Apple Inc. in 2010
CASE SYNOPSIS
Apple Inc. is the iconic technology company co-founded by Steve jobs and Steve Wozniak in 1976. Ever
since Steve jobs came back for his second stint as CEO, Apple has been running on all cylinders. A
the iPad was yet unproven.
CASE OBJECTIVES
Apple’s products are well known to students and Steve Jobs is frequently covered by the business press.
This case is sure to draw the students’ interest and the instructor’s challenge may very well be
separating the discussion between Apple’s products from a consumer’s point–of-view and Apple as a
well as business strategies.
The case can be used to discuss the following issues:
The nature of industry evolution over time and what it means in terms of strategy
The nature of a differentiation advantage and how such a positioning can be sustained
The impact of technology on strategy
POSITION IN THE COURSE
also suitable for student presentation.
TEACHING PLAN
Time management is likely to be a challenge in the Apple case because students are apt to digress from
SUGGESTED ASSIGNMENT QUESTIONS
1. How does Apple compete in the PC market? How has its strategy evolved with the changing
industry dynamics?
2. Assess Apple’s competitive position in MP3 players and smartphones? What threats do you
see?
3. What challenges confront Apple at the end of the case?
4. Is Steve Jobs an effective strategic leader? If so, what happens to Apple when he steps down?
ANALYSIS OF ASSIGNMENT QUESTIONS
1. How does Apple compete in the PC market? How has its strategy evolved with the changing
industry dynamics?
Whether it is PCs, MP3 players, or smartphones, Apple is the classic differentiator, in terms of its
approach to technology (proprietary versus open systems), its product design, its innovation, and its
preferred digital hub for customers. It was able to justify its premium pricing (what differentiators
typically do) by the value afforded by its differentiating factors.
If time permits, the instructor can use this question to examine the five-forces (Chapter 4 in the book) of
the PC industry. There is adequate data in the case to do a five-forces analysis. In summary, these are
the five-forces for the PC industry:
innovation, and branding.
Buyers are powerful because superstores such as Wal-Mart and Best Buy account for a lot of
Supplier power depends on whether there are many sources for a particular component (e.g.,
lower the threat of substitutes.
The rivalry is intense in the industry because the product is perceived as a commodity by
circumvent the negative industry forces.
2. Assess Apple’s competitive position in MP3 players and smartphones? What threats do you
see?
Macintosh to succeed worked here: design, user friendliness (in this case the number of songs that
could be stored), and branding. As the case indicates, in 2010, the iPod had a 70% market share in the
3. What challenges confront Apple at the end of the case?
At first, students may consider this a “trick” question because it appears that Apple is firing on all
indicates that:
Windows 7 is a popular competing product that attempts to take away the Macintosh’s
features-based advantages.
magic.
4. Is Steve Jobs an effective strategic leader? If so, what happens to Apple when he steps down?
Strategic leadership is covered in Chapter 12 in the book. As the chapter points out, effective strategic
leadership means that the CEO should:
Guide the organization to embrace change
with a vision and created a culture that suits Apple’s differentiation strategy.
For the class to evaluate what is likely to happen when Jobs steps down, it is important for them to
The instructor should reiterate the key takeaways from this case:
In dynamic technological markets, a successful company must consistently innovate