Apple Computer Inc.
Strayer University
Bus 499
January 29, 2012
Professor Erica Atkins
Abstract
This paper describes the key strategic challenges facing Apple Computer. This paper will also describe the dimensions along which company success can be measured. We will also describe the critical external and internal environmental factors that have strategic implications for Apple’s future. This paper will further explain how Apple’s strategy stands up against industry rivalry. In closing we will provide recommendations to enhance the effectiveness of the company’s strategy or to change its strategic approach for better results.
Key Strategic Challenges facing Apple Computer
Apple Computer, INC.
We will describe the key strategic
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While this may sound like heresy relative to Apple history. The uniquely demanding strength and influence of Steve Jobs is integral to Apple’s heart and soul. Others will step up when he leaves but they will not replicate him. Furthermore, when Jobs’ strengths are overdone, errors occur. Past issues such as option backdating and disclosure failures regarding his personal health will have larger consequences in Apple’s wider world operation.
Dimensions along with company success is measured
Apple company success is measured by its foundation. In 1976 the company introduced the Apple I microcomputer. The machine became popular with hobbyists, but it had little commercial use. In 1977, the company brought out Apple II, a home and small business computer. The machine was an immediate success. Apple Inc (2011). Apple’s continued success lies in careful and thoughtful strategic management of these complex issues and challenges Brain Mass (2011).
Critical external and internal environmental factors
Internally, using the company’s core competencies in different product markets decreases Apple’s dependence on revenues from a single market. Related diversification allows the company to share resources, activities, and technologies across product lines, and the transfer of skills and intangible core competencies can build a competitive advantage that is difficult for rivals to emulate.
Apple Incorporation is one of the largest organizations dealing into Information Technology. Apple has a host of products ranging from Laptops, Desktops, Mobile Phones and Multimedia Devices. The company has been extremely innovative in the field of multimedia and it owes it success to one of the greatest innovators, Steve Jobs. The company has always believed in innovation and that is the major reason why it has been so successful in the mobile phone segment. In recent years Apple is second only to Samsung in the Global Mobile Phone industry. However the operations have been largely based in the United States and in times of recession any organization needs to focus on economies of scale and thus focus on growth
One of the major challenges facing Apple was to get the appropriate replacement of the company’s visionary Chief Executive Officer (CEO) Steve Jobs who died on October 2011. The CEO was responsible for turning Apple into what it is today. Apple is in this case challenged to purse the strategies employed by Steve, that propelled the company to new heights, and which saw the company become a
One key element of Apple’s strategy in computers, personal media players, tablet computers, and smart phones is product innovation, diversification and development. Over the years Apple has been very successful in integrating software and hardware in new developing products. Despite the struggling economy in recent years, Apple has been able to grow their market share and stay ahead of the game.
In conclusion Apple has become a successful company over the past thirty-five years, and may continue to do so in the future is certain aspects of the organization became more flexible.
“Apple was two months from bankruptcy” in September 1997 which led to CEO Steve Jobs to reconstruct their plan. In order to bring Apple back up into the competitive market, Jobs implement a new strategy which “shrunk Apple to a scale and scope suitable to the reality of its being a niche produce in the highly competitive personal computer business. He cut Apple back to a core that could survive” (12). What made Job successful was focusing on the sources and barriers to be successful in the market and to utilize the opportunities that came by. The strategy of eliminating unnecessary cost or reducing risk help transform Apple’s business
What are the chief elements of Apple’s overall competitive strategy? How well do the pieces fit together? Is the strategy evolving?
Apple has done an excellent job of developing a very distinct strategy through industry leading innovation. This strategy has allowed them to be the frontrunners in new product introductions and the improvement of existing products. Apple has employed a differentiation strategy in an attempt to meet the needs of a global market by offering customers innovative new products and improved existing products. An important part of their strategy involves meeting the needs of the evolving digital electronics and computer markets. Apple has chosen to implement its strategy by designing and developing its
Nowadays, Apple has positioned itself to be an innovator in the personal computer industry and Apple has developed by offering modern products compared to its competitors. According to Apple’s mission statement last year, “Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App store, and is defining the future of mobile media and computing devices with iPad.” (Business Management,
Sustaining a competitive advantage cannot be acquired through operational effectiveness alone; an organization will have to become different from everyone else by performing different activities that will be hard to duplicate from the competition (Dess, et al., 2005). Sustaining a competitive advantage became hard for Apple Inc. as noticed in the Harvard Business School Premier Case. Therefore, this paper is an analysis of Apple, Inc. based on a 7-year old case written by David Yoffie and Michael Slind published by Harvard Business School (Yoffie, et al., 2008). The following paper examines in detail the strategies utilized by the company as outlined in the strategic management steps. Several recommendations are also proposed to handle
In 1985, the microcomputer industry suffered its worst slump in over a decade. Many new computer products had been promised or rumored but were not yet available, causing consumers and businesses (due to recession fears) to delay purchases until they could evaluate the new machines. Moreover, the home market was saturated and the market for new customers difficult to penetrate. Consumer preferences also changed. Service and how new products fit into an existing family of products had become more important. There was a growing demand for personal computers that could communicate and share information. It was estimated that this demand was growing at 30% a year, or twice the rate of the overall industry.
Introduction The intention of presenting this report is to give a full strategic appraisal and evaluation of Apple Inc. In 1976, the company was founded in a garage in Santa Clara, California. The American multinational corporation mainly involves in designing and marketing consumer electronics, computer software and as well as personal computers. Differentiation is the current strategy position of Apple Inc. There are five main firms in the PC industry and among them; the world’s leading brand is Dell. Apple’s major target is to sustain their present strategic position and to take over the market position as a leader. The key stakeholders include Steve Jobs, employees, lenders and the government.
It is beyond all doubt that Apple Inc is one of the most successful and well-known companied all over the world nowadays. What’s more, the company is considered to be the leader of the industry The Apple products are of high quality and in high demand on all the markets. Apple services and stores are the gold standards for all the followers and niche players of the industry. Moreover, the majority of Apple customers are extremely loyal to the brands. Once they started using its high-technical products they keep doing it. At the same time the market share of the company is increasing constantly. Probably all the competitors are questioning what is the key to Apple Company’s success. It is important to note that the whole strategy determines the success of the business and the strategic analysis of the company can help to identify the main criteria. Thus, the object of the research paper is to develop a strategic analysis of Apple Inc, including its internal and external environment.
In its infancy, Apple Computer Inc. began with the Macintosh personal computer. The company was founded on April 1, 1976. The founders were Steve Wozniak and Steven Jobs. They incorporated the company in 1977, on January 3rd, in Cupertino, California. In the twenty years that followed, the company produced personal computers. Besides the Macintosh, Apple Inc. made Apple II, and the Power Mac lines. Although they lasted for decades, during the 90’s the company experienced some turbulent times with low sales and market share. Steve Jobs left Apple Inc. and came back in 1996 when his company, NeXT was purchased by Apple. In 1997, Jobs became the interim CEO. In later years it became a permanent position for him.
Apple Inc. is the most revered corporation of the USA, both in terms of brand equity and market capitalization. The company’s international competitive strategy is focused on the innovative product development, which Apple controls through its eight business segments: Portables, Desktops, iPads, iPhones, Music related products and services, peripherals and hardware (Lam et al. 2005).