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Competitive Forces and Strategic Issues in the Smartphone & Tablet Industry. Apple Inc.
Pages 24 (6024 words)
Apple’s shift in strategic focus was manifested by its change in core business from focus on personal computers to consumer electronics. This change was epitomized by the company’s symbolic dropping of the word “computer” from its official name in 2007 (Siegel & Gibbons 2009)…
According to Utterback and Abernathy (1975) such a shift in a company’s strategic focus can be a major challenge but also have important competitive benefits. The challenge arises for example from the need of organizational restructuring and acquiring new capabilities to enable a successful transition from products to processes. The important benefits in this case were that the change in strategic shift allowed the organization to take advantage of the effects of the technological discontinuities to the industry.
The emergence of the mobile Web and related technologies initiated a new technology cycle that shifted the consumer electronics industry towards smartphones and tablets. These gadgets have consolidated functions that previously required use of multiple devices such as cameras, music players, video players, computers and telephones into a single device. Industry lifecycle theory has long postulated that industries evolve through distinct phases and that each phase is associated with different basis of competition at the firm level. In the traditional industry lifecycle model the basis of competitive strategy changes from product innovation to process improvement as the industry evolves (Utterback & Abernathy 1975). However, in the enhanced model, Cusumano et al. (2006) proposed service as an important component of this shift in strategy as the industry evolves. ...
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