University of Phoenix
Apple Inc. Strategic Choice and Evaluation Paper
This paper serves to present some insight of a company that has been named Fortune magazine’s most admired company in the world for three consecutive years from 2008 to 2010. A strategic analysis will examine the opportunities, and threats in the general environment, and the company’s strengths and weaknesses. Apple works in many facets of consumer electronics, such as mobile communication devices, personal computers, video devices and digital music. To maintain their status in a highly competitive industry, Apple must not lose focus on the cornerstones of the company. They must continue building strong relationships, encourage innovation, and support strategic marketing. Brand management is also the key as they manage diverse products that have put them into new and extremely fast paced, ever changing markets. Business Intelligence
Apple success in consumer electronics is a direct result of their business intelligence, “the ability for an organization to take all its capabilities and convert them into knowledge. This produces large amounts of information which can lead to the development of new opportunities for the organization. When these opportunities have been identified and a strategy has been effectively implemented, they can provide an organization with a competitive advantage in the market, and stability in the long run (within its industry)”. Apple employs the best and the brightest and with its late leader, Steve Jobs at the helm, they were able to take Apple from being primarily a computer company that was on the brink of failure, to a consumer electronics multimedia powerhouse within 10 years; through innovation that continues to build upon technological advances they introduced. Apple continues to be the leader in their industry based on the business intelligence and their determination to remain at the top. Apple Products
In September 2001, Apple presented the new iMac featuring a screen that revolves. The iPods were also a success in the markets. Apple sold such a large amount that Apple’s reliance on Mac sales became notably less. Apple offered iTunes a free application to facilitate their consumers to organize music on Macs and iPods. In 2003, Apple opened the iTunes music store allowing Mac users to buy music online and offering Windows users to have access to iTunes. In 2007, Apple introduced the iPhone, combining three products such as a widescreen iPod with touch controls, a revolutionary mobile phone, and advanced Internet communications devices with access to desktop class email, and web browsing all into one small, and lightweight handheld device. Later, in 2010, Apple introduced the iPad, an innovative device for browsing the web, sending and reading emails, watching videos, enjoying photos, playing games, listening to music, reading e-books, among others. iPad includes tweleve new innovative apps designed especially for the iPad, and will run over 140,000 apps found in the company’s App Store. Industry Analysis Using Porter’s Five Forces Model
Apple operates in two primary industries. One is the computer industry known for hardware and software needed to function and the second is the delivery of entertainment and media within the industry. Apple has been in competition within the computer, entertainment, and software and entertainment industries. “Looking to 2005...Every time that Apple had jumped into the lead in a product category during the past two decades, it has had difficulty in sustaining its leadership position” (Yoffie). Using Porter’s Five Forces Model to understand why Apple’s industries are as competitive. The computer industry threat specifically in the industry space Apple occupies is a high threat industry. Apple must maintain focus to pursue product differentiation and economies of scope to continue their sustained competitive advantage...