Vrio analysis apple

vrio analysis of apple pdf

The company ships finished products to Apple Stores that are typically located at high-traffic locations in quality shopping malls and urban shopping districts. Contents Executive Summary However, the development and production of mobile phones from RIM, Samsung and HTC now closely resemble the iPhone which could increase the threat from substitutes and many customers may now switch to cheaper phones offered by these companies.

While the function is very useful, the interface only supports English, French and German and has limited functionality outside of the USA. This would remedy the price issues and also provide Apple with a larger product line which can be used to exploit the bottom end of the market.

This compatibility issue puts Apple at a competitive disadvantage within the marketplace.

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The ease of use stems mainly from the touchscreen interface, compatibility with iTunes and the synchronising ability of the iPhone when connected to iTunes. This means that most of the hardware supplied for the iPhone is either made by subsidiary companies or by external firms that have long term contracts with Apple to produce components. Apple could exploit these by approving more apps for the app store and also providing support for other PC applications such as Windows Media Player and web based content that relies on Adobe Flash. SWOT Analysis 9 Strategy recommendation Apple is in a strong position within the industry, with the highest operating profits in the sector, however, market share is not as high as some rivals and seems to have stagnated over the past year. VRIO is an acronym representing, value, rarity, imitability and organisation. Apple has seen rising sales to businesses and with the proper promotion could be in a position to exploit this market. Run each of the resources you have identified through the VRIO framework and categorize them under competitive parity, temporary competitive advantage, unused competitive advantage and long term competitive advantage. Apple would also benefit from the enterprise market currently dominated by Research in Motion RIM , who currently provide the majority of smartphones to business users. Research in motion has now branched out with a wider range of Blackberry phones now aimed at the general public. The service quickly became the market leader in online music services with over 5bn downloads by Apple Inc. Like Apple, they develop touchscreen slate smartphones aimed at the general public.

This means that any music purchased by the user via iTunes is available instantly on all compatible devices, negating the need for the user to manually synchronise all their data.

This mission statement clearly demonstrates Apples desire to develop the most innovative and technologically advanced mobile telephone in the industry and this report will address how this has affected Apple and the industry as a whole.

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MobileIn, Apple Operations Apple operations are divided into the following reportable operating segments: 1. The mid and entry level iPhones will introduce Apple to a new market while at the same time, Apple should focus on its mission statement of being at the forefront of technology and innovation and produce smartphones that have the latest technology to encourage the top end of the market to switch to Apple. At the moment, the mobile telephone market has high entry barriers, arising from economies of scale established by current manufacturers, brand identity and high capital requirements. Apple Inc. Slower processors could also be used in the cheaper models to reduce cost to Apple, ensuring profits are maintained. Apple Outbound Logistics Apple outbound logistics involves warehousing and distribution of ready iPhones, iPads, Mac computers and other products produced by the company. The iPod was hugely successful, with over million units sold over 6 years Cantrell,

Identify the resources that can benefit you more and which ones you can improve the advantage of. Apple works with hundreds of suppliers around the globe and maintains a highly sophisticated supply-chain management as illustrated in Figure 8 below.

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Even though Apple had started manufacturing portable mp3 players, the company was still firmly a computer manufacturer and this was demonstrated with the release of the first Intel based Mac computers. Viticci, Apple have enjoyed growing market share over the past 5 years and each new product release is seen as an upgrade on the previous technology meaning that at any one time, Apple essentially has one mobile telephone in the market, i.

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Thomson reuters, Apple Inc. Figure 1.

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Apple Value Chain Analysis