other main players in the digital music industry? Use the methodology in Table 4.4 to support your answer. Among these digital music player competitors, which company enjoys the strongest competitive position? Who is in the weakest overall competitive position? Has Apple s strategy resulted in a substantial competitive advantage over its rivals in the digital music player industry? What is the basis for whatever competitive advantage Apple has?

Apple has highest while iRiver get lowest score Previously Sound quality, design, legal MP3 download  Sony Music iTunes & Legal download (Encrypt password) Best Designed hardware from aesthetic point of view

iRiver

Other Apple s competitive advantages  Marketing  Not talk about its features and technology, but better life  Best Replacement in TV shows Movie : "Chloe"

 Steve Jobs

Question 7
What is your assessment of Apple Computer s financial performance the past three years? (Use the financial ratios in Table 4.1 of Chapter 4 as a guide in doing your financial analysis.)

Question 8
What accounts for Apple s noteworthy success in the markets for mobile smart phones and digital music players, but its overall weak showing in the computer industry? iPod, iPhone and iPad Mobile phone industry  Just work (Best industrial and user interface)  Customers who had the problems with technology  Basic communication (mobile voice and simple sms)  Advanced mobile phone user interface  Synchronization Digital music players  Aesthetics and fashion  innovative approach to music download (copyright) 99 cents/song  Cheap songs with expensive music players

Gartner's Preliminary U.S. PC Vendor Unit Shipment Estimates for 4Q09 (Thousands of Units)

Factors lead to Apple s weakness in computer industry  Price and Compatibility  Price Hardware, software and software licensing  Higher ownership cost Compatibility Different application  Hugh amount of PC competitors around the world

Question 9
Is Apple s strategy in its computer business strong enough to compete successfully against Dell and HP?
U.S. PC Market Shares 2nd Quarter 2007 and 2008
40.00%
Apple did a better performance compared to Y-1 but could still penetrate only less than 10% in the market.

30.00%

20.00%

Q2 2007 Q2 2008

10.00%

0.00% Dell HP Apple Acer Toshiba Others