Yao Hsieh
MKT 300. SF2/ Summer 2013
Instructor: Thomas Duffy
Case analysis: Design Thinking and Innovation at Apple
l Issues:
– Main Issue:
How Apple became the most valuable and successful brand in the global market?
– Sub Issue:
1. What strategies does Apple use to develop its products?
2. How could Apple improve its market share due to the computer market share of Apple
was only 3% in 2001?
l The situational analysis
– Market analysis:
1. In 2010, Apple revenues were over $100 billion. Apple posted net profit of over $14
billion.
2. In 2001, Marker share of Apple computer was only 3%
3. With a market capitalization of about $550 billion and annual sales exceeding $100
billion.
4. Apple produces attractive and innovative products: Apple TV, iPads, iPods, Nano,
Shuffle, iPhone
– Competitive analysis:
1. As Apple ventured into new businesses and faced an ever-increasing number of fierce
competitors.
2. Google and Microsoft are considered as the most powerful competitors on innovation
aspects
3. Competitors, like Dell, HP, Toshiba, Lenovo, and so forth, were moving to direct sales
or building new distribution models.
4. Apple’s market approach was focused on retail stores
5. Gateway, most notably the computer company, started the attempt of opening retail store
to sell Gateway computers
6. By 2002, Dell offered a full line of desktops, notebooks, workstations, and servers, in
addition to software, service, and support. Dell executives attributed their success to the
company’s distinctive business model, which centered on direct sales and built-to-order
