The Key Strategic Challenges Facing Apple Computer

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Describe the key strategic challenges facing Apple Computer

Apple Computer is currently facing many strategic challenges, the first challenge is competition from new and existing companies. Apple’s iTunes, an online music store, faces competition from companies that seek to begin offering online music and video downloading services whether legally or illegally, and from existing companies that plan to modify its current strategies to become better aligned with the strategy of Apple. Many of Apple’s brands including the iPod, Apple TV, and iPhone face competition from rivals who are beginning to offer lower-prices and substitutes (Hitt and Hoskisson and Ireland, 2011). Apple Computer also faces the strategic challenge of keeping up with the pace of technological change. The technology entertainment industries are changing at a rapid rate, and it is uncertain if Apple will be able to keep a positive brand image. It is also uncertain if Apple will be able to sustain its brand reputation of innovative design, continuous release of technological breakthroughs, and the launching of new products that will meet and exceed the consumer expectations (Hitt and Hoskisson and Ireland, 2011). Apple Computer also faces another strategic challenge with the death of visionary Steve Jobs. Jobs was considered the face of Apple Computers; he provided vision, charisma, and public communication and relationship skills that help Apple strategically. The loss of Jobs puts Apple at risk if a reliable successor, succession plan, and talented individuals were not put in place. Describe the dimensions along which company success can be measured.

Apple’s success can be measured by the success of new product introductions. For instance, net sales of the iPad and related products were $5 billion and unit sales of iPad were 7.5 million during 2010 alone. Success can also be measured by research and development investments as well. Investment in research and development has allowed Apple...
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