Hbs Apple Case
Business Strategy
Apple Case
09 March 2012
“All men can see these tactics whereby I conquer,
But what none can see is the strategy
Out of which victory is evolved.”
Sun Tzu (1)
1 Executive summary 2
2 Introduction 3
3 Apple INC.: An overview 3
4 Strategy Analysis 4
4.1 Branch of economic activity 4 4.2 The 8 key concepts 4 4.2.1 Competitive advantage 4 4.2.2 Long term 4 4.2.3 Organization 4 4.2.4 Scope 5 4.2.5 Environment 5 4.2.6 Resources 5 4.2.7 Stakeholders 5 4.2.8 Directions 5 4.3 Analysis of Apple’s external environment 6 4.3.1 Macro level, PEST analysis 6 4.3.2 Meso level, Five Forces Model 6 4.3.3 Micro level, Business Environment 8
5 Conclusions and recommendations 9
6 References 10
Executive summary
Apple started out small, producing visionary new products. With the combined strength of Jobs and Wozniak Apple computers soon had developed a clear strategy for the company. They wanted to make top of the line computers that work straight out of the box. Apple offered a new and unmatched consumer friendly computer experience. In Apple’s vision unique products are made of unique parts and have a unique sales force. Thus Apple almost naturally applied vertical integration, keeping their scope limited and controlling essential factors contributed to their success. Emphasis on R&D was also key and subsequently budgets for R&D were high compared to competitors. Marketing was also fully integrated within this strategy.
In this period of time, while the pc industry was being defined, Apple had set out to build the best products that the engineers could conceive. You could say that Apple’s main competitors tried to fulfill the needs their customers had today, while Apple was looking at tomorrow. Subsequently the level of budget constraints for Apple engineers was much lower compared to its competitors.
When the computer market
Apple Case
09 March 2012
“All men can see these tactics whereby I conquer,
But what none can see is the strategy
Out of which victory is evolved.”
Sun Tzu (1)
1 Executive summary 2
2 Introduction 3
3 Apple INC.: An overview 3
4 Strategy Analysis 4
4.1 Branch of economic activity 4 4.2 The 8 key concepts 4 4.2.1 Competitive advantage 4 4.2.2 Long term 4 4.2.3 Organization 4 4.2.4 Scope 5 4.2.5 Environment 5 4.2.6 Resources 5 4.2.7 Stakeholders 5 4.2.8 Directions 5 4.3 Analysis of Apple’s external environment 6 4.3.1 Macro level, PEST analysis 6 4.3.2 Meso level, Five Forces Model 6 4.3.3 Micro level, Business Environment 8
5 Conclusions and recommendations 9
6 References 10
Executive summary
Apple started out small, producing visionary new products. With the combined strength of Jobs and Wozniak Apple computers soon had developed a clear strategy for the company. They wanted to make top of the line computers that work straight out of the box. Apple offered a new and unmatched consumer friendly computer experience. In Apple’s vision unique products are made of unique parts and have a unique sales force. Thus Apple almost naturally applied vertical integration, keeping their scope limited and controlling essential factors contributed to their success. Emphasis on R&D was also key and subsequently budgets for R&D were high compared to competitors. Marketing was also fully integrated within this strategy.
In this period of time, while the pc industry was being defined, Apple had set out to build the best products that the engineers could conceive. You could say that Apple’s main competitors tried to fulfill the needs their customers had today, while Apple was looking at tomorrow. Subsequently the level of budget constraints for Apple engineers was much lower compared to its competitors.
When the computer market
References: Reference 1: http://www.easy-strategy.com/sun-tzu-quotes.html Reference 2: http://wiki.answers.com/Q/Who_are_Apple_Inc 's_Stakeholders Reference 3: http://investor.apple.com/faq.cfm?FaqSetID=6 Reference 4: http://www.techzine.nl/extern-nieuws/30895/tim-cook-at-goldman-sachs-worker-safety-iphone-and-ipad-growth-and-financial-strategy.html Reference 5: Yoffie D.B. & Kim R. (2011), Apple inc. in 2010, Harvard Business school Reference 6: Porter E. (2008), The five competitive forces that shape strategy, Harvard business review.