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Service Operations Management Case Analysis Of Apple's Competitive Advantage

894 Words4 Pages

Service Operations Management Case Analysis
Apple Inc. in 2012
2010120344 Taewoo Kim
1. What, historically, have been Apple’s competitive advantages? Apple’s competitive advantages have been their devices on desktop platforms. Especially, they have concentrated on high quality yet high price desktop personal computers. While Intel and Microsoft cooperated and provided more open environment to users, Apple chose to integrate both horizontally and vertically, which meant that they provided more closed but stable environment. Apple made their first personal computers in the late 1970s. Their product, Apple II, led to a huge success. However, as IBM entered the PC market with more open system, Apple started to struggle. Apple computers did not …show more content…

Apple lost its market share due to this problem. Huge invest on R&D department compared to its competitors was another weak point, since Wintel standard required not much R&D investment. Netbooks and Ultrabooks also contributed in the decrease of average price of computers. Apple concentrated in its own distribution channel while HP, Dell, and other Wintel clone providers diversified their channels in websites, retailers, and small businesses. These aspects led Apple to suffer a lot in their price, cost, and sales of computer …show more content…

Solving problems of mobile carriers by using exclusive revenue-sharing contracts, Apple sold 6 million units of the first iPhone model. While Apple changed its relationship with carriers in later years, its first attempt was a huge success. Apple is now launching new models of iPhone every 6 to 12 months. Launch of App Store was another factor in the success of iPhone. While Google Android based smartphones are trying to catch up with the iPhone, Apple has the greatest market share in the smartphone industry. Since smartphone industry will grow as time goes by, the prospects for iPhone looks bright.
4. What are Apple’s long-term prospects for the iPad? Tablet is suitable for consuming rather than producing. This fact led App store start to have apps only for iPad. Competition with the online bookstores such as Amazon was a primary issue regarding the sales of iPad. Google Android tablets and Microsoft tablets were also threats to iPad. One of the ways to extend the usage of the iPad was the introduction of iCloud. Steve Jobs wanted the customers use the iPad as a digital hub. While the fierce competition is expected in the industry of tablet PCs, Apple is likely to show its leading position in the market in the future.
5. What advice would you offer the new CEO Tim

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