Analysis of Apple Corporation Case. Patrick Simon. AMBA 640 Section Professor Dr. Peggy Lee

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1 Analysis of Apple Corporation Case Patrick Simon AMBA 640 Section 9047 Professor Dr. Peggy Lee February 28, 2010

2 AppleCaseAnalysis 2 ExecutiveSummary Apple CEO Steve Jobs had an opportunity to focus his attention to enhance the users experience with a software application called itunes that would allow people to use a new file format called mp3s to play on their personal computer and allow them to store groupings or playlists. The innovation of the ipod has allowed customers to take music, vidoes, pictures and games with them. Creating a new smaller portable device with more storage, faster speeds, and new displays created a unique and competitive tool for Apple to market to customers. With the addition of an online store to purchase single songs, movies, and show episodes, customers have more flexibility, more control of what they buy, and more portability to listen or watch what they want when they want it. The addition of new technology that progressively builds upon ideas such as the ipod also gives customers more options, with the expected functionality that they received with earlier products. ISM helps enhance the foundation of Apple by research and design of the products and finding ways to make them more unique, faster, and more portable for the customer. With marketing and ease of use, they make customers more informed of how the product can better their lives and allow them to own the product or make it more to their style. Some issues exist that hurt the reputation of Apple such as security with their Nike product, and solely working with one provider for its iphone services. This can limit the scope of potential customers, which does not allow profit to be maximized. Continuing new functionality to help address customers needs and improve the security and functionality of existing products will continue to increase the visibility and profitability of Apple.

3 AppleCaseAnalysis 3 Introduction Apple CEO Steve Jobs has focused his attention on being innovative and with such products such as ipod and the iphone, continually finds his organization capturing markets that have no competition. The creation of the ipod pushes not only the ideas of technology to new limits, it sets standards and expectations to the quality and future of what those ideas can transform into. There is a progressive history trail that can help management evaluate the benefits of finding a need for new technology. Steve Jobs saw this progression from record players, to walkmans, to CD players and proposed the need for a product that would play the newest format of music in MP3s. What transpired next opened the eyes of the technology world as well as manufacturers of other products that supported the ipod. While Steve Jobs first focused his attention to an online player called itunes, he valued the need to be able to store and play music from they re computer. This eliminated the need to switch out CDs to listen to different music and to create playlists or collections of individual songs. This was an important idea for the long term growth of itunes, but without the ability to store music onto a portable device, CDs would still be the main source of portable listening, phones would not have the capability to play songs or ringtones, and Apple would not be as successful as they are today. ISM is important to Apple by supporting the overall goals of the company, providing cutting edge technology, establishing faster speeds and larger storage space, while marketing to all groups of people. To remain efficient, Apple needs to continue to evaluate quality control and envision potential security threats that have been breached in the past with its partnership with Nike. Apple is continually evolving with new products that require new standards and protocols to be

4 AppleCaseAnalysis 4 developed, however they need to remain efficient by increasing processing speeds, response times, and network bandwidth, as well creating applications that are easy to use, but powerful enough to provide integrated functionality with the ability to change it the way a user s needs dictate. Apple s goals are apparent in it s sales volumes and it s competitiveness with organizations such as dell, and Microsoft. The effectiveness that Apple has had in the past has been exceptional. Financially Apple has seen an increase in Mac sales 29%, this during a recession and has also seen a 3.6 % increase in Mac OS usage (Brandel, p.22). Marketing ads for the Mac and Apple products focus on it s strength of usability, lack of viruses, and ability to interface with numerous components. Strategic competitive advantage is a number one priority for long-term growth of organizations. Steve Jobs and his company have introduced new innovations that sustain this competitive advantage. The realization of products such as ipod, iphone, and ipad have revolutionized how people use technology in their everyday lives. With a track for success and popularization, Apple has the recognition to capture new customers and introduce new ideas by word of mouth alone. Companies such as I.T. Pros recommend the iphone to customers for the exceptional applications that make business productivity better (Davis, p. 1). One area of concern for consumers and retailers alike is the availability of Apple products. By limiting the iphone to one cellular phone provider, consumers who are currently under contract would need to pay termination fees to switch plans. This could also cause excessive network traffic with data plans being on only one network. With deciding between computer systems, a number one concern among consumers is security. With identity theft rising, and credit card scammers gaining access to social security numbers and personal information, security should remain a top priority of every organization. It

5 AppleCaseAnalysis 5 would be in the best interest of the organization to keep information regarding customer data private and not sell that information to outside companies. Instead, by sending customers new products and accessories from partnering companies would reduce the risk of customers being spammed, and negatively impacted by the alternative. Selling customer information could even result in criminal charges for wireless carriers (Ford, 2006). Conclusion It s hard to imagine a world without the innovation that Apple has constantly produced. While they remain one of the top competitors in the technical market, Apple uses strategic competitive advantage to push new technology to higher standards. It s appeal to the beginner user, and marketing as adaptive to the customer, to the exceptional quality in graphics for expert design allows it to be expand it s target clients. Without such additions as the iphone, and ipod, Apple wouldn t be nearly as successful and would still be looking for ways to catch PCs volume of sales.

6 AppleCaseAnalysis 6 References Brandel,M.(2009).COMPELLINGNumbers.Computerworld,43(2),22.RetrievedfromBusinessSourceComplete database. Davis,J.(2010).ResellersTellAppleTheyWanttheiPad.ChannelInsider,1.RetrievedfromBusinessSource Completedatabase. Ford,T.(2006).Protectingyourcustomers.RCRWirelessNews,25(5),10.RetrievedfromBusinessSourceComplete database. (2010).CANAPPLE'SIPADDOFORPUBLISHERSWHATTHEIPODANDITUNESHAVEDONEFORTHEMUSIC INDUSTRY?.AdvertisingAge,81(6),12.RetrievedfromBusinessSourceCompletedatabase.

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