Apple’s business strategy particularly for iPhone. Yes, Apple decided to cut off the price of iPhone to be an half of price, $99 in order to boost the sales. In fact, there are three steps of Apple business strategy for 2011. First they fertile platforms, second to introduce derivatives with incremental appeal and third step is to create the next exciting platform. Apple hardware will see only incremental improvements and cost reductions.
Apple’s ability to align marketing strategy and business strategy with product development leaves competitors in the dust as business continuity strategy. I expect Apple might also act to leverage the color capabilities of the Apple tablet with magazine and book publishers. Milking the iCow is a powerful business strategy that Apple has done extraordinarily well for years. While it may disappoint Apple product enthusiasts, it will delight shareholders. Apple’s product platform fertility drives this number.
Let’s look at the threat to Apple’s existing platforms and then examine the threat from a potential unforeseen, new platform. In current platforms, Apple’s business strategy 2010 focuses on strong defenses, starting with their elegant designs that integrate hardware, software and services. It will significantly increase Apple’s total available market in the U. S. Once consumers are introduced to the Apple family, they tend to want more. Of their current hardware platforms, the true outlier is Apple TV.
As a placeholder, Apple must be pleasantly surprised to see Apple TV pop up on this month’s Amazon’s top electronic list at number 12. Apple’s business strategy for 2011 is not time-to-market or introducing breakthrough technology. Apple makes quantum leaps by using new platforms to delivery next level user experience where the existing choices are stalled. The issues with Apple TV and all the other TV box and service competitors is not hardware design but finding a compelling business model and master in business strategy.