Apple Inc. Case Study
- Part 1: Analysis of Apple’s Macro-Environment
- Synopsis of the start and growth of Apple
What started as a revolutionary idea of the time, two individuals, Steve Jobs and Steve Wozniak, founded the famous Apple computer Inc. in 1976, intending to make the personal computer a commercial tool. This they planned to use to fill the need for the gadgets that were on the rise. Two years after their foundation, they released their first innovation, the Apple II, and it had a RAM of 4K bytes. The device was priced at USD 666.66. The concept of biting into the apple, which was hugely made famous by ads, made the customers excited and interested in the device[1]. By the end of the year 1980, the company had refined and released three versions of the home computer improved from the initial innovation.
The macintosh, another product by the company, was introduced in 1984. The innovation had an intuitive graphical user interface that had more advanced capabilities. The company had grown tremendously, even though it had faced its share of low moments, with the lowest being in 1997 when it was almost declared bankrupt, but apart from that, it has been growing from one level to the other.
- Missteps of apple since its foundation
In 1985, there was a power struggle with the CEO, and it forced one of its founders, Steve Jobs, out. After being ousted from the company, even though he was the visionary founder, the company faced many problems. They reported a loss of $69 million in its quarterly analysis. This almost made the company declare bankruptcy. This was caused by the ousting of the visionary leader after they hired a manager from Pepsi.
- The problem facing apple currently.
Competition from new upstarts has been the major problem being faced by the company. To remain competitive and control a market share in the company’s digital and innovation sphere has been threatening its existence in the contemporary world, with the company fighting hard to continue producing gadgets that will continue to be of interest and suit the current world. This issue has led to the company spending a lot of money on research to produce unique and interesting products for the brand’s buyers and customers.
- Part 2: Innovation analysis of Apple
- Type of innovation that is found at apple
Apple has been banking mainly on the iPhone’s success as it is the major innovation they have had for a long time that has been in huge demand worldwide. The innovation has seen many renovations, and it has been branded severely. Despite it being the major item from the brand, many other products have been innovated in the company, such as the Apple smartwatch, apple pay, apple TV+, beats by Dr.Dre, and apple music. These products are the lifeline of the company, and they have attracted huge amounts of customers[2]. The renovations and perfection of the company have made the products maintain their customers and competitiveness. The products have always maintained an image of class that has made them have more and more customers all the years that the company has been in existence.
- The impact that Jony Ive has had on the success of Apple.
John Ive had been the chief design officer for a long time, and he announced leaving the outfit in 2019. This was seen to have been prompted by his promotion to become chief design officer, which led to him having lesser day to day running of the company and the design projects. Having been involved directly in the design of the company’s products, he intended to have weeks of design each month. This could not be achieved with the role he was given, and they would not have a platform to showcase their innovations. This frustrated his plans, and he planned to leave the outfit[3]. Together with another industrial designer from Apple, they started a private firm, and they planned on working with Apple as their primary market. John Ive has contributed hugely to Apple’s success and growth as he has been at the front line to develop or think of synthesizing products in the company, which has led to the company becoming competitive and having a huge share in the market.
- Overall innovation strategy at Apple. How are they positioned within the market and for the future?
Apple has concentrated mostly on the iPhone, and they have perfected it to become their brand representative. This has led to it being a major product that has become common in [4]. They have a strategy of remaining in the business, and they are the sole producers of the MAC ios, which has remained competitive in the market. In a market that could be monopolized by a company such as Microsoft, Apple has offered an alternative. The ability to choose has led to it being well positioned in the market, and this has had a tremendous effect as it has racked in benefits for the company[5]. As for the future, the company has continued to research and produce products that suit the world’s development and the time effect. Further, to avoid their products becoming obsolete, they have been synthesizing and renovating the products they previously produced to fit the current users’ requirements.
- Part 3: Tim Cook is the current CEO of Apple. Analyze his current opportunities and threats for Apple and discuss the direction he should take the company.
- Major opportunities for Apple in the current world
The digitization and the evolution of the world give more chances and opportunities to companies dealing with technology such as Apple. There is a huge need for electronic devices of high quality in the world, and this gives Apple has an opportunity to develop new products that suit the needs and demands of the growing population in the world[6]. The growth and demand for the products will make the company have huge horizons as they will have to produce huge amounts of their products to fulfill the demand from the consumers. This will help the company continue holding a competitive edge in the market. The competitiveness of the company against other brands will help maintain the name of the company and its fame in producing excellent products.
- Major threats of Apple in the current environment.
Many threats have faced the company, and they have been overcome. The major threat that faces companies is the threat of new entrants, competition from other firms, uncertainty in the financial world, attracting and retaining new and creative talents, and also issues about laws and regulations[7]. The entry of new competitors threatens the companies and their products as the new products aim to entice their customers. The firm requires to develop strategies that will ensure that the threat of new entrants has been dealt with and the new companies will not snatch their customers. This can be done by investing in new products and engaging their customers to ensure they are loyal.
The threat of attracting and retaining new and creative talents can be settled by offering them better packages and working conditions[8]. Having packages that will entice them and working conditions that will make them comfortable while working in the company will help get the talents needed for the development of the company and its products.
Competition from other firms producing similar products can be overcome by ensuring that the products’ quality is not compromised. This will enable the company to build a reputation for producing high-quality products to attract and make the customers to the brand. Knowledge of having quality products and reliable customer relations will help the company overcome the threat.
- How these opportunities and threats could affect Apple and recommend a strategy/is that Tim Cook should take moving forward.
The opportunities presented to the company by the development and advancement of technology will offer the company a chance to grow and venture into the future. It will also offer a platform where the company can utilize the talents and the resources they have to make a huge profit from the products’ demand. The company can turn the demand and the opportunity to their advantage by investing in better research and innovation to suit the people’s needs in the new era and grow to dominate the market.
The threats can lead to huge losses if the company is not well prepared to handle them. The way that the company will decide to handle the threats will determine the heights to which they will climb in the future[9]. Solving the threats and acknowledging the opportunities will require a strategy that will ensure the company’s growth and expansion. The strategy will look at how the firm will handle the demands while also balancing on how they are dealing with the threats facing them due to the huge need and the expansion of the market. Having more creative designers and marketers will ensure there is a balance between the clients’ demands and what is produced in the company.
[1] Holstein, A. D. (2018). Search Engine, Inc.: Growth Versus Exit Strategy for a Mature Tech Start-Up. Entrepreneurship Education and Pedagogy, 1(2), 166–193. https://doi.org/10.1177/2515127418772176
[2]. Holstein, A. D. (2018). Search Engine, Inc.: Growth Versus Exit Strategy for a Mature Tech Start-Up. Entrepreneurship Education and Pedagogy, 1(2), 166–193. https://doi.org/10.1177/2515127418772176
[3] Holstein, A. D. (2018). Search Engine, Inc.: Growth Versus Exit Strategy for a Mature Tech Start-Up. Entrepreneurship Education and Pedagogy, 1(2), 166–193. https://doi.org/10.1177/2515127418772176
[4]Ledenyov, D., & Ledenyov, V. (2015). Multivector Strategy vs. Quantum Strategy by Apple Inc. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2707662
[5] Leśniak-Moczuk, A. D. (2016). Vision, Strategy, Innovation in Apple Company. Zeszyty Naukowe Uniwersytetu Szczecińskiego Finanse Rynki Finansowe Ubezpieczenia, 5, 33–40. https://doi.org/10.18276/frfu.2016.5.83/2-03
[6] Peterson, S., Jaret, P., & Schenck, B. (2019). How to Identify Opportunities and Threats in Business Planning – dummies. Dummies. https://www.dummies.com/business/start-a-business/business-plans/how-to-identify-opportunities-and-threats-in-business-planning/
[7] Pontoriero, C., May 15, P. com |, & AM, 2017 at 09:48. (2017, May 15). 8 Biggest Threats to Businesses. Treasury & Risk. https://www.treasuryandrisk.com/2017/05/15/8-biggest-threats-to-businesses/
[8]. Peterson, S., Jaret, P., & Schenck, B. (2019). How to Identify Opportunities and Threats in Business Planning – dummies. Dummies. https://www.dummies.com/business/start-a-business/business-plans/how-to-identify-opportunities-and-threats-in-business-planning/
[9] Peterson, S., Jaret, P., & Schenck, B. (2019). How to Identify Opportunities and Threats in Business Planning – dummies. Dummies. https://www.dummies.com/business/start-a-business/business-plans/how-to-identify-opportunities-and-threats-in-business-planning/