Case Study: Apple Inc.

Answer the following questions:

1. How did apple achieve a dominant position in the market as a seller of both songs and music
players?
- When the iPod was released, the company entered the music industry. Apple wasn't the first
computer company to develop a compact, portable MP3 player with a mini-hard drive that
could store an entire music library, but after researching the multi-billion dollar music market,
the company realized that no one was offering digital downloads. Apple creates software for
MP3 players and is working on a strategy to enter the MP3 player market.
2. Which phase in the evolution of strategic management is present in the given case?
- It was a big deal when Apple produced an MP3 player with a mini-hard drive that could store an
entire music library, allowed for legal digital downloads, and included software that was better
designed than anything produced by other firms.
3. Which type of strategy is being employed by Apple in the given case study?
- Business-level strategy. Its strategy heavily relies on the growth of its markets and goods. Apple
created an MP3 format, digital downloads, and software in addition to a better design.
4. What competitive advantages contributed to Apple’s success?
- Competition. As a result of the fact that Compaq, not Apple, was the first computer maker to
produce a small, portable MP3 player with a mini-hard drive that could accommodate an entire
music collection. Apple decided to develop the navigational software for MP3 players using
internal resources. Computer software was not produced by Compaq; only hardware was. Apple
has a great deal of experience creating software for Apple devices. Additionally, compared to
Compaq, it had a lot more design experience.