Sunday, December 9, 2007

Topic-6 Managing strategic business policy—Apple

1. One of the future scenarios that Apple store going to face is strong competition. Apple is recognized as a 'ahead of the tread' company. They are always the first one to sell small and fashion electronic devices that other competitor does not provide. As a result, Apple's competitor always follows their step closely. Whenever Apple manufactures something new, their competitors will soon have a similar product promoted to the market with a lower price which provide substitute for customers. As a result, Apple may easily lose their market position after a new invention which they had invested a lot. This situation has 60% of probability will happen in the future. To solve it, Apple should make sure their product have a high quality different features that other company can not easily copy. More over, building up customer loyalty for the brand by good after sell service can prevent cutomers from switch to other brand also.
2. Apple's invention is famous for its small and multi-functioning. As technology develops, many companies already learn it and had produced lots of similar products. Moreover, Apple mainly focuses on music and entertainment devices which limit their growth. As a result, once Apple runs out of new idea of music device, they might be easily substituted by their competitors. There is 30% that this problem will happen in the future. To resolve this problem, Apple can expand their product variation. Instead of focusing on music and video devices, they can also try make other electronic devices such as printers or scanner become easier for people to carry around.
3. Since Apple's product is so popular, a lot illegal entities are trying to copy their products with lower quantity and sell it in a lower price. This may hurt Apple's image and their sale. Although this only has 10% of likelihood to happen, to ensure their image is not hurt, Apple should attach some labels or special mark on their product which allow consumer to distinguish them from the fake.

1 comment:

Amy said...

Since technology is constantly changing, it is hard to keep up with the competetion that Apple is facing and I agree that they should worry about the potential risk in the future. I think even that Apple relies too much of thier sucess of the Ipod and its innovation. They have to focus more in other areas to dominate the market.