And unlike the launch of its first personal computer, Apple sought industry co-operation rather than keeping the product to itself. Launched in late 2001, the iPod was followed by the iTunes Music Store in 2003 in the USA and 2004 in Europe – the Music Store being a most important and innovatory development. However, the extension into Apple mobile telephones remained to be proven at the time of writing. Apple’s high price policy for its products and difficulties in manufacturing also meant that innovative products like the iBook had trouble competing in the personal computer market place. Around the year 2000, Apple identified a new strategic management opportunity to exploit the growing worldwide market in personal electronic devices – CD players, MP3 music players, digital cameras, etc. Strategic Management Walt Disney Case Study 1 d. December 2004, p31; 11 January 2005, p26; 12 January 2005, p27; 21 January 2005, p12; 15 February 2005, p1; 16 February 2005, p27; 3 April 2006, p3 of global brands supplement; 4 December 2006, p11; 5 July 2007, p22; 29 August 2007, p21; 7 September 2007, p23; 26 September 2007, p27; 24 October 2007, p21; 5 December 2007, p28; 16 January 2008, p24. Copyright 2014 Richard Lynch.
The company was determined to avoid the same error when it came to the launch of the iPod and, in a more subtle way, with the later introduction of the iPhone. Unlike Microsoft with its focus on a software-only strategy, Apple remained a full-line computer manufacturer from that time, supplying both the hardware and the software. The result is history. Using the concepts in this chapter, undertake a competitive analysis of both Apple and Nokia – who is stronger? Relevant concepts in the chapter are mainly from section 1. 1: Strong brand name, market leader in music delivery, user-friendly products, design skills, quality, exclusive contracts, profitable, strong vision Apple weaknesses: The Strategic Management approach is to take a top management view of the march 13 - 15, 2017 hyatt regency coral gables coral gables, fla. The second generation Apple tablet was then launched in 2011 after the success of the initial model. ITunes was essentially an agreement with the world’s five leading record companies to allow legal downloading of music tracks using the internet for 99 cents each.
By 2007, all the major consumer electronics companies – like Sony, Philips and Panasonic – and the mobile phone manufacturers – like Nokia, Samsung and Motorola – were catching up fast with new launches that were just as stylish, cheaper and with more capacity. As readers will be aware, the iPhone went on to beat these earlier sales estimates and was followed by a new design, the iPhone 4, in 2010. The world market leader responded by launching its own phones with touch screens. But there was no denying that the first Apple tablet carried some initial risks for the company. All during this period, Apple’s strategic difficulty was that other powerful com-panies had also recognised the importance of innovation and flexibility in the response to the new markets that Apple itself had developed. However, Nokia is just moving into the recorded music market and it has already produced its own version of the touch phone [with clear advantages over the iPhone according to one independent magazine review]. Case study When Apple’s Chief Executive – Steven Jobs – launched the Apple iPod in 2001 and the iPhone in 2007, he made a significant shift in the company’s strategy from the relatively safe market of innovative, premium-priced computers into the highly competitive markets of consumer electronics. They observed that Xerox had developed an early version of a computer interface screen with the drop-down menus that are widely used today on all personal computers. Moreover, it launched a new model, the iPhone 4 that made further technology advances.
I. e. Eventually, Microsoft signed an agreement with Apple saying that it would not use Mac technology in Windows 1. 0. Nokia’s Chief Executive explained that much greater strategic flexibility was needed as a result: ‘Five or ten years ago, you would set your strategy and then start following it. It remains exclusive to Apple and means that the company has a specialist market where it has real competitive advantage and can charge higher prices. Not all Apple’s new products were successful – the Newton personal digital assistant did not sell well. Founded in 1976, Apple built its early reputation on innovative personal computers that were par-ticularly easy for customers to use and as a result were priced higher than those of competitors. In addition, Apple managed to upset some loyal customers by introducing a new version of its phone that had more features and was also lower-priced. Its mobile phone was premium priced – for example, US$599 in North America. Strategic management case study finding the best buy.