Case Study: Apple, Inc Essay

1370 Words Mar 20th, 2013 6 Pages
Case Study: Apple, Inc

Assignment Questions 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? a. For Apple, yes it does make sense to be a competitor in all 3 industries. They have developed themselves as a strong name in the market and have a stand out product against the
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With electronics, people tend to stick with one brand if they have a good experience with it. This makes it hard for others to enter the market. ix. Threat of substitutes- The threat of substitutes for MP3 players that Apple makes is a little greater. The technology isn’t as unique and there are more competitors that have similar products. x. Rivalry among competitors- There is rivalry in the MP3 player market. There isn’t as big of a demand as there used to be because many cell phones have this capability. Therefore, companies have to compete more to get those sales that are left in this market. f. Conclusion: Based on the 5 force analysis, the competition is more intense in the MP3 market in regards to Apple’s products. Their computer product is more unique so there is not as much competition as there is with their MP3 player. 3. What is your assessment of Apple Computer’s financial performance the past three years indicated in the case? (Use the data in the case and the appropriate financial ratios to do your financial analysis.) g. The net sales have increased every year from 2005 to 2007. The increase from 2005 to 2006 was 37.82%. The increase from 2006 to 2007 was 23%. The cash has also continually increased each year. They have gained almost 7000 employees from 2005 to 2007. | 2005 | 2006 | 2007 | Net Profit Margin | 9.5% | 10.1% | 14.6% | Return on

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