Introduction: Apple, Inc. and its Place in the Modern IT Universe
In the realm of the XXI century world, information technologies are more than merely a tool for communication – they are the tool, which shapes people’s attitude and behavior, not to mention the fact that IT is becoming the leading factor in determining one’s business success.
The ones that are capable of retrieving and processing information faster than the rest of the organizations are capable of executing impressive influence, and the ones that define the flow of data practically rule the entire world; Apple, Inc. is one of such organizations.
Problem Identification: When the Genius is Gone. Competition Rates and the Related Issues
It should be noted that the success of the Apple Company is predetermined by a variety of factors, among which information processing is the effect of a successful implementation of the company’s strategies (How to build a great company culture – Forbes, 2013).
Apple’s mission and vision are the basis for the organization’s success, as the case study conducted by Chapman, Hoskisson, & Christian (2012) shows. It is worth noting, however, that the company is facing a range of issues at present. Unless these issues are addressed, the Apple, Inc. is likely to have to fight with a major crisis.
Another problem identified in the case, the issue that was tackled once quite successfully, yet is posing a tangible threat to the organization, the unceasing competition between Apple and Microsoft is affecting the former in a rather negative way (Apple info, 2014).
Indeed, though engaging in competition is an important part of entering the domain of the globalized market, it is crucial that the process of competing with other entrepreneurships should not take the entire time and effort that a company can spare. Apple, in its turn, seems to be in a major crisis after the death of its founder and the subsequent necessity to search for both the further sources of technological inspiration and the means to brand the new products in order to attract the target audience.
Situation Analysis: The Measures Undertaken and Their Efficacy
It is remarkable that the stellar success of the firm has been attributed to Steve Jobs and his unique manner of leadership for quite long. Indeed, he was the brain behind every single project of Apple; however, seeing how successful the company is nowadays, several years after his untimely death, it is reasonable to assume that Apple’s organizational values predetermine the company’s impressive growth.
Moreover, the increasing competition rates and the necessity to face Microsoft, Apple’s key rival, in the target market, makes the production and promotion processes barely possible in the Apple, Inc.
It is worth keeping in mind that the issue of competition was rather topical even when Steve Jobs was around. The latter, however, adopted a unique approach towards the problem; as the case study conducted by Chapman, Hoskisson, & Christian (2012) shows, Jobs preferred the following strategy:
Microsoft not only paid an undisclosed amount to Apple, but also made its Office 98 suite compatible with Macintoshes. Jobs then proceeded to change the company’s sales strategy in 1997 to encompass direct sales—both online and by phone. (Chapman, Hoskisson, & Christian, 2012, C-4)
The aforementioned solution shows that the company used to follow a specific strategy, which presupposed that the products crated by the company should only be compatible with other products offered to the customers by Apple or the service that cooperates with the latter.
The results were quite impressive; however, it is worth noting that in the realm of the XXI century, such an approach hardly seems reasonable. Instead of being devoted to a single brand, people feel inclined to experimenting, as Chapman, Hoskisson, & Christian’s (2012) research has shown; hence, the Apple, Inc. should consider the possibility of producing the items that are compatible with the production of other companies.
Identification of Alternatives: What Can Be Done
It would be wrong to assume that the course of actions chosen by the company leaders recently is the only possible means to solve the problem and prevent the crisis that is threatening the Apple, Inc. at present. Apart from exploiting the already existing brands, including i-Phones, and promoting the concept of the Apple TV (Chapman, Hoskisson, & Christian, 2012, C-9), the company should consider the possibility of creating a merger with a young yet promising company.
There is no need to stress that the avenue chosen for the company to tackle the emerging issues is rather flawed. It is quite risky and fraught with a range of negative consequences in case of a failure. However, at present, the reconsideration of the organization’s attitude towards economic and technological rivalry is crucial to Apple’s further success.
Analysis of Alternatives: Choosing the Most Efficient Path
Though the alternatives to the decision taken by the Apple, Inc. seem rather alluring, it is worth keeping in mind that these solutions also presuppose dealing with certain negative aftereffects. For example, the idea of expanding through acquisitions might seem the best choice possible in the situation of extremely high competition rates.
More to the point, by expanding through acquisitions, Apple would be able to reduce the amount of liabilities by splitting them with the companies that it would merge with. However, the alternative solution also has a couple of major drawbacks (Ritholitz, 2012).
Recommendations: Getting Ready for the Great Revival
Despite the untimely death of its founder, the Apple Company continues to evolve and remains at the top of the world’s most famous IT companies. One might argue that betting on their ability to produce unique an innovative ideas on a regular basis, the company’s leaders are treading a very thin ice, the effect that the Apple, Inc. witnesses at present shows that the company has chosen the right track to develop.
It should be noted, however, that the company has been known for its innovations in the first place; in fact, Apple has made its name by providing the gadgets that break new grounds whenever they are released into the market. Therefore, changing the course would mean rebranding the entire company, which seems a very risky move for the organization at present.
More to the point, the reputation that the company has now seems unique and original; therefore, by adopting a different strategy and shaping the mission and vision of Apple, the company leaders will most likely witness a rapid drop in the customer’s interest towards the production of Apple, as well as a drop in sales. More importantly, considerable efforts will have to be taken to come up with a new strategy for branding the company.
Reference List
Apple info (2014). Web.
Chapman, R., Hoskisson, R. E., & Christian, G. (2012). Apple Inc.: Keeping the “i” in innovation. Stamford, CT: Cengage Learning.
How to build a great company culture – Forbes (2013). Web.
Ritholitz, B. (2012). The Apple Twitter merger (in more than 140 characters). Web.