Apple Computer Company is an organization that deals with electronic goods (Apple,, Inc., 2012). While promoting its products, Apple Computer, Inc. has expanded its market globally (Apple, Inc., 2012). Recently, because of its popularity and success in the market, Apple Computer was rated the largest publicly traded firm in the world. This essay will discuss strategies, challenges, and the future of the Apple Computer Company.
Key strategic challenges facing Apple Computer
Apple has faced a number of challenges in the market. One of the biggest and major strategic challenges faced by Apple Computer is expanding and reaching the global market. With many competitors, Apple has been struggling to expand its market to reach many consumers.
In order to stay on top of its game, Apple has made efforts to go globally although the journey, has been rough. For instance, Steve Jobs has made numerous efforts to strike business deals with Japanese mobile companies since a large number of the Japanese population have access to phones and this factor makes Japan a big business potential for iTunes (Linzmayer, 2004). Despite of this opportunity, striking a deal has not been easy.
There is also an issue of innovation. In order to remain in the market, Apple Company has been forced to be more innovative every day. iPhone, iPods and Mac computers, represent unique products from Apple Company (Linzmayer, 2004). Due to stiff competition, Apple Company has always tried to be innovative producing creative products to do well in the market. Being innovative requires a lot of research and creativity, which is a challenge.
Another challenge is competition. With technology, business has becomthe e very competitive and Apple has faced stiff competition from different companies (Chapman and Hoskison, 2009). For instance, when Apple produced the first ever iPod in the market, other companies made efforts to make their own version. It gets worse when its competitors usually try to cut prices of their product down (Chapman and Hoskison, 2009). Such a competitor is Napster, which also specializes on MP3s and other music (similar to iTunes).
Dimensions along which Apple Company’s success can be measured
In the business, success is measured in terms of growth, quality of products and variety, profits, and revenue generated among other aspects (Luthans and Doh, 2012). Apple Computer has grown and developed substantially; it has increased its market location and has opened many retail stores worldwide. Today, it is estimated that Apple Computer has about 357 out let stores globally (Chapman and Hoskison, 2009). In addition, the company has many employees all over the world.
In terms of products, Apple has been able to adjust and manufacture products that meet market demand. While its competitors concentrate on lowering prize of products, Apple has strategized on producing quality products that satisfy clients (Chapman and Hoskison, 2009).
On the other hand, the company has also been able to produce wide range of products. Mainly, the company has manufactured phones, television, computers, and music players (iPhone and iPod) (Apple, Inc., 2012). Every now and then, Apple Computer has a surprise in store for its clients. In 1987, the company manufactured Apple II, in 1980s, it produced Apple III and Lisa, later it produced Macintosh computers and today; it has iTunes, iPods, and iPhones in the market (Apple, Inc., 2012).
In terms of profit, Apple has made it big. Over the years, Apple Computer has been able to make large profits enabling the company to expand its market. When Apple produced Apple II, it made profits of more than 10 million dollars in 1977 alone (Chapman and Hoskison, 2009). From that time, Apple has made even bigger profits. In first quarter of 2012, Apple Computer has already reported “a profit margin of about 13 billion and revenue of 47 billion dollars” (Apple, Inc., 2012). Certainly, the company has developed in terms of profit and revenue.
Critical external and internal environmental factors that have strategic implications for Apple’s future
One of the external driving forces that might have strategic implication for Apple Company is competition. In business arena, competition can have both negative and positive influence (Luthans and Doh, 2012). For Apple Computer, stiff competition from other companies makes the management to up its game.
For Apple, competition enables them to produce quality products and adjust according to clients’ needs (Apple, Inc., 2012). In addition, competition has made Apple Company to explore the market going internationally. Producing quality products and venturing deeper in the international market is very important for the Apple’s future endeavors.
Another external factor that might affect Apple’s future is the industry out look. Due to globalization, the electronic industry is taking a new twist every day. The industry has forced Apple to expand locally, nationally and internationally (Apple, Inc., 2012). With many companies trying to invest in this industry, the success and future of Apple will fully rely on their marketing strategy.
The electronic industry is very demanding as customers are constantly looking for creative products (Linzmayer, 2004). This therefore means that if Apple becomes more innovative, it will be successful.
Lastly, there is the issue of customers or clients. As Apple tries to satisfy it customers and reach a wider market, it grows and develops. For instance, Apple has been targeting Japanese market due to the number of consumers who have phones (Linzmayer, 2004). By targeting such clients, Apple will definitely increase sales and profits in the future for iTunes and Apple TV.
On the other hand, one internal driving force that might affect Apple computer’s future is technological capacity. No doubt, that Apple has been creative and its technological capacity is good for market survival. With the ability to produce iPods, iPhones and latest computer software, Apple Company has a promising future (Linzmayer, 2004). With utilization of technology, it has a bright future.
Another internal driving factor that will affect the future of the Apple Company is employees’ morale. Employees of Apple including Job Steve are committed to ensure that the company meets its market goals. In all retail shops, employees offer clients quality services and advice customers regarding their products (Apple, Inc., 2012).
In a number of occasions, clients make appointment where they meet with experts (who are Apple’s employees) who provide them special forums/discussion globally. With this trend, Apple Computer will definitely rule the industry in days to come.
How Apple’s strategy stands up against industry rivalry
Apple Computer has always been on the forefront and it has done everything within its power to be step ahead against competitors. To survive in this competitive industry, Apple has emphasized on products quality, design, and uniqueness. Between the year 2005 and 2007, Apple was rated as the best and most creative (innovative) company in the world (Apple, Inc., 2012). This is because Apple has concentrated in producing unique products that always catch the attention of the public.
As its rivals give emphasis to or concentrate on reducing the prices of similar products, Apple Company has always emphasized on the need to improve and manufacture quality products (Chapman and Hoskison, 2009). Even other competitors such as Microsoft Company agree that Apple is dominant in manufacturing “eye-catching” products (Chapman and Hoskison, 2009).
Steve Jobs has also helped the company in maintaining a good public image and sharing new ideas about Apple Company (Chapman and Hoskison, 2009). This has played a big role in exposing company products to the public. As a company, Apple has also valued customers’ feedback and this has played a big role in responding to their needs.
Lastly, Apple Company has many retail stores worldwide (Linzmayer, 2004). This has enabled the company to expose it products and make many sales.
Recommendations to enhance the effectiveness of the company’s strategy or to change its strategic approach for better results
In the 21st century, the internet and technology have become success ingredients for many companies. Since many people use social cites, especially Facebook and Twitter, to socialize and do business, Apple can be able to increase its market base. Apple should also do extensive training and campaign globally. This way, Apple will identify new talents or experts bringing more innovations in the company. Lastly, the company should strategize on successful planning to ensure long-term direction is secure, and its continuity is guaranteed (Linzmayer, 2004).
In conclusion, Apple Computer has been a very successful company. Although Apple faced many challenges, especially when there were internal wrangles and disagreements between Steve Jobs and Stephen Wozniak, the company forged ahead upon return of Jobs. With its unique products, Apple has always been at the forefront in this competitive industry. The opinion is that other companies should emulate this concept of creativity to avoid intellectual theft and promote change.
Apple, Inc. (2012). Apple.
Chapman, R., & Hoskison, R. E. (2009). Apple Computer, Inc.: Maintaining the Music Business while Introducing iPhone and Apple TV. New York: Cengage Learning.
Linzmayer, O. W. (2004). Apple Confidential 2.0: The Definitive History of the World’s Most Colorful Company. San Francisco: No Starch Press.
Luthans, F. & Doh, J. P. (2012). International Management Culture, Strategy, and behavior. (8th Edn.). New York: McGraw-Hill Companies.