What are the greatest challenges Apple is facing?

1.Explain Apple’s success over the last decade. Think about which industries it has disrupted and

how. Also look at Apple’s main competitors.

2. Is Apple’s success attributable to industry effects or firm effects, or a combination of both? Explain.

3. What are the greatest challenges Apple is facing? Detail them by internal weaknesses and external threats. How can Apple transform internal weaknesses into strengths, and external threats into opportunities?

4. Apply the three-step process for developing a good strategy outlined above (diagnose the competitive challenge, derive a guiding policy, and implement a set of coherent actions) to Apple’s situation today. Which recommendations would you have for Apple to outperform its competitors in the future? Be specific.

Apple Case (minicase 5, 4 th edition text)

Instructions:

1. Answer questions 1 – 4 (p. 461, text)

2. Provide detailed responses (use data, provide evidence, provide examples, elaborate your

responses)

3. Be specific

a. For example don’t respond with recommendations such as they should ‘sell more’ or

‘spend more on R&D’, etc.

b. Provide recommendations that are a solution – what can they do to sell more? Or if they

spend more on R&D, how can they allocate this expenditure to improve performance?

(what opportunities can the firm take advantage of and how)

4. Keep the case write-up to 5 pages maximum

Overview:

1. Question 1 is asking you to reflect on success – what type of business model, how has the

company been successful (specific industries they have disrupted and how)

2. Question 2 is asking you to reflect on the opportunities the company has exploited (PESTEL and

industry (5-forces)), and the internal strengths the firm leveraged to do so (sources of competitive

advantage)

3. Question 3 is asking you do determine the current opportunities/threats (external) and

strengths/weaknesses (internal)

4. Question 4 is asking you to create recommendations to improve the performance of the firm (take

advantage of opportunities, negate threats, leverage sources of competitive advantage (strengths)

and negate weaknesses and/or transform weaknesses into strengths. Remember that Q3 had you

identify SWOT elements. Be specific (don’t state that Apple should increase its R&D budget – it

is already in the $billions: if you think spending more will yield more, then you need to provide

specifics on how to spend the R&D budget).

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