Apple Case Study To Use For Practical Writing Help

Blue Ocean Strategy is used by companies to set the pace, create unique products and make profits in a very productive market. It makes better sense for a company to look for ways to go into an area that does not have any competitors than involving themselves in normal competition . Blue Ocean Strategy means a company supports the whole system of their activities in pursuit of difference and low cost. This strategy implies that value innovation equals new value .
Apple was a PC maker in the technology industry. Apple used the blue ocean strategy when they invented the iPod, iTunes, iPhone and iPad. They achieved success by not investing in what was demanded by consumers, but by making tactical moves to lead and form the growth of a falling industry . Apple introduced the iMac in 1998. This was an all in one desktop computer. The computer was internet friendly because it only took two steps to set up and connect to the internet. The other PCs had to use a very hard wizard to connect to the internet .
Apple unlocked a new market in digital music about ten years ago. Illegal music was being downloaded by file sharing programs such as LimeWire. The record industry was unable to stop this, so Apple stepped in with something new. The executives at Apple realized that people were downloading music to their iPods. In 2013, Apple capitalized on this opportunity with iTunes .
Yes, Apple was successful with the Blue Ocean Strategy. Apple’s strategy was successful because iTunes made another Apple’ product hot, the iPod. Consumers would sign on to iTunes and download music onto their iPods. Apple provided the content, the means of purchase and delivery, and the device. Another reason for Apple’s success is they are driven by design. They put their customers at the top of their product revolution. The need for their products was created and put into a market at a fast pace. This made it hard for other companies to get on board .
The degree of opposition among the top companies that compete openly with Apple in the technology field is high. Apple’s competitors are Google, Hewlett Packard and Samsung. The competitive force within the industry is strong. The industry is highly competitive because of low switching cost. It does not cost a fortune to change from an iPad to an Amazon Kindle. The component of low switching cost strengthens the bargaining power of buyers as a key force for Apple. Apple handles this strong force by continuing to make accomplishments in research and development, developing new items such as Apple Pay and the Apple Watch. They also have a large and loyal customer base. The threat of a new player to the industry that could really threaten Apple's market share is low moderate. This is due to the extremely high cost of creating a company in the industry and the extra high cost of establishing brand name credit. This is why the threat is low. A new candidate to the marketplace of personal computing or smartphones will need a lot of money to invest and manufacture the product. The bargaining power of suppliers is a low force. The parts suppliers of Apple would not risk losing their business because they would lose a major part of their revenue. Substituting Apple products is not an option due to the fact that the substitute products have very little capabilities compared to Apple's products .
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