Strategic Management: Apple, Inc. (Case Study)

In: Business and Management

Submitted By charlottetachu
Words 1367
Pages 6
Abstract
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 the issues surrounding the organization.
Summation
Apple Inc. was created by two college dropouts, Steve Jobs and Steve Wozniak and later joined by A.C. Markkula, Jr; they created the company with one circuit board (Apple I) and turned into 200 sales within two months time (Yoffie, et al., 2008). The company developed a premium-price differentiation strategy; in which two years later, Apple II was introduced to the world. Apple II tripled company sales to more than 100,000 in less than two years compared to Apple I (Yoffie, et al., 2008). This paper analyzes and reviews the strategies utilized by Apple Inc. based on my comprehension of strategic management; and propose recommendations for several problems that Apple faced to become a successful billion dollar company.
Situation and Pending Decision
Analyzing the case presented a huge problem for Steve Jobs and his management team, was the company’s success acquired recently a temporary “up” in this fluctuated industry, or did he finally integrate a strategy for the company – premium-price strategy (Yoffie, et al., 2008, p. 15). The pending decision problems…...

Similar Documents

Apple Inc, in 2010 Case Study

...GBA507 | Apple Case Study | | | | Laura GriffinJanuary 2, 2013Professor Gregory Fallon | | Apple Computer was founded in 1976 by masterminds Steven Wozniak and Steven Jobs. Together they created and introduced the first mass produced personal computer and eventually went on to produce breakthrough after breakthrough in the technology and music world. Steve Jobs had a short stint away from the company however, returned many years later to bring Apple Inc. into the fast growing and much anticipated world of music and technology. Apple has been engaged in design, development and marketing of personal computers, media devices, and portable music devices such as, the famous and highly sought after iPod. The company also sells a variety of related software, services, networking solutions, third party digital content and applications. Their product line encompasses products such as, the Mac pc; several versions of the iPod, music download program iTunes, the iPhone, iPad, and the iStore to purchase items that service their product lines. Apple primary operates in the US. And its headquarters are located in Cupertino, CA. The company employs approximately 47,000 employees. Apple has had many highlights in its history, as well as, some setbacks. The company was led by pioneers in the beginning creating the first mass produced personal computer but had a hard time keeping up as other entrants matched and surpassed capabilities of what Apple......

Words: 3175 - Pages: 13

Apple Inc Case in External Management

...Pitney Bowes: Consulting firm. Prepared as a letter to Apple’s COO. ASSIGNMENT To prepare for this assignment, you should read the case study and identify: a. The main issues involved in the case; b. The main decisions that need to be made; and, c. The main stakeholders who would or should be involved in those decisions. For the context of this assignment, the dates and events described in the case study are contemporaneous to our current time. In other words, treat the events as if they are happening now and you are involved in a situation that has not yet been resolved. DELIVERABLES Write a 4-5 page (single-spaced) letter that includes: a. An executive summary; b. A detailed description of the case and the main issues involved, the main decisions that need to be made, and the main stakeholders that should be involved in the decision-making process; and, c. A recommended solution to the case, including a detailed implementation of that recommendation. One way to divide these sections is to devote the first half to Parts A and B and the second half to Part C. Evidence & Sources: You should use at least four different sources; two must be non-Internet sources. Document your sources as references and include a reference list at the end of the letter. All of your sources could be from the Internet, but you must cite at least two of them as if they are from print media. Your sources must meet the four criteria for “quality”......

Words: 357 - Pages: 2

Apple Inc , Stratergy Case Studies

...Case Study Summary: Apple Inc is one of the most successful and valuable brand in the world. With their wide range of innovative and user friendly products ranging from iPod to iPhone, MacBook’s etc. Apple surely enjoys a huge market share and a loyal customer base. The huge success can be attributed to its ability to proactively think ahead of the market and leapfrog its competitor’s. But before achieving the huge success it had its own set of failures in the PC industry. Apples complete transformation from Apple computers to Apple Inc makes it a perfect example of successful change story. ABSTRACT: The purpose of this research is study how technology and innovation based firms like Apple Inc. has achieved success by adopting various change initiatives and walking the talk. Apple has always believed in his vision and values of believing in technology. It also aims to understand how Innovative firms like Apple Inc. have been successful by being proactive and what are the drivers of change and the change models that led them to embrace and imbibe the culture of innovativeness to stay ahead of the market. An attempt is made to relate the best model that is reflective of Apple’s change strategy (based on the factual information). Introduction The two most important factors that drive today’s intensely competitive world are technology and obsolescence, being directly proportional to......

Words: 287 - Pages: 2

Apple Inc. Case Study

...Trecian Brown GB520: Strategic Human Resource Management Professor Susan Pettine Kaplan University Apple Inc. Case Study 2008 Apple Inc. Case Analysis Introduction The 2008 Harvard Business Case Study on Apple Inc, describes the illustrious company which is fast becoming the wealthiest company ever with a net worth of $500 billion dollars. It illustrates how the company has had some issues, but still find a way to yet sustain its’ name and position over the years. The status of the company was examined in detail by the article which revealed a number of strategic moves under the leadership of several CEO’s in marketing, the PC industry and the consumer electronics industry. This paper offers an analysis of how I view Apple Inc. using the Strategic Management Process. Therefore, the latter part will offer recommendations of some difficulties Apple Inc. faced as it made successful changes (Slind & Yoffie, 2008). Synopsis (Background) of the Situation April 1, 1976 Steve Jobs and Steve Wozniak cofounded Apple Computer in Los Angeles, California from Jobs garage; they built a computer circuit board and named it Apple I. In just a few months they sold 200, in less than three years Apple had annual sales of $1billion which quickly propelled them an industry leader. Apple was thriving to a degree that seemed to be beyond the capacity of Apple computer. Although Mac sales surged in recent years, Apple’s share...

Words: 1437 - Pages: 6

Apple, Inc. Case Study

...APPLE INC. FINANCIAL ANALYSIS REPORT Apple, Inc. Financial Analysis Report Ricardo Figueroa DeVry University BUSN412 Case Study Instructor David Mozinski May 27, 2013 Case Study Report Outline and Grading Guide (150 points) COMPANY NAME/WEBSITE/INDUSTRY Apple, Inc., http://www.apple.com/about/, Electronic Equipment BACKGROUND/HISTORY The company began as “Apple Computer” by Steve Jobs and Steve Wozniak. They were college dropouts. The company almost went bankrupt in 1996 even though they had a strong brand, rapid growth, and high profit late in the 1980s. Jobs then went to work and transformed “Apple Computers” into “Apple Inc.” with innovative and technologically sophisticated non-PC products in the 2000’s. By 2010, the company also viewed itself as a “mobile device company.” Apple became the fourth-largest PC vendor in the US market. Through multi-million dollar campaigns, such as successful “Think Different” ads and catch slogans, Apple promoted itself as a hip alternative to other computer brands. It also highlighted its computers as the world’s “greenest lineup of notebooks.” The goal of Apple is to differentiate its products amid intense competition in the personal computer and mobile device industry. SWOT ANALYSIS Strengths | 1. Pioneer of innovative and high-tech quality products like iPod, iPhone, iPad, and Mac 2. Globally recognized brand name 3. Large segment of loyal customers of “Apple culture” 4. Strong Research and......

Words: 995 - Pages: 4

Apple Inc. Case Study

...Apple Case-- “Taking a Bite Out of the Competition” Synopsis On April 1, 1976 Steve Wozniak and Steve Jobs started and founded Apple Computers. Jobs was the visionary and marketing expert while Wozniak was more about the technical aspects. In 2004 Mr. Jobs was diagnosed with pancreatic cancer. Then in 2009 Jobs to medical leave from the company. Since 2004, the Apple Company led its competition in revenue and margins. And with the introduction of the products (iMac, MacBook, iPod, iPhone, and iTunes) the company started to expand into the digital entertainment market. Apple Computer change the name of the company to Apple, Inc. to symbolize its new, more diversified nature. Critical Factors for Success I believe that a major part of Apple, Inc.’s success fell on the fact that the introduced new, innovative products. No one in the digital entertainment market had any products even close to the iPod and iTunes technology that Apple introduced. And having such innovative product also created product differentiation for the company as well. People associated upscale and advanced products with the Apple brand. Making their products compatible with other computers besides Mac was a critical factor. Then people who didn’t necessarily have the Mac computer but had an iPod could still use the product. The opening of the App Store allowed 3rd-party developers to create applications for purchase just for the iPhone and iPod Touch. Apple, Inc. also worked with other companies, such...

Words: 713 - Pages: 3

Strategic Management - Apple Case

...through The Potential Source of competitive advantage Model by Michael Porter. Apple successfully differentiates its product as the high-quality PC product. While IBM PC has relatively open system and low price strategy, Apple concentrates on their loyal customers. Apple had relatively narrow customer base in PC market. But their products were a lot different from the standard of the market. Loyal Apple customers had some kind of pride in their Apple PCs. So we can say that Apple had built strong relationship with the customers. This relationship allowed Apple to set premium price on their Macintosh. This discernable differentiation was really helpful to gain high margins but it was also a disadvantage for Apple. IBM PC has relatively low price. So the market share of IBM grew quickly. IBM dominating PC market, Apple had lost significant amount of customers. And their revenue dropped. Also, Apple’s limited compatible software was a problem. IBM’s open system spread out around the world quickly, but Apple stuck to its closed system. 2. Analyze the structure of the personal computer industry over the last 15 years. There were also few successful PC manufacturers, like Hewlett-Packard, Dell, Acer, and Lenovo. These companies stably had held their grounds. Apple made their PC and software exclusively. This was the reason why Apple PC was not compatible with other software and products. Apple tried to forge an alliance with IBM, but eventually it went......

Words: 322 - Pages: 2

Strategic Management of Apple Inc. and Samsung Group

...Strategic Management of Apple Inc. and Samsung Group BUS 599: Strategic Management March 17, 2014 Analyze the existing business strategies, domestic and global environments, industry, and internal capabilities for both Apple and Samsung. Assess the significant manner in which company’s mission and vision align with the long-term goals and strategic direction of the organization. The strategy used for the young Apple Inc. was considered as non-cooperative strategy; Steve Jobs one of the original founders and innovator of Apple Inc. did not want to share the company’s software with any other companies. Jobs wanted total exclusion of Apple’s software and hardware products. The differentiation business model gives companies a competitive advantage because the focus is to satisfy the customer need that no other competition can satisfy which allows the company to have higher prices for their products. Apple Inc. came out of the gate with the differentiation model but it did not work for the new company. According to Richard Lynch Apple’s strategy of non-cooperation was not a successful strategy in Apple’s initial launch; Apple’s first handheld device, “Newton” failed (global-strategy.net). Another reason for Apple’s ineffectiveness was the disagreement between Steve Jobs and directors at Apple. Apple director’s wanted Apple, Inc. to use the cost leadership strategy that Michael Dell, founder of Dell PC used and compete more with Dell but Jobs did not want to develop......

Words: 2700 - Pages: 11

Apple Inc 2010 - Case Study

...strategy Apple has employed allows them to try meet the needs of a diverse global market by offering its customers innovative new products, as well upgrades and improvements on existing products. Their ability to develop their own operating systems and software gives them complete control over future software, operating systems and products when it comes to future developments. Apple’s innovation strategy revolves around quickly responding to new market demands and, technology advancements. Apple always has improvements in its product lines which match with current technology trends. The pieces fit well together very well because in my opinion differentiation and innovation work well hand in hand. They are innovating new products and services that set them apart from their competitors and, using this to execute their differentiation strategy. Yes, I do believe Apple’s strategy is evolving because through their ability of developing their own operating systems, software and hardware. Apple has been able to grow from just the computer industry and evolved into the media player, mobile phone and tablet computer industries. 2. The key elements in Apple’s strategy in computers are the style, unique features and limited selection. The appearance in Apple computers is very attractive, sleek and stylish. Their computers have this edgy and fashionable look which is very different from its competitors. Apple’s operating system and software is very unique and just available on Apple......

Words: 1109 - Pages: 5

Case Study 1- Apple Inc

...Case Case Study #1 Apple Inc. Dixie Corbin MGMT 670 Fall 2013 What does a competitive strength assessment reveal about Apple's computer business as compared to the leaders in personal computer industry? Use the methodology in Table 4.2 to support your answer. Does it appear that the company's competitive positions in the media players and smartphones are stronger or weaker than its position in computers? Table 4.1 is in Chapter 4, page 65; Table 4.2 is the SWOT analysis, page 71. Apple Inc. has provided many innovative and creative products to consumers over the years. Many industry analysts want to know if Apple can sustain its growth and defend against new competitive threats. Apple lost their CEO Steve Jobs in 2011 to health issues. They were still able to stay ahead of the competition with impressive growth into 2012. “The company set record quarterly revenues and profits during its second quarter of 2012, which resulted in its stock price catapulting to a level that made it the world’s most valuable company as measured by its market capitalization.” (Gamble & Marino, 2012) Even with the loss of Steve Jobs, Apple was able to continue to provide innovative products such as the iPhone, iPad and iPod. During Job’s absence Tim Cook was able to perform successfully and was eventually appointed Job’s successor as Apple’s CEO. With a new CEO, Apple faced many difficulties including being forced to “work creatively and expeditiously to sustain the company’s......

Words: 1498 - Pages: 6

Apple. Inc Case Study

...One of the first reasons for Apple’s failures was the apple III, which had major quality problems; the most important of these was due to the lack of a cooling fan where the apple III would overheat, warping the motherboard in 1980’s. Also another detail about why apple III did not succeed in the market was because of its price, which was more expensive, compared to business computers during that time. Furthermore, another 80’s failure was the “Lisa” which was named after Steve Job’s daughter. The Lisa was a disaster in the market because firstly due to its market price $10 000 and secondly due to its 1MB memory. Therefore these failures continued in the 90’s where both the company’s visionary and founders departed. In 1983, Sculley became president and CEO of Apple. Jobs believed that Sculley would help him Apple “grow” with his management skills. However, Steve Job’s considers this as the biggest failure for Apple Inc. and its growth. Eventually, it cost Steve Job his job. In 1988, the stock reached a low near $4, and the company posted losses of over $1 Billion. To add on, Apple was facing market competition against many companies one of them been Microsoft, which started selling its OS to any PC maker that, would buy it. Eventually, Apple had contemplated licensing its Mac operating system on other computers. However, the idea was rejected and resulted in Microsoft shares of the computing market to take off. Microsoft's operating system, which was on more computers that......

Words: 314 - Pages: 2

Apple Management Case Study

...Suffolk University Thien Le Apple iPhone 6 & 6 Plus Managing for quality is one of the most important issues that a firm has to take care of to sustain and grow its business. The overall quality of products plays a big role in brand reputation and reliability as well as in the improvement of customer satisfaction. As a “big guy” in the manufacturing of electronic devices, Apple has separated itself from other players by creating a high quality standard derived from its brand positioning that is rooted in the company’s culture. Every product has to go through a whole set of processes to make sure that it meets the highest standard of quality. Even though they are mass-produced, its products are detailed in a way that makes them look like they are finely crafted. All the products are integrated to insure that they are easy to use with minimal after-sale support. To make those things possible, suppliers of Apple are carefully selected and tested to ensure that they are able to conform to the standards set up by the company. The quality of products is evaluated based on internal and external quality metrics such as level of customer satisfaction and design conformance. Below is the result of an official survey conducted in 2013 on smart phone customer satisfaction by manufacturer which Apple was on the top. Apart from product quality, Apple also focuses on service quality. It provides Apple users with advice and technical support through its physical and online......

Words: 1580 - Pages: 7

Implementing Strategic Management for Apple Inc.

...Balochistan University of information techonology engineering and management sciences | Implementing Strategic Management | APPLE Inc. | Rabia Iftikhar 12285 | MBA 5th B | Jun 24, 2013 | | | | | | Ma'am Mehwish Shahid Think Different ACKNOWLEDGEMENTS Praise and thanks to “ALLAH” Almighty, the one testing us all at all times and making decisions about what we don’t know and can’t know. The report being submitted today is a result of collective effort. There are innumerous helping hands behind who have guided us on our way. Writing this report appeared to be a great experience to us. It added a lot to our knowledge. This report is one of our memorable experiences in student life. Though words are inadequate in offering thanks to our teacher but we owe our profound gratitude to Ma’am Mehwish Shahid for stimulating our creative abilities by assigning this project to us and for her able guidance and useful suggestions, which helped us in completing the project in time. Whatever we have learnt from her and this project report has put indelible impression on our minds and it is our conviction that this learning experience will always be a source of help in our practical life and professional career. Finally, yet importantly, we would like to express our heartfelt thanks to our beloved parents, for cooperation, help,......

Words: 5388 - Pages: 22

Apple Inc. Case Study Analysis

...The present case study «Apple Inc. in 2010» deals with the main problems of Apple Inc. (previously known as Apple Computer, Inc. for the first 30 years) - an American multinational corporation that along with its subsidiaries designs, manufactures and sells personal computers, consumer electronics and software. The company's best-known hardware products are the Macintosh line of computers, the iPod, the iPhone and the iPad. Its most popular software includes the Mac OS X - a PC operating system and iOS – а mobile operating system as well as the iTunes media store. By 2009 Apple Inc. had over 300 retail stores in several countries. It is one of the largest publicly traded companies in the world by market capitalization, as well as the largest technology company in the world by revenue and profit. As of 2010, the company had approximately 46,600 full-time employees. Within the last decade (2000-2010) Apple has successfully introduced three major innovations – iPod in 2001, iPhone in 2007 and iPad in 2010. To view how the company got so successful let us review in short the history and growth of the Apple Inc. over the years. As we know it was founded in 1976 by Steven Jobs and Stephen Wozniak, two young talented electronics masterminds both in their early twenties, who unfortunately dropped out of college. Their first computer was manufactured in the Jobs family's garage and called Apple I. The company was incorporated in 1977 and was named Apple Computer, Inc., but the word......

Words: 1803 - Pages: 8

Case Study - Apple Inc.

...STRATEGIC MANAGEMENT APPLE INC. Submitted by: BURGAS, JHENNEL CATORCE, FREYA JULIA DACALOS, DAVE RYAN MERIDA, KRISTY RAE SABILLO, MA. CARMEN F 12:00-3:00 Submitted to: Mr. Rene Y. Paquibot 1. Summary Everything started on April 1, 1976, when Steve Jobs, 20, and Steve Wozniak, 25, both electronic experts, decided to create and sell personal computers designed by the latter. Their little company was located in Job’s garage. They called their company Apple and their first machine, Apple I. It was just a simple computer with no case, keyboard and power supply. However, in October 1976, through the efforts of Woz, an improved version of Apple I was introduced, called the Apple II. Mike Markkula, a retired millionaire because of Fairchild and Intel, decided to visit Jobs’ garage and invested one-third in the company and helped in running it. The Apple II was introduced in 1977, with a Motorola microprocessor, keyboard, a power supply, a monitor, and a programming software. In 1978, Apple sold an improved version of Apple II which contained a disk drive for third-party developers to write software programs for the computer such as EasyWriter and VisiCalc. By the end of 1980, Apple became the leader in the embryonic personal computer industry because of the high sales generated by Apple II. It even introduced its next product, Apple III. However, such product was still outsold by Apple II, with the latter becoming a...

Words: 4959 - Pages: 20