Answer to Question #211283 in Economics of Enterprise for Yasin Muhamed

Question

https://www.chegg.com/homework-help/questions-and-answers/apple-s-profitable-risky-strategy-case-study-apple-s-chief-executive-steven-jobs-launched--q46707023?trackid=d8e58d904567&strackid=875202d1b020

Answer 1

Apple consistently relied on its brand strength and reputation. The culture of offering high quality products underpins its high pricing strategy as it concentrated on niche market.

From the onset in 1976, the organisation has adopted a non-cooperative approach to its rivals and to some extent the supply chain by limiting copyrights of its technology. This possessiveness or full ownership, particularly in computing technology was meant to stifle competition.

Whiles doing this, it failed to recognise the emergence or strength of its competitors like Microsoft as it launched the Windows 1.0 which had similar functionality as Apple Macintosh. Windows, unlike Apple Macintosh, was a mass product with a wide customer base and comparatively lower priced. This made it more appealing to customers giving Microsoft a large market share than Apple.

In the mobile phone sector, the dominant competitor to Apple was Nokia which had matured in the industry by the time Apple entered.

From Nokia’s vision and mission statement it can be inferred that Nokia wants to be known for its credibility and to be a market leader again as it was before the year 2007. Nokia understands that the company has to use innovation to offer products that are not yet available in the market.