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Apple's Profitable but Risky Strategy

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APPLE’S PROFITABLE BUT ISKY STRATEGY

Case Study

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CASE STUDY ON PROFITABLE BUT RISKY STRATEGY OF APPLE
INTRODUCTION:
A long term plan and action that is formulated to help a company to setback and achieve a competitive advantage against its competitor and rival is called competitive strategy. This type of strategy is frequently used in marketing, promotion and advertising operations by somehow questioning the rivalry's service or product. Competitive strategies are vital to businesses which are competing in markets for the leading position, the market which is deeply saturated with substitutes for consumers. (Porter,2008).
This case study is truly about the competitive strategy of Apple. Apple was founded in 1976 by two Steve Job and Steve Wozniak. Apple initiated its early reputation by making user friendly personal computers and keeping the price high against those made by the competitors. Their first computer was the Apple Macintosh (MAC). It was launched in 1984. From the very first, Apple’s strategy was innovative and profitable. Innovation brings risk with it. So Apple always followed innovative, risky but a highly profitable strategy. Apple is a front line company in industry of electronics whether in cell phones, tablets, personal computers and music devices etc. Apple’s software is actually the one which is greatly designed and programmed. Apple charge premium and comparatively high price from the consumers when compared with prices of its alternatives. Apple is actually made on the idea of innovation that is the reason that its products are exclusive in industry and which allow them to charge heavy amount but a question rises that how long this strategy will prevail. (Besen, 1994).
Apple does not allow selling its software and hardware to other companies in market which makes Apple’s policy a non-cooperative one....

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