Mrs. Rashad Felton Case

1. How does Apple compete in the PC market? How has its strategy evolved with the changing industry dynamics?

Apple, "pioneered the first usable personal computing devices", competes in the PC market by having a distinct image, brand, product, and overall customer focus. The Apple brand highlights its computers "as the world's greenest lineup of notebooks that are energy efficient and use recyclable materials". Overall, Apple aims to differentiate the Mac brand by eliminating the competition and creating an image in the industry that allows consumers to invest in the products and services the company offers. The strategy Apple uses is based on a "Digital Hub" strategy, which allows Apple to enhance the lives of a transitioning economy into a more digitalized lifestyle. "The Mac could be the preferred "hub" to control, integrate, and add value" to devices such as: digital cameras, portable music players, digital camcorders, and mobile phones.

2. Assess Apple's competitive position in MP3 players and smartphones? What threats do you see?

Apple is in highly competitive position when it comes to MP3 players and smartphones because the company birthed a product life that stimulates both innovation and growth in its consumers. Apple introducing the iPod in 2001 set the company on "its explosive growth path". As a result the company held more than 70% of the MP3 market in the U.S. and the iPod became "an icon of the Digital Age". Additionally, Apple dominated in the smartphone field because it the company produced the first of its kind, an iPhone. This $150 million invest led Apple to a ground breaking advantage over other mobile carries in the industry like Nokia, Motorola, and Samsung. Named for having the "Invention of the Year", Apple broke all competitive market barriers when they introduced the iPhone. However, with such great innovation and growth also come challenges and hardships. Two of the biggest threats I see with the competitive position Apple has is the distinctive iOS system it carries and product pricing. The distinctive iOS system Apple uses enables its users to only operate using the products and services that Apple offer. With such limited access, consumers may feel as though they are not open to operating their devices how they please. Additionally, the pricing of Apple products could be a possible threat. Among digital devices, Apple is the highest priced competitor. This may be a threat to Apple because with an ever changing economy, consumer may not be able to continue to purchase such expensive products. Thus, the Apple brand would overtime become a product that middle and lower -class consumers would no longer have the luxury of enjoying.

3. What challenges confront Apple at the end of