1) Read: What is strategy
2) Review Price/Features matrix
3) Read: Apple Computer 2005
Description:
Apple has reaped the benefits of its
innovative music player, the iPod. However, its PC and server business continue
to hold small market share relative to the worldwide computer market over the
past few years. Will the iPod lure new users to the Mac? Will Apple be able to
produce another cutting-edge device quickly?
Questions
1) Historically, what are Apple's major Competitive
advantages?
2) Analyze
the structure of the personal computer industry over the last 10 years. How
have the dynamics of the PC industry changed?
3) What is Apple’s strategy today and how has it
changed since 1990? What is the strategy behind using an Intel processor in the
new Macs? What strategic options does it open?
4) Where is Apple positioned on the price/features
matrix and why has it chosen that position?
5) How many PCs did Apple sell in 2004 (in aggregate),
How many iPODs? How much money does Apple make on each PC (in aggregate)? On
each iPOD? How many songs did Apple sell on iTunes in 2004? How much money does
Apple make on each song (on average)?
6) What % of total Apple revenue flows from Apple
stores? Can you estimate the revenue of the Apple store in downtown
7) Contrast Apple's success in creating and marketing
the iPOD with its results in other hardware categories. Are the customer and their
needs the same?
8) Evaluate Apple’s past performance and consider
what the future may hold for a company that relies heavily on periodic bursts
of innovation. What are the strategic options available to Apple and each of
its product lines? Which do you recommend?