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Apple case study: How Steve Jobs built Apple around simplicity

Graham Robertson, Founder of Beloved Brands

Graham Robertson, Founder of Beloved Brands

Brand Toolkit

Our Apple case study starts with 𝘁𝗵𝗲 𝗱𝗮𝘆 𝗦𝘁𝗲𝘃𝗲 𝗝𝗼𝗯𝘀 𝗿𝗲𝘁𝘂𝗿𝗻𝗲𝗱 𝘁𝗼 𝗔𝗽𝗽𝗹𝗲. This is the starting point that 𝘁𝗿𝗮𝗻𝘀𝗳𝗼𝗿𝗺𝗲𝗱 𝗔𝗽𝗽𝗹𝗲 𝗶𝗻𝘁𝗼 𝗼𝗻𝗲 𝗼𝗳 𝘁𝗼𝗱𝗮𝘆’𝘀 𝗺𝗼𝘀𝘁 𝗮𝗱𝗺𝗶𝗿𝗲𝗱 𝗯𝗿𝗮𝗻𝗱 s . Steve Jobs recognized that consumers were frustrated by how all the other technology brands designed their products in a lab without any thought for the consumer. Steve Jobs made the most significant contribution to the Apple brand strategy by starting with the consumer experience and then working back to the technology. The Apple brand positioning builds everything around the idea that “Apple makes technology so simple that everyone can be part of the future.” 

Moreover, we witnessed the most incredible decade that any company has ever seen, with Apple launching iTunes, iPod, iMac, the MacBook Pro, MacBook Air, iPhone, and the iPad. 

If you are a marketer looking to improve your knowledge by looking at what Apple has done so well, our Apple case study will teach plenty of lessons for using a brand idea to inspire and steer everyone who works on the brand. At every step of the Apple brand strategy, we will provide a link to click on and learn how the process can work on your brand. 

If you are a fan of Apple, click on this link to view their best store locations: Apple Store locations . Or come see some of their best advertising: Apple Advertising . 

How Steve Jobs built the Apple brand strategy around simplicity

Building the Apple brand

Our Apple case study will show how to develop Apple’s brand positioning statement and plan . Then, I will show how Steve Jobs pushed to stretch their “simplicity” brand idea across their company. Everyone who works behind the scenes knows their role in delivering simplicity.

Simplicity drives all Apple advertising. 

In the 1980s, Apple started with “technology for the rest of us” when they took on IBM. And they continued that attack with “I’m a Mac” ads that took on Microsoft. Simplicity drives Apple’s innovation. Steve Jobs pushed for great advertising. 

The beauty of Apple is how they take complex technology and simplify it so consumers can do more with Apple products. 

The Apple brand strategy even drives their retail stores. Their Genius bar helps answer technology questions. They allow consumers to play with their products. Apple salespeople are trained to avoid “geek speak.” 

The return of Steve Jobs

After Steve Jobs returned in 1997, he shifted the focus to rebuilding around the  brand idea of “Apple makes technology so simple that everyone can be part of the future.” Jobs came in with a consumer-first approach in a market dominated by an obsession with gadgets, bits, and bytes. At the heart of our Apple case study is the use of the brand idea of simplicity and its impact on the brand strategy.

Steve Jobs view on simplicity

Undoubtedly, simplicity is one of the values Steve Jobs held very close to his heart. For example, he built simplicity into everything Apple did and everything it stood for. Even over the last decade, Apple is still following the Steve Jobs playbook.

Apple Brand Positioning

The apple brand positioning builds everything behind the “simplicity” brand idea..

We use our consumer benefit ladder to find differentiation. Importantly, turn your brand’s features into consumer benefits. Stop thinking about what your brand does. And, start thinking about what your consumer gets. That’s when the Apple brand positioning statement comes alive.

Functional consumer benefits.

To help brand leaders kickstart their brand positioning work, I have created 12 functional zones that expand to over 50 potential functional benefits. For instance, as you look through the list, gravitate to the functional benefits you think will fit your consumers’ needs and differentiate your brand by looking for words where your brand does it better than competitors. While you might start with our words, try to layer in your own creative language with the specific category or consumer language.

Emotional consumer benefits.

Below is a list of 40 potential emotional benefits that help build an emotional brand positioning statement that differentiates your brand. Importantly, you want to own one emotional space in the consumer’s heart as much as you own the rational space in the consumer’s mind.

Functional Benefit Cheatsheet

To illustrate, click on our Consumer Benefit Cheatsheet to build the  Apple brand positioning . 

Choosing the right benefit clusters for Apple

Using our brand positioning process, the Apple brand positioning narrows in on the brand’s potential benefit clusters of the functional and emotional benefits. 

What Apple does: best features

  • Intuitive and easy to use:  Apple allows everyone to do more and get more from their devices.
  • Stylish designs: Fashion-forward designed so that people want to show them off. 
  • Integrated technology: All   devices, software, and services work harmoniously, enhancing user experience.
  • Fresh innovation: Apple   customers always have access to cutting-edge features and advancements.

What Apple consumers get: functional benefits

  • Simplifies your life:  Hassle free, easier to use, integrated.
  • Sensory Appeal: Touch/feel, subconscious, and style. 
  • Experience:  Responsiveness, rituals, and service.

How Apple consumers feel: emotional benefits

  • Feel free:  Alive, excited, exhilarating.
  • Get noticed: Cool, trendy, popular, and playful. 
  • Optimism:  Successful, inspired, and motivated.

Apple Brand Positioning

To illustrate, click on our Consumer Benefit ladder we use   to build the  Apple brand positioning . 

Apple Brand positioning statement

Once everything is settled, the overall Apple brand positioning statement focuses on simplifying technology to help you feel smarter so you can do more with every device.

Brand Positioning Statement example for Steve Jobs

To illustrate, click on the  Apple Brand Positioning Statement . You can zoom in, download it, or share it. 

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Old school brand positioning vs new school

When brand positioning began in the 1970s and 80s, the goal was to stay single-minded and focused and even get down to one word. For example, Volvo was about SAFETY. I still believe in that thinking for marketing communications.  If all Volvo does is “safety,” no one would pay $50,000 to $70,000 USD for their cars. The additional benefits earn extra money for the comfortable leather seats, stylish design, and high-quality radio.

However, as brands have matured, the brand positioning should drive product innovation, the purchase moment, and the ideal consumer experience. One word might not be enough.  Now, we can see brands can own a cluster of benefits. 

Below, we can see the cluster of benefits, both functional and emotional, to create a word cloud for Apple. These words can show up as support communications to the ‘simplicity’ idea. Moreover, these words should appear in product design, in-store layout, people management, and consumer experience. These words should drive every part of the Apple brand strategy. 

Cluster of Consumer Benefits that steer the Apple Brand Strategy

To illustrate, click on our Cluster of Consumer Benefits that   we use   to build the  Apple brand positioning . 

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Building Apple's brand idea

Everyone seems to call the short-form description of a brand by different names; brand DNA, big idea, brand essence or shout from the mountain. I keep it simple by calling it the brand idea. To win in the marketplace, your brand idea must be interesting, simple, unique, inspiring, motivating, and ownable. 

I created a brand idea blueprint with five ideas that surround it.

On the internal brand soul side, describe the products and services and the cultural inspiration, which is the internal rallying cry to everyone who works on the brand. On the external brand reputation side, define the ideal consumer reputation and the reputation among necessary influencers or partners. The brand role acts as a bridge between the internal and external sides.

brand idea for Apple based on brand positioning steve jobs Apple case study

To illustrate, click on the  Apple   Brand Idea  we use   to build upon the  Apple brand positioning . 

The Apple case study uses the brand idea for Apple is “making technology so simple that everyone can be part of the future.” Most importantly, Steve Jobs insisted they take a consumer-first mentality as they transformed leading technology advancements into “consumer-accessible” technology, helping fuel the perception among the mass audience that Apple is an innovative leader. 

Apple brand idea map

To illustrate, click on the  Apple   Brand Idea Map  we use   to build upon the  Apple brand positioning . 

Beloved Brands Mini MBA

Our apple case study is part of our beloved brands mini mba. take a look..

Below is an example video (30 minutes) from our Beloved Brands Mini MBA. We use the Apple case study to demonstrate the Apple brand positioning tools.  

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Apple's Brand Key Model

A Brand Key model is a tool from consumer marketing that allows marketers to lay out their brand’s unique selling proposition (USP) elements on one page. This article will go through the Brand Key model explained with nine elements that build the USP. And, with each element, we will show you the work you need to do. 

Below is the Brand Key example for the Apple brand. It brings to life Apple’s unique selling proposition of simplicity. To read more on brand key models, click this link: Using a Brand Key Model to Define your Brand’s USP.

Brand Key Example for Apple bringing their unique selling proposition to life under steve jobs

To illustrate, click on the  Apple   Brand Key  we use   to express the  Apple brand positioning . 

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Use Apple's brand idea as a lens to see the problems not delivering

Apple has done a great job taking that simple brand idea and stretching it across its brand story through advertising and its innovation plan (as they have entered many new technology categories). 

They have also used their brand idea to guide how they manage the purchase moment (to make sure their retail outlets are easy for consumers) and how they create happy experiences. And, when they don’t nail the ideal consumer experience, they go out of their way to help. They also have the genius bar and on-site lessons, which help increase consumers’ knowledge.

The other beauty of having a crystal clear brand idea is that everything that goes against that brand idea almost acts like an obvious virus. Below are four examples of where Apple is missing out on “simplicity,” which puts the brand idea at risk. Above all, these should trigger action plans to build into your brand plan. In pointing out these flaws within our Apple case study, I am yet to see Apple take action. 

I wonder what Steve Jobs would think of these flaws.

Apple flaws

To illustrate, click on the  Apple Case Study diagram to show where they go aga inst the Apple brand positioning.  

Apple brand strategy

How the five elements of smart strategic thinking sets up apple's famous turnaround plan:, 1. set a vision of what you want..

To start our Apple case study, their vision is to make it easy for everyone to be part of technology in the future. The main issue was creating brand fans and then mobilizing them to spread the word to the masses.

2. Invest resources in a strategic program.

Next, Apple invested and aligned everything behind the Apple brand positioning and brand idea: “Apple makes technology so simple; everyone can be part of the future.” They use this brand idea at every touchpoint, including the brand positioning, communication, innovation, purchase moment, and experience.

3. Focus on an identified opportunity.

For decades, Apple consistently focused on empathizing with—and taking advantage of—the consumer’s frustration with technology. In the 1980s, they attacked IBM’s personal computers as too complicated. In 2005, they used “I’m a Mac, and I’m a PC” advertising to attack Microsoft. Each time, it used its “consumer-first” mentality to transform leading-edge technology into accessible consumer technology.

4. Leverage a breakthrough market impact.

Above all, the Apple brand strategy takes a fast-follower stance that takes current technology and makes it simple to use. Every platform, including desktops, laptops, phones, watches, tablets, and music streaming, delivers the brand idea of simplicity. They deploy high-profile launch hype to use vocal advocates to spread the word to their friends.

5. Performance result that pays back.

Most importantly, Apple created a consumer bond with its brand fans to enter new categories. On top of that, it is now the most beloved consumer-driven brand, with premium prices, stronger market share, sales, and profits. The Apple brand strategy used brand love to help drive a remarkable 40x revenue growth over ten years, skyrocketing from $5.7 billion in 2005 to $240 billion in 2015. This rapid growth helps cover the high costs of advertising and R&D, giving them very healthy operating margins, up over 35%. All this strategic effort has increased their market capitalization by over $1 trillion.

Apple Strategic Thinking bringing Steve Jobs strategy to life Apple Brand Strategy

To illustrate, click on the  Apple Brand Strategy diagram . You can zoom in, download it, or share it. 

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Apple brand plan

We are going to build out a Brand Strategy Roadmap that can steer the brand for the next three to five years. And, we’ll show a one-page Annual Brand Plan. We’ll show the rough brand plan work you can do. 

Apple Brand Strategy Roadmap Steve Jobs

To illustrate, click on the  Apple Brand Strategy Roadmap . You can zoom in, download it, or share it. 

The rough brand plan for Apple

With the Apple case study, our strategic thinking model sets up the core elements of the Apple brand strategy:

Apple wants everyone in the world to be part of the future.

Continue aggressive sales growth, geographic expansion into China, and launch a major new consumer-friendly technology each year.

Key issues: 

  • How do we convey Mac’s superior user experience versus the traditional PC? 
  • How do we enter the music industry and increase the availability of online music to support our iPod?

Strategies: 

  • Apple will launch a full communications assault to challenge the PC/Microsoft Windows dominant position by finding flaws in the PC to contrast with Mac computers’ simplicity to steal significant market share by enticing frustrated PC consumers to buy a Mac. 
  • Apple will launch a full assault against the entire music industry with a disruptive innovator stance to show how iTunes provides higher quality digital music on your iPod much cheaper, faster, and smarter than CDs to gain an entry point into the music industry.
  • TV advertising to highlight new features and challenge competitors. 
  • Launch innovation each year, including phones, tablets, online music, watches, and personal computers. 
  • Launch specific products for China. Increase retail space around the world. Build out the e-commerce program.

Apple Strategic Plan Apple Brand Strategy

To illustrate, click on the Apple Brand Plan example that brings the Apple brand positioning to life.

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Apple advertising

Advertising has delivered “simplicity” since the 1970s.

Apple’s advertising has been relatively consistent for over 40 years and incredibly connected with consumers. As Steve Jobs was launching Apple, the early print ads of the 1970s talked about how we designed the computer, so you don’t have to worry about the details. 

How Steve Jobs built Apple around simplicity

Steve Jobs pushed for the “1984” TV ad for the Mackintosh launch that spoke about freedom from machines. Although the message was a little ahead of its time, it fit with simplicity. Above all, the brilliance of the side-by-side “I’m a Mac, and I’m a  PC” TV ads epitomized the brand idea by making the PC seem overly complicated and frustrating while setting up the Mac as the simple alternative. These ads really express the Apple brand positioning statement.

Take a look at some of "I'm a Mac" TV ads. Enjoy!

To illustrate, click the ▶️ button to see the  Apple brand advertising that brings the Apple brand positioning to life . 

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Apple innovation

Building product innovation around simplicity.

Apple has taken many failed technology ideas like online music, tablets, or mp3 players and turned them into consumer-friendly platforms such as iTunes, iPads, and iPods. With each new product, Apple uses launch hype to generate excitement to spark the enthusiasm of the early adopters who spread the word. Also, Apple has successfully taken its cherished brand fans into new categories. 

The combination of Johnny Ives and Steve Jobs created many great Apple products. 

Learn how to make innovation decisions.

Apple product Innovation steve jobs and johnny ives

Video on Apple's product innovation philosophy

To view the Apple brand innovation  philosophy  use the   ▶️  button to play.  

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Apple retail

Purchasing apple products is very simple, including its own retail store experience.

Retail stores are a significant part of the Apple Case Study.

Steve Jobs saw a vision for retail to help Apple use simplicity to manage the purchase moment through its retail stores, ensuring the experience is simple and straightforward. All staff carry a credit card machine and complete the transaction very quickly. No lines or cash registers. 

Simplicity shines through the store layout, with the genius bar for one-on-one tech questions and support and the training area to teach classes. The brand also displays every Apple product to allow consumers to take them for a test drive. It’s all about delivering the consumer experience that Steve Jobs loved so much.

apple retail layout at the purchase moment steve jobs

To illustrate, click on the  Apple Store  Layout.  You can zoom in, download it, or share it. 

Even when Apple products are in other stores, the brand has used its power with that retailer to create a distinct store-within-a-store concept, which replicates a similar look and experience from Apple’s retail locations. Look at a few of those beautiful store locations below, or go to our article by clicking this link: Beautiful Apple stores.

Fifth Avenue Apple store in NYC

Apple Fifth Avenue 1

Tower Theater Apple store in LA

Beautiful Apple Store Location

To illustrate, click on the  Apple Store  examples.  You can zoom in, download it, or share it. 

Apple in Singapore

Apple Singapore

Milan Apple store

Apple store location in Milan Italy

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Apple consumer experience

Obsessing about the consumer experience.

As Steve Jobs famously said, “You have to start with the customer experience and work backward to the technology.” Apple even believes opening your Apple products should be like unwrapping a gift. 

Steve Jobs wanted the consumer to be able to use any Apple product right away rather than spending hours loading software or setting up their machine. Regarding product integration, Apple products work together, and they work the same way, which makes it very simple for consumers when they move from one Apple product to another.

Next time you are in a brainstorming session, try to think like Steve Jobs. 

Apple Consumer Experience based on Steve Jobs

To illustrate, click on the  Apple Consumer Experience .  You can zoom in, download it, or share it. 

Apple brand loyalty

How apple's brand love leads to increased power.

As we continue our Apple case study, let’s look at the power and profit Apple generates through brand love. 

As they achieved an extremely tight bond with loyal followers, they used the tight consumer bond to generate brand power that they quietly wield in the market. Apple’s retail network generates twice the sales per square foot of any retailer worldwide, yet it is a very soft-sell environment. 

I was recently on a double-decker bus tour of New York City, and when the bus went past the 5th Avenue Apple flagship store, half the bus stood up to take a photo. And they have such power over the supplier network with an array of engineers following extremely tight procedures. 

Also, they have power over the media, generating over $2 billion worth of free media each year. Moreover, Apple fans often want to work at Apple, giving up lucrative jobs to be part of the brand.

Smartphone loyalty scores

Below, we can see the loyalty scores of the various smartphones. Apple leads the way with over 90% loyalty, moving from one model to the next. Samsung’s loyalty is below 70%. And LG has fallen to 32%. At LG’s level, you constantly need to source new consumers. That’s an extremely expensive way to manage your brand. 

Apple Case Study, brand love brand loyalty steve jobs

To illustrate, click on the  Apple Case Study diagram .  You can zoom in, download it, or share it. 

Whoever says loyalty does not exist has not talked with Apple consumers. Apple significantly outperforms its competitors and uses that loyalty to drive future sales. 

Apple's prices continue to increase

As Apple’s loyalty holds strong, they can increase their prices with each model. Loyal consumers are less price sensitive. This translates the Apple brand strategy into added profits. Steve Jobs used hype marketing to create a very tight bond with consumers. 

Explaining the Apple brand

We can see how Apple uses power over its consumers to increase prices each year. Their iPhones deliver 40% profit margins, 4x higher than their competitor’s profits. 

The power of the Apple brand

How apple's brand power leads to increased profit.

The Apple brand strategy extrapolates the power they generate into profit , with their incredible financial performance over the last 15 years. And they generate significant price premiums, relatively lower cost of goods, and moderate marketing spend ratios. Most importantly, this keeps their margins healthy for a technology firm. 

Furthermore, Apple has entered many new categories over the past 15 years. Each time, their army of loyal fans has followed, moving into laptops, phones, tablets, and the music business. In each segment, they continue to gain market share to drive volumes. 

Finally, the higher margins and volumes make for a beautiful profit statement. 

Apple profitability

Apple profit

We can use our eight ways that a brand can drive profit to see the impact of the magic of the Apple brand on profits. Apple uses price, cost control, entry into new categories, and driving market share in each category.  

Even though Apple gives the perception of an extremely friendly brand that is on the side of the consumer, they are now a huge mass market corporate brand, with a market capitalization of $500-600 billion, which is 2-3 times the value of companies like Coke, Procter & Gamble, Pfizer, and IBM. 

So, if you invested a mere $10,000 in 2005, you would have $240,000 a decade later. The Apple case study is indeed a glorious look at the vision of Steve Jobs.

How Steve Jobs built Apple around simplicity

To conclude our case study, we can see how Apple uses its brand strategy to drive loyalty, revenue, and profitability each year. Their P&L is a thing of beauty. 

Apple turns their brand love into higher power and profits

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Apple Five Forces Analysis & Recommendations (Porter’s Model)

Apple Five Forces Analysis, competition, customers, suppliers, substitution, new entrants, Porter, consumer electronics business case study

This Five Forces analysis gives insights into the external factors influencing Apple’s success. Michael E. Porter’s Five Forces analysis framework is a strategic management tool for evaluating the five forces affecting the business organization: customers, suppliers, substitutes, new entrants, and competitors. This Five Forces analysis of Apple Inc. sheds light on what the company does to ensure industry leadership. Despite the negative effects of external factors in the competitive landscape of the computer software and hardware, consumer electronics, and online services markets, Apple’s mission statement and vision statement are fulfilled through relevant business goals and strategies. Based on this Five Forces analysis, the company addresses competitive forces and external factors through effective leaders, such as Tim Cook. This Five Forces analysis indicates external factors that Apple’s strategic efforts must focus on to keep its leadership in the industry.

Based on the Five Forces analysis model, external factors in Apple’s industry environment point to competitive rivalry or intensity of competition, and the bargaining power of buyers or customers as the primary forces for consideration in the company’s strategic planning. Nonetheless, all five forces influence the company’s business situation, together with the effects of other external factors, such as the industry and market trends identified in the PESTLE/PESTEL analysis of Apple Inc .

Summary: Five Forces Analysis of Apple Inc.

Apple’s generic competitive strategy and intensive growth strategies are partly based on competitive forces in the external business environment. These forces limit or reduce the firm’s market share, revenues, profitability, and business development potential. This Five Forces analysis points to the following strengths or intensities of competitive forces in Apple’s industry environment:

  • Competitive rivalry or competition: Strong force
  • Bargaining power of buyers or customers: Strong force
  • Bargaining power of suppliers: Weak force
  • Threat of substitutes or substitution: Weak force
  • Threat of new entrants or new entry: Moderate force

Recommendations. Considering the results of this Five Forces analysis, Apple must focus its attention on competitive rivalry and the bargaining power of buyers. This external analysis supports the company’s current position of continuous innovation. Innovation and the business competitive advantages shown in the SWOT analysis of Apple address the five forces in the external environment, although much of the company’s effort is for strengthening its position against competitors and for attracting customers to its products. An applicable course of action is to intensify research and development for innovation to develop novel products that complement iPhones, iPads, and other current products. Apple can also improve its support and resources for software or app developers, to strengthen the company’s ecosystem of hardware, software, and online services against the competitive challenges identified in this Five Forces analysis.

Competitive Rivalry or Competition with Apple (Strong Force)

Apple faces the strong force of competitive rivalry or competition. This component of Porter’s Five Forces analysis model determines the intensity of the influence that competitors have on each other. In Apple’s case, this influence is based on the following external factors:

  • High aggressiveness of technology firms (strong force)
  • Low differentiation of many products (strong force)
  • Low switching cost (strong force)

Competitors’ aggressiveness in innovation and marketing imposes a strong force in the information technology industry environment. In the market for consumer electronics, software, and Internet services, Apple competes with Google (Alphabet) , Microsoft , Samsung, and Sony . In the video-streaming market, Netflix , Disney , Amazon , and Facebook (Meta) compete with Apple TV Plus. This Five Forces analysis also considers other technology firms, such as IBM and Intel , which influence Apple’s competitive environment. Moreover, in terms of product differentiation, products in the market are generally similar in fulfilling specific purposes. For example, many popular apps are available for Android and iOS devices, and cloud storage services from different companies are similar and available to users on different platforms. In this Five Forces analysis of Apple, such a condition creates a strong force by making it easy for customers to switch to other sellers or providers. On the other hand, the low switching cost means that it is easy for customers to switch from Apple to other brands, based on price, function, accessibility, network externalities, and related concerns. The combination of these external factors in this part of the Five Forces analysis leads to tough competitive rivalry that is among the most significant considerations in Apple’s strategic management.

Bargaining Power of Customers/Buyers (Strong Force)

The bargaining power of buyers is strong in affecting Apple’s business. This component of Porter’s Five Forces analysis model determines how buyers’ purchase decisions and related preferences and perceptions impact businesses. In Apple’s case, buyers’ strong power is based on the following external factors:

  • Small size of individual buyers (weak force)
  • High availability of information to buyers (strong force)

It is easy for customers to change brands, thereby making them powerful in compelling Apple to ensure customer satisfaction. On the other hand, each buyer’s purchase is small compared to the company’s total revenues. In this Five Forces analysis of Apple, such a condition makes customers weak at the individual level. However, the availability of detailed comparative information about competing products’ features empowers buyers to shift from one provider to another. This external factor enables buyers to exert a strong force in the industry, although promotional strategies and tactics in Apple’s marketing mix (4P) can communicate tailored information to persuade customers to buy the company’s products. Thus, this part of the Five Forces analysis shows that Apple must include the bargaining power of buyers or customers as one of the most significant strategic variables in the business.

Bargaining Power of Apple’s Suppliers (Weak Force)

Apple Inc. experiences the weak force or bargaining power of suppliers. This component of the Five Forces analysis model indicates the influence of suppliers in imposing their demands on the company and its competitors. In Apple’s case, suppliers have a weak bargaining power based on the following external factors:

  • Moderate to high number of suppliers (weak force)
  • Moderate to high overall supply (weak force)
  • Large size of some equipment and component manufacturers (strong force)
  • High ratio of firm concentration to supplier concentration (weak force)

The global size of its supply chain allows Apple Inc. to access many suppliers around the world. In Porter’s Five Forces analysis context, the resulting high number of suppliers is an external factor that presents only a weak to moderate force against the company. Also, the moderate to high overall supply of inputs, such as semiconductors, makes individual suppliers weak in imposing their demands on Apple. However, some large suppliers, such as OEMs and producers of chips, significantly influence the industry. Nonetheless, in this Five Forces analysis case, the high ratio of firm concentration to supplier concentration limits suppliers’ power and influence in the industry. This external factor reflects the presence of a small number of big companies, like Apple and Samsung, in contrast to a larger number of medium-sized and large suppliers. Thus, this part of the Five Forces analysis shows that the bargaining power of suppliers is a minor issue in developing Apple’s operations management strategies for supply chain management, value chain effectiveness, innovation, and industry leadership.

Threat of Substitutes or Substitution (Weak Force)

The competitive threat of substitution is weak in affecting Apple’s computing technology, consumer electronics, and online services business. This component of the Five Forces analysis framework determines the strength of substitute products in attracting customers. In Apple’s case, substitutes exert a weak force based on the following external factors:

  • Moderate to high availability of substitutes (moderate force)
  • Low performance of substitutes (weak force)
  • Low buyer propensity to substitute (weak force)

Some substitutes for Apple products are readily available in the market. For example, instead of using iPhones, people can use digital cameras to take pictures, and landline telephones to make calls. In this Five Forces analysis of Apple, such an external factor exerts a moderate force in the industry environment. However, these substitutes have low performance because they have limited features. Many customers would rather use Apple products based on convenience and advanced functions. This condition weakens the force of substitution in impacting the company’s business in this Five Forces analysis context. Also, buyers have a low propensity to substitute. For instance, customers would rather use smartphones than go through the hassle of buying and maintaining a digital camera, an analog phone, and other devices. This part of the Five Forces analysis shows that Apple does not need to prioritize the threat of substitution in management decisions for business processes, like marketing, market positioning, and product design and development.

Threat of New Entrants or New Entry against Apple (Moderate Force)

Apple Inc. experiences the moderate force or threat of new entrants. This component of Porter’s Five Forces analysis model indicates the possibility and effect of new competitors entering the market. In Apple’s case, new entrants exert a moderate force based on the following external factors:

  • High capital requirements (weak force)
  • High cost of brand development (weak force)
  • High capacity of some potential new entrants (strong force)

Establishing a business to compete with Apple Inc. requires high capitalization. Also, it is extremely costly to develop a strong brand to compete with large companies, like Apple. These external factors make new entrants weak in this Five Forces analysis case of the IT business. However, there are large firms with the financial capacity to enter the market. For example, Google has already done so through its consumer electronics. Samsung also used to be a new entrant. These examples show that there are large companies that have the potential to directly compete with Apple Inc. in multiple markets. Thus, the overall threat of new entry is moderate. This part of the Five Forces analysis shows that Apple must maintain its competitive advantages through innovation and marketing to remain strong against new entrants’ moderate competitive force.

  • Apple empowers small businesses to grow and serve their customers .
  • Apple Inc. – Form 10-K .
  • Apple introduces global developer resource for labs, sessions, and workshops .
  • Apple scores record 13 Academy Award nominations .
  • Jahan, S. A., & Sazu, M. H. (2023). Role of IoTs and analytics in efficient sustainable manufacturing of consumer electronics. International Journal of Computing Sciences Research, 7 , 1337-1350.
  • Sforcina, K. (2023). Digitalizing Sustainability: The Five Forces of Digital Transformation . Taylor & Francis.
  • U.S. Department of Commerce – International Trade Administration – Software and Information Technology Industry .
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  • This article may not be reproduced, distributed, or mirrored without written permission from Panmore Institute and its author/s.
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Apple Inc.: Global Supply Chain Management

By: P. Fraser Johnson

This case focuses on the supply chain strategy of Apple Inc. (Apple). Set in early 2020, it provides a detailed description of the company's supply chain network and capabilities. Data in the case…

  • Length: 20 page(s)
  • Publication Date: Jun 1, 2020
  • Discipline: Operations Management
  • Product #: W20472-PDF-ENG

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This case focuses on the supply chain strategy of Apple Inc. (Apple). Set in early 2020, it provides a detailed description of the company's supply chain network and capabilities. Data in the case allows students to develop an understanding of Apple's source of competitiveness and to gain insights into the management of a large, complex global supply chain network that focused on the intersection of services, hardware and software. Students will obtain an understanding of the supply chain challenges faced by Apple, in the context of supporting its corporate strategy and growth objectives.

Learning Objectives

This case can be used in an undergraduate- and graduate-level courses on operations management, supply chain management, logistics, business strategy, or marketing. It provides an opportunity to appreciate the complexities of managing a complex global supply chain. After completing the case, students will be able to do the following: Assess Apple's supply chain, and identify its key competitive advantages. Quantify Apple's ability to generate value from its supply chain. Identify potential opportunities and challenges for Apple in improving its supply chain. Analyze the effects of the opportunities and challenges Apple faces in its growth and evolution.

Jun 1, 2020 (Revised: Nov 13, 2023)

Discipline:

Operations Management

Geographies:

United States

Industries:

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W20472-PDF-ENG

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the apple case study

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Case Study UT Star Icon

The FBI & Apple Security vs. Privacy

How can tech companies and government organizations strike a balance between maintaining national security and protecting user privacy?

the apple case study

In December 2015, the FBI attained the iPhone of one of the shooters in an ISIS-inspired terrorist attack that killed 14 people in San Bernardino, California. As part of the investigation, the FBI attempted to gain access to the data stored on the phone but was unable to penetrate its encryption software. Lawyers for the Obama administration approached Apple for assistance with unlocking the device, but negotiations soon broke down. The Justice Department then obtained a court order compelling Apple to help the FBI unlock the phone. Apple CEO, Timothy Cook, publicly challenged the court in an open letter, sparking an intense debate over the balance between maintaining national security and protecting user privacy.

Apple and its supporters, including top technology companies such as Google and Facebook, made the case on several fronts that the court order threatened the privacy of all individuals. First, according to Apple, the order effectively required the company to write code, violating its First Amendment right to free speech by forcing the company to “say” something it did not want to say. Previous court cases had already established computer code as legally protected speech. Second, such a backdoor, once created, could fall into the wrong hands and threaten the privacy of all iPhone owners. Finally, it would set a dangerous precedent; law enforcement could repeatedly require businesses such as Apple to assist in criminal investigations, effectively making technology companies an agent of government.

Representatives from both sides of the political aisle offered several arguments in favor of the Justice Department’s efforts and against Apple’s stance. Their central claim was that the U.S. legal system establishes constraints on the government’s access to private information which prevent abuse of search and surveillance powers. At the same time, the law still allows authorities to gain access to information that facilitates prevention and prosecution of criminal activities, from terrorism to drug trafficking to child pornography. Critics of Apple also rejected the slippery slope argument on the grounds that, if Apple cooperated, it could safeguard the code it created and keep it out of the hands of others, including bad actors such as terrorists or criminal groups. Moreover, Apple was accused of being too interested in protecting its brand, and even unpatriotic for refusing to comply with the court order.

Ultimately, the FBI dropped the case because it was able to circumvent the encryption on the iPhone without Apple’s help.

Discussion Questions

1. What harms are potentially produced by the FBI’s demand that Apple help it open an iPhone? What harms are potentially produced by Apple’s refusal to help the FBI?

2. Do you think Apple had a moral obligation to help the FBI open the iPhone in this case because it involved terrorism and a mass shooting? What if the case involved a different type of criminal activity instead, such as drug trafficking? Explain your reasoning.

3. Apple argued that helping to open one iPhone would produce code that could be used to make private information on all iPhones vulnerable, not only to the American government but also to other foreign governments and criminal elements. Do you agree with Apple’s “slippery slope” argument? Does avoiding these harms provide adequate justification for Apple’s refusal to open the phone, even if it could reveal crucial information on the terrorist shooting?

4. Politicians from across the political spectrum, including President Obama and Senator Ted Cruz, argued that technology preventing government access to information should not exist. Do you agree with this limit on personal privacy? Why or why not?

5. Ultimately, the FBI gained access to the iPhone in question without the help of Apple. Does this development change your assessment of the ethical dimensions of Apple’s refusal to help the FBI? Why or why not? Should the FBI share information on how it opened the iPhone with Apple so that it can patch the vulnerability? Explain your reasoning.

Related Videos

Incrementalism

Incrementalism

Referred to as the slippery slope, incrementalism describes how we unconsciously lower our ethical standards over time through small changes in behavior.

Bibliography

Apple Fights Order to Unlock San Bernardino Gunman’s iPhone http://www.nytimes.com/2016/02/18/technology/apple-timothy-cook-fbi-san-bernardino.html

How they line up on Apple vs. the FBI https://www.washingtonpost.com/graphics/business/fbi-apple/

Why Apple Is Right to Challenge an Order to Help the F.B.I. http://www.nytimes.com/2016/02/19/opinion/why-apple-is-right-to-challenge-an-order-to-help-the-fbi.html

Apple’s Rotten Core: CEO Tim Cook’s Case for Not Aiding the FBI’s Antiterror Effort Looks Worse than Ever http://www.wsj.com/articles/apples-rotten-core-1456696736

Obama, at South by Southwest, Calls for Law Enforcement Access in Encryption Fight http://www.nytimes.com/2016/03/12/us/politics/obama-heads-to-south-by-southwest-festival-to-talk-about-technology.html

U.S. Says It Has Unlocked iPhone Without Apple http://www.nytimes.com/2016/03/29/technology/apple-iphone-fbi-justice-department-case.html

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Case Study: The Business Strategy of Apple

Apple Inc is a multinational American company that design and sells computer software, consumer gadgets and personal computers. It was co-founded by Steve Jobs , Steve Wozniak and Ronald Wayne. Apple Inc is well-known for being innovative as they kept on producing new innovations from the first Apple computer Macintosh to the more recent iPhone and iPad series.

Today Apple Inc. is very well known in the world because of their advanced technology in products such as iPods, iPhone, Macbooks, Apple TV and other professional software. All the high tech products provide consumers with a better living standard in many different ways. Moreover, Apple Inc’s dominant position in the global market has changed the trend of consumer usage of electronic appliances such as in virtual communication. People will never need to carry multiple devices where each one only offers a handful of functions. Furthermore, Apple also created a substantial value in highly competitive market and industry which help them to achieve competitive advantages in an industry with stiff competition. In addition, it resolves the other external factors that present difficulty challenges to Apple Inc. Therefore, now Apple Inc is known as a strong company and the market leader in industry. Now, let us discuss about the current expansion strategy that used by Apple that make the company has greater success in marketplace.

Business Strategy of Apple Case Study

The first strategy that use by Apple Inc for their current expansion strategy is creating innovative idea that slightly different from the competitors that already exists in market and industry. In order to make the company more innovative, Steve Jobs focused innovation on competitive pressure and value proposition by stressing his management style on customer center innovation and customer experience. As CEO in Apple, Steve Jobs carefully evaluated competitive pressure and opportunity in market place by continuously pursuit customer experience innovation. He also focused their business and IT strategy on customer center experience. It means that Apple will be more focused on looking outwards, market and business drivers rather than at the products or services that already exist. Steve Jobs focused on this strategy because the customers can help the company to understand what customers need and scarcity of the people so that he can use the feedbacks as inspiration to deeply investigate and then to create more innovative, creative and highly advanced technological product or services that can fulfill the needs of the customers. Therefore, Apple products design is always attractive and elegant compared to those existing competitors. Apple products like iPods and iPhones are good examples that show the innovation of Apple Company by creating digital lifestyle .

The second strategy applied by Apple is differentiation . Apple is using Macintosh as operating software whereas other personal computer’s producers are using Windows. The differentiation in operating software gives Apple a competitive advantage in the personal computer industry. Macbook users are satisfied with Macintosh performance because it is very energy saving where the processor will automatically “close” those programs which are not in use when it is in standby mode. On the other hand, Windows does not have such technology. Thus, Windows’ users might have to charge the laptop more often due to the battery consumption is higher than Macintosh.

In terms of design, Apple came out with an ultra-thin Macbook Air which is extremely thin compared to those existing laptops. To those consumers who prefer lighter and thinner laptops will definitely be attracted to the Macbook Air. Apple does not produce laptops in various colors like Dell or Hewlett Packard to increase the choices for consumers. However, to those consumers who are concerned about technology and high performance, Apple is still the preferable choice.

In terms of applications and software, Appstore provides a platform for customers to download software and applications according to categories. It is easy to search for any application or software by using Appstore. iTunes allow consumers to categorize and download songs easily . By using iTunes, consumers can choose their preferable album cover for their songs. They can also “synchronize” and update the songs in their iPhone with a laptop. Besides that, iTunes also allow consumers to transfer photos from iPhones to PCs.

As for pricing, Apple is using skimming pricing strategy where they set high selling price for their products. However, there are still a lot of loyal customers who prefer to spend more money on Apple products. This is due to the self esteem where consumers feel good by carrying Apple products because it somehow shows their status as being up-to-date and their taste is better than others. Some customers think that Apple products are not cheap but also not high-priced products because the value of Apple products bring to them is never disappointing.

Other than that, Apple is using specialization strategy where they customized customer’s laptop according to their requirements. Customers are required to add in features into the laptop which can serve them better. Beside this, Apple also emphasizes customizability on the part of entertainment that offer computer-build for high performance such as gaming. Gaming plays important roles to help Apple to customize in features and specification to make the products more attractiveness and creativity.

In a nutshell, the key to Apple’s success is down to creating a unique product with the ability for it to be customized to suit each individual’s needs.

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Apple Case Study

Executive summary, introduction, measuring capability performance, options, recommendations and implementations, list of references.

Since Apple was established in mid 1970s, its popularity has become immense especially in computer technology industry. Its full potential was realised when it shifted its focus from marketing and promotion of computer products to development of innovative industrial design in modern electronics, unique hardwares, operation system and application softwares and services. It provides customers with new products and solutions that are easy to use and seamless integration.

The relevant competitive models chosen for this assessment includes the Michael Porte’s five forces such as entry of competition, threats to substitutes, bargaining power, power of suppliers and rivalry, SWOT and Industrial analysis as well as micro analysis in order to assess Apple Inc. strategic capabilities and suggest future directions for the business. Apple assessment also analyses the results of a study presented to examine how it utilises customer satisfaction data obtained from formal feedback mechanism.

Company background

Apple was founded in 1970s by Steven Jobs who then became the company CEO. Apple first started as a computer company in 1976 and was fast recognised for its intuitive adaptation approach of graphical user interface that saw the adoption of the first mouse and first onscreen windows.

Steven Job innovative approach focused more on specialised products and by 2001, its full inventions came into play with the introduction of iPod, a product that ranked top in the market leader in music players. Eventually, iPhone came into play in 2008, followed by iMac, iPad and iTunes which have also been widely successful. This meant that electronic products combined with eminent good customer support throughout its product base were slowly becoming the company’s primary objectives.

Summary of Macro Analysis

Macro analysis also known as PESTLE is an analysis of the external macro environment in which a business operates. PESTEL analysis includes factors such as political, economic, social, technological, legal and environmental issues. For a detailed analysis, the following table illustrates the macro environment of Apple Inc:

Apple Case Analysis

Apple ranged top in customer satisfaction with phone-based technical support, feedback, face-to-face communication, email communication, and information exchange in the American Consumer Satisfaction index (ASCI) in the second quarter of 2009. These companies were credited for offering the best technical customer satisfaction service within the Personal Computers category with a base score of 77 on a 100 point scale and earned 83 points in the second quarter of 2006.

Business analysts have argued that the companies’ ability to focus on product innovation and customer satisfaction has won the company loyal customers compared to other PC vendors. Quality of customer service is always the determining factor for success of any company and not its products, and the three companies for this case have gained tremendously from such strategy.

Van Amburg, the managing director of the American Customer Satisfaction Index (ACSI) argues that customers from other service providers were very frustrated with company’s customer service despite the quality of its PC hence loss of loyal customers and the services continued to deteriorate as years went by (Moore & Knight 2010; Keizer 2009).

In ensuring quality satisfaction in information collection, Apple launched Consumer Privacy Policy that ensured the collection, use and disclosure of personal information regarding customer issues are kept at optimum security. The company pledges to safeguard personal information collected when visiting the company’s website, purchase of products and services and when a customer calls the sales team or support associates.

Personal information collected here is aimed at helping the company deliver higher customer service and provide convenient access to company’s products and services. Information collected from customer’s reviews also helps the company implement and post the latest product announcement on special offers, software and events (Apple 2010; Levitan 2004; Prasaad 2009).

Summary of Industry Analysis

Porter’s analysis focuses on the threat of new entrants, bargaining power of suppliers and buyers, power of substitutes and rivals on profitability in an industry.

The following table presents Porter’s five forces analysis of the micro environment of Apple Inc.

The industry analysis of our company in the market displays strong competition in the computer technologies and electronics. Apple maintained its competitive edge by progressively innovating product designs and operational execution.

Its product lines were also diversified and supplied its products to retail stores and eliminated third-party retailers. The company also opened up to 247 stores including 19 internal locations averaging to $29.9 million in sales revenues. The company has numbers of loyal, & the customer base reports the permanent growth (Keizer 2009).

Suppliers have helped Apple diversify their products. Apple entered into a multi year agreement requiring its major key components that included dynamic random access memory DRAM, LCD displays, NAND flash memory and microprocessors that included partners such as Hynix Semi-conductor, Intel Corporation, Samsung, Micron Technology and Toshiba Corporation. It also partnered with other corporations internationally to ensure final assembly of its products are concentrated on quality issues (Keizer 2009).

On market research aspect, Apple was reported to collect personal information on various occasions for market research purposes. This information is aimed at gaining better understanding of customers needs, improve products and determine how best to provide useful information (Apple 2010; Hewlett-Packard Development Company 2010).

Apple partnered with other service vendors such as MobileMe and iTunes stores to help in collection of information by requiring customers to customer’s to create an “phone company ID” before purchase of products.

The ID is strategy is designed to help customers have easier access to web services and saves them time since they don’t have to give their personal information when requesting for services. The procedure requires creation of personal profiles by adding the name, phone number, email address or credit card number together with a suitable password that will be used to access the profile.

Once the signing up procedure is completed, the customer is allocated personal ID and a password that the system generates automatically. Therefore next time the customer enters the website to re-purchases products is welcomed by personal greetings by mentioning his name and is able to access up to date information regarding the product purchased which can be used wherever the client goes (Apple 2010).

In order to survive in the competitive environment, company’s have to device a number strategies to beat their competitors like changing the price of the product-which is in fact a temporary solution, improving product features- key to success, creatively using channels of distribution and exploiting relationship with suppliers. When we look at these examples, brand recognition seemed to cut down costs of advertisements.

On this perspective, Apple diversified to digital consumer electronics such as iPod, iPhone, iMac among others widened its product markets. Apple dominated computer markets introducing itself a premier provider of technology solutions for educators, web designers and graphic artists, to digital entrainment company. The software iPod was later integrated into windows version of iTunes making it easier for everyone one to purchase and use (Keizer 2009).

Apple introduction of feedback system and outreach programs enabled customers to report on defective machines and the company to attend to problems before they occur. For example, one of the Company’s products “iMac” was widely reported for to be giving clients problems and the company responded by giving 15% refund bonuses to all faulty 27 inch iMac in the UK and was also reported to extend $300 apologies to all its aggrieved customers in the US.

In resolving the issue, the company responded quickly by offering free repairs to all the affected machines and launched a support page where it described how minor problems could be resolved and the resulting warranty extension for each affected machine. The company also reimbursed customers who used their own money to repair the faulty machines and advised them take their drives to official Apple repair channels (Moore & Knight 2010; O’Reilly & Anderson 1980).

On bargaining power of suppliers’ aspect, Apple’s primary segments included America, Europe, Africa, Japan and Middle East and other retail divisions Italy, Canada and the United Kingdom. It offered its customers wide range of products and invested heavily on R&D year after year. Apple’s products were distributed all over US retail stores where customers could easily access and report of defective devices (Mank & Nystrom 2000, p.504).

Summary of Internal Analysis

Internal Analysis also known as SWOT analysis determines company’s competitors and develops sales & marketing strategies for the company that allow it to achieve its marketing & strategic objectives.

The SWOT Analysis of the Apple Inc. position in the market is necessary for the development of the marketing plan.

Resources Analysis

Amidst the financial crisis, Apple continued to introduce strongest products lines, with most talented employees and best customers with sales revenue totalling to $10 billion in quarterly revenue of 2009 and $25 billion in cash safety bank with zero debt. Demographic & socio-economical factors like population distribution changes & increase/decrease in income levels of social group also affected the company to a considerable extent (Apple reports 2008; Hesseldahl 2009).

Dynamic Capability Analysis

Dynamic analysis refers to the innovative strategies a firm employs to gain competitive advantage over its competitors. In other words, what Apple is doing different that sets it apart from other companies. For instance, the company has progressively applied technological advancement and business diversification over the years.

Apple continues to diversify its product line from PCs inventions, to iPods, iPhones, iTunes and other peripherals. Also, the 2007 smart phone technology that saw the integration of wireless phone, music player, video player as well as internet browsing demonstrated how the company continues to diversify in our markets (Apple reports 2008).

Strategic Capability Analysis

Apple’s strategy to integrate Intel-based iMac desktop and the MacBook Pro portable softwares increased its company’s market share. Also, the introduction of feedback system and outreach programs that enabled customers to report on defective machines seemed to have gained the company a competitive edge over its competitors. The company also introduced support centre strategically designed to attend to software problems before they occur (Apple reports 2008).

Apple’s recent merger with software developers and leading voice-entry technology providers demonstrated its strong command and reputation in information technology. However, Apple should take adequate time in testing its products before rushing to introduce them to the markets like case for MacBook Air that left many customers disappointed (Apple reports 2008).

Gap analysis and assessment of current strategy

Gap analysis is a methodology that helps a company identify gaps and decide upon marketing strategies and tactics. The company has moved beyond personal computer industry to music, videos, movies, and television. Diversification is in it itself a good marketing strategy, but the company should concentrate on development of quality products to cut down on increased numbers of defective products and recalls.

Apples hiring John Sculley from PepsiCo spearheaded marketing and operations of the company while Steven Job focused on technology that lead to the introduction of more creative products like Macintosh in 1984. The new CEO enabled breakthrough in electronic products in terms of elegant design and easy use. The company should employ the same strategy in future to in employing competent workforce that will turn boost company sales revenues.

How does strategy match the macro environment?

For Apple, there is a large gap between product strategy and socio-economic and demographic changes. Keeping in pace with technology helped the company gain competitive advantage over its competitors and the uniqueness of goods and services offered facilitated the further strengthening of market position. However, its inability to adjust to socio-economic and demographic changes might undermine its market position in future.

How does strategy match the industry environment?

Apple engaged in a head to head competition with Dell in the computer markets with company CEO Steve Jobs claiming that market shares weren’t everything. This statement is in itself contradictory since company’s engage in business activities for profits. Dell was able to dominate the markets due to its efficient supply chain management although Apple outperformed it in inventions and other metrics. Apple should look into fixing sufficient price flexibility and adjustment to socio-economic changes.

Since compatible software were introduced in the markets, IBM prices dropped and Apples costs for R&D were higher industry costs since the company spend a considerable amount of its sales revenue on R&D. Scully innovative efforts were not enough to sustain the company’s poor performance. Apple could have taken time to study its markets demands before heavily investing in unprofitable deals. Since Michael Spindler came into play in 1993 introducing PowerMac, Apple moved to price-performance edge.

The new CEO’s strategy was to let other companies manufacture Mac clones, a strategy that saw many clones stealing 20% of the Macintosh unit sales. For this case, Apple should be seeking a CEO that upholds their key capabilities and strengths, whilst being able to improve in other areas that are deficient (Mank & Nystrom 2000, p.501).

Apple’s current strategy of launching more new products to expand the markets should be sustained. However, the company should also try to promote its products through media advertising and offering products at discounted price to increase the satisfaction level of the customers. Apple never seemed to experience intense competition since it had strong market power and had the ability to introduce new products.

Its strategies to beat the markets severely stretched its budgets that amounted to further losses. For example, when Macintosh was first introduced in the markets quickly became people’s favourite with large graphics but had slow performance and could not be integrated with many softwares in the markets. NeXT Computer introduced after Macintosh proved costly and did not yield the company any profits. For this case, Apple should incorporate through market analysis to avoid sipping in market shares.

Apple., 2010, ‘ Apple Customer Privacy Policy ’. Web.

Apple reports fourth quarter results, 2008. Quarterly results. Web.

Hesseldahl, A., 2009. Apple’s impressive quarterly numbers . BusinessWeek. Web.

Hewlett-Packard Development Company, 2010. Overcoming the no. 1 challenge in data center transformation . Web.

Keizer, G., 2009. Apple still can strive, sans Job. Computer World, 56 (2), pp.1-4.

Levitan, B., 2004. Improving customer loyalty through proactive communication. Consumer Interaction Solution . Web.

Mank, D. & Nystrom, H., 2000. The relationship between R&D spending and shareholder returns in the computer industry. Management of Society Proceeding , 20, pp.501-504.

Moore, C. & Knight, D., 2010. Apple Retains Lead in Customer Satisfaction, iMac Screen Problem Resolved, 64 GB for Mac Pro and More . Web.

O’Reilly, C. & Anderson, J., 1980. Trust and the Communication of Performance Appraisal Information: The Effect of Feedback on Performance and Satisfaction. Human Communication Research , 6, pp.290-298.

Prasaad, S., 2009. Establishing successful customer relationships through effective communication: An Indian perspective. Marketing and Management Communication , 64, pp.1-71.

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Apple - The Development Of iEcosystem

Sarika Anand

Sarika Anand

Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Apple.

The Apple logo is very identifiable whether you're walking down a crowded street in a major city or travelling through the highways. Whenever you spot a MacBook, an iPad, or an iPhone, you immediately recognize the logo and know who built it. Apple has accomplished more than just technological domination. The corporation has achieved something that many people strive for: international name recognition and a reputation that will outlast everyone alive today.

The company's tagline from 1997 to 2002, "Think Different," may have contributed to Apple's success. While not always hailed as a triumph, it is the result of foresight in the current competitive market. While many of us possess Apple devices, few are familiar with their history. When did Apple get its start, and how popular was it at its inception? When did Apple become well-known? And why did Apple come so close to going bankrupt? However, such achievement does not happen instantly and is difficult to duplicate. So, what is this mysterious Apple sauce? Let's have a look.

Apple - Company Highlights

About Apple, and How it Works? Apple - Industry Apple - Name, Logo, and Tagline Apple - Founders Apple - Startup Story Apple - Apple without Jobs Apple - The Fall Apple - When Did It Become A Big Name? Apple - Vision, and Mission Apple - Business Model Apple - Investments Apple - Acquisitions Apple - Competitors Apple - Future Plans

About Apple, and How it Works?

Apple Inc. is a global technology company headquartered in Cupertino, California, that specialises in portable electronics, software applications, and internet services. Apple is the fourth-largest personal computer vendor by unit sales, the world's second-most valuable company, the largest information technology company by revenue (totalling US$365.8 billion in 2021) and the second-largest mobile phone manufacturer. Along with Amazon, Alphabet, Microsoft, and Meta, it is one of the five American behemoths in information technology businesses.

Apple Inc. produces, builds, and sells computers and associated computing and communication devices, as well as services, software, networking solutions, and peripherals. Apple distributes its goods through its online shops, retail locations, direct sales representatives, resellers, and third-party wholesalers all around the globe.

The iPhone is Apple's series of cell phones that run on Apple's operating system called iOS. The Mac range of computers is centered also on the business's macOS operating system.

The iPad is a range of multi-purpose tablets from Apple that run on the iPad OS operating system. Apple TV, Air Pods, Apple Watch, Home Pod, Beats products, iPod touch, and other Apple-branded and third-party accessories are included under Home, Wearables, and Accessories.

The Company's wireless headphones that interface with Siri are known as Air Pods. The Apple Watch is the firm's smartwatch series. AppleCare, Advertising, Cloud Services, Digital Content, and Payment Services are among its offerings.

Apple - Industry

The worldwide economy has been severely impacted by the COVID-19 pandemic . Many end-user sectors, including electronics manufacturing, have been impacted. According to data from an IPC study conducted in March 2020, 40% of global electronics manufacturers and suppliers polled anticipate that the COVID-19 outbreak will have the greatest impact on consumer electronics. Another 24% of respondents said that industrial electronics would be the worst hit, with 19% predicting that the automotive electronics category would be the most brutal damage.

Electronic computers, such as mainframes, laptops, pcs, workstations, and software services, as well as computer peripheral devices, are manufactured by companies in this business. Apple, Hewlett Packard Enterprise, Dell, IBM, Lenovo (Hong Kong), ASUS (Taiwan), and Canon (Japan) are the companies that belong to this sector or industry. Annual global unit sales for 2021 hit 340 million units, up 15% from the previous year. With large exports, Europe, Africa, and the Middle East, as well as the Asia Pacific, excluding Japan, led to the rise of this industry. During the projected period, which is 2021-2026, the Electronics Manufacturing Services Market is estimated to grow at a CAGR of 9%.

Apple - Name, Logo, and Tagline

Jobs revealed in his biography written down by Walter Isaacson that he was now on one of his fruitarian diets. He was driving back from an apple farm when he came up with the name for the firm that would transform his life. Steve Wozniak's book, "iWoz: Computer Geek to Cult Icon," confirms this. Wozniak, who drove Jobs home from the airport following that trip, claimed that the firm name came to him during the journey. According to Jobs, the "apple orchard" he mentioned was a commune.

According to Jobs' biography, he believed the name "Apple Computer" sounded "energetic, fun, and not intimidating" - all crucial elements for a firm that intended to transform computing and make it far more approachable. And, that's where the logo came from.

Apple Logo

Apple's tagline says, "Think Different."

Apple - Founders

Steve Jobs, Ronald Wayne, and Steve Wozniak founded Apple Computers Company as a business deal on April 1, 1976.

Founders of Apple - Steve Jobs (left) and Steve Wozniak (right)

Steve Jobs was the co-founder and former CEO of Apple and Pixar Animation Studios. Jobs attended Reed College in Portland, Oregon after graduating from Homestead High School in Cupertino, California in 1972. He dropped out after one semester and went on to study philosophy and other cultures.

Steve Jobs had a keen passion for technology, therefore he went to work for Atari Inc, a major video game producer at the time. He became acquainted with Steve Wozniak, a fellow designer, and attended Homebrew Computer Club meetings with him. On August 24, 2011, Jobs resigned as Apple's CEO and became Chairman of the Board of Directors. Jobs passed away on October 5, 2011.

Ronald Wayne

Ronald G. Wayne is mainly remembered as one of the co-founders of the Apple tech firm, with Steve Jobs and Steve Wozniak, the company's primary drivers. It was a brief journey compared to the years he spent inventing and manufacturing slot machines and other professional gaming devices. He's a skilled innovator with over a dozen US patents under his belt, covering a wide spectrum of essential concepts.

Steve Wozniak

For the past three decades, Steve Wozniak has been a Silicon Valley star and philanthropist. His design of Apple's original line of devices, the Apple I and II, impacted the popular Macintosh.

With Wozniak's Apple I personal computer, Wozniak and Steve Jobs launched Apple Computer Inc. in 1976. He unveiled his Apple II personal computer the next year, which had a central processing unit, a keyboard, colour graphics, and a floppy disc drive.

Wozniak was active in several corporate and humanitarian endeavours after leaving Apple in 1985, concentrating mostly on computer capabilities in schools and emphasising hands-on learning and promoting student creativity.

the apple case study

Apple - Startup Story

The garage where Apple-I was developed

Steve Jobs, Steve Wozniak, and Ronald Wayne created Apple in 1976 to sell Wozniak's hand-built PC, the Apple 1. The Apple 1 was supplied as a motherboard that had a Central processing unit, RAM, and some rudimentary textual-video chips. It had no built-in keyboard, monitor, casing, or other Human Interface Devices at the time.

The Apple 1 was released in July 1976 and sold for $666.66. Only a few weeks after the firm was created, Wayne chose to quit. He accepted an $800 check, which was worth about $72 billion forty years later. Wayne was the one who hand-drew the initial Apple logo, which was later replaced with Rob Janoff's bitten apple symbol in 1977.

On January 3rd, 1977, Apple Computer Inc. was founded. Mike Markkula, who was interested in the Apple-1, gave the team the necessary funds and commercial acumen. Mike Markkula, the third employee, owned a third of the firm. He nominated Michael Scott as the company's first president and CEO because he believed Steve was too young and not responsible enough to handle the role.

The Apple II, designed by Wozniak, was released in 1977. The Apple II computers were able to stay on top of market leaders Tandy and Commodore PET thanks to VisiCalc (the world's first 'killer-app'), a revolutionary spreadsheet and computing software. Because of its office compatibility, VisiCalc provided customers with another reason to acquire the Apple II. The Apple II was able to change the computer industry by introducing colour graphics. Apple had a genuine office with many workers by 1978, as well as an Apple II production sector.

Revenues for Apple doubled every four months in the following years. Between September 1977 and September 1980, their annual revenues increased from $775,000 to $118 million (an average annual growth rate of 533 per cent).

On December 12, 1980, Apple came out publicly for $22 per share. Apple's $4.6 million shares sold out very instantly, raising more money than just about any other IPO since Ford Motor Company in 1956. Steve Jobs , the largest shareholder, gained $217 million from the IPO. The company's IPO also made 300 additional people millionaires overnight.

Apple - Apple without Jobs

As tensions between Jobs and John Sculley, the company's third CEO, developed, Jobs sought to depose Sculley through a revolt, which collapsed. Apple's board of directors sided with Sculley and relieved Jobs of his work responsibilities. Jobs subsequently left his position and started NeXT, a firm that makes powerful workstations. Around the same time, Steve Wozniak sold most of his stock, and left the company, claiming that the firm was heading in the wrong way.

With Jobs gone, the board members were willing to decide what type of computers Apple might create. They chose to sell more costly Macs to high-end clients. Because Steve Jobs was resistant to raising prices, this strategy could not be implemented until after he had departed. They concluded that even if lesser units are sold, profitability will be comparable or greater. This approach was known as "55 or die," and Jean-Louis Gassée required that the Macintosh II had to make at least 55% profit per unit. Sculley hired Gassée to take the role of Steve Jobs.

Although Apple computers were more costly than other computers on the market, they offered advantages such as the UI that attracted customers. In 1991, Apple released the PowerBook laptop with the System 7 operating system. System 7 was responsible for providing the Macintosh OS colour, and it was utilised until 2001 when OS X was introduced.

Apple attempted to expand into new areas throughout the 1990s. Gassée was also involved in the creation of innovative products like the eMate and the Newton MessagePad, with the hope that they would propel the business to an unprecedented level.

the apple case study

Apple - The Fall

When IBM clones became inexpensive and Microsoft's influence grew in the latter part of the decade, Apple's "55 or die" strategy failed. Even while Macs had an extensive software library, they were constrained. On the other hand, Windows 3.0 was on sale for low-cost commodity machines.

Apple intended to re-enter the industry, so they released a new range of devices called the Quadra, Centris, and Performa. Because Apple computers were only accessible by mail or authorised dealers at the time, the Performa was designed to be a stocking item for lifestyle merchants and department stores. Back then, there has been no Apple Stores. Customers, on the other hand, were confused by this since they didn't comprehend the differences among the variants.

Apple has tried portable CD audio players, digital cameras, speakers, TV appliances, and other items, but they all failed. Apple's stock price and market share dropped sharply. To compound the error, Sculley spent a significant amount of time and money porting System 7 to the new IBM/ Motorola PowerPC CPU rather than the Intel processor. Apple had no luck regaining market share since most software was designed on Intel CPUs, which were cheaper.

The Apple board had enough with the very disappointing line of devices and the pricey choice to switch to PowerPC. Sculley was then replaced as CEO by Michael Spindler, a German expatriate who had worked with Apple since the 1980s. Gil Amelio succeeded Spindler as CEO in 1996.

Amelio implemented significant reforms, including mass layoffs and cost reductions. His term was also marred by the shares of Apple hitting a 12-year low. In February 1997, Amelio chose to buy Jobs' NeXT Computer for $429 million, bringing Steve Jobs back to Apple.

Apple - When Did It Become A Big Name?

The iPod, another Apple invention, was introduced in 2001. It was advertised as having thousands of music tracks worth of memory on its 5GB hard drive, which was an astonishing accomplishment for an MP3 player at that very time.

In 2003, Apple launched the iTunes Music Store to augment this. This followed the introduction two years before of iTunes, Apple's digital music software solutions. In 2003, Apple introduced a variant for Windows, and over the next several years, it began moving out to the rest of the globe. The iTunes Music Store was a convenient method for US residents to legally purchase music online; in 2006, it changed its name to the iTunes Store to include video services too. In 2005, Apple computers had Intel chips, allowing them to run Windows. All Apple PC hardware, including iMacs and MacBook Pros, will be Intel-based in the future.

In 2007, Apple Computer Inc. changed its name to Apple Inc. to reflect its expanded product line. 270,000 iPhones were ordered during the first 30 hours after its release, earning it the moniker "Apple's destiny changer."

The debut of the iPhone, iPod Touch, and iPad devices were met with overwhelming success. Apple introduced the App Store in July 2008 to offer third-party iPhone and iPod-Touch software. The App Store sold 60 million apps in a month and generated an average daily income of $1 million. Because of the iPhone's success, Apple became the world's third-largest mobile device provider.

In October 2010, Apple stock achieved an all-time high of $300. On August 24, 2011, Steve Jobs stepped down from his role as CEO owing to health concerns and was succeeded by Tim Cook . Jobs died on October 5, 2011, bringing an end to a great period for Apple and a major shift in the company's history.

Apple, on the other hand, continues to dominate the market with ground-breaking technical marvels.

the apple case study

Apple - Vision, and Mission

Apple's mission is “ to bring the best user experience to its customers through its innovative hardware, software, and services .”

Apple - Business Model

Apple's business model is divided into two parts: products and services. In 2021, Apple earned more than $365 billion in revenue, with $191.9 billion coming from iPhone sales, and $38.3 billion from accessories and wearables (AirPods, Apple TV, Apple Watch, Beats products, Home Pod, iPod touch, and accessories),  $35.2 billion from Mac sales, $31.86 billion from iPad sales, and $68.4 billion from services.

  • Products - iPhone, Mac, iPad, as well as wearables, home, and accessory devices, are among the product lines (Air Pods, Apple-Watch and more)
  • Services -  AppleCare+, Digital Content Stores and Streaming Services, and the AppleCare Protection Plan, Apple's Cloud Services, Licensing, and other services like Apple ArcadeTM, Apple News+, Apple CardTM, and Apple Pay, a cashless payment service, are all part of the services business.

Apple - Investments

Apple - acquisitions, apple - competitors.

Microsoft, Samsung, Lenovo, Dell, Sony, HP, Xiaomi, Asus, Huawei, and Oppo are the top competitors of Apple.

Apple - Future Plans

Every year in June, Apple has its global Annual Developers Conference, and in 2022, the keynote will be held on June 6. Apple will use the event to debut its next-generation software, which will be available in the autumn.

Apple is said to be developing a folding iPhone with a screen size of 7.5 to 8 inches and a release date of 2023 at the utmost. Apple is reported to be working on interactive virtual goggles with an inbuilt processor, dedicated high-end displays, and a Reality Operating System. The gadget will combine hand gestures, touch panels, and voice activation for interaction, and it is projected to cost around $3,000. In 2023, the AR/VR headset is projected to be released.

Apple is working on upgraded 14-inch and 16-inch MacBook Pro models with M2 Pro and M2 Max processors. The M2 Max processor will include a 12-core CPU and a 38-core GPU, and the new computers will be available in 2023.

The storyline of Apple's electric vehicle research has undergone numerous plot twists, but reliable Apple analyst Ming-Chi Kuo claims that the company is still targeting a completely autonomous automobile, instead of just a technology offering, with a launch date between 2023 and 2025.

Apple - FAQs

What does apple do.

Apple Inc. is a global software company headquartered in Cupertino, California, that specialises in portable electronics, software applications, and internet services

When was Apple founded?

Which companies do apple compete with.

Microsoft, Samsung, Lenovo, Dell, Sony, HP, Xiaomi, Asus, Huawei, and Oppo are some of the companies Apple competes with.

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Rebuilding Trust: Apple Crisis Management Case Study

Crisis management is an essential skill for any business, as even the most successful companies can find themselves in challenging situations that threaten their reputation and bottom line. 

One such case that garnered significant attention and scrutiny is the Apple crisis. 

Apple, the tech giant known for its innovation and loyal customer base, faced a crisis that put its brand and reputation at risk. 

In this blog post, we will delve into the Apple crisis management case study, exploring the challenges faced by the company, the strategies implemented to navigate the crisis, and the lessons learned from their experience. 

By examining Apple’s crisis management approach, we can gain valuable insights into the importance of proactive crisis management and its impact on businesses in today’s hyper-connected world.

Let’s dive in and learn more 

Overview of Apple’s history and brand image

Apple, founded in 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne, has emerged as one of the most influential and valuable companies in the world. The company’s journey began with the creation of the Apple I, a personal computer that laid the foundation for their future success.

Over the years, Apple revolutionized various industries, introducing groundbreaking products such as the Macintosh, iPod, iPhone, iPad, and Apple Watch.

One of the key factors contributing to Apple’s success is its unwavering commitment to innovation. The company’s ability to anticipate and meet consumer needs with cutting-edge technology has consistently set it apart from its competitors. Apple’s products are renowned for their sleek designs, user-friendly interfaces, and seamless integration across its ecosystem.

Beyond its products, Apple has cultivated a distinctive brand image that resonates with consumers worldwide. The company’s brand is synonymous with excellence, creativity, and a forward-thinking mindset. Apple’s marketing campaigns, such as the famous “Think Different” slogan, have fostered a sense of aspiration and uniqueness among its customers.

Furthermore, Apple has successfully built a loyal and passionate community around its products. The Apple ecosystem encourages users to remain within the brand’s ecosystem, promoting customer retention and brand loyalty. This devotion is evident in the enthusiastic anticipation and high demand for new Apple product launches.

Explanation of the crisis situation faced by Apple

Apple, a company known for its strong brand image and customer loyalty, faced a significant crisis that posed a considerable challenge to its reputation. The crisis situation arose when reports and allegations surfaced regarding unethical labor practices in Apple’s supply chain.

These reports highlighted issues such as poor working conditions, excessive overtime, child labor, and inadequate safety measures in some of the factories producing Apple products.

The crisis was exacerbated by extensive media coverage and the viral spread of information through social media platforms. News outlets, consumer advocacy groups, and concerned individuals amplified the allegations, putting pressure on Apple to address the situation swiftly and transparently.

The crisis not only raised ethical concerns but also posed a threat to Apple’s brand image. The company’s reputation for innovation, quality, and customer satisfaction was at risk of being tarnished by association with these labor controversies.

Apple was faced with the challenge of not only addressing the immediate issues within its supply chain but also effectively managing the perception of its commitment to social responsibility and ethical business practices.

Factors that led to the crisis

The crisis faced by Apple regarding unethical labor practices in its supply chain was influenced by several factors that contributed to the emergence and escalation of the issue.

  • Globalized Supply Chain: Apple’s success as a global technology leader relies on a vast and complex supply chain spread across various countries. The company sources components and assembles its products through a network of suppliers and subcontractors worldwide. The extensive reach of this supply chain increases the difficulty of monitoring and ensuring ethical practices at every stage.
  • Outsourcing and Cost Pressures: To remain competitive, companies like Apple often outsource production to regions with lower labor costs. This outsourcing, while driving efficiency and cost savings, can sometimes lead to compromised labor standards. Suppliers under cost pressures may resort to exploitative practices such as excessive working hours, low wages, and poor working conditions to meet demand and maintain profitability.
  • Lack of Supply Chain Transparency: Managing a complex supply chain poses challenges in terms of visibility and transparency. Apple, like many other companies, faced difficulties in monitoring and enforcing labor standards across its entire supply chain. The lack of transparency made it challenging to identify and address ethical issues promptly, allowing problems to persist and potentially escalate.
  • Limited Supplier Oversight: Despite Apple’s efforts to implement supplier codes of conduct and auditing processes, the sheer number of suppliers and subcontractors involved made it challenging to maintain stringent oversight. This resulted in instances where unethical labor practices went undetected or were inadequately addressed.
  • Social Media and Activism: The rise of social media platforms and increased activism empowered consumers, workers, and advocacy groups to expose and publicize the labor issues within Apple’s supply chain. The widespread dissemination of information and the ability for individuals to amplify their concerns quickly led to significant reputational risks for the company.

Impact of the crisis on Apple’s brand and reputation

The following are key impacts of the crisis on Apple’s brand and reputation:

  • Brand Perception : The crisis undermined Apple’s carefully cultivated brand image. The allegations of unethical labor practices tarnished the perception of Apple as a company that prioritizes the well-being of its workers and upholds high ethical standards. The negative media coverage and public scrutiny eroded trust and raised doubts about the authenticity of Apple’s commitment to responsible business practices.
  • Consumer Trust: Apple’s loyal customer base, which had been drawn to the company for its innovative products and perceived values, was confronted with allegations of worker exploitation. This eroded the trust and loyalty that customers had placed in Apple. Concerned consumers started questioning the ethics behind their purchasing decisions and may have become hesitant to support the brand.
  • Investor Confidence: The crisis had implications for investor confidence in Apple. The negative publicity and potential ethical implications affected the perception of Apple’s risk management practices and corporate governance. Investors may have raised concerns about the company’s ability to effectively manage supply chain risks and protect its brand value, leading to potential impacts on the company’s stock price and shareholder sentiment.
  • Reputational Damage: The crisis resulted in significant reputational damage for Apple. The labor controversies received widespread media attention, leading to negative headlines and public discourse about the company’s ethical standards. This damage extended beyond Apple’s core customer base, reaching a broader audience and potentially influencing perceptions of the brand among potential customers and stakeholders.
  • Competitive Disadvantage: The crisis also created a potential competitive disadvantage for Apple. Competitors in the technology industry could capitalize on the negative publicity and position themselves as more socially responsible alternatives. Apple’s reputation for innovation and quality alone might not be sufficient to counterbalance the ethical concerns raised by the crisis.

Apple’s Crisis Management Strategy 

Following are key aspects of Apple crisis management strategy:

Immediate response to the crisis

When faced with the crisis of unethical labor practices in its supply chain, Apple swiftly initiated an immediate response to address the situation. The company recognized the gravity of the allegations and understood the importance of proactive crisis management.

The following are key aspects of Apple’s immediate response strategy:

  • Acknowledgment and Investigation: Apple promptly acknowledged the allegations and expressed its commitment to investigating the issues thoroughly. The company recognized the need for transparency and took responsibility for addressing the labor concerns within its supply chain.
  • Supplier Audits: Apple conducted comprehensive audits of its suppliers to assess the working conditions, labor practices, and adherence to ethical standards. These audits aimed to identify non-compliant suppliers and gather detailed information to formulate appropriate corrective actions.
  • Collaboration with Suppliers: Apple worked closely with its suppliers to address the identified issues and enforce compliance with ethical labor standards. The company engaged in open dialogue, sharing its expectations and implementing measures to improve working conditions and protect workers’ rights.
  • Supplier Code of Conduct: Apple reinforced its supplier code of conduct, which outlines the expectations and requirements for ethical labor practices. The company communicated the code clearly to all suppliers and emphasized the importance of compliance. Non-compliant suppliers were urged to make necessary improvements or face consequences.

Initial actions taken by Apple to address the crisis

During the initial stages of the crisis, Apple took several immediate actions to address the labor concerns and mitigate the negative impact. These actions demonstrated the company’s commitment to resolving the issues and improving working conditions within its supply chain.

The following are some of the key initial actions taken by Apple:

  • Supplier Engagement and Remediation: Apple actively engaged with its suppliers to address the identified labor issues. The company worked collaboratively with suppliers to develop and implement remediation plans that focused on improving working conditions, ensuring fair wages, and eliminating unethical labor practices. This approach emphasized corrective actions rather than simply severing ties with non-compliant suppliers.
  • Worker Empowerment Programs: Apple recognized the importance of empowering workers and ensuring their well-being. The company implemented programs to educate workers about their rights, provide channels for reporting grievances, and establish mechanisms for feedback and improvement. These initiatives aimed to empower workers and create an environment where their voices were heard.
  • Enhanced Supply Chain Transparency: Apple took steps to improve supply chain transparency, making information about its suppliers more readily available. The company published annual reports that detailed its supplier responsibility initiatives, audits, and progress made in addressing labor concerns. This transparency aimed to build trust among stakeholders and hold Apple accountable for its actions.
  • Collaboration with Industry Peers: Apple actively collaborated with other industry leaders and stakeholders to address the systemic challenges within the technology supply chain. By partnering with organizations and sharing best practices, Apple sought to drive industry-wide improvements in labor practices and create a more sustainable and ethical supply chain.

Crisis containment and damage control

In addition to the immediate response, Apple implemented crisis containment and damage control measures to limit the negative repercussions of the labor crisis. The company recognized the importance of effectively managing the situation to protect its brand and reputation.

The following are key actions taken by Apple for crisis containment and damage control:

  • Clear Communication: Apple developed a comprehensive communication strategy to address the crisis. The company proactively communicated with stakeholders, including customers, employees, investors, and the public, to provide updates on the progress made in resolving the labor issues. Transparent and timely communication aimed to rebuild trust and maintain transparency throughout the crisis.
  • Public Statements and Apologies: Apple’s top executives issued public statements acknowledging the gravity of the situation and expressing apologies for any harm caused. The company took responsibility for the issues within its supply chain and emphasized its commitment to remediation and preventing similar incidents in the future. Public apologies were crucial in demonstrating accountability and a willingness to learn from the crisis.
  • Continuous Improvement and Reporting: Apple emphasized continuous improvement by regularly reporting on its progress in addressing the labor crisis. The company shared annual reports, sustainability updates, and supplier responsibility progress reports to showcase the strides made in improving working conditions and upholding ethical practices. Transparent reporting aimed to rebuild trust and demonstrate Apple’s ongoing commitment to accountability.

05 lessons learned from Apple Crisis Management Case Study

These lessons learned from Apple crisis management case study can serve as valuable takeaways for other organizations facing similar challenges. 

Let’s discuss each of these:

Proactive auditing and monitoring

Apple learned the importance of proactive auditing and monitoring of its supply chain to identify and address potential issues. Regular audits and inspections help ensure compliance with ethical standards and allow for early intervention and remediation.

Transparent communication

The crisis highlighted the significance of transparent communication with stakeholders. Apple realized that timely and honest communication about the crisis, its causes, and the steps taken to address it was essential for rebuilding trust and maintaining transparency.

Supplier collaboration and support

Apple recognized the need for collaboration and support with its suppliers. The company learned that working closely with suppliers, providing resources, guidance, and training, helps improve ethical practices and strengthens the overall supply chain.

Long-term commitment

Apple understood the importance of a long-term commitment to addressing the crisis and preventing future incidents. The company recognized that sustainable change requires ongoing efforts, continuous improvement, and a steadfast commitment to ethical practices and responsible business conduct.

External validation and partnerships

The crisis highlighted the value of external validation and partnerships. Apple sought certifications and accreditations from recognized third-party organizations to provide independent verification of its efforts. Collaborating with industry peers, NGOs, and advocacy groups allowed Apple to gain insights, share best practices, and drive collective change.

Final Words 

Apple crisis management case study provides valuable insights into how a company can navigate and recover from a crisis while minimizing the negative impact on its brand and reputation. The labor crisis presented Apple with significant challenges, but the company responded with a comprehensive and strategic approach.

Ultimately, Apple crisis management case study highlights the significance of a holistic approach that goes beyond immediate crisis response. By taking responsibility, implementing meaningful actions, and fostering a culture of responsible business conduct, a company can rebuild trust, enhance its reputation, and position itself as a leader in ethical practices and sustainability

About The Author

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Tahir Abbas

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Apple iPhone: A Market Case Study

  • Daylin Van De Vliert Etayankara Muralidharan

Founded in 1976, Apple inc. quickly became one of the biggest companies in the world. Throughout the years, Apple has been apart of the technology market where there has been an exponential amount of opportunities and threats. This market case study aims to determine how Apple can target such opportunities to help predict future trends and influences over the market. To identify these trends and market influences, I have first conducted an environmental scan of Apple’s current and future market(s). Then I described Apple’s fundamental psychological and sociocultural consumer behaviors. And finally, I identified Apple’s target market, how they have chosen to segment and the demographics and geographics within Apple’s largest target segments. As a result of successfully identifying trends in the past, Apple continues to impress with its globally known brand name and customer base/market. However, Apple must continue to identify future opportunities to stay relevant in the ever-advancing technological market. This analysis of the marketing context suggests Apple may need to re-position its iPhones to maintain its leading position in the marketplace.

the apple case study

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Table of Contents

Apple target audience , marketing strategy of apple, 5 key takeaways from apple marketing strategy, a case study on apple marketing strategy.

A Case Study on Apple Marketing Strategy

Breaking through with several inventions in the world of technology, Apple Inc. has been carving infinite milestones ever since its inception. Even though its innovations speak for themselves, this highly-valued giant corporation has invested heavily in its marketing team to soar high up as a tech maestro. Apple Inc. realized the role of brand marketing in the success of a venture from the start as a crucial way to connect with its target audience. This brand's marketing is so vigorously carried out and well-thought that it is often an inspiration and a place of research for marketing professionals. Here we bring you a well-curated case study on Apple's marketing strategy, the key takeaways to learn from this venture, and how to incorporate the same in your business and marketing strategies. 

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To understand its key strategies for marketing Apple products, let's first understand what Apple's target audience is like. Apple's target audience consists of middle-class and upper-class users who can pay higher for products that provide them with an incredible user experience. This means that these users have a higher disposable income and are willing to pay more for as high-priced products as Apple's. 

Let's take a look at Apple's target audience with this comprehensive analysis sourced from Business Research Methodology's report on Apple Segmentation :

Besides this primary classification, Apple also explicitly targets professionals working in specialized software like music, video, photography and all kinds of design careers. These working professionals prefer Adobe’s Final Cut, Photoshop and related editing software which work well with Macbooks and IPads than other operating systems. 

Even better, business professionals prefer Apple products such as iPods and Macbooks for their day-to-day work. Products like iPads and Macbooks are lighter and portable, so they are often selected by students (upper-class), educational institutions and teaching. 

Now coming to the marketing strategy of Apple, it is a combination of well-designed products with the right user experience, promotional campaigns, distribution, and pricing. Let’s take a look at all these features of Apple marketing strategy in detail:

Focus on Finer User Experience

Apple’s branding strategy is based on its stylish, more straightforward and lush products that focus on providing a user interface that is very simple to use and learn. They are lighter, easy to carry as well as durable. This minimal look and user experience makes it a perfect sell to its target audience, which comes from the middle to upper class.

Suave Yet Simple Advertising

Storytelling is such an essential part of every Apple ad as well as a marketing campaign. Often these ads focus on minimal design as well as high-quality images. They are either blended with music or a simple story. Apple consciously ensures that its advertising and marketing don’t use too much jargon or filler language in its ads. Instead, it shines a light on the product to let it speak for itself without showing what the price is like or using complicated words for its features.

Targeting the Right Markets

Apple is excellent at tapping into its target audiences like a genuine tech witch who knows their aspirations, preferences and pain points! Its market research is always on-point and crystal clear in its products, curation, and features. 

Here are the major critical takeaways from Apple Marketing Strategy:

  • Tapping into your target markets and audience is the key to curating and selling user experiences that value the preferences of its people. 
  • With simplicity and finesse in design, the right products with minimal designs and features can create a perfect impact for your brand.
  • Incorporating emotion in your advertising and marketing can also help you connect with your audience better. 
  • Don’t exaggerate the copy and conceptualizing of your advertising and marketing campaigns and prefer the “less is more” approach. Create shorter yet emotional and empathetic ads to captivate your target audience.
  • When you create an international brand value through quality and minimal, sophisticated design, you don’t need to compete in terms of price. Instead, your price will set you apart for your user experience and design features.
Become a millennial Digital Marketer in just 6 months. Enroll now for our PGP in Digital Marketing course in collaboration with Purdue University!

Thus, we hope we have helped you understand what Apple’s marketing strategy is about! Want to read more case studies about top brands and their marketing strategies? Join Simplilearn’s specialized PGP Digital Marketing certification in collaboration with Meta Blueprint and Harvard Publishing. This certification can help you level up your career in digital marketing through case studies, industry projects, masterclasses from industry experts, ad marketing tools from Facebook, Google, and related marketing tools. 

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Apple’s Dilemma: Balancing Privacy and Safety Responsibilities

How should Apple CEO Tim Cook manage the tension between iPhone customers’ privacy and public safety?

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In 2015, Apple debuted the iPhone 6S, which employed a default encryption system preventing both Apple and government authorities from accessing data stored on the device. Then, in 2016, a federal judge ordered Apple to provide technical assistance to unlock the iPhone used by one of the mass shooters in San Bernardino, California. Apple refused to comply.

Years later, as the COVID-19 pandemic swept across the globe in 2020, Apple and Google partnered to develop a contact tracing application that would collect information about users infected with the disease and notify those who they had been in contact with. The app would keep information about infection and contact private, but some governments wanted more access. When Apple and Google declined to provide this information, they sparked a debate about the companies’ responsibilities for their customers’ personal privacy versus public health.

Most recently, in September 2021, Apple decided to delay operating systems updates that included features to fight child sexual abuse. While many praised Apple, others worried that Apple’s new features risked undermining the privacy of all users.

As each of these situations unfolded, Apple CEO Tim Cook had to consider both his responsibilities to global governments and society, as well as to Apple’s customers, employees, and shareholders. Harvard Business School senior lecturer Henry McGee and professor Nien-hê Hsieh discuss the tension between privacy and safety in their cases, “ Apple: Privacy vs. Safety ” ( A ), ( B ), and ( C ).

BRIAN KENNY: Within days of the 9-11 terrorist attacks on the World Trade towers, while the dust was literally still settling, the US Congress passed an anti-terrorism bill that allowed the government greater liberty to use surveillance technology including internet wiretaps to combat terrorism. Senator Orrin Hatch of Utah, who co-authored the bill, said that, “For now at least privacy is going to have to take a backseat to security.” And in the wake of that horrific attack, most Americans agreed with him. Of course, in 2001, it was hard to imagine a future where most everyone would carry a device around that held a limitless amount of personal information, private correspondence, financial and medical details, essentially composites of our lives. And most of us wouldn’t have foreseen the extent to which smart connected devices would catalog and share our information in ways that both benefit us and cause us harm. The truth is that while private information creates the personalized experiences that many crave, it also makes us vulnerable to attack in ways large and small. Today on Cold Call , we welcome Professor Henry Mcgee and Professor Nien-He Hsieh to discuss their case, “Apple Privacy vs. Safety.” I’m your host, Brian Kenny, and you’re listening to Cold Call on the HBR podcast network. Nien-He Hsieh’s research looks at whether and how managers ought to balance considerations of economic efficiency with values such as freedom, fairness, and respect for basic rights. Henry Mcgee studies the governance of nonprofit organizations, especially those in the arts. He is the former CEO of HBO Home Entertainment. They are co-authors of this case. Thank you both for joining me today.

HENRY MCGEE: Great to be here.

NIEN-HE HSIEH: Thank you. It’s great to be here.

BRIAN KENNY: Great to have you back, Henry, and to have you Nien-he on the show for the first time. I’ll ask you to start Nien-he, can you talk about what the central issue is in the case and how you start the class?

NIEN-HE HSIEH: So, the central issue in the case is how you as Tim Cook manage and balance the responsibilities to your users in terms of their privacy and protecting their data. And at the same time acknowledging that doing so may give rise to challenges with regard to the broader society responses you have. So that’s sort of the heart of the question, is: How do you balance your responsibilities to customers and users and at the same time, responsibilities to society, whether it’s in the form of security with regard to fighting terrorist acts, public health, or more generally protecting users from child pornography?

BRIAN KENNY: What’s the cold call that you use to start the case?

NIEN-HE HSIEH: The cold call has actually changed over time. I think the first time it would’ve been after San Bernardino is if you’re Tim Cook, how do you respond to the FBI’s request to create a backdoor to allow them access to the iPhone? But now that we have three sets of issues, there’s a question of physical safety in San Bernardino, there’s a question of public health in the case of contact tracing with Covid-19, and then there’s a case of protecting minors from child pornography. I think now opening the case is more generally: How important is privacy to users?

BRIAN KENNY: Okay. So, you wrote the case together. I’m curious, Henry, let me turn to you for a moment, as to why you decided to write the case. Why did you think it was important to document this?

HENRY MCGEE: Well, believe it or not, this case goes back to 2016.

BRIAN KENNY: Okay.

HENRY MCGEE: And we have updated it twice, once in 2021 during Covid public health issue and the more recently in 2023 to address an issue raised by the issue of access to iPhones when it comes to child pornography and other issues. And we felt it important that this was a device that the students had in their pockets. Certainly it wasn’t an abstract issue to students and it brought home the fact that as business leaders, they were going to have to balance these issues of responsibilities to their customers and responsibilities to society. And so, this case with an iPhone in everyone’s pocket really jumped out as something that we should tackle.

BRIAN KENNY: Apple is sort of the main player here. Can you describe for our listeners who maybe aren’t as familiar with Apple as others, what does the company look like and where does it sit in the landscape of devices?

HENRY MCGEE: Apple and Samsung together represent on a global basis about 40% of the worldwide phone market, which by the way, this year is going to approach sales of close to half a trillion dollars. It’s absolutely enormous. Again, it depends on the quarter. The first quarter this year, they both had about 20% market share. Several Chinese companies come in right behind them. It’s also important to note that the share is based on the market. So, for example, in the US the share of Apple phones approaches 60%, but in China it’s low double digits. So, it depends on the market as well. But certainly they and Samsung are the global leaders.

BRIAN KENNY: Yeah. Okay.

NIEN-HE HSIEH: It’s also important to think about whether we’re comparing iPhone as a phone versus iPhone as an operating system. So there, the market also starts to look slightly different because then if you look at the operating system that Apple has, it’s about maybe 30% I think, of all smartphones in terms of the share of market with regard to the operating system. But the other amazing thing to keep in mind with this is that unlike a lot of other products that get cheaper over time, the iPhone gets more expensive over time.

BRIAN KENNY: Right. I know I have one.

HENRY MCGEE: Right.

NIEN-HE HSIEH: And it’s managed to increase its market share. And that I think is something pretty unusual to keep in mind for the listeners and thinking about just how remarkable in some sense and how successful it’s been as a company.

BRIAN KENNY: Why did privacy become such an important thing under Tim Cook’s leadership? Because I don’t hear other companies talking about the privacy issue. It always seems like Apple is front and center on that one.

NIEN-HE HSIEH: So, my view is that I think, and I think Henry can talk a little bit about Tim Cook’s, but I think one thing is that it’s actually used privacy as a way to differentiate the product because I think in some ways Apple really prides itself on the user experience. And so insofar as it’s about the user experience, you need to gain user trust. And so having privacy at the forefront is one of the ways to sort of think about why it’s an important feature for Apple.

HENRY MCGEE: It’s clearly a product differentiator for them. And in fact, Apple’s critics claim that they are emphasizing a product feature over their responsibilities to participate in law enforcement. And that Apple’s in fact, on the wrong side of that issue. But privacy is central to Tim Cook and it’s part of a broader philosophy he has about the role of business in society. And he feels that goes well beyond simply making profits. And if I had to sort of have a poster person for stakeholder capitalism, it would be Tim Cook. In fact, famously he stood up at one Apple annual meeting and told investors that if they didn’t agree with the way the company was approaching its responsibilities, that they should simply sell the stock, which is not something you hear a lot of CEOs say.

BRIAN KENNY: And it’s kind of remarkable because you don’t, at least I don’t recall Steve Jobs ever really taking a stand one way or the other on this particular issue. So, the case goes into Ed Snowden. People might recall that Ed Snowden was somebody who worked for the US government and he was able to steal a lot of information, a lot of data, particularly about US government surveillance. Can you talk a little bit about what the nature of that data was and what it revealed?

HENRY MCGEE: That’s the key here in terms of the time. I remember Cook becomes CEO in 2011.

BRIAN KENNY:

HENRY MCGEE: And the Snowden as an issue shows up 24 months later in 2013 when Snowden, who was a contractor for the National Security Agency came across documents that showed that the US and British governments, without the consent of telecom companies, Google and others, was collecting search data, emails and there was actually no privacy at all. He leaked that information and it created a firestorm. Congress would later create legislation that would increase privacy. Snowden was branded a traitor. In fact, he ended up, initially he was in Hong Kong, initially fled to Russia, and is in fact, now a Russian citizen. And what he did has often says is one of the greatest breaches of US security in history. So, the security establishment continues to vilify Snowden. On the other hand, it was a catalyst for the beginning of encryption and a real focus on privacy.

BRIAN KENNY: Yeah.

HENRY MCGEE: So, it was maybe just think about again, the timeline. 2011 Cook become CEO, 2013 Snowden leaks. There’s a huge uproar over the issue of privacy. And then two years after that, in September 2015, Apple releases iOS eight, the new Apple iPhone 6s and iOS eight, in which there’s a default encryption. So that no one can get access to the message because it’s encrypted when you send the message and the person getting the message has a set of keys that unlocks it.

HENRY MCGEE: And Apple does not have that key. And so, it’s the first real focus on making a product that is really focused on security.

BRIAN KENNY: And that becomes a really central issue in the case as we go forward. But we’re going to talk about San Bernardino and what happened there in a moment. But before we even go to that, I’ll just take myself as an example. I feel like I give away my personal data all the time, signing up for this or asking for information for that. How good are people about protecting their own information on their devices?

NIEN-HE HSIEH: It probably depends.

BRIAN KENNY: Yeah. You might be better than me. I don’t know.

NIEN-HE HSIEH: When’s the last time you changed your password?

NIEN-HE HSIEH: So, look, if you look at surveys, people are notoriously bad at protecting their privacy, and they’re open to not just actively participating and sort of responding to phishing emails or opening links and things like that that are problematic. So, I think in that sense it’s hard. But at the same time, I think people at some level also don’t always really know just how much they’re putting their privacy at risk. So, I think that for me is the more concerning issue, is that people actually don’t really understand just how much data, right, is being gathered and how much data is being collected. And that I think for me is the real issue as opposed to sort of how good or bad are you at protecting your privacy, if that makes sense. Yeah.

BRIAN KENNY: Well, and to the Ed Snowden example, unless somebody tells us that it’s being used surreptitiously, we otherwise wouldn’t know. But there are laws to protect this, right? We have the Fourth Amendment. What does that cover?

NIEN-HE HSIEH: Well, the Fourth Amendment is against the government collecting information. So it doesn’t really exactly cover private companies collecting data in the same kind of way. So that’s sort of one thing to keep in mind.

HENRY MCGEE: But to that point, certainly, and this is embedded I think in what we think of as a right to privacy as Americans, I think, well, it’s certainly written vis-a-vis government. I think people would interpret it. They have a right to privacy and business, and importantly, even in the universal human rights declaration, a right to privacy as outlined. So, I think it’s a global issue, and people feel that privacy is a central issue, which takes us to San Bernardino for example, is that two terrorists committed mass murder, the information about their contacts was on their iPhones, but residing only on their iPhones because of the security protocols that Apple had. And the question was the government needed desperately to get into the phones in order to make sure that there weren’t other attacks that were to come. And Apple took the position that they were not going to do that. One is there were no such keys and that they certainly weren’t going to order their engineers to undo years of work they had done in order to encrypt the data.

HENRY MCGEE: So there, Cook was wrestling with two things, it was several things, right? He had his responsibility to maintain the idea of privacy, he’s got issues with his engineers and the culture that he’s created around privacy. He took the government to court, refusing. Before the issue could be resolved, the government actually hired a third party to hack the phone.

BRIAN KENNY: To break the phone, right? Yeah.

HENRY MCGEE: And so, it never came to that. But from Cook’s point of view, the data belongs to the consumer. And if the government wants the information, they need to go to the consumer and not call him up as a third party asking him to damage his software that he’s encoded. The United States Supreme Court ended up siding with Apple, a different case in which they argued that while law enforcement could get the information through a subpoena and someone could comply with a subpoena or not,-

BRIAN KENNY: Right.

HENRY MCGEE: That what was being done in the prior programs, we were simply harvesting the data without getting a subpoena. So, this is an issue, a great moment then as it is now.

BRIAN KENNY: Yeah, yeah. And to your point earlier, Nien-he, part of this is, I mean, the whole issue of privacy was a differentiator for Apple. Very hard for Tim Cook to go back on that promise that he’s made to his customers, even though I’d be willing to bet a fair number of customers thought, hey, this is a really horrible thing that happened and we need to find out who else might be involved because people’s safety is in jeopardy.

NIEN-HE HSIEH: That’s true. But we have to remember also that the part of the issue here is not just sort of protecting consumer privacy, it’s how it’s done. Right. So, this isn’t simply allowing access to an individual account. This isn’t simply opening a safe deposit box. What this is doing, if you sort of access the safe deposit box or the user’s data in this case requires you, as Henry said, to sort of actually re-engineer the software, that in effect then essentially creates access to everybody’s safe deposit box. And that’s a key difference here. And that’s what makes this, I think, somewhat different from other cases of the government trying to get subpoenas to go after information.

BRIAN KENNY: So, let’s take this out of the US context because there’s an expectation, right, of privacy in the United States. If we go to other parts of the world in countries where that’s not a given, and we’ll take China maybe as an example, how does a company like Apple operate in a place like China?

HENRY MCGEE: Well, it does operate in China,-

BRIAN KENNY: In a big way.

HENRY MCGEE: I’ll tell you. Very good. China not only most of its devices are manufactured in China, but also it’s a huge market for them as well. And I think that Cook is well aware that just as the United States has banned Huawei, the huge Chinese mobile manufacturer from shipping to the US, that they’re sort of one edict away from having Apple phones banned in China. I think what works against that is there’s so much manufacturing going there, but of course Apple’s in the process of trying to move some of its manufacturing away from China. But anyway, so big consumer market for them, essential manufacturing partner. And so, they dealt with it two ways. One is Apple has not admitted this, but it’s generally accepted that they have given the Chinese government access to their source code that goes into devices. Apple maintains that simple access to the source code, does not permit any ability to change the encryption. But importantly, they point to two things Apple has done. So, for example, virtual private networks, which are another level of security, the Chinese government has banned those. And so, Apple in compliance with that took the VPN apps off their app store. Secondly, during the protest in Hong Kong, Apple removed at the request of the Chinese government, removed maps of the city of Hong Kong. Apple argued that it was because people were using it to create violent things. Others say it was a push by the Chinese government. And Cook talks about this, he will deal with local laws, but privacy has to remain supreme.

NIEN-HE HSIEH: But people do criticism on this. Right. So, if you think about, for example, Google, right, Google pulled out of China when they felt that they couldn’t offer the same level of service and privacy to their search engines users and censoring results. So, some people have criticized Apple as well for maybe being a little bit too lenient in this case and still wanting to maintain its market share and manufacturing capacity there.

BRIAN KENNY: Yeah, you could question motives about all of these. The case does go into the really interesting situation that presented itself with the pandemic where contact tracing became an important way for us to sort of check the spread of Covid around the country, but also inherently seemed to carry with it some concerns about privacy. Can you talk a little bit about that?

NIEN-HE HSIEH: There’s two things that are remarkable. One is in that situation, Google and Apple came together, right, which I think is something that doesn’t always happen and developed a contact tracing app, right, and a way to do that so that it would allow you as a user to know whether you had been in contact with somebody who had Covid.

NIEN-HE HSIEH: So, I think that was useful information for individuals. Where it became difficult was when the government of France in this case wanted to then actually have more information, that they could actually gather the information so that they could then sort of target interventions with regard to the public on this issue. And so that became, I think, a sticking point. But again, some people say, look, from the perspective of public health, it was important for the French government to be able to do that. But that’s another instance where Apple pushed back and said, we’re not going to provide that information to you as the government, but simply to users in terms of their own contact.

BRIAN KENNY: Yeah. Yeah.

HENRY MCGEE: Again, Apple, this is an important issue for the student. This is being taught during Covid. Many students are quarantined themselves. The whole public health issue is front and center. And again, there are nuances here. On the one hand, Apple and Google spent considerable resources to develop the contact app, but felt strongly that it should be shared only privately,-

HENRY MCGEE: Where many governments, understandably, from a public health point of view, wanted to have that information where there are clusters of people in a particular location. So that sort of data was important, but you can see what a nightmare that would be from a privacy point of view. Because once the government is tracking where you are in terms of the spread of Covid, what if they track you in terms of spread of ideas they don’t like?

BRIAN KENNY: Of course. Yeah. And we can see things playing out in the world today where there are protests and demonstrations happening where that could be a real problem for people. So what was Apple trying to achieve with iOS 14?

NIEN-HE HSIEH: They wanted to limit the amount of information that sort of companies could gather from their users.

HENRY MCGEE: So, Apple’s business model is very much unlike that of Facebook or Google’s in which it’s all based on advertising. Apple’s is largely based on hardware sales. And so the iOS 14 and to force the users to make a decision, whether they want their behavior to be tracked, which Apples is a big privacy issue, do you want to be tracked or not? That ability to link customers and their journey across the web was essential to the ad sales of Meta and others. And they raised a huge ruckus claiming that it was an attempt of Apple to leverage its huge market share of devices, particularly in the US, to really remove a basic cornerstone of their business model.

NIEN-HE HSIEH: The small wrinkle in that to be clear, is that given that when somebody’s on Google or somebody is on Facebook or Meta, they tend to stay in that area. So it turns out actually that even if they weren’t being traced through Apple, there is enough information out there for say, the larger platforms to be able to gather information on users. A lot of people argue that the biggest impact would’ve been on smaller companies, right, that relied on being able to sort of connect data across different platforms and that it would actually harm them more than the big companies. So we haven’t sort of seen, but that was argument that was made. Yeah.

BRIAN KENNY: The bottom line is what I’m hearing is that you’re being listened to by somebody no matter what device you’re on. One of the things we haven’t really talked about here, we talked about Apple’s place in the landscape, but we haven’t talked about how revolutionary the device itself was, which allowed them to gain such a foothold in the space. Any thoughts on that?

NIEN-HE HSIEH: I think it’s actually really hard to remember,-

NIEN-HE HSIEH: Just how much the iPhone has changed the way we not just communicate but entertain ourselves, entertain each other, buy goods and services, take photographs around the world, it’s really an amazing moment. It’s not like the iPhone was the first phone to try to do these sorts of things, right, but it really brought things together in such a seamless way that made it easy to do that it really, for consumer side, lifestyle side, has made a huge, huge amount of change. I mean, think about Siri for example, but the other thing is also that whole ecosystem really did change the way that people engage with public activities as well. So, I think Henry and I were talking earlier about Black Lives Matter.

All the protests that are captured on the camera, engagement with police, what’s going on right now in Gaza. So, there’s a sense in which it basically has opened up the world. And I don’t think it’s unfair to say that it really has opened up the world to people across the world.

HENRY MCGEE: It’s also had its negatives. I say this wearing my professorial hat. I noted with some interest that Florida now has passed a law that banned cell phone use on campus for high school students, which I think is actually my personal view, a step in a right direction. And when you see how for the younger generation, the iPhone, cell phones in general, have become so important, whether it’s that’s how they get their news, that’s how they connect with people, and that’s a real revolution. And that’s why issues around privacy and security are only going to remain front and center. And so even though we wrote this case over seven years ago, I think that the issues it raises are as salient today if not more salient.

BRIAN KENNY: Yeah, I would agree completely. We’ve heard a lot about Tim Cook’s point of view on privacy, but we haven’t really heard what his philosophy is around safety and security. So I’m wondering where that factors into his philosophy.

NIEN-HE HSIEH: If we take the issue that’s come up most recently in the UK around sort of child pornography, there is a real concern that I think he and Apple have about the safety of users. Right. So they did try to roll out a set of measures back in 2021 that if somebody tried to search for child pornography, they would immediately be redirected to certain resources to try to help them engage and deal with that issue. They tried to develop a system where they could actually scan people’s accounts and emails for various images and check them against a database. So, it’s not like he’s not concerned about safety and security, right, it’s just that he really wants to weigh that in the right way against sort of thinking about user privacy. And so, they did actually roll out this program that then met with a lot of criticism in part because it was criticized that it may not actually be effective. There was a concern also it would lead to greater erosion of privacy. And so, they pulled back on that point.

HENRY MCGEE: And false positives.

NIEN-HE HSIEH: And false positives. That’s right too. Yeah. So, it’s not like he’s not concerned about these sorts of issues.

HENRY MCGEE: And spent time engineering that, but in the face of pushback, decided not to do that.

BRIAN KENNY: Well, and I guess I shouldn’t pose the question as though the two things are sort of mutually exclusive. Right. I guess you can have privacy and safety at the same time.

HENRY MCGEE: And that’s what we want our students to wrestle with is where along that spectrum is it right for them as business leaders to fall. On the one hand, you’re going to make pledges to your customers. In this case it’s about privacy. You’re going to make pledges to your employees. On the other hand, you’re going to have responsibilities to society at large. And we want students to really wrestle with those issues. And that’s why we put them in the shoes of Tim Cook and ask them, where would you come out in terms of San Bernardino? Where would you come out in terms of contact tracing in the middle of a global pandemic?

HENRY MCGEE: And where would you come out when instances of child abuse are on the rise? And the way that child abusers communicate is via mobile devices. And so we want them to sort of think through all of those issues.

NIEN-HE HSIEH: And also, why they’re in that position. Right. And part of the reason Tim Cook and Apple are in that position is because they have a very successful product that is used by lots of people. And so it’s precisely because of that success that these problems also arise. And if you’re a much smaller network, if you didn’t have this big network of users, these issues wouldn’t be playing out at the same scale. So part of it’s also, so where does that responsibility come from? It comes from in part by actually sort of the success of your business. And then the other question becomes, how will you make money, right, and what’s your business model? And to what extent does that sort of then either exacerbate or sort of pull back on these issues too? So these issues do often arise,-

BRIAN KENNY: Of course.

NIEN-HE HSIEH: In individual’s cases, but there’s behind the background we want students to think a little bit about also what is their business model and the nature of their success, and how does that then sort of give rise to these kinds of problems as well?

BRIAN KENNY: Yeah. Yeah, and I think we know there’s not going to be less data going forward. There’s only going to be more and more and more data and how leaders choose to use that with good judgment is going to continue to be an issue. Yes?

NIEN-HE HSIEH: Absolutely. I think in some ways, for me it’s almost akin to the discovery of new resources or new potential frontiers for ownership. And we’re creating a whole new set of resources, data. And one question we have to ask ourselves is just as we have in the past, whether it’s in regard to land or these other kinds of resources, who is going to own that? It makes a big difference.

BRIAN KENNY: This has been a great conversation. I have one question left and I’m going to ask both of you, but you can’t answer it the same way because you’re co-authors. So I’ll start with you, Henry. Can you tell me, if you want our listeners to remember one thing about this case, what would it be?

HENRY MCGEE: I think the one thing that they should remember is that there is a responsibility for business leaders to think about and carefully balance their responsibilities across multiple stakeholders. In this case, most prominently, government, law enforcement, and user privacy.

BRIAN KENNY: Nien-he?

NIEN-HE HSIEH: I think following what I said before is for people to think about just how much, this may be similar to what Henry’s saying, but how much a business is a part of society, that our products, services, devices, things that we sell, they’re part of society. It’s not this like there’s just place called the market or the economy that’s separate from society. It’s all part of society. So that’s the first thing. And then the second thing is, as a business leader, it’s not just thinking about your responsibilities to society. I mean, business leaders are also members of society. And part of the answer to the question is, what are your responsibilities to society? So, think about, what kind of a society do I want to live in and what kind of society are we helping to create? And I think for me, that’s kind of what I hope this case sort of really highlights, given just how much influence and impact something like the iPhone has had on the world.

BRIAN KENNY: Henry, Nien-he, thank you for joining me on Cold Call .

HENRY MCGEE: Thank you. It’s great to be here.

NIEN-HE HSIEH:Thank you, Brian. This was great.

BRIAN KENNY: If you enjoy Cold Call , you might like our other podcasts, After Hours , Climate Rising , Deep Purpose , IdeaCast , Managing the Future of Work , Skydeck , and Women at Work . Find them on Apple, Spotify, or wherever you listen, and if you could take a minute to rate and review us, we’d be grateful. If you have any suggestions or just want to say hello, we want to hear from you. Email us at [email protected] . Thanks again for joining us. I’m your host, Brian Kenny, and you’ve been listening to Cold Call , an official podcast of Harvard Business School and part of the HBR Podcast Network.

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Apple CRM Case Study: Secrets Behind Apple’s Prodigious Growth

  • Category : Case Studies , CRM
  • Last updated on July 2, 2023
  • By Viktor. A
  • No Comments

Apple CRM Case Study

One of the things that made Apple great was that, in the early days, it was built from the heart.

Those golden words by Steve Jobs sum up the secret of Apple CRM’s unprecedented growth over the years. Apple’s vision was clear from day one – “to make the best products on earth.” They aren’t in the business of making products but creating experiences through their products.

A recent survey by SellCell reveals that brand loyalty for Apple is at a whopping 92%. This means that up to 92% of Apple customers will keep patronizing the company’s products. From the survey, it is evident that Apple’s customer relationship management software is efficient and effective.

How did Apple get here? What’s their secret sauce to retaining their customers? What are they doing differently? Sit tight as we explore the Apple CRM case study.

Thanks to Apple’s CRM strategies, they’ve become the most-loved brand in the world.

In this article, we’ll present the tech giant’s top CRM strategies that are instrumental to its phenomenal growth. Without further ado, let’s dive in.

Table of Contents

We worked hard, and in 10 years, Apple had grown from just the two of us in a garage into a 2 billion company with over 4000 employees.

– Steve Jobs

Apple Timeline

Apple Computers, inc. is founded by Steve Jobs and Steve Wozniak. Their first product is the Apple I personal computer.

Apple conducts an initial public offering at 4.6million shares at $22 per share.

Apple introduces the Lisa, a new brand of personal computers.

Steve Jobs resigns from Apple.

Apple buys Job’s company, NEXT software.

Steve Jobs becomes permanent CEO

Apple launches iTunes and iPod. Followed by iPhone (2007), MacBook (2008), and iCloud (2011).

Jobs resigns as CEO, Tim Cook takes his place.

The European Union rules that Apple must pay Ireland $14.5 billion in taxes back.

Apple becomes the first American public company to surpass $1 trillion in value.

Apple hits $2 trillion

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Apple CRM Case Study: Top 4 Ways Apple Use CRM

1. apple customer-centric store outlets.

For Apple, everything is about delighting the customers. The extraordinary concept of their stores is the most precise expression of their passion for customers. This has morphed their stores into a place of connection and bonding with other Apple lovers.

Apple stores follow a rather unusual way of selling tech products. Instead of displaying the products with price tags, the devices are powered on for customers to enjoy. Not only that but they’re also filled with fun applications and games for users to play around with.

Tech-savvy employees are there to help customers with tech challenges. Also, when users get the products, they have dedicated staff that exposes them to the product’s main features. All these contribute towards strengthening Apple’s customer relationship management.

the apple case study

Apple’s customer service process is another major determinant of its stores’ success. They developed an acronym for their customer service that spells A-P-P-L-E.

A- Approach customers with a personalized, warm smile.

P- Probe politely to understand what the customer needs.

P- Present a solution that can take home today.

L- Listen for and resolve any issues or concerns.

E- End with a fond farewell and invitation to return.

2. Understand Customer Needs

There are (3) three guiding principles of Apple’s marketing and branding, which are:

1. Empathy — We will truly understand their [customer] needs better than any other company.

2. Focus — To do an excellent job of what we decide to do, we must eliminate all of the unimportant opportunities.

3. Impute — People DO judge a book by its cover. We may have the best product, the highest quality, the most helpful software, etc.; if we haphazardly present them, they will be perceived as slipshod; if we present them in a creative, professional manner, we will attribute the desired qualities.

Apple’s understanding of its customer base is unparalleled. Many other companies try to replicate Apple’s success in CRM but don’t get as many results. The tech giant walks the talk, and their outcome is a testament to their endurance.

Whenever they launch a new device or technology, you’ll see lots of people queening both online and offline to buy. Because the technology resonates with their needs, it’s like it was handmade for their particular needs.

They ensure that they wow their customers from every angle. Apple CRM focuses entirely on the customers and nothing else. In 2020, they spent a record $18.5 billion on research and development – which aims at anticipating and understanding customer needs.

3. Apple ID

Apple’s CRM strategy revolves around its Apple ID. When you buy a new iPhone, you’ll be prompted to create an Apple ID which gives you a unique identity for accessing your device. You can use the ID on other Apple devices and platforms without having to make another one.

Now here’s where it gets interesting. The tech giant uses your ID to record your sale and recommend other products to you. They’ll also suggest handpicked TV shows, music, content, and games that align with your personal information. This further delights the user and makes them enjoy the product.

With an Apple ID, users can find their devices, personal items, friends and families, Mac, AirPods, and Apple Watch on iCloud. It gives users the ability to search for and recover their stolen items quickly. At the end of the day, Apple customers feel safe knowing that the brand is always there to help.

how-to-use-iphone-without-apple-id-forgot

4. Irresistible branding that works

Apple’s iconic branding strategy is focused on emotions. They make customers see beyond the product’s pricing into the aesthetics and benefits. The “shot of iPhone” campaigns depict their emphasis on product benefits. No other company does it better.

By maintaining an aura of exclusivity, iPhones are perceived as a symbol of status. Of course, it is not a coincidence. Apple achieved that by owning its ecosystem and entire production line. And that which they can’t own, they’ll acquire. In 2021, BusinessStandard reported that Apple bought over 100 companies in the last six years.

Apple commercials usually reflect emotions like lifestyle, imagination, liberty regained, innovation, hope, aspirations, and power-to-the-people. The culmination of these powerful emotions is the bedrock of Apple’s branding success.

Planning-3g-Apple-Case-Study.005

Over to you!

No self-fulfilling article can capture the full dynamics of Apple’s vast success. The Apple CRM case study attempts to present the top CRM strategies that have enabled Apple to achieve such desirable results. So you can replicate where possible to grow your business.

The future belongs to any business that can win the hearts of its customers by creating incredible products and a delightful experience. Apple has a community of die-hard fans because they have won the hearts of their customers. You too can.

Editors Pick: 6 Best CRM for Consulting Business (Free & Paid)

Have any questions or inputs, share them in the comments. We’ll love to hear from you.

Frequently Asked Questions

Deducting from the fact the Apple always chooses to own its products and processes completely, hence they are not using third-party CRM software. They’ll either have a custom CRM or ERP built for them or they create it in-house.

They build relationships with customers by making the best of products & services that the customers love. And they always take a step further in ensuring that their customers see and use the unique features in their products.

Viktor. A

Viktor. A is a writer and researcher with experience writing about various topics, including CRM software, SaaS, finance, and technology. When he's not writing, he's swimming and travelling

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the apple case study

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Copy of Apple Case Study

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Apple reaches possible settlement with the startup it sued for trade secret theft

The company accused rivos of poaching employees and stealing information on its chip designs..

Apple has reached a possible settlement with Rivos, the Mountain View startup it accused in 2022 of poaching its employees and stealing its trade secrets. In the companies' filing seen by Bloomberg and Reuters , they told the US District Court for the Northern District of California that they have signed an agreement that "potentially settles the case." Their deal would allow Apple to conduct a forensic examination of Rivos' systems, as well as of its activities.

When Apple sued Rivos, it said the startup led a "coordinated campaign" to hire away employees from its chip design division. Apple also accused the defendant of instructing the employees it hired away to steal presentations and other proprietary information for unreleased iPhone chip designs that cost billions of dollars to develop. Rivos countersued Apple last year, accusing the larger company of restricting employees' ability to work elsewhere and of hindering emerging startups' growth by using anticompetitive measures.

The court dismissed Apple's trade secret claims against Rivos in April 2023, though the company was allowed to file a revised complaint. Apple already settled with its six former employees who filed a countersuit against Apple along with Rivos after they dropped their claims against each other last month. Both companies are now requesting the court to put their cases on hold until March 15, when they expect the settlement to be completed.

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  2. How Apple Is Organized for Innovation

    Morten T. Hansen From the Magazine (November-December 2020) Mikael Jansson/Trunk Archive Summary. When Steve Jobs returned to Apple, in 1997, it had a conventional structure for a company of its...

  3. Apple Inc. in 2020

    Apple Inc. in 2020 By: David B. Yoffie and Daniel Fisher Format: Print | Language: English | Pages: 31 Email Print Share Abstract After a decade as CEO, Tim Cook is facing one of his biggest strategic transitions of his tenure. While Apple had performed spectacularly well under Cook, Apple's core business was maturing.

  4. PDF An Apple a Day: Ethics at Apple Inc.

    Headquartered in Cupertino, California, Apple Inc. has experienced many successes throughout. their business history. Apple's journey to success has not been without ethical challenges along. the way. Apple's success can be seen from their stock price, up from $3.30 per share in 1997 to. $320 per share in 2020.

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    The essential components of carrying out an organizational analysis (a case study on Apple Inc) include evaluating external factors that can affect the organization's performance as well as...

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    This market case study aims to determine how Apple can target such opportunities to help predict future trends and influences over the market. To identify these trends and market influences,...

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    Apple Inc. experiences the moderate force or threat of new entrants. This component of Porter's Five Forces analysis model indicates the possibility and effect of new competitors entering the market. In Apple's case, new entrants exert a moderate force based on the following external factors: High capital requirements (weak force)

  8. Apple Inc. in 2018

    Apple's core business—the iPhone—continued to deliver spectacular results. In addition, Cook was aggressively introducing new products, ranging from Apple Watch to HomePod. Cook also had the world's biggest balance sheet to invest in new technologies and markets. ... Harvard Business School Case 718-439, May 2018. (Revised December 2019 ...

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    The Rise of Apple. By William P. Barnett, Debra Schifrin. 2016 | Case No. SM260 | Length 12 pgs. Between 2000 and 2016 Apple introduced a number of new products and services that dramatically expanded the company's scope well beyond its traditional market position in computers. Over that period, the direction of the company changed and ...

  12. The FBI & Apple Security vs. Privacy

    Download Case Study PDF. In December 2015, the FBI attained the iPhone of one of the shooters in an ISIS-inspired terrorist attack that killed 14 people in San Bernardino, California. As part of the investigation, the FBI attempted to gain access to the data stored on the phone but was unable to penetrate its encryption software.

  13. Design Thinking and Innovation at Apple

    Describes Apple's approach to innovation, management, and design thinking. For several years, Apple has been ranked as the most innovative company in the world, but how it has achieved such success remains mysterious because of the company's obsession with secrecy. This note considers the ingredients of Apple's success and its quest to develop ...

  14. Case Study: The Business Strategy of Apple

    Case Study: The Business Strategy of Apple Apple Inc is a multinational American company that design and sells computer software, consumer gadgets and personal computers. It was co-founded by Steve Jobs, Steve Wozniak and Ronald Wayne.

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    Apple - Vision, and Mission. Apple's mission is "to bring the best user experience to its customers through its innovative hardware, software, and services." Apple - Business Model. Apple's business model is divided into two parts: products and services. In 2021, Apple earned more than $365 billion in revenue, with $191.9 billion coming from iPhone sales, and $38.3 billion from accessories ...

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    Rebuilding Trust: Apple Crisis Management Case Study. Tahir Abbas June 3, 2023. Crisis management is an essential skill for any business, as even the most successful companies can find themselves in challenging situations that threaten their reputation and bottom line. One such case that garnered significant attention and scrutiny is the Apple ...

  19. Apple iPhone: A Market Case Study

    Founded in 1976, Apple inc. quickly became one of the biggest companies in the world. Throughout the years, Apple has been apart of the technology market where there has been an exponential amount of opportunities and threats. This market case study aims to determine how Apple can target such opportunities to help predict future trends and influences over the market.

  20. PDF Apple's iPhone Launch: A Case Study in Effective Marketing

    ABSTRACT When CEO Steve Jobs announced in January 2007 that Apple would be releasing a revolutionary iPhone five months hence, consumers waited with bated breath for a phone that would deliver all the features of their iPods as well as a smart phone. Anticipation grew, just as Jobs knew it would, as June approached.

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    Apple CRM Case Study: Secrets Behind Apple's Prodigious Growth - CRMside crmside.com - CRM - Apple CRM Case Study: Secrets Behind Apple's Prodigious Growth Apple CRM Case Study: Secrets Behind Apple's Prodigious Growth Category : Case Studies, CRM Last updated on July 2, 2023 By Viktor. A No Comments

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    Apple sent me review units of all four iPhone 13 models—the 13, 13 Mini, 13 Pro, and 13 Pro Max—for testing. (For those curious, the 13 is pink and the 13 Pro Max is Sierra Blue.)

  25. Apple defeats lawsuit claiming it overpaid CEO Tim Cook, others

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    Business document from Louisiana State University, 2 pages, Apple's Historical Competitive Advantage For many years, Apple has dominated the market, and up until very recently, has been the most valuable company on the market. ... Copy of Apple Case Study.pdf. School. Louisiana State University * *We aren't endorsed by this school. Course. MISC ...

  27. Read the case study Apple and Its Suppliers Corporate Social

    Read the case study Apple and Its Suppliers: Corporate Social Responsibility, taking careful note of examples and explanations of Apple's views on corporate social responsibility, countries involved in the supply chain, and whom the public held responsible for the ethical violations.. Address the following in detail: Public Opinion: Explain how the media and public opinion influenced the ...

  28. Apple reaches possible settlement with the startup it sued for trade

    Apple has reached a possible settlement with Rivos, the Mountain View startup it accused in 2022 of poaching its employees and stealing its trade secrets. In the companies' filing seen by ...