Core Competency & Competitive Advantage Case Study

Apple’s “Low-End” Strategy: The Payoffs

OR

Abstract:
In early 2005, for the first time in its history, Apple Inc. entered the low-end market by introducing its cheapest digital music player, iPod Shuffle at $99 and a ‘headless’ Mac Mini at $499. However, analysts observe that with these new products Apple is likely to run the risk of cannibalisation and might also face severe competition from established players like Dell, HP (Hewlett-Packard) and Sony in the low-end market.

Pedagogical Objectives:

• To describe Apple's product strategy
• To discuss the payoffs of Apple's entry into the low-end market

Keywords :  Apple’s low-end strategy; Apple’s product strategy; Apple product matrix; Competitive Strategies Case Study; Apple’s iPod Shuffle; Mac Mini; Mac’s market share; Apple’s Internet strategy; Apple’s digital hub strategy; Sales of iPod Shuffle; Mac Mini’s major competitors; Apple’s sweet spot; MP3 market; Apple’s challenges in the low-end market; Global PC (personal computer) market