MIS4596 CAPSTONE COURSE

Is Apple pursuing a strategic move/big investment at the right time?

 

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Apple Orders More Than 5 Million Watches for Initial Run – Digits – WSJ

As we discussed in class proper execution of a product, service, or application can make or break a company. I found this short article about Apple ordering more than 5 million watches for it’s initial run. Now, that may not seem like a huge number for a company like Apple, but we need to keep in mind that this is the first all-new product since the I-Pad. These watches will do much more than just tell time. They can stream live weather reports, reminder notifications, upcoming calender events and more. The base model watch will run around $350+, and the high end model that comes encased in gold looks like it will cost upwards of $4000+. With all that being said I think this watch is an awesome innovative product and if I had the money I eventually would probably purchase one of the low end models. What are your guys thoughts, and also I have a view questions listed below to be answered.

 

1. What do you think of Apples strategic production forecasting “plan of record?” Do you believe this is what keeps Apple from going under?

2. Do you think Apple is eager to stretch beyond their current abilities?

3. Does Apple understand other people’s constraints and concerns within the market place?

4. Will Apple recover well from setbacks or failures?

2 Responses to Is Apple pursuing a strategic move/big investment at the right time?

  • 1. I think 5 million is the right number for them to manufacture just because this product is not innovative. They are currently playing catch up to a variety of vendors such as Samsung, LG, and Motorola. This is the first real product that Apple has come up with after Steve Jobs’ death so they are being cautious.

    2. With this product? No, this is a safe bet for them based on their brand power.

    3. Of course. Apple did not become the juggernaut that it is without performing due diligence.

    4. Apple will be fine whether this product succeeds or fails. This is not a product that Apple has bet the bank on.

  • 1. I think that Apple’s strategic production forecasting “plan of record” needs a lot of fine tuning since it tends to be very inaccurate. If Apple’s strategic production forecasting “plan of record” were great, then there wouldn’t be a lot of instances of where Apple has to adjust its plan to properly meet demand. The fact that Apple adjusts its “plan of record” more often and quickly than any other consumer-electronics company keeps the company from going under.
    2. I think that Apple isn’t eager to stretch beyond their current abilities because transitioning from computers to watches isn’t that great of a leap nor is the capability of the watch much more cutting-edge than the competition.
    3. I do not think that Apple understands the constraints and concerns within the market place. 5 million watches is way too much for an initial run. The article talks about how in the last six months of 2014, 720,000 smartwatches that were powered by Android wear were shipped. The fact that Apple would do an initial run of 5 million watches is insane based off of data and shows that there isn’t a great understanding of constraints and concerns within the market place.
    4. Apple will recover well from setbacks or failures because Apple has a lot of capital, strong brand recognition, and a lot of customer loyalty. There are some people that will only buy Apple products.

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