Introduction
As the technical revolution persists, companies of the 21st century are motivated to innovate and develop their products and services to cater to the needs of their customers. For example, one such company that is customer-oriented and innovation-driven is Apple Inc., which has been operating in the technology industry for many decades and is one of the largest corporations. Although Apple Inc. emphasizes design, innovation, and user experience in its strategies, it faces challenges such as intense competition and complex supply chains, which can be mitigated through ongoing innovation and strengthened supply chain resilience.
Administrative Heritage of the Company
Before focusing on the strategies and challenges of the organization, it is essential to understand its origins. In 1976, Steve Jobs and Steve Wozniak founded Apple Computers, Inc. to alter the way consumers perceived technology (Library of Congress, n.d.). Making computers compact enough to allow individuals to keep them in their homes or offices was a goal of Jobs and Wozniak (Library of Congress, n.d.).
In the 1970s, the founders began developing the Apple I in Jobs’s garage, offering the device without a case, keyboard, or monitor (Library of Congress, n.d.). Then, the Apple II brought the first color graphics to the computer industry, completely changing it (Library of Congress, n.d.). In this situation, after trial and error, the company identified its niche and strengths, which enabled it to further pursue its efforts.
Meanwhile, the transformation of the company began after it had been in operation for two decades. Jobs decided to alter a few approaches at Apple in the 1990s and 2000s (Library of Congress, n.d.). To produce a Mac version of Microsoft’s well-known office suite, he formed a partnership with the company (Library of Congress, n.d.). The pivotal moment for the business occurred shortly following this choice. Jobs redesigned computers and unveiled the iBook, a small notebook (Library of Congress, n.d.).
Additionally, he began to venture into media player technology, including iTunes and the iPod (Library of Congress, n.d.). The iPhone, a mobile phone, and the Apple TV were also recently introduced by Apple (Library of Congress, n.d.). As a result, with a diversified portfolio and new perspectives, Apple managed to become one of the most recognizable brands worldwide.
The Strategy of the Company
Apple’s early years are reflected in its significant attention to design, innovation, and user experience. When Jobs first introduced the public to a Macintosh with an exemplary graphical user interface (GUI) in 1984, the Macintosh marked the beginning of a new era in which interface design established the framework for modern computer interfaces (Liu & Zhang, 2019). The world is composed of colors, as Steve Jobs once said (Liu & Zhang, 2019). In this case, adding more color to the design was a strategy intended to enhance its beauty.
A product’s character can be reflected through the efficient use of color, which can also influence consumers’ psychological states and actions by affecting their comprehension, arrangement, and utilization of various product qualities (Liu & Zhang, 2019). At that moment, Apple’s flagship device was the Apple II, the first personal computer to display color (Liu & Zhang, 2019). While meeting the needs of its customers, the corporation also made significant innovations.
Additionally, user experience can be observed in the simplicity of using the company’s products. Apple designers strive for simplicity, similar to the way Picasso eliminated imperfections when creating outstanding pieces of art (Liu & Zhang, 2019). This simplicity and elegance are the source of the functionality and aesthetic of Apple products. One example is Apple’s Mac, which has undergone 12 years of research and development since the initial Mac was released in 1984 (Liu & Zhang, 2019). Its look design is becoming increasingly uncomplicated, which stresses the customer-oriented approach.
When delving deeper into the operations of Apple Inc., it becomes obvious that it has to function in a fiercely competitive industry. Samsung, Google, and Huawei are among the largest corporations in the sector, each holding a significant market share (Shamout & Elayan, 2020). These competitors offer similar products and services, which necessitate a set of actions from Apple Inc. to sustain its competitive advantage.
While innovations are a crucial component of this rivalry, other strategies, such as pricing, are also present (Shamout & Elayan, 2020). Meanwhile, another challenge that the corporation must address is supply chain complexity. Apple has a complicated international supply chain that is primarily dependent on foreign manufacturing partners.
In such circumstances, being dependent on specific partners can leave Apple vulnerable to geopolitical risks, pandemics, and other kinds of disruptions. At the sub-tier level, it is challenging to totally reduce reliance on foreign companies, particularly in light of the locations of raw materials, including steel and aluminum, and the corresponding production capacities (Choudhary et al., 2023). Such a sensitivity to competition and global supply chain disruptions must be mitigated.
Recommendations
As mentioned above, being exposed to risks of fierce competition and supply chain vulnerabilities, actions will be required. For example, the first action that Apple Inc. must consider is continuing innovation. It was mentioned earlier that in some areas, such as application color and device design, Apple was the first to introduce such developments, starting a change in the industry and driving demand.
Considering the corporation’s approaches, it is crucial to maintain its commitment to innovation by investing in research and development. Such an action will enable the company to differentiate its goods from those of its competitors. Moreover, it was highlighted that Apple is reliant on several key manufacturing partners, making it exposed to supply chain risks. Therefore, it becomes clear that reducing such risk is only attainable if the company diversifies its partnerships. Consequently, it will make Apple Inc.’s network system more resilient.
Conclusion
In summary, Apple Inc. faces several challenges, despite prioritizing design, innovation, and user experience, including intense competition and a complex supply chain. These issues can be overcome by sustained innovation and resilient supply chains. Apple Computers, Inc. was founded in 1976 by Steve Jobs and Steve Wozniak with the intention of revolutionizing how people perceived technology. Apple pays significant consideration to design, creativity, and user experience, all of which are legacies of its early years. The company made significant advances in addition to meeting client needs.
A closer examination of Apple Inc.’s operations reveals that the company operates in a highly competitive market. The intricacy of the supply chain presents another challenge for the company to address. As a result, steps will need to be taken, such as maintaining innovation and expanding relationships.
References
Choudhary, N. A., Ramkumar, M., Schoenherr, T., Rana, N. P., & Dwivedi, Y. K. (2023). Does reshoring affect the resilience and sustainability of supply chain networks? The cases of Apple and Jaguar Land Rover. British Journal of Management, 34(3), 1138-1156.
Library of Congress. (n.d.). The founding of Apple Computer, Inc.
Liu, Y., & Zhang, Q. (2019). Interface design aesthetics of interaction design. In Design, User Experience, and Usability (8th ed.) (pp. 279-290). Springer International Publishing.
Shamout, M. D., & Elayan, M. B. (2020). A comparative analysis of strategic planning practices in Gulf cooperation council region: A case study of Huawei and Samsung companies. Journal of Talent Development and Excellence, 12(1), 4891-4910.