BUS 599 WEEK 2 DISCUSSION - 83793

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  • From: Business, Business
  • Posted on: Wed 31 Dec, 2014
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Apple's New Strategy" Please respond to the following: • From the e-Activity, evaluate the level of success of Apple’s current competitive strategy. Next, suggest one (1) new innovation strategy for Apple geared toward maintaining an edge in the industry. Provide a rationale for your suggestion. • Using Porter’s Five Forces Model located in Chapter 2 of your textbook, assess Apple’s strengths and weaknesses of each dimension of the model in comparison with those of Samsung, Apple’s strongest competitor. Justify your response by utilizing at least one (1) example based on customer focus. NOTE: MORE THAN ONE ANSWER POSTED FOR EACH QUESTION AS A BONUS JUST CHOOSE ONE
Solution Description

---Apple's competitive Strategy is truly successful. They have one of the most popular brands in the technology market. Year over year they increase profits, their stocks and dividends do well, and their return on investments show it. The e-activity video explained how much that Samsung spends in celebrity endorsement and advertising such as the Super Bowl. Apple keeps their plentiful but basic. They know that their products, brand, and technology sell themselves. Not that they don't advertise, but they don't have to advertise in the way that some other technology companies do. I truly think that Apple should and will get involved in Television. For Example Samsung and other companies have Smart TV's loaded with the ability to have their apps directly on those televisions. Apple has Apple TV, but it is a separate device that allows you to watch things on your tv. I think that Apple should start making their ow Smart TV"s. Where The Apple Software is loaded on the TV. This new innovation will strengthen their distinctive competencies. A true Apple Distinctive Competency of Apple is their software. It is a closed operating system meaning that it is only available on Apple products. Having a new product such as a smart Apple TV will only strengthen their edge in the industry.

Hill, C., & Jones, G. R. (2013). Strategic management: An integrated approach (10th ed.). Independence, KY: Cengage.

---Apple like any technology company is always going to be at risk when it comes to the entry of potential competitors. The technology industry is saturated with organizations competing and also looking for new changing technology to give them an edge which is their main weakness. Competition is stronger than ever. However, their main strength in this dimension is their brand and reputation. New competition can come, however, coming from someone who worked in this industry for 8 years, Apple has loyal followers and their strength is that they can keep up with the changing technology and continue to innovate so they are able to keep those followers. The second dimension is their rival amongst companies, their main weakness here is the amount of companies that are lowering the price of their products makes it much more attractive for consumers. Apples Strength here are their intangibles, their people, their brand. They are able to consistently provide a high quality product and have high quality people to support it which allows them to continue to be able to charge a premium for their products. This is similar to the third dimension, the bargaining power of buyers. This competitive force is hard on Apple, employees have so many other options that companies such as Samsung are forced to make sacrifice and make lower quality products and charge less and Apple is effected by this. However, their strength is that they are able to adapt and use their distinctive competencies to continue offering high quality products for a higher amount. For the Fourth dimension, the bargaining power of suppliers is where Samsung and Apple really differ, Samsung devices typically work off of an open market such as Android, which other companies use. So Android can possibly raise prices costing Samsung money. However, Apple offers its own operating system IOS so they are never at a threat of that price raising. Finally the treat of substitute products is a weakness for both Samsung and Apple, both have to worry about companies making products that are less expensive. However, they both of the strength of their brand, Apples big strength is the value creation that they have created with their previous products. They have so many strong profits, consumers want that same product reliability and will pay  a premium price for it.

Hill, C., & Jones, G. R. (2013). Strategic management: An integrated approach (10th ed.). Independence, KY: Cengage.

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From the e-Activity, evaluate the lev

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