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Case Summary
Few companies can boast that they have fans that sleep outside its
Case Summary
Few companies can boast that they have fans that sleep outside its doors to be the first to snag its latest products, but such is the case with Apple, Inc. In 2011, Apple surpassed Google to become the most valuable global brand, with an estimated value of $153 billion. Headquartered in Cupertino, California, Apple has transformed itself from a company near bankruptcy in 1997 (with a stock price of $3.30) to the world’s most valuable company in 2012 (with a stock price of more than $600).
Many companies have tried to copy Apple’s strategies, but none have reached the iconic status of Apple and its products. Some believe that Apple’s success stems from a combination of several factors, including the leadership qualities of late CEO Steve Jobs, a corporate culture of enthusiasm and innovation, and the revolutionary products for which Apple has become known. While every organization must acquire resources and develop a business strategy to pursue its objectives, Apple has excelled in both leadership and operations. One of the company’s most important resources is its employees, and the company has effectively recruited, trained, and compensated employees to create loyalty. Another resource is suppliers, and Apple has created a highly efficient and effective supply chain with most of its production in China. Apple has also mastered core research and development skills that have allowed the company to translate its technological capabilities into products that consumers want and are willing to pay a premium price to obtain. The capstone of Apple’s strategy is its retail stores that have become a role model for its competitors, both in and out of the electronics industry. Such factors have allowed Apple to revolutionize the technology and retail industries.
1. Provide a SWOT Analysis providing at least 2-3 items for each category
Provide at least a paragraph for each question below.
2. How has Apple developed extreme loyalty among consumers that has resulted in an almost cult-like following?
3. Describe the role of Apple stores as an important part of its marketing strategy.
4. What will Apple need to do to maintain product innovation and customer loyalty?
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