QUESTION 1

Does it make good strategic sense for Apple to be a competitor in the computer, digital
music player, and mobile phone industries? Are the value chain activities that Apple
performs in computers, digital music players, and mobile phones very similar and
“compatible” or are there very important differences from product to product? Which
of the three products lines —computers, digital music players, or mobile phones —do
you think is most important to Apple’s future growth and profitability? Why?

Apple has a good strategic sense because it used only in the personal computer and
software industries. Apple Inc. harness the power of influence to expand its business into the
entertainment industry by producing digital music player (iPod), an online music service
(iTunes) in 2001, mobile (iPhone) in 2007 and the latest gadgets are iPad. Apple provides a
difference to customers and generate a different application than other products. The
interesting application of Apple is to attract customers. Thus it can maintain its influence.
This time, the rapid development of electronic gadgets seem to destroy all of the market
boundaries of each industry. As examples of digital music players, it is not just music players
but can store data and view video. The phone also has undergone many reforms. Mobile
applications have been added to make the phone as a versatile tool. Before this phone only
for sending SMS and making calls and have a simple application, but now it has come with
the role of a digital camera, a carry-on PC to save memory and internet, audio devices and
new applications that have a GPS system.
Apple product value chain are not much different from product to product. Instead, Apple
has managed to sustain and steer the product and the name of Apple in global market and
profit above the average gain from using the right product and value chain activities
compatible. Competitive advantage especially in mobile products. The most important
industries for the future of Apple and profit growth on average of similar and compatible use
activities throughout the product value chain.
I think the phone industry is more important to Apple. At present the use of mobile phones
are a necessity and is no longer an advantage. Arguably, everyone has a mobile phone
currently including young and old adults. Today, phone known as the smart phone. It not
only serves as a calling, SMS, MMS and even dam it listen to music, camera, video, Internet
access, games, GPS and many have other applications. Apple should be more focused
business in the mobile industry because it provides many benefits and profits in the future.
QUESTION 2
What does a competitive strength assessment reveal about Apple, as compared to the
leaders in the personal computer industry? Use the methodology in Table 4.4 to support
your answer. Among these competitors, who enjoys the strongest competitive position?
Who is in the weakest overall competitive position? Has Apple’s strategy resulted in a
substantial competitive advantage over its rivals in the computer industry? What is the
basis for whatever competitive advantage it has?

Competitive strength of Apple Computer leaders from private industry are the Design and
the Innovation-oriented. To generate new products and quality products Apple continues
invest in research and development (R & D) Apple Computer designs are unique as well as
the application. Apple applications can be used not only on the computer but it can be used
on other Apple products like the iPod, iPad, and the iPhone. It is inter-related.

Apple has a unique design and features to attract the attention of modern minimalism.
Display screens typically use LED (Light-emitting diode). In Addition to That Apple
computers are hard to get infected by viruses because the anti-virus system is very strong.
The software was updated to 5 years. For example Apple macbook pro with these features. It
is also rates Performed with the music player is fast and good and has used its operating
system Mac OS X is better than Vista. Although the price of Apple is quite expensive
compared to other Brands like Dell, Toshiba, Vaio and others, it is well worth the benefits.
This is the strength of the Company gains a competitive advantage in the market.

Dell Inc. is a strong competitive position with Apple. Dell Inc. has a very high value on
the availability of customization and has a strong position in the market for the rating is 73.
Apple Inc get the highest value compared to Dell inc in factor and it shows that Apple
Computer company always introduced a new design on their market. We can see that Apple
operates in fast-cycle markets. We can see that Apple's products and services has significant
advantages over its competitors. Firm capabilities that contribute to competitive advantage
aren't protected from imitation where imitations which are very fast and cheap.
 Acer is the most weak competitive position compared to Apple. Acer computers than can
be said that cheap compared to Apple, but are usually more concerned with quality and
software and Apple will be choose.

Yes. Apple's strategy resulted in substantial competitive advantage over rivals in the
computer industry. This is because Apple created a lot of innovation in which innovation
plays a role in the domain of the competitive dynamics of the market cycle faster. Apple is a
high technology Apple has to recognize and set standards for innovation and quality. Apple's
products, especially in the computer industry has got a name and recognition in terms of
quality and innovation.
QUESTION 3
What is your assessment of Apple Computer’s financial performance the past three
years? (Use the financial ratios in Table 4.1 of Chapter 4 as a guide in doing your
financial analysis.)

Based on the table, we can see the difference in the ratio of Apple's financial statistics
from 2005 to 2007. An increase Apple's profits are even lower percentage increase each year.
This shows that Apple has a good financial. In 2005 the gross profit margin was 40.9%,
decreased to 40.8% in 2006 and increased to 51.4% in 2007. Apple profits were better in
2007 than in 2005 and 2006. For the operating profit margin also increased significantly from
2005 to2007. In the year 2005 was 11.8%, 12.7% in 2006 and 18.4% in 2007. This is a
consistent improvement. This is because Apple can increase sales and better cost control. In
2005 return on equity was 17.9% increased to 19.9% in 2006 and continued to increase in
2007 to 24.1%. Despite an increase in the percentage of total equity is greater than the
percentage of the net from 2005 to 2007, companies have better returns for shareholders on
their share of productive. In 2005, return on assets was 11.5% increased to 11.6% in 2006 and
rose again to 13.8% in tahun2007. The higher the percentage return on assets means that a
good company in using assets to generate sales. Through these improvements we can
conclude that Apple has been efficiently managing its operations to improve profitability. For
the current ratio in 2005 was 2.7 times down to 1.8 times in 2006. In 2007 the ratio increased
to 1.9 times current. With the current ratio, we can measure whether the company has enough
resources to pay its debts over the next 12 months. This implies that the apple has a smooth
enough assets to meet short term obligations. For inventory turnover also decreased from
2005 to 2007. In 2005 a total 84.4 times, decreased to 71.5 times in 2006, and in 2007
dropped to 69.4 times. In 2005, the company is well positioned and cable of selling shares in
a short time. Apple has a debt equity ratio increased from 0.08 in 2005 and 2006 to 0.10 in
2007. The increase in this ratio means more debt with equity and the company is financed by
creditors rather than by positive internal cash flow that might be a dangerous trend. Debt to
equity is used to indicate what proportion of equity and debt used to finance the company's
assets.
QUESTION 4
What steps should Apple take to improve its corporate performance and to strengthen
its position in its most important markets?

There are various measures that can be taken by Apple to improve their performance
and to strengthen its position in the market. As we know, the price of Apple products is
expensive. Apple should reduce costs such as reducing unnecessary costs, operating costs and
look for suppliers who offer lower prices to increase profits. By Apple to reduce prices and
direct sales to attract customers to buy Apple products. Apple's expensive to make the buyer
will choose Apple products or other products in our way. For medium, they tend to choose
cheaper products such as Apple and Dell computers, Dell chose because they are cheaper
than Apple and the technology is in line with current developments. If Apple can reduce the
selling price, they can attract more buyers among the medium and long term to maintain
market position. Apple also needs to conduct R & D continues to produce new products and
improving existing products is more sophisticated and use a lower cost and to enhance
innovation. Among the products Apple has been successful in the market and sells a lot of
these ipod. Apple may be attractive for customers to have other Apple products like Apple
with the iPod. IPod features that follow the trend to attract more new customers. As we know
Apple's products or equipment related to each other and each can interact with other Apple
products. For example, the iPod can continue to download songs from Apple Computer by
Apple applications. Apple wisely chose to market the product and the market should consider
factors such as economic systems, cultural and political considerations.