Apple Inc. is an innovative technology company known for products like the iPhone, iPad, and Mac computers. It was founded by Steve Jobs and others and has become highly successful through strategies like creating new product ideas to meet customer needs and differentiating its products from competitors through design, software, and customer experience. Apple uses pricing strategies like setting high initial prices but attracting loyal customers, and allows for product customization. It has become a strong global leader in the technology industry through innovative strategies.

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Global Business Environment
Q.2 Case study
Apple Inc is a multinational American company that design and sells computer
software, consumer gadgets and personal computers. It was cofounded by Steve
Jobs, Steve Wozniak and Ronald Wayne. Apple Inc is wellknown for being
innovative as they kept on producing new innovations from the first Apple computer
Macintosh to the more recent iPhone and iPad series.
Today Apple Inc. is very well known in the world because of their advanced
technology in products such as iPods, iPhone, Macbooks, Apple TV and other
professional software. All the high tech products provide consumers with a better
living standard in many different ways. Moreover, Apple Inc’s dominant position in
the global market has changed the trend of consumer usage of electronic appliances
such as in virtual communication. People will never need to carry multiple devices
where each one only offers a handful of functions. Furthermore, Apple also created
a substantial value in highly competitive market and industry which help them to
achieve competitive advantages in an industry with stiff competition. In addition, it
resolves the other external factors that present difficulty challenges to Apple Inc.
Therefore, now Apple Inc is known as a strong company and the market leader in
industry. Now, let us discuss about the current expansion strategy that used by
Apple that make the company has greater success in marketplace.
The first strategy that use by Apple Inc for their current expansion strategy is
creating innovative idea that slightly different from the competitors that already
exists in market and industry. In order to make the company more innovative,
Steve Jobs focused innovation on competitive pressure and value proposition by
stressing his management style on customer center innovation and customer

2. experience. As CEO in Apple, Steve Jobs carefully evaluated competitive pressure
and opportunity in market place by continuously pursuit customer experience
innovation. He also focused their business and IT strategy on customer center
experience. It means that Apple will be more focused on looking outwards, market
and business drivers rather than at the products or services that already exist.
Steve Jobs focused on this strategy because the customers can help the company to
understand what customers need and scarcity of the people so that he can use the
feedbacks as inspiration to deeply investigate and then to create more innovative,
creative and highly advanced technological product or services that can fulfill the
needs of the customers. Therefore, Apple products design is always attractive and
elegant compared to those existing competitors. Apple products like iPods and
iPhones are good examples that show the innovation of Apple Company by creating
digital lifestyle.
The second strategy applied by Apple is differentiation. Apple is using Macintosh as
operating software whereas other personal computer’s producers are using
Windows. The differentiation in operating software gives Apple a competitive
advantage in the personal computer industry. Macbook users are satisfied with
Macintosh performance because it is very energy saving where the processor will
automatically “close” those programs which are not in use when it is in standby
mode. On the other hand, Windows does not have such technology. Thus, Windows’
users might have to charge the laptop more often due to the battery consumption is
higher than Macintosh.
In terms of design, Apple came out with an ultra-thin Macbook Air which is
extremely thin compared to those existing laptops. To those consumers who prefer
lighter and thinner laptops will definitely be attracted to the Macbook Air. Apple
does not produce laptops in various colors like Dell or Hewlett Packard to increase
the choices for consumers. However, to those consumers who are concerned about
technology and high performance, Apple is still the preferable choice. In terms of
applications and software, Appstore provides a platform for customers to download
software and applications according to categories. It is easy to search for any
application or software by using Appstore. iTunes allow consumers to categorize
and download songs easily. By using iTunes, consumers can choose their preferable
album cover for their songs. They can also “synchronize” and update the songs in
their iPhone with a laptop. Besides that, iTunes also allow consumers to transfer
photos from iPhones to PCs.

3. As for pricing, Apple is using skimming pricing strategy where they set high selling
price for their products. However, there are still a lot of loyal customers who prefer
to spend more money on Apple products. This is due to the self-esteem where
consumers feel good by carrying Apple products because it somehow shows their
status as being up-to-date and their taste is better than others. Some customers
think that Apple products are not cheap but also not high-priced products because
the value of Apple products bring to them is never disappointing.
Other than that, Apple is using specialization strategy where they customized
customer’s laptop according to their requirements. Customers are required to add in
features into the laptop which can serve them better. Beside this, Apple also
emphasizes customizability on the part of entertainment that offer computer-build
for high performance such as gaming. Gaming plays important roles to help Apple
to customize in features and specification to make the products more attractiveness
and creativity.
Question:
(4 × 5 = 20)
1. What is the summary of Apple case study?
2. How does strategy match the macro environment?
3. How does strategy match the industry environment?
4. What is the company’s major problem (e.g., what decisions must be made? What
choices must be faced?)?
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