MIS 301 (Dr. Raj)_Apple Case
Apple's Competitive Advantage - correct answer ✔Ease of use, proprietary
environment (OS), design (innovative, attractive chassis, packaging), buyer
loyalty, strong brand, complements (apps, music, videos), dominance in
desktop publishing and education, economies of scope (Apple Store)
PC Industry Dynamics - correct answer ✔2 types of buyers; large
corporations and consumers; declining average selling prices, fragmented
mkt., technology obsolescence, very low barriers to entry, several potential
substitutes, complements, powerful suppliers
Apple's Position in the PC business - correct answer ✔Declining
differentiation = declining prices in the PC business
Application software = declining switching costs, but Apple not able to
leverage, user base much smaller than PCs
Apple's Digital Hub Strategy - correct answer ✔Launched by Jobs in 2001 at
MacWorld during his keynote, focus innovation efforts on hubs (Macs) and
spokes (software and hardware for digital lifestyle), turn attn. toward
ecosystem, computer is the center and can control and integrate individual
digital devices, revenue grew from $6.5 bn. (2001) to $42.5 bn. (2009)
iPod and Online Music - correct answer ✔Imitation very hard b/c of solid
ecosystem around iPod, iTunes' ease of use, can buy individual songs,
position in all price points
Cost leadership; pricing power over suppliers of flash memory and music
labels
Saturation; sales decreased from 2004-2008, but increased from 2008-2012
b/c of Internet radio sites
Apple's Competitive Advantage - correct answer ✔Ease of use, proprietary
environment (OS), design (innovative, attractive chassis, packaging), buyer
loyalty, strong brand, complements (apps, music, videos), dominance in
desktop publishing and education, economies of scope (Apple Store)
PC Industry Dynamics - correct answer ✔2 types of buyers; large
corporations and consumers; declining average selling prices, fragmented
mkt., technology obsolescence, very low barriers to entry, several potential
substitutes, complements, powerful suppliers
Apple's Position in the PC business - correct answer ✔Declining
differentiation = declining prices in the PC business
Application software = declining switching costs, but Apple not able to
leverage, user base much smaller than PCs
Apple's Digital Hub Strategy - correct answer ✔Launched by Jobs in 2001 at
MacWorld during his keynote, focus innovation efforts on hubs (Macs) and
spokes (software and hardware for digital lifestyle), turn attn. toward
ecosystem, computer is the center and can control and integrate individual
digital devices, revenue grew from $6.5 bn. (2001) to $42.5 bn. (2009)
iPod and Online Music - correct answer ✔Imitation very hard b/c of solid
ecosystem around iPod, iTunes' ease of use, can buy individual songs,
position in all price points
Cost leadership; pricing power over suppliers of flash memory and music
labels
Saturation; sales decreased from 2004-2008, but increased from 2008-2012
b/c of Internet radio sites
