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64 INT B | Strategic Management
Case of Apple Inc in 2012

Apple Inc. In 2012 :

Can it Sustain Its Growth and Defend Against
New Competitive Threats

Apple Inc. is an international American company that produces computer software, cell
phones, personal computers and consumer electronic products. The well-known
products of Apple include: the iPod, the iPhone, the Macintosh line of computers and the
iPad . 301 retail stores in 10 countries are operated by Apple in August 2010. The
software of Apple consist on the Mac OS X operating system, iWork suite of productivity
software, Final Cut Studio, Logic Studio a music production tools suite, iOS; a mobile
operating system, the iTunes media browser, the iLife suite of multimedia and creativity
s oftware, Aperture; a professional photography package, AirPlay, Airprint, etc (Business
Insider, 2013).

Started as a computer developer then it leads to massive success of technology in use,
especially personal gadget in nowadays. What really Apple did in 1987 creating their
own products, while offers wide open opportunity for profitable and rapid growth with
a new demand and type of product offering. This is what they called by implementing
Blue Ocean Strategy that offers growth in revenues and profits by discovering or
inventing new industry segments that create altogether new demand. Apple with their
new Operation System, Macintosh are turned and beat Windows Operation System
through years. Apple system is the only one who generates and runs both soft-wares
and hard-wares. It allows consumers to buy and share contents (applications, music and
movies) via Apple devices (iPad, iPhone, Mac and iPod) by a exclusive selling media
platform called iTunes. Moreover, the sales of iPad, Mac and iPhones have increased by
188% and 7%, correspondingly. On the other hand, iPod sale was down by 15%. The
numbers in Q2, 2012 are down as compared to Q1, 2012 when Apple smashed all its
previous records as you can see in Figure 1. In that period Apple sold 5.2 million Macs,
15.43 million iPads and 37.04 million iPhones, even iPod sold well with 15.4 million

By taking chance and opportunities to the new market Apple Inc, successfully develop
their product into some tremendous success. Started with a computer PC and integrated
iMac system, Apple Inc. could create their business into a maximum level of satisfaction

Putri Amandhari
64 INT B | Strategic Management
Case of Apple Inc in 2012

that point out into loyalty. Means that, the growing market share started with iPod, and
continue to iPhone, MacBook and also iPad are become a bundled of high brand trust to
consumer to adopt this gadgets.

Personal Computers:
Hewlett-Packard (HP) . that also offers diversified segment of computer
industry that focused on IT consulting services, large enterprise system,
software and personal computers, printers, and other imaging devices. HP
become the leading of PC Vendors and positioned as the number one rank with
the highest market share.

Dell Inc. was the worlds second largest seller of personal computers, that
offered a wide range of desktop computers and portables, ranging with low-end,
low priced models to state-of-the-art, high priced models. Dells has Android
based streak tablet and a Windows Phone 7 smartphone.

Smart Phone Competition
Samsung leads through the highest shipment volumes and market share compare to
Apple, Nokia, RIM, HTC and others. While Samsung developing Android operating
system that actually allowed vendors such as HTC, Motorola and Samsung to offer
models that matches many of the features of iPhone. Android own biggest market of the
most wanted phone with reachable price and wide range product variances from
differentiate brand.

Apple Inc. products have certain competitive assets to compete with their opponents.
Bringing the level of satisfaction of consumers for example that could create brand
loyalty is the critical aspects on developing Apple to keep in sustain growth.

Offering an equally good or better product at a lower price. What Apple did is vice
versa, because actually they sell their products through premium price started from
499$-1500$. Compares to the other brand, consumer could easily find any substitute
products with lower price and demanding capacity. But, the level of prestige that Apple
built is giving their consumer more value of using their products compare to the other

Leapfrogging competitors by being first to market with next generation product. By
entering and create their own system of operation and system, Apple considering
exclusive toward their opponents. The different style and user-friendly system is bring
the innovative points of system and gadget development ever since.

Putri Amandhari
64 INT B | Strategic Management
Case of Apple Inc in 2012

Pursuing competitive innovation to draw sales and market share away from less
innovativeness. The innovation that Apple leads are not only about the how fast and
other market demand that already pursued by Apple opponents. Adopting consumer
experience is one of the best example why iPod iTunes become a big hit, how iPhone
are development of iPod that allows user to access the Internet wirelessly at twice the
speed of the previous version and also adopting some features that interface the user of
giving true meaning of satisfaction.

Adopting and improving good idea of rivals. As we know the market for smart phone,
computers, tablet and music player are tight. Become the first mover is giving Apple
more opportunities to tested their market at first. And continue to develop their market
with the what market wants while the rivals are still growing at their first pace, Apple
already comes like rockets with the new version of gadget ready to be launched soon.

Launching a preemptive strike. Make a continuous promotion of their products with
the different segment, improved products of computers, phone, music player and also
tablet give Apple more opportunities to strike at the first stand to acquire their
competitive assets that rivals cant readily match. By securing Apple variances of
products with the Apple logo behind, it already giving Apple prime position from their

Become a market leaders are somehow vulnerable. To keep the position stand up high,
while the competitors are ready to attack and replace the position. High treat and risk
might. We can conclude that Apple are try to strengthening a Companys Market
Position and developing futuristic gadgets that could meet consumers demand. Within
forward integration, Apple also engage their consumer through some medium of sales to
utilize their brand positioning and strengthened up their market of smartphone and
tablets computers. Furthermore, Apple still have to feel caution about market situation
and not only stand at their comfort zone. Googles entry are considered as threat cause
they will also massively entering market of smartphone handset and tablets that surely
will impact the iPhone and iPad sales.

Otherwise, from the write point of view, strong market position and consumer loyalty
could boost Apple performances which increases due to closed ecosystem and user
friendly products makes different to Apple Company from its competitors. Another
most important factor is that the Apple Company is the First most admired company in
the world. Whereas, it is also credited to first sustainable music downloading business
model in history by its iPod and iTunes online media store could also give Apple set of
beneficial advantages.

Putri Amandhari
64 INT B | Strategic Management
Case of Apple Inc in 2012



Gamble, J. E. (2012). Google's Strategy in 2010. In A. A. Thompson, M. A.

Peteraf, E. J. Gamble, & A. J. Strickland, Crafting and Executing Strategy
Concepts and Cases (pp. C-187). New York: McGraw-Hill.

Online References:
http://www.powerfulwords.co.uk/sample-assignments/marketing/apple-themost-admired-company.php, accessed March 20, 2015.
Apple Insider, 2013. Apples iPhone grew to 25.1% global market share in
2012. (online). http://appleinsider.com/articles/13/01/25/apples-iphone-grewto-251-global-market-share-in-2012, accessed March 20, 2015.