JAYSON BEB D.

EMPEYNADO
BSTM 3-2 AA
1. How did apple achieve a dominant position in the market as a seller of both songs and music players?

Apple achieved a dominant position in the market as a seller of both songs and music players by strategically
aligning its external analysis with internal capabilities. Recognizing the untapped potential in the music industry
and leveraging its software and design expertise, Apple created a seamless ecosystem with iTunes for legal
digital downloads and the iPod with innovative navigation features, establishing itself as a leader in both
hardware and content delivery.

2. Which phase in the evolution of strategic management is present in the given case?

The phase in the evolution of strategic management present in the given case is strategic formulation and
implementation. Apple formulated a strategy to enter the MP3 player market, leveraging its internal capabilities
and aligning them with external opportunities in the music industry. Subsequently, it implemented this strategy
by developing innovative products like the iPod, iPhone, iPad, and Apple Watch, broadening its mission
beyond being just a computer maker.

3. Which type of strategy is being employed by Apple in the given case study?

The type of strategy being employed by Apple in the given case study is a differentiation strategy. Apple
differentiated itself from competitors like Compaq by focusing on creating innovative, user-friendly products
with sleek design and advanced features. By offering a unique value proposition, Apple was able to carve out
a dominant position in the market for both music players and digital content delivery.

4. What competitive advantages contributed to Apple's success?

Several competitive advantages contributed to Apple’s success, including Product innovation, Apple
consistently introduced groundbreaking products like the iPod, iPhone, and iPad, setting new standards in
design and functionality. Software expertise, With vast experience in software development, Apple created
intuitive and seamless user experiences, such as the “flywheel” design for navigating the iPod.
Design excellence, Apple’s commitment to elegant and user-friendly design helped differentiate its products
and attract a loyal customer base. Ecosystem integration, By integrating hardware, software, and services like
iTunes, Apple created a cohesive ecosystem that enhanced the user experience and locked customers into
its ecosystem. Brand reputation Apple’s strong brand image and reputation for quality and innovation also
played a significant role in its success, fostering customer loyalty and driving sales.