Should Apple Be Considering Moving Into The Car Industry Case Study
Should Apple be considering moving into the car industry?
Introduction
Steve Jobs created Apple on 1st April 1976 in a garage. After all the growth and expanding of firm Steve Jobs expired on 5th October 2011. Later his very close friend Tim Cook became the CEO of the company and now this firm is leading in producing highly advanced smartphones, laptops, iPods and many more electronics. Apple is looking to expand even more by considering moving into the car industry, about cars Apple has no idea therefore Tim Cook (CEO of Apple) lately visited BMW Headquarters to talk about producing an electric car with Apple’s interior and BMW’s regular car design and high performance. In the present time the demand for electric cars has rapidly increased …show more content…
Another advantage they have is that they are thinking of making electric cars whose demand is very high and supply is less in the market so it would motivate Apple to give a good start in market. According to Ford, Apple brings innovation and competition in the market. Apple has a good public image as it is providing electric cars, which are Eco-friendly, which causes no pollution and is harmless for public.
Weaknesses
Apple may struggle since they are new to car industry and have no knowledge about cars. To move into car industry Apple would have to invest massive amount of money, which could be very risky. According to recent survey, 47% people are not interested in buying Apple cars. The surveys gives a hint about the market that maybe Apple will not be able to survive in the car industry for a long time. …show more content…
Apple would be producing electric cars, which would be for the first time in Apple’s history therefore it will be diversifying into new market with it’s new product. The framework above shows us the high risky strategy, which would be observable. The Apple would be spreading risk for themselves by entering in a new market with their new product. Since it would leave them with a very little scope to be successful in a new market because of the existence of other rivals who are already leading the market. Apple will not be able to gain economies of scale, as it would be entering into a new market so it will have to produce too many electric cars and will have excessive cost of production. After producing and investing so much it will be very problematic for Apple to find customers who would love to use Apple electric cars because they are trying to sell completely different products and totally to different customers who are interested in cars from what they used to produce like high-tech gadgets for gadgets
Introduction
Steve Jobs created Apple on 1st April 1976 in a garage. After all the growth and expanding of firm Steve Jobs expired on 5th October 2011. Later his very close friend Tim Cook became the CEO of the company and now this firm is leading in producing highly advanced smartphones, laptops, iPods and many more electronics. Apple is looking to expand even more by considering moving into the car industry, about cars Apple has no idea therefore Tim Cook (CEO of Apple) lately visited BMW Headquarters to talk about producing an electric car with Apple’s interior and BMW’s regular car design and high performance. In the present time the demand for electric cars has rapidly increased …show more content…
Another advantage they have is that they are thinking of making electric cars whose demand is very high and supply is less in the market so it would motivate Apple to give a good start in market. According to Ford, Apple brings innovation and competition in the market. Apple has a good public image as it is providing electric cars, which are Eco-friendly, which causes no pollution and is harmless for public.
Weaknesses
Apple may struggle since they are new to car industry and have no knowledge about cars. To move into car industry Apple would have to invest massive amount of money, which could be very risky. According to recent survey, 47% people are not interested in buying Apple cars. The surveys gives a hint about the market that maybe Apple will not be able to survive in the car industry for a long time. …show more content…
Apple would be producing electric cars, which would be for the first time in Apple’s history therefore it will be diversifying into new market with it’s new product. The framework above shows us the high risky strategy, which would be observable. The Apple would be spreading risk for themselves by entering in a new market with their new product. Since it would leave them with a very little scope to be successful in a new market because of the existence of other rivals who are already leading the market. Apple will not be able to gain economies of scale, as it would be entering into a new market so it will have to produce too many electric cars and will have excessive cost of production. After producing and investing so much it will be very problematic for Apple to find customers who would love to use Apple electric cars because they are trying to sell completely different products and totally to different customers who are interested in cars from what they used to produce like high-tech gadgets for gadgets