Apple Inc-Case Study

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Apple Inc., 2008-Case discussion What Industry is Apple in, and how attractive is this Industry? Apple computer was founded by Steve Jobs and Steve Wozniak in 1976. It was founded as a personal computer company and its mission was to provide an easy to use computer. With greater competition from the likes of IBM, Apple saw its market share drop and had to adapt. As different leaders took over the company, it ventured into becoming a leader in the corporate and educational market, but it remained primarily in the computer industry. In January 2007, Apple computer became Apple Inc in recognition of its diversification outside of the personal computer. Apple Inc. is now clearly a brand in itself and is focused on 3 core businesses: The Macintosh PC, The i-Pod-iTunes and the i-Phone. The consumer electronics industry best describes its current fit, but it is clear that the Apple brand has enabled it to penetrate several different market segments.1 It is clear that Apple has been able to change the landscape. Its mission had always been to innovate and provide something different. In doing so it catered to a niche market that valued its products for their design and ingenuity. As such they commanded a price premium and were able to offer a greater buyer surplus. What is evident is a blurring of the margins within the electronics industry. In the past we had to carry or have individual devices to store music, organize our schedules a laptop to surf the internet and of course our phone. Listening to what consumers want and positioning itself as an innovator, Apple has managed to mesh together in an appealing design many of these functions in single products such as the iPhone. In a similar manner they have taken the lead in digital music down loading and storage with the iTunes and have managed to bundle many of their services. The question of

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