MBA 8145 Assignment 1 8/15/18 Apple Case Questions **Historically, what have been Apple’s competitive advantages?** *Vertical Integration* Full control over hardware and software. Strategy allows full control of user experience. Software can be more reliable because it only has to be coded to work with the specific chips and hardware Apple uses. Walled Garden Software Quality / Innovation *Product Focus* *Premium Positioning/Pricing* Position premium products and a loyal fan base allowed Apple to have the funds to invest into R&D at a rate much higher than their competitors, driving their innovation. *Design Philosophy* Focus on simple usage with the invention of the Graphical User Interface (GUI) **Analyze the personal computer industry. Why did Apple struggle in PCs?** *Pricing* *Competition* *Software Compatibility Issues* **Comment on Apple’s retail strategy - why do you think it was a good/bad strategy?** Good *Hands-on Experience* *Customer Service* Genius bar provides support and repairs for devices. *Product Education Platform* *Parter Retailers* Apple sections in Best Buy. **How sustainable is Apple’s competitive position in PCs, MP3 players, and smartphones?** *PCs* Very Sustainable Mobile PCs (Macbook line) provide many functions still not available or functionally *MP3 Players* Unsustainable. Apple no longer manufactures or sells any dedicated MP3 players. The last dedicated MP3 player they sold, the iPod Classic, was discontinued in 2014. *Smartphones* Very Sustainable Most popular device category. **What are Apple’s long-term prospects for the iPad?** Education Apple is currently trying to position the iPad as a low cost alternative computer for the education market. Enterprise / Professional Markets Apple’s iPad Pro with Apple Pencil support is positioned as a device suitable for professionals in artistic industries such as graphic design and architecture. PC replacement iPad Pro with Smart Keyboard support can be used as a PC replacement for most basic functions of computing like browsing, email, note taking, and document creation.