Apple in the PC Industry - Essay Example

Published: 2021-08-15
1270 words
5 pages
11 min to read
Middlebury College
Type of paper: 
Case study
This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

1.How has Apple performed in the PC Industry?

Apple was able to develop a superior performance in the rapidly changing technological environment as it was practicing horizontal and vertical integration. Apple mainly depended on its designs and did not license or allow other third parties to use their software. This made the products of Apple to remain relevant in the market as there were no counterfeits that were being manufactured. Apple made manufactured their products from scratch including the monitors, disk drivers and also used unique chips. By not selling their license to other third party Apple was able to remain competitive in the market as their products remained to be of a high quality.

The software that was used by Apple was superior to that of its competitors. Apple Inc. has been able to have a superior performance as compared to their competitors because they have created a substantial value in the industry of computers as well. They have done this by using a path that is different from other manufacturers by focusing on the quality of the products and being highly innovative. For example, the software used in the Apple desktops is superior such as the laser printers, page maker, and peripherals. It offered its clients various solutions to their desktops which included the softwares, hardwares and other peripherals which were simple to use as they were only required to plug them into the desktop and then play. The products of Apple were easy to use which attracted most of the customers and also were appealing. This made the customers of the Apple products to love their Macs while those of their competitors like IBM would have to put up with the products.

Apple was also able to develop a superior performance in the rapidly changing technological environment due to their standardized price on their products. Initially, the products of Apple were expensive, but later Sculley who was one of their managers decided to lower the price. For example in 1990 the price of Mac classic was standardized to the price of an IBM clone that was the cheapest. Apple turned out to be a company that produced their computers using the lowest cost possible but ensured that the quality was maintained.

The Management of Apple held a high level of secrecy. Only specific people were allowed to access particular areas in the company. This ensured that the companys confidential information was not leaked out to their competitors since they would use that information against them. Apple upheld a strong culture and violation of the culture would result in losing the job. This helped them to be able to develop the superior performance in the changing environment. Every employee was focused on accomplishing their duties and the work allocated to them.

What is your Evaluation of its Performance in the PC business?

The second term of Steve Jobs serving in the Apple industry has greatly helped Apple to be a brand that the customers can trust making it successful in the PC industry. The ability of Apple to be in a position of selling their products at a premium price has helped them to have a strong customer base who can be considered as being loyal. The fact that Apple had a gross margin of 40% as compared to their competitors Hewlett Packard that had 24% and Dell which had 18%.Apple has been able to emerge as being the largest PC vendor in the United States market by the use of the strategy of establishing themselves as the leaders of the premium-priced sector. They have also been successful by shifting from just being a PC company to being a digital hub as well.

One of the advantages that Apple has had which had led to its success in the PC business is the manufacture of products that can serve different users. For example, the users of the PC can be divided into five categories that are the government, small and medium-sized business, corporate, education purpose and for home usage. The Apple PC met the requirements of all the five categories of users. Most of their competitors are facing the problem of differentiation which Apple has had from the day they started operating. Apple is a company that makes quality software and hardware since they also hold the belief that it is the only company which can manufacture hardware that is worth being used in their software. For example, the Apple iLife software can serve different purposes such as creating music, DVDs, and movies.

2. Assess Apples iPod, iTune, iPad, iWatch and Apple Pay strategies and performance .How would you compare them to its Mac strategy?

The iTunes and Digital Asset Management is also another advantage which has led to the success of Apple. The iTunes is one of the most strategic features that Apple uses. Apple was the first company to introduce the feature of the iTunes music store and the iTunes desktop software in 2003.The iTunes store enabled individuals to download songs and pay a given rate. This made able to be considered as a digital asset management company not only a software company. The iTunes features have helped Apple to gain more consumers leading most of them gaining trust in their products and creating an account with them.

The strategy used by Apples retail market is also another advantage which has helped the company to emerge successfully. Apple has their storefronts. Apple was able to choose the right location for their storefronts and ensured that they gave priority to them. They ensured that their customers were given quality services. The customers can go to the stores and purchase the products. Choosing the right location has helped Apple to have a large number of customers as compared to their customers and hence making more sales. The stores have helped the Apple management to have a direct interaction with their customers. They can know what needs to be done to increase the customers satisfaction which will help cater for their future needs.

The iPod, iTunes, iPad, and iPhone can be considered as being effective and important to the consumers who are in the digital world and having the pressure to use portable music players, digital camcorders, and digital cameras. The Mac strategy could be preferred so that it can add value and integrate them. The performance of these products in the market can be considered to be great since initially they were not in the market and were introduced by the Apple Company.

3. How durable is Apples current success and industry position? What threats does it face? What would you recommend?

The Apple management is in a position of withholding these advantages for a long period of time. Apple faces the threat of being overtaken by their competitors in the technology world resulting in them making less sales. I recommend that Apple ensures they do more research on how they can further diversify their products This will help them to continue manufacturing more new products that are of high quality and this help them never to be on the same level with their competitors. Apple should also ensure that they have a strong team that is ready to work towards achieving the goals of the company.

In conclusion, Apple has been able to compete against its competitors mainly because of the software and hardware that is used on the Apple products. They feature of the iTunes has also been of great advantage to them which has helped them to increase their sales significantly. The Apple products are of high quality whereby they have been properly differentiated from those of their competitors.


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