Apple Computer, Inc.: Maintaining the Music Business While Introducing Iphone Essay Example

income was $3. 5 billion (Hitt et al. , 2011). In 1976, Steve Jobs and Stephen Wozniak invented their first computer known as the “kit computer”, now over thirty years later, the company has been successful with inventing smartphones, televisions and what they called the greatest invention since the Walkman, the IPod (Hitt et al. , 2011). One way to measure Apple’s success, is the number of products that were sold.

For instance, in 2007, more than 100 million IPods were sold and Apple expected in 2008 to reach the sales of 10 million iPhones (Hitt et al. , 2011). Apple success is also measure by the quality of their products. For example, consumers are not shy in reference to communicating to each other about products and their likes and dislikes. Apple can measure their success by customer complaints, customer satisfaction, as well as repeating customers. Management focus on quality as well as quantity is a successful tool to follow.

Describe the Critical External and Internal Environmental Factors that have Strategic Implications for Apple's Future The critical external factor that has strategic implications for Apple’s future is their customers and the market needs. In today’s society, an increase in the demand for products that offer technology and entertainment, Apple challenged is to change from being a traditional company. Major competitors and new entrants offer services that challenge Apple. In order for Apple to maintain its competitive advantage, the company must be able to meet their customers’ expectations without jeopardizing their current profit.

Another critical external factor that has strategic implications for Apple’s future is the global market. Although Apple has partnership with cell phone carriers in different countries,

they must be able to enter markets that have major telecommunications companies such as Japan (Hitt et al. , 2011). The critical internal factor that has strategic implications for Apple’s future is how the company will make decisions involving future opportunities. Although the Apple Company has moved through several CEO’s, management structure has been stable (Hitt et al. , 2011).

Apple’s management challenge would be to focus on advancing into the entertainment and technology aspect of the market. Identifying and developing new products that would cater to consumers who are looking for the latest and greatest gadget is a challenge for Apple’s as well. Apple’s future relies on the ability to sustain a positive relationship with their customers and for management to always prepare themselves to meet the changing business and market. Describe how Apple's Strategy Stands Up Against Industry Rivalry Apple strategy stands up against their industry rivalry in a positive way.

The ability to invent, develop, and research what customers’ needs and wants are, has proven to be a major asset for Apple’s management staff. Apple’s management has a competitive advantage over many competitors because of their ability to expand their ideas globally. Apple’s strategy stands up positively against industry rivalry because of their knowledge of the technological segment and the ability to be different. Apple’s strategy is to differentiate, invent, and continue to improve in the changing business market and that is what makes Apple have and maintain a competitive advantage.

Describe the Recommendations

You Would Make to Enhance the Effectiveness of the Company's Strategy or to Change its Strategic Approach for Better Results To enhance the effectiveness of the company’s strategy, Apple should continue pursuing

opportunities in the global market by consistency displaying their brand image. Although Apple has maintained the ability to market their new products throughout the “cult followers” community, they should focus more on establishing relationships with consumers that are lacking in technology advancement throughout the world (Hitt et al. , 2011).

Apple strategy is to market globally and in order for them to do so they should maintain a relationship with all major telecommunications companies, especially Japan (Hitt et al. , 2011). Major competitors are looking for ways to become a major rivalry for the Apple Company and in order for them to maintain a competitive company, they must be able to plan and execute their strategies effectively.

References

1. Hitt, M. A. , Ireland, R. D. , ; Hoskisson, R. E. (2011). Strategic management: Competitiveness and globalization, concepts and cases: 2011 custom edition (9th ed. ).
2. Mason, OH: South-Western Cengage Learning.