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Apple's Ipad Case Study

Essay by   •  January 11, 2012  •  Research Paper  •  2,762 Words (12 Pages)  •  1,389 Views

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Apple's I-pad

Executive Summary

Organizations of all kinds face continually changing situations. Changes taking place may be minor or significant. With the help of strategic management managers critically evaluate existing factors in order to come up with the best possible work plan that will benefit them to deal with uncertainty currently prevailing in the business atmosphere (Robbins & Coulter, 2008, p.209). This research was carried out to do the situation and SWOT Analysis of Apple Inc. Company's I-pad, an innovative production of one of the most successful companies of the IT industry. The approach of this research has been kept unbiased and elaborate, keeping in mind the study of past trends and the current scenarios of the industry in question and to see whether the company would benefit from such an association. Browsing through the trends and the performance of this product, its competitors and other influential companies, it was deduced that the Apple Inc. had come to enjoy a stable market share and influential growth in its financial and strategic possibilities.

Table of Contents

Executive Summary 2

1.0 Introduction 4

2.0 Situation Analysis: 5

2.1 External Situation Analysis: 5

2.1.1 Competitive situation: 5

2.1.2 Macro environment situation: 6

2.2 Internal Situation Analysis: 6

2.2.1 Customer Market Situation: 6

2.2.2 Market Mix-Situation 7

2.2.3 Supplier Situation 7

2.2.4 Resources and Capabilities: 8

3.0 SWOT (Strengths, Weaknesses, Opportunities, Threats) Analysis: 9

4.0 Conclusion and Recommendations 12

5.0 References 13

1.0 Introduction

This paper indicates an analysis of Apple's I-Pad; its history and its present position in the market. Especially invented to cater to customer's diverse needs, I-Pad is in progress to gather wide recognition in the customer market. Meanwhile it also evaluates the problems that the company faces and the effect of some economic, social and political factors on its working and also the influence of its pressure groups and rivals. Every business organisation is made with the solitary aim to excel "In analyzing the external environments, both specific and general environments need to be considered to examine present market scene. From changing technology to changing demographics, to changing customer needs, managers have looked for strategies to accommodate current trends" (Robbins & Coulter, 2008, p.212). Apple Inc.'s challenge is to find a way to reverse the business market in its favour.

By considering the current market scenario, the realities of external environment and by gathering information about the available resources or assets that Apple Inc. possesses, managers will become able to formulate strategies of the corporate, business and functional sector. Doing an external and internal analysis of the company helps to identify the strengths and weaknesses that Apple Inc. is currently facing. It will give employees the clear understanding of the company's immediate goals so that they could manage any risk situation that may arise. Moreover it will also help in the negation of strong organisation culture by initiating situation analysis as successful organisations like Apple sometimes became the "prisoners of their own successes" by blindly following a single route irrespective of the competitors next moves( Robbins & Coulter, 2008, p.213). While assessing the overall progress, intangible assets like skills, knowledge, reputation and company's unique databases are also taken into account.

2.0 Situation Analysis:

Situational analysis comprise of competitors, customers, collaborators and socio-cultural climatic conditions. It is concerned with the current happenings in the business industry dealing with the macro environment, competitors, target customers and product distribution.

2.1 External Situation Analysis:

"External environment is not only composed of markets (i.e. potential/ actual purchaser of the organisation's goods or services) but also of communities of people (including governments) who have needs and priorities which are of a non market nature and who have power to force change on the organisation"(Cole, 1996, p.125). Formed after the advent of I-phones, some refer I-Pad as the missing link between hand-held devices and our laptops. Threatening the mere existence of laptops themselves, Apple Inc. has come to challenge most of its competitors by re-defining the very definition of technology.

2.1.1 Competitive situation:

An analysis of the competitive situation shows that current competitors are not the only competitive forces operating in the external environment. "Suppliers and buyers also make an impact as do the actions of potential newcomers and the possibility of substitute products"(Cole, 1996, p.256). It is mandatory for Apple Inc. to be responsive to such triggers of change in the environment. In order to create competitive advantage and in case of shifting input costs or change in governmental regulations e.g. Trade tariffs, product standards etc., innovation is needed (Cole, 1996, p.257).

I-pad has, at the moment no decent competitors that could bite away its share of market however most critics admit that this situation is likely not to last long. Giants such as Hp and Samsung are already working on their products that they claim would be strong enough to compete against the I-pad. Offering more features and some windows-enabled, such products can truly shy away some of I-pad's customers who eventually get too tired of the apple applications and require a more 'lap-top/ PC' feeling to their handheld devices.

The company, though considered to be an unpopular rival would have little problem to expand. Not only does its ever-increasing demand and revenue generate it with financial stability, it also

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