Introduction
In today’s corporate world, strategic positioning is important for attaining set goals and listed aims. Corporate strategy is usually meant to point out the direction an organization should take when faced with different and challenging situations. These situations usually arise out of internal and external factors in a business. For leadership in the corporate world, strategy may be guided by certain philosophical models or theories.
It is only through a close examination of an individual corporate strategy that one is able to establish the theoretical foundations or philosophies employed. This paper looks at the application of Machiavelli’s principles of leadership as outlined in his book “The Prince” on Apple Corporation. A major foundation in the narrative is the interrelationship between power, competition and strategy.
Major corporations usually rely on leadership and market dominance that can be easily connected to political power principles that were advocated for by Machiavelli and many other scholars and writers. Apple has provided leadership in the smart phone and electronic goods segment in the United States and globally in the recent years.
Its dominance in the smart phone segment particularly arouses suspicion on the nature of strategic principles it applies. This is despite of heightened competition in the industry it operates in. As a result, it is important to ascertain whether the corporate giant has often applied Machiavelli’s principles in attaining market leadership. This analysis will find out how the chosen company has manifested or does not manifest the philosophies Machiavelli espouses.
Adherence to Machiavelli
From the onset, Machiavelli states that all dominant entities, be it in the form of leadership or organizations are categorized in terms or republics or principalities. “Principalities are either hereditary, in which the family has been long established; or they are new” (Machiavelli 1). This proposition actually reflects the position of Apple currently in the smart phones industry. Having undergone multiple transformations to become a global leader in the manufacturing, distribution and supply of mobile phones, tablets and other computing electronics, the company can be said to be a principality.
Secondly, from the struggles of the initial company CEO to the transition to a new leader, Tim Cook, the new leader can be said to have furthered the concept of principality through inheritance. Machiavelli illustrates the difficulties of transition by stating that “there are fewer difficulties in holding hereditary states, and those long accustomed to the family of their prince, than new ones” (2). For the new CEO, maintaining the strategies held by the late CEO has been a difficult task.
As a result, the company can be said to have shown adherence to some of the principles so advocated for by Machiavelli. First, from the time of its formation, Apple’s chief strategy has been on acquisitions and mergers that have in turn helped it to attain more control and dominance in the market. The most recent acquisition of the company is the purchase of the Beats enterprise that was a leader in the supply of music related products like their trademark earphones. Through multiple acquisitions, Apple ascribes to the model of Machiavelli’s principles of attaining domination by spreading control of territories.
“…. It is easier to hold them, especially when they have not been accustomed to self-government; and to hold them securely it is enough to have destroyed the family of the prince who was ruling them…”(Machiavelli 6).
In the corporate world, this quote implies that dealing with competitors would sometimes require that the competition in itself be done away with. This is the same principle that seems to have been followed by Apple. By acquiring upcoming software and hardware enterprises that have become known in the market and therefore eliminating future threats in its area of specialization, the company has made its position in the market even stronger.
Another key area for Apple’s success is through its patented and highly restricted software specifications that make its brand unique from other competitors. The company, as opposed to other competitors who have relied on open source software, has maintained a tight grip on its iOS. This has made it unique in the market and hence its products have always fetched a higher price. This strategy goes hand in hand with those of Machiavelli when he states:
“…. The prince … ought to make himself the head and defender of his powerful neighbors, and to weaken the more powerful amongst them, taking care that no foreigner as powerful as himself shall, by any accident, get a footing there…”(8).
In addition, Apple’s key advantage has been based on innovation. Through the introduction of new products and modification of existing ones promptly, the company has managed to gain control and leadership. Innovation in today’s competitive world has worked for Apple owing to the nature of consumers in the market. For instance, the more educated consumers are likely to go for customized and trendy products in the market regardless of their price. In so doing, Apple seems to have heeded the advice of Machiavelli. The author states that the best way to cease opportunities for growth is through being unique and risk taking as he describes:
“…And it ought to be remembered that there is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success, than to take the lead in the introduction of a new order of things. Because the innovator has for enemies all those who have done well under the old conditions ….”(24).
By stating this, the author confirms that brand identity is quite significant for market leadership. In a strategy meant for dealing with challenges associated with new entrants in the industry, the author therefore proposes that an entity should not only strive to be innovative but also be ready to hold onto its secrets of uniqueness because the other individuals not ready to be innovative enough are usually quick enough to take advantage of other’s innovation. This fact seems to have been well known and taken care of Apple through its secret innovation strategy. As a result, the company remains a leader in the technology sector.
“…. nothing can be so uncertain or unstable as fame or power not founded on its own strength. And one’s own forces are those which are composed either of subjects, citizens, or dependants; all others are mercenaries or auxiliaries”(66).
This quote is virtually one of the most important indications on why a corporate like Apple has highly depended on the value of taking care of each stakeholder. The stakeholder model used by Apple recognizes the need to satisfy the needs of all those who internally or externally lead to the success of the business. For Apple, the value of its customers, employees, stockholders and management is so important for its success. This is because the business environment is often full of uncertainties as mentioned in the quote and therefore keeping the business partners, customers and suppliers is important for achieving sustainability even in times of uncertainty.
Lastly, Apple’s aggressiveness in the marketing of its products and expanding its market share globally may also be attributed to the principles of the author.
“… say that every prince ought to desire to be considered clement and not cruel. Nevertheless, he ought to take care not to misuse this clemency. Cesare Borgia was considered cruel; notwithstanding, his cruelty reconciled the Romagna” (78).
The above quote is an illustration of the aggressive marketing campaign the company has been involved in mostly in the technological platforms such as the social media. Through this, the company has been able to command a large portion of the youthful market segment. Since the youth make up a bigger portion of the world’s population, Apple has therefore been able to successfully drive its sales and increase profit margins as a result.
Avoidance of Machiavelli
Despite the Apple Company following some of the strong proposals of Machiavelli, it seems to have avoided some of them. Machiavelli seems to have based his arguments on the fact that political power should always be obtained at all costs. Most of his principles are made to create an assertion that it is always about to the good of an individual and not of the others, when he decides to get involved in doing something.
On the contrary, Apple has recognized the importance of ethics in doing business. This is based on the fact that customers in the market are more educated than ever. A company that does not recognize the importance of ethics is considered ignorant of the plight of it consumers. It is therefore evident that Apple’s commitment to ethical foundations of fair treatment and diversity as contained in its company strategic plan, is a break away from the proposals of the author.
“… Hence it is necessary for a prince wishing to hold his own to know how to do wrong, and to make use of it or not according to necessity…”(Machiavelli 71).
In a clear departure from ethical principles that demand for morals and values that are usually adhered to regardless of circumstance, the above quote indicates Machiavelli’s case against corporate ethical principles. There are many arguments that ethics usually depends on certain circumstances hence supporting Machiavellianism ideas.
However, moral standards are known to be fixed and whoever goes against them usually is unethical. This is in fact the reason as to why Apple may have not followed the author’s direction when it comes to doing right always and not when it feels the most appropriate thing to do. Global brands usually sell because of trust and when a company decides to bend rules to suit circumstances, the result is usually related to brand failure.
Secondly, the author seems to propose that corporate should always be mean when he states:
“We have not seen great things done in our time except by those who have been considered mean; the rest have failed” (75).
Even though there are many instances cited by the author that suggest that meanness actually helps one attain the desired success, the corporate giant under focus seems to have avoided the use of this strategy. For instance, instead of majoring on how to best maximize profits, Apple has also been involved with other activities for the benefit of societies. Through the principle of corporate social responsibility, the company uses a portion of its revenue to contribute towards environmental sustainability, promotion of talents and uplifting of the disadvantaged in the society.
There might be a debate as to why the company engages itself on the corporate social responsibility initiatives. For instance, it is easy to state that it is one of the ways in which the company helps to market its brand to communities throughout the world. However, if this is the case, it could have been easy for the company to concentrate on commercial marketing instead of duplicating its marketing efforts. According to the principles studied above, this in fact does not show meanness but generosity.
Outcomes
As discussed, Apple’s strategy has been mixed. On one hand, the company has able to utilize the aggressive propositions of Machiavelli to position itself in the market and shove away competition. On the other hand, the company seems to have recognized that the means to achieving the ends in the corporate world is quite important.
As a result, it has also showed that it is able to follow its own rules that may be against those proposed by the author to attain even more success. The outcomes of this mixed strategy have been positive for the company. First, the company’s observance of the value of stakeholders has driven its customization and value agenda. As a result, it has been able to provide quality products that fetch higher prices for the benefit of its employees, owners and customers alike.
On the other hand, the company continues to recognize that while the main objective of any firm is to maximize wealth, it is important to ‘give back’ to the society. Through observing consumer and employee ethics as well as engaging in corporate social responsibility programs. The company has shown that success is not always attached to being mean. As a result, the company’s brand has become a household name for many globally. People always want to identify with the Apple brand not only because of its quality and prestige but also because it has proven to care for its customers, employees and the different societies.
Conclusion
In conclusion, it is easy to note that corporate strategy is based on established philosophies. However, as portrayed in the analysis of Apple and Machiavelli’s theory, sometimes it is important to carefully integrate such thoughts with more practical approaches for success in today’s business environment. Consumer awareness and regulatory requirements can also be said to have influenced the strategic decisions of corporate in a great deal.
It is therefore common to find that even in instances where the Machiavelli’s theoretical principles have been applied; there have been modifications to ensure that companies remain compliant and committed to customer service excellence. The realization of this fact by corporate giants like Apple can be therefore said to be one of their key success factors while they continue to expand and increase their dominance.
Works Cited
Machiavelli, Nicolo. The Prince, Plano, TX: Veroglyphic Publishing, 2009. Print