As Apple surpassed all major competitors and had spectacular success in 2010, it left CEO Steve Jobs wondering if there was anything that could overturn the drive. “Apple Inc. in 2010”, is an evaluation case. This case will be further discussed using the state-and-prove order using the following five elements: 1. Bottom-line evaluation (position statement) 2. Evaluation criteria 3. Proof of the evaluation 4. Qualifications 5. Action plan
Position Statement Apple’s hits have been executed through first mover advantages, technological advances, and innovative strategies. Based on Apple’s current product positions, their success can continue into the next decade; however, it will be much harder for Apple to maintain their innovative momentum considering product substitutes and increasing competitive pressures.
Evaluation Criteria Apple can be evaluated in many different ways given the numerous technological markets it has pursued. They can be broken up into the following product categories: computers, mP3s, and smart phones. Since each of these product categories have their own significant impact on Apple overall, it would be wise to evaluate items such as market shares, gross margins, and unit sales within each group. These can be measured by taking a look at past years, where they stand currently, and projections a few years in the future. By doing so, it will indicate Apple’s strengths as well as weaknesses within the company.
Proof of the Evaluation
Personal Computers Despite Apple creating the first revolutionary “personal” computing devices, IBM was the one to bring PCs into the mainstream in the 1980s, says Yoffie and Kim (2010). There were plenty of manufacturers in this industry and the reason for growth was driven by lower prices and expanding capabilities. Apple has never seen more than 4.2% market share in the worldwide PC industry, whereas competitors in the big four – Hewlett-Packard, Dell, Acer, and
References: Yoffie, David B., & Kim, Renee (2010). Clayton Apple Inc. in 2010. Harvard Business Publishing, Volume 1, 21 pages.