Apple Case Study

552 Words3 Pages
1. What were the strategic issues that Apple faced in 2013? State them in broad terms. Steve Jobs used innovation to make Apple into one of the most successful firms in the industry. Apples primary strategy was to create innovative and differentiating products that were superior and had a very user friendly experience. In 2013, after loss of Steve Jobs, Apple did not focus on innovation and faced competition from new entrants like Samsung and other companies which offered similar products at a less price. Apple started losing its differentiating factor and as a result also the market share. The high pricing strategy which was very successful earlier, failed to increase the sales. Instead of sticking to its previous strategy of coming up with new unique products, Apple for the first time engaged itself in price wars. So lack of innovation, market saturation and price wars were some of the strategic issues which led to decline in profits. 2. What factors, internal and external to the firm, were contributing to the above issues? Change of internal management was one of the factors contributing to above issues. Steve Jobs was driven by innovation and always came up with new products which were superior in both technology and user friendliness. He did not believe in giving dividends and used that money for research and development of new products. Tim Cook who replaced him did not have similar vision like Steve Jobs and failed to come up with new innovative products with ground breaking technology. The external factors which contributed to above issues are market saturation, competition and cost factors. With the rise of Android, companies like Samsung started offering products with comparable technologies at lesser price. With consumer looking for value for money, Apple no longer was perceived as the best one. Apple was not successful in emerging markets due

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