Business -- Apple Computers Strategic Analysis 2005 Essay

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Business -- Apple Computers Strategic Analysis 2005

Strengths and Opportunities

In 2005, Apple Computers experienced significant sales increases attributable to the earlier rollout of the iPod (Robbins & Judge, 2009). The positive publicity and brand perception associated with that project also spilled over to its entire line of Macintosh computers, further bolstering sales revenue and corporate profits that year. The sales volume of virtually all Apple products increased after the introduction of the iPod, hitting $320 million in June of 2005 (Robbins & Judge, 2009). In general, every successful Apple product has benefited brand recognition and perception and invigorated the sales of other product lines, even those not directly related to it. By the end of 2005, Apple had sold approximately 22 million iPod units and more than half a billion individual song downloads through its music store, iTunes (George & Jones, 2008).

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Weaknesses

Generally, there is also a potential downside to the cross-promotional effect of products: namely, to the extent consumers draw conclusions about all company products from its failures. In 2005, Apple suffered from this principle twice, after many iPods were released with batteries that performed poorly and iPod Nanos were released with screens that malfunctioned ((Akin, Dunford, & Palmer, 2006). In addition to replacing the defective units, the company also provided various free accessories, such as battery cases. Apple was also pressed by the music industry to increase prices of music downloads, partly because of the substantial share of music industry profits dependent on that comparatively new medium and partly because, by virtue of the capabilities of its product line, Apple was responsible for more than three-quarters of all illegal domestic music downloads (Akin, Dunford, & Palmer, 2006). Also in 2005, Apple.....

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