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Essay / Market Share Strategy - 1673
Market Share StrategyIntroductionSince 1977, Apple Computers, Inc. has been a leader in the computer and technology industry. From the advent of the Apple II to the iPhone, Apple is a company known for its innovation, vision and transformation in the field. What began as a home-based operation in Menlo Park, California, grew into a multi-billion dollar corporation with international influence (Encyclopedia Britannica 2008). The advances that underpin much of today's computer hardware and software were developed by Apple. Currently, Apple is enjoying great success in the technology and PC industry. The Apple brand is one of the most recognized brands in the world and extremely popular with users (Baxter, 2008), often obtaining loyal customers. Apple tops the list for introducing so many new products to the market. This ranking was established by consulting 1,000 senior executives as part of a survey comparing companies based on their level of innovation. Apple also integrated seven types of technologies to ensure this ranking (McGregor, Arndt & Berner, 2006). Despite an impressive reputation and illustrious history as a business leader, Apple must always remain alert to the growing competition and market forces around it. Problem StatementThe technological field is constantly transforming. Despite near-limitless growth opportunities, many obstacles remain that threaten the continued success and stability of the technology industry as a whole. Even with its current position as a media and technology leader, Apple still faces threats not only from its technology competitors, but also, like any company, from market forces. Since shortly after its founding, Apple has been under siege. by rival companies like IBM and Microsoft. At one time, Apple was the only company offering personal computer systems for home use. By 1992, however, Apple was pushing back against the advancement of the more user-friendly Microsoft Windows. Although the company still enjoyed high returns, its market share was rapidly declining (Encyclopedia Britannica, 2008). After looking at the current data regarding Apple's revenue for this quarter, it appears that Apple is doing well in its industry. According to its first quarter results released on January 22, 2008, the company recorded a net quarterly profit of $1.58 billion. Gross margin was 34.7 percent, compared to 31.2 percent in the same quarter last year (Apple, Investor Relations, 2008). The company's second quarter results show a net quarterly profit of $1.