2. Developing
A strategic
vision
Setting
Objectives
Crafting
Strategy
to achieve
Objectives
And vision
Imprementing
And executing
The strategy
Monitoring
Developments,
Evaluating
Performance, and
Making corrctive
adjustments
Revise as needed in light of actual performance, changing
Conditions, new opportunities, and new ideas
Phase 1 Phase 2 Phase 3 Phase 4 Phase 5
How well has Steve Jobs done as Apple͛s CEO? Has he done a good
job of performing the five tasks of strategic management discussed in
Chapter 2? Why or Why no? What grade would you give him?
QuestionQuestion 11

3. Components of Apple͛s Strategy
Business
Strategy
Planned, proactive moves to
outcompete rivals (better product
Design, added features, improved
Quality or service, better e-
commerce capabilities, wider
product lines, and so on
Efforts to build competitive
advantage : Lower costs, different
or better product, niche market
Moves to respond and react to
changing conditions in the macro-
environment and in industry and
competitive conditions
Scope of geographic coverage
(local, reginal, multinational, or
global)
Collaborative partnerships and
strategic alliances with others
Key Functional
Strategies
- R&D, technology, engineering strategy
-Supply chain management strategy
-Manufacturing strategy
-Sales,marketing,promotion,anddistribution
Strategies
-Human resources strategy
-Financial strategy

4. QuestionQuestion 33
‡ Does it make good strategic sense for Apple to be a competitor in the
computer, digital music player, and mobile phone industries?
± Used to be just in the personal computer and software industry.
± Utilized its strengths and expanded its business to the entertainment industry.
‡ Starting from digital music players (iPod) and online music service (iTunes) ~ 2001.
‡ And to mobile phones (iPhone) ~ 2007.
ͻ Are the value chain activities that Apple performs in computers, digital music
players, and mobile phones very similar and ͞compatible͟ or are there very
important differences from product to product? Which of the three products lines
Ͷcomputers, digital music players, or mobile phonesͶdo you think is most
important to Apple͛s future growth and profitability? Why?
ʹ The marketplace trend seems to be destroying all the boundaries of each industry.
ͻ More than just a digital music player.
ʹ More enhanced tool for full-motion videos and data storing.
ͻ More than just a mobile phone.
ʹ Taking the role as a digital camera, a carry-on PC for memory
storing and internet, and an audio device.
ʹ The value chain activities are not much differences from product to product.
ʹ Instead, Apple has been able to command a premium in the market and gain above
average returns from utilizing the similar and ͞compatible͟ of its value chain activities
across the products.
ʹ Competitive advantages, especially in its mobile phones products.
ʹ The most important industries for Apple͛s future growth and profitability.

5. QuestionQuestion 44
‡ In which industryͶcomputers or digital music playersͶis competition
more intense?
± Computer industry is seem to be more intense for Apple as it can gain only
8.5% of the total market shares.
‡ Dell Inc. (23.4%)
‡ Hewlett-Packard (16.8%)
± Apple is used to be just in the computers and software industry.
‡ Expanded its business to the digital music players (iPod) industry.
± Occupying 71% of the total market shares.
» SanDisk (11%)
» Microsoft (4%)
» Creative (2%)
± Contributed a significant revenue to Apple Inc.

6. QuestionQuestion 55 ((11//22))
‡ What does a competitive strength assessment reveal about Apple, as
compared to the leaders in the personal computer industry?
± Design and innovation oriented.
± Greater horizontal and vertical integration.
± R&D oriented.
± Everything ready device.
‡ Use the methodology in Table 4.4 to support your answer. Among these
competitors, who enjoys the strongest competitive position?
± Dell Inc. enjoys the strongest competitive position.
± Apple͛s operating in a fast-cycle market.
± Firm͛s capabilities that contribute to competitive advantage aren͛t shielded
from imitation.
± Where imitation is very fast and inexpensive.
± Apple͛s products and services have more restriction than its rivals.

7. QuestionQuestion 55 ((22//22))
‡ Who is in the weakest overall competitive position?
± Acer.
± Most of its revenue (63.8%) was rely in the mobile phone industry.
± But mobile phone industry that have very intense competitive.
± With Apple and Nokia as major players.
‡ Has Apple͛s strategy resulted in a substantial competitive advantage over
its rivals in the computer industry? What is the basis for whatever
competitive advantage it has?
± Innovation plays a dominant role in the competitive dynamics in fast cycle
markets.
± Stronger brands value.

8. What does a competitive strength assessment reveal about Apple, as
compared to other main players in the digital music industry? Use the
methodology in Table 4.4 to support your answer. Among these digital music
player competitors, which company enjoys the strongest competitive position?
Who is in the weakest overall competitive position?
Has Apple͛s strategy resulted in a substantial competitive advantage over its
rivals in the digital music player industry?
What is the basis for whatever competitive advantage Apple has?
QuestionQuestion 66

9. Apple has highest while iRiver get lowest score
Previously Sound quality, design, legal MP3 download
͞Sony Music͟
iTunes Legal download (Encrypt password)
Best Designed hardware from aesthetic point of view
iRiver

10. Other Apple͛s competitive advantages
Marketing
Not talk about its features and technology, but better life
Best Replacement in TV shows
Movie : Chloe
Steve Jobs

11. What is your assessment of Apple Computer͛s financial performance the past
three years? (Use the financial ratios in Table 4.1 of Chapter 4 as a guide in doing your
financial analysis.)
QuestionQuestion 77

12. What accounts for Apple͛s noteworthy success in the markets for
mobile smart phones and digital music players, but its overall weak showing in
the computer industry?
iPod, iPhone and iPad
Mobile phone industry
͞Just work͟ (Best industrial and user
interface)
Customers who had the problems with
technology
Basic communication (mobile voice
and simple sms)
Advanced mobile phone т user
interface
Synchronization
Digital music players
Aesthetics and fashion
innovative approach to music
download (copyright) 99 cents/song
Cheap songs with expensive music
players
QuestionQuestion 88

13. Factors lead to Apple͛s weakness in computer industry
Price and Compatibility
Price ʹ Hardware, software and software licensing
Higher ownership cost
Compatibility ʹ Different application
Hugh amount of PC competitors around the world
Gartner's Preliminary U.S. PC Vendor Unit Shipment Estimates for 4Q09
(Thousands of Units)

14. 0.00%
10.00%
20.00%
30.00%
40.00%
Dell HP Apple Acer Toshiba Others
U.S. PC Market Shares 2nd Quarter 2007 and 2008
Q2 2007
Q2 2008
Apple did a better
performance
compared to Y-1 but
could still penetrate
only less than 10% in
the market.
Is Apple͛s strategy in its computer business strong enough to compete
successfully against Dell and HP?
QuestionQuestion 99