Apple is a leading manufacturer of personal computers (PCs) and mobile devices. This paper begins by analyzing how Apple competes in the PC market. The discussion also examines how Apple’s strategy has been evolving within the past few years.
We will write a custom Essay on Apple Incorporation in 2010 specifically for you
301 certified writers online
Apple has also remained competitive because of its superior smartphones and MP3 players. The paper also identifies the major challenges effecting Apple Incorporation. The paper concludes by explaining why Steve Jobs is an effective strategic leader.
Apple Incorporation in 2010
Apple Incorporation uses appropriate strategies to compete in the personal computer (PC) market. Throughout the 1990s, Apple used the best distribution channels to deliver quality products to different consumers (Yoffie & Kim, 2010). In 2001, Steve Jobs presented a new vision in order to make the company successful.
He also introduced the Macintosh. The new CEO decided to “control both software and hardware” (Yoffie & Kim, 2010, p. 5). This strength made it easier for the Mac to become a successful product in the global market. The company also introduced a new Mac computer.
These “new devices ran on an Intel chip” (Yoffie & Kim, 2010, p. 6). Steve also introduced a new operating system for Apple PCs. The company upgraded the OS within 12-18 months. This strategy increased the number of PC sales. The distribution strategy adopted by Apple Incorporation in 2001 made it easier for every consumer to purchase the company’s new software.
The company opened more stores in different countries. Apple Inc. also formed new partnerships with companies such as Best Buy. This strategy attracted more customers thus increasing the company’s sales. The strategy made it easier for customers to purchase the company’s user-friendly PCs.
The company’s competitive strategy has changed significantly because of the new market dynamics encountered in the world today. Apple has adopted a digital hub strategy (DHS) in order to address the changing needs of its customers. This situation “explains why Apple Inc. introduced the iPhone, the iPad, and the iPod” (Yoffie & Kim, 2010, p. 7).
According the case study, Apple Inc. has a strong competitive position. The iPod has become a successful competitor in its industry. The company’s MP3 players offer new features such as huge internal memories. The creation of the company’s iTunes Store has also made it easier for users of Apple’s smartphones and MP3 players to down songs and movies. These devices offer the best entertainment to every customer.
Steve Jobs was ready to identify the best strategies and efforts that could make the company’s DHS successful. The introduction of the iPod and the iPhone opened new opportunities for the company (Yoffie & Kim, 2010). However, the company must work harder in order to deal with every existing threat. Companies such as Nokia, Samsung, and LG Electronics are producing similar smartphones.
Such mobile devices have superior features that can make Apple less competitive. The internet is also discouraging individuals from purchasing MP3 players. Consumers can now download songs and videos from their mobile devices. This situation explains why Apple Inc. must identify new strategies in order to remain competitive.
Several challenges will confront Apple Incorporation in the coming years. Apple appears “to have evolved from being a PC manufacturer to a mobile device company” (Yoffie & Kim, 2010, p. 13). The move has made Apple one of the most profitable and successful companies in the United States.
Apple’s momentum also appears to be unstoppable. However, the future of the company is uncertain because many technology companies tend to fail after several years of success. According to the case study, the failing health of Steve Jobs is also a major challenge facing the company. The case explains why the company should consider new strategies and options in order to retain its momentum.
New ideas and innovations will support the company’s goals and expectations. The case study also explains why many companies in the industry fail to realize their potentials. New companies are also emerging in the PC industry (Wheelen & Hunger, 2010).
The existing firms are identifying new options and strategies in order to remain competitive and profitable. According to the authors, Apple Inc. needs to identify new strategies and business practices that will support its current momentum.
Get your first paper with 15% OFF
Steve Jobs was one of the company’s pioneers. He left Apple to start his own software company. Apple was no longer making profits after Steve’s departure. His return to the company was something critical towards its success. He pioneered new ideas and devices such as the iPhone, the iPod, and the iMac.
This scenario explains why Steve Jobs was an effective leader. He always embraced the best research and development (R&D) practices in order to realize his goals. He also appointed the right people at the company. He promoted teamwork and encouraged his employees to work as teams (Pearce & Robinson, 2013). He purchased new companies and attracted new business partners.
The strategy made it easier for Apple Incorporation to become a leading competitor in the industry. He also diversified the company’s core products. He “encouraged every employee to embrace the power of innovation” (Yoffie & Kim, 2010, p. 9). Steve Jobs’ departure from Apple was something unexpected. The company is currently repositioning itself in order to support Steve’s ambitions and goals.
The introduction of the iPhone 5 shows why Apple Inc. has not lost its track. The leaders and managers at Apple Incorporation must promote the best ideas for the company. They should also produce new products that can make the company profitable. The managers must also identify every industrial change in order to remain competitive.
Pearce, J., & Robinson, R. (2013). Strategic Management: Planning for Domestic and Global Competition. Boston, MA: McGraw Hill.
Wheelen, L., & Hunger, D. (2010). Concepts in Strategic Management and Business Policy. Upper Saddle River, NJ: Pearson Prentice Hall.
Yoffie, D., & Kim, R. (2010). Apple Inc. in 2010. Harvard Business School, 1(1), 1-25.