Summary of Apple’s Story
Apple Incorporation is one of the leading producers of innovative handheld devices across the globe (Abdelsamad et al., 2010). The company was founded in 1976 in California. Throughout the 1980s, the computer industry continued to grow very fast. Apple’s superior Personal Computer (PC) competed with similar products in the market. It also developed powerful education software in order to remain competitive.
In 1984, Apple introduced various graphical interfaces. Such interfaces included windows, pull-down menus, and icons (Abdelsamad et al., 2010). These tools dominated the world of desktop publishing. The founders of the company departed from Apple in 1985. The new CEO pioneered new strategies in order to streamline the company’s operations.
Apple became the leading marketer of PCs in the county. By 1995, new companies such as Hewlett Packard, Dell, Gateway, and Compaq emerged in the market. Apple was unable to achieve its goals due to the increasing level of competition. Under the leadership of Gilbert Amelio, Apple made numerous losses thus being unable to achieve its business goals.
Steve Jobs replaced Gilbert Amelio in 1997. Jobs reopened the company’s retail stores and introduced new devices such as the iPod. The company also opened iTunes music store for its iPod customers. The introduction of the iMac in 2002 was another effort by Steve Jobs to revolutionize the company.
The iMac failed thus forcing Steve Jobs to innovate new products. The company also opened new stores in Canada and Europe. The success of the iPod encouraged the company to offer movies and music through its iTunes store. In 2007, the name of the company changed to Apple Incorporation. Steve Jobs introduced new products such as the iPhone and the Apple TV (Abdelsamad et al., 2010).
The introduction of the iPad in 2010 was another effort aimed at supporting the company’s future goals. However, Jobs’ health deteriorated thus forcing him to delegate his duties to Tim Cook. Many people believed that the future of the company was debatable. This was the case because Steve Jobs was unable to offer his entrepreneurial competencies.
The company succeeded due to its ability to produce superior products and services. Such products included Mac computers, Apple TV, iPad, and the iPhone. It also offered a wide range of software applications, accessories, and support offerings (Abdelsamad et al., 2010). Such products are currently marketed globally to different customers. The company has numerous retail stores, wholesalers, and value-added resellers.
Apple also markets various products such as headphones, application software, storage devices, and accessories. The company uses its innovativeness to design new products that can support the needs of more customers. Research and Development (R&D) is also taken seriously in order to offer powerful solutions.
Apple’s added offerings and applications have made it easier for more customers to purchase different products. Apple has also been expanding its distribution systems and networks. It is currently serving more customers with high-quality products and after-sale support experiences.
The firm also identified various competitive markets. In order to remain competitive, Apple embraces the power of R&D, proper marketing, and appropriate advertising. These approaches have made it possible for Apple Incorporation to expand its business position (Abdelsamad et al., 2010). The firm’s indirect and direct distribution channels have continued to support every business goal. The provision of high-quality devices and after-sales services continues to attract more customers.
Steve Jobs’ Entrepreneurial Characteristics
The success of Apple Incorporation is attributable to the entrepreneurial characteristics and skills of its founders. One of these founders was Steve Jobs. According to many scholars, Steve Jobs always presented new ideas and concepts. Such ideas made it easier for him to innovative new devices and computers.
He also encouraged every employee to think big (Abdelsamad et al., 2010). For example, he wanted John Sculley to promote innovative ideas that could transform the world. He was always “ready to take Apple into risky directions” (Abdelsamad et al., 2010, p. 9). Such efforts transformed Apple and eventually made it a leading player in the computer technology industry.
According to many analysts, Steve Jobs had an aggressive and demanding personality. This kind of personality made it easier for him to follow his dreams and mentor every person around him. He also focused on new innovations and products that would make his company more competitive. After leaving Apple in 1985, Jobs decided to form a new company called NeXT Computer Incorporation. He had a non-religious faith that made it easier for him to achieve his goals.
Steve Jobs believed strongly that Apple’s new products and services would eventually change the world. Jobs’ unbelievable imagination made it easier for him to come up with new ideas. For example, he invented the iPod after becoming the company’s CEO in 1997. This revolutionary product attracted more customers thus increasing the corporation’s net sales. He also designed new products such as the iPhone, Apple TV, and the iPad (Abdelsamad et al., 2010). Such products continue to support the company’s business strategy.
Steve Jobs was also fearless, charismatic, and passionate. As Apple’s Chief Executive Officer, Jobs encouraged his workers to produce powerful technologies in order to fulfill the changing expectations of every customer. He also embraced the concept of innovation. He also “pushed Apple to new limits by pioneering competitive devices and taking risky directions” (Abdelsamad et al., 2010, p. 9).
Such abilities eventually made Apple Incorporation one of the most successful companies in the United States (Abdelsamad et al., 2010). Steve Jobs’ efforts made it easier for his company to attract more business partners and stakeholders. Such partnerships were also associated with numerous profits and sales.
The other outstanding characteristic is that Steve Jobs was a business revolutionist. He embraced various revolutionary ways as an entrepreneur. After leaving Apple, Steve Jobs started his own company and eventually made it successful. He pioneered new products and services that continued to transform the world. This entrepreneurial spirit was witnessed when he joined Apple in 1997 (Abdelsamad et al., 2010). This entrepreneurial approach made it easier for the company to become successful.
Apple’s business strategy also summarizes Steve Jobs’ entrepreneurial abilities. He was ready to deliver the best experience to every customer. He encouraged his team to produce new services, software, hardware, and offerings that would transform the experiences of different consumers.
Jobs also identified new markets, opportunities, and strategies in order to make his company successful. He also used such strategies in an attempt to deal with competition. He mentored his workers and encouraged them to design new technologies and products (Abdelsamad et al., 2010). Future leaders at the company were therefore encouraged to embrace similar characteristics in order to achieve the best results.
When Apple Did the Right Thing: Apple’s Strategies and Competitive Strategies
The story of Apple Incorporation is very interesting and encouraging. According to different studies, Apple Incorporation has been promoting the best strategies and competitive advantages in order to emerge successful. Such strategic approaches have supported the company’s business objectives and goals.
To begin with, the main idea behind Apple’s business strategy was to deliver quality experiences to every customer. This would be achieved by providing innovative peripherals, services, software, devices, and hardware. The company embraced a powerful R&D strategy in an attempt to develop the best devices (Abdelsamad et al., 2010).
The company hired competent innovators in order to produce powerful operating systems, services, and devices. The leaders at Apple Incorporation invested heavily in Research and Development (R&D). This approach was critical towards developing innovative technologies, services, and products.
Apple Incorporation also developed a powerful platform to deliver digital applications and contents to its existing customers. The introduction of the iTunes Store made it easier for more customers to purchase movies (Abdelsamad et al., 2010). The store also included Apple’s iBookstore (Abdelsamad et al., 2010). These platforms made it easier for more customers to download their favorite eBooks and applications.
The company also engineered revolutionary devices such as the iPhone, the iPod, and the iPad. These devices continued to complement Apple’s offerings. Apple Incorporation also expanded its distribution system in order to market its high-quality products. This effort also made it possible for Apple to offer appropriate after-sales services. Apple used this approach to offer integrated solutions and services to more customers.
Competition was always a major challenge for many companies in this industry. Apple Incorporation used powerful competitive advantages in order to realize its business potentials. For instance, Apple introduced superior devices such as the iPhone in order to attract more customers.
The decision to target new markets in different parts of the world made it easier for Apple to increase its sales (Abdelsamad et al., 2010). Throughout the 1990s, Apple opened more stores in the United States, Europe, and Canada. The firm is currently marketing its devices in Asian countries such as South Korea and China.
By 2010, Apple had opened numerous stores in different countries across the globe. Such stores were located in shopping malls and high-traffic locations in order to attract more customers. The company hired knowledgeable and experienced employees to provide the best services to every customer.
The stores also offered a wide range of “accessories, peripherals, software, and hardware” (Abdelsamad et al., 2010, p. 15). Apple Incorporation also produced powerful technologies in order to address the changing needs of many students, educators, and researchers. The leaders at Apple Incorporation wanted to integrate modern technologies in every classroom. They wanted more students to achieve their educational goals.
The use of technology was critical towards improving the quality of education in many learning institutions. Steve Jobs also believed that more students could use modern technologies to express their ideas and thoughts. Apple designed various programs and services in order to address the needs of more learners. Mobile-learning was also supported thus boosting the company’s sales. Apple’s iTunes made it easier for more teachers to share new ideas with their students.
The use of R&D made it possible for Apple to develop quality handheld devices. Apple Incorporation designed “powerful products with superior networking functionality and high-powered computing performance” (Abdelsamad et al., 2010, p. 15).
Such high-end software applications made it possible for more customers to access different features. The applications made it possible for many users to complete various tasks within the shortest time possible. Steve Jobs’ ability to manage the company on a geographic basis also supported Apple’s business strategy (Abdelsamad et al., 2010).
What Tim Cook Should Extrapolate
According to many experts, Apple’s future remained questionable after Steve Jobs’ departure (Abdelsamad et al., 2010). Tim Cook became the acting Chief Operating Officer (COO) in order to monitor Apple’s business functions. It would be appropriate for Tim Cook to extend Jobs’ strategies at the company.
This approach will make it possible for Apple Incorporation to remain successful. To begin with, Tim Cook should ensure the company commits itself towards delivering the best experience to every customer. The firm should use edge-cutting technologies in order to produce innovative software, products, hardware, and services (Abdelsamad et al., 2010).
Tim Cook should also support the company’s powerful business strategy. This strategy will eventually make it easier for Apple to develop powerful operating systems and applications. Such systems will encourage more customers to purchase the company’s products.
Tim Cook should also borrow a lot from Steve Jobs’ entrepreneurial characteristics. This move will ensure the company acquires new talents and ideas. For instance, it will be appropriate for Cook to invest a lot in Research and Development (R&D). This approach will ensure the company innovates and develops new products that can deliver the best experience to different customers.
The current technological change experienced in the world should become a powerful benchmark for Apple Incorporation (Abdelsamad et al., 2010). This strategy will ensure every product delivers the best experience to the targeted customer. The firm’s products will eventually support the needs of more customers.
The new CEO should “expand Apple’s distribution network in order to reach more consumers” (Abdelsamad et al., 2010, p. 18). The company can identify new markets in the developing world in order to record more sales. Apple Incorporation should use these markets to provide their customers with high-quality devices.
The company’s online presence should also be improved because more customers have constant internet access. The approach will attract more customers and eventually boost the company’s revenues. Apple has been using these initiatives for the past two decades. That being the case, Tim Cook should consider such strategies because they have made the company profitable.
The leaders should also identify new programs in order to improve Apple’s sales (Abdelsamad et al., 2010). The firm should ensure its products and fixtures are availed to the targeted customers. Every device should also deliver the best experience to the end user. The CEO should also open more stores in different geographic locations.
The stores should also offer a wide range of accessories, devices, peripherals, software, and hardware in order to complement the firm’s superior products. The corporation should also “focus on different markets such as education, government, creative, and SMB in order to remain profitable” (Abdelsamad et al., 2010, p. 16). New markets in science and information technology should be exhausted by producing quality devices that will address the needs of many researchers.
Research and Development (R&D) is what has made Apple a leading player in its industry. Tim Cook should therefore support this department because it has the potential to transform the future of Apple Incorporation. Competent researchers and innovators should be recruited in order to support Apple’s future business objectives.
The firm should also collect useful feedbacks from its current and future customers. Such feedbacks can be used to improve the quality Apple’s products and services (Abdelsamad et al., 2010). These strategies will eventually make Apple a leading competitor in the globe.
Addressing John Tarpey’s Concerns
John Tarpey, a Senior Financial Analyst (SFA), is not sure of the best move to take. Tarpey should encourage his clients to purchase Apple’s stock. This is the case because the firm is still performing well. Although Apple has for many years depended on Steve Jobs, the agreeable fact is that it will continue to market its products and services to more customers.
The company’s distribution system has been responsible for its current sales. Its R&D Department focuses on the changing needs of its customers. The company designs powerful systems that can improve its competitiveness and profitability. Steve Jobs’ presence at the company contributed a lot to its growth and success (Abdelsamad et al., 2010). However, Jobs’ health is a major issue that can affect the company’s future performance and profitability.
Apple Incorporation’s stock price is also doing very well. That being the case, it is appropriate for John Tarpey to encourage his clients to buy Apple’s common stock. The case study shows clearly that Apple will remain a competitive firm in the future. The company’s innovative strategy is making it easier for more customers to purchase its products and services. The company has also been using a powerful strategy to produce its devices and products (Abdelsamad et al., 2010).
Most of its products are being outsourced thus reducing the costs of production. This strategy has made it possible for Apple Incorporation to maximize its profits. The business strategy founded by Steve Jobs will definitely support the firm’s future objectives and goals. Apple has also been attracting more customers in different parts of the world (Abdelsamad et al., 2010). The company is currently producing powerful devices in order to empower more people across the globe.
John Tarpey should not encourage his clients to sell the company’s stock because it has been performing positively. It is also notable that Steve Jobs had taken a sick leave before. This move did not affect the profitability of the company. That being the case, Apple Incorporation will continue to produce powerful devices and market them to more customers. Such revolutionary devices will also attract more customers and eventually make Apple profitable.
It is also notable that Apple Incorporation is facing competition from different companies. The company’s market segments and businesses are also facing numerous competitions. Apple Incorporation should therefore introduce powerful products and services (Abdelsamad et al., 2010). It should also use modern technologies to produce powerful devices and software applications. Such applications will fulfill the needs of more customers.
Apple should also use new strategies such as price controls and marketing processes. It should also offer innovative features and peripherals. A powerful business approach will attract more customers. The use of online stores will ensure the firm sells more products and software applications. The firm should also “improve its devices in order to improve the level of consumer-confidence” (Abdelsamad et al., 2010, p. 19).
Abdelsamad et al. (2010) argues that Apple’s future performance “depends on its ability to produce and develop innovative services in every business segment” (p. 18). Proper distribution and supply networks will also be critical towards ensuring the company increases its profits. Apple should also develop better relationships with its suppliers. This move is critical because any loss of a supplier will eventually affect its financial position.
Reference
Abdelsamad, M., Adhia, H., Croll, D., Morin, B., Pettit, L., Wheelen, K.,…Wheelen, R. (2010). Apple Inc.: Performance in a Zero-Sum World Economy. General Issues in Strategic Management, 1(1), 1-25.