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Apple Strategy
Apple: An Application of the Strategic Management Model
Current Situation
Apple Computer still has a small market share in the computer sector compared to some other PC manufacturers as of 2006, particularly Dell and Hewlett-Packard, however its share is growing and its profitability is quite high thanks to huge shares in the mp3-player market and in other technologies (Case Study, nd.). The company's vision and strategy of innovation and almost rabid protection of intellectual property rights (real or imagined) are made quite clear by both its actions and its own statements, and the company's performance also speaks volumes about the brand image and operational practices it pursues as a means of achieving greater market share and profitability (Apple, 2012; NY Times, 2012; Yahoo Finance, 2012). There appears to be a great deal of cohesion in the mission, objectives, values, and operations of the company, which functions quite cohesively (NY Times, 2012).
Corporate Governance
Stock in Apple Computers is publicly traded, and executives at the company own large portions of stock and have derived a great deal of wealth from stock benefits and ownership (Yahoo Finance, 2012). Board members have extensive experience in business and/or technology enterprises, and have been quite successful in their strategy of giving the executives at the company enough range to innovate and drive success while also maintaining a high earnings ratio (Apple, 2012; Yahoo Finance, 2012). Until his recent death, and certainly at the time of the case study, Steve Jobs was the most prominent executive at the company and by all accounts was instrumental in its success (Apple, 2012; Yahoo Finance, 2012; NY Times, 2012).
Strategic Analysis (SWOT)
The external environment of the company is currently impacted by economic, technological, and ethical issues, the latter including human rights and environmental concerns (NY Times, 2012; Gupta, 2012). Because of the company's retail control and the perceived uniqueness of many of its products, however, it is able to meet these challenges very much on its own terms (NY Times, 2012; Gupta, 2012). Suppliers and governments are most influential in the immediate term, yet these are not actually exercising major influence over the company at the current time and its profitability continues to soar (NY Times, 2012; Yahoo Finance, 2012).
As both the Case Study (nd.) and current information make clear, the company has very strong and cohesive marketing campaigns in place, with effective branding a major source of the company's success and providing a high profit margin and strong financial footing for the firm (NY Times, 2012; Yahoo Finance, 2012). Research and development continue to make up a major part of Apple's operations, with innovation being the primary driver of success in the technology industry, and the company's operations are designed specifically to allow projects to move through development to production quickly; the company tends to release new products or significant updates at least annually if not more frequently (Apple, 2012; NY Times, 2012). Human resources management has lately become a problem for the company due to negative publicity about its manufacturing facilities, which could ultimately damage sales but has not yet appeared to have a significant impact (Gupta, 2012; Yahoo Finance, 2012).
Strategic Alternatives and Recommendation
The strategic options that the company could pursue are quite diverse given its capital reserves and the scope of its operations. Apple Computers could decide to pursue a more narrow focus with fewer product lines in terms of both its hardware and software development, though this would likely lead to reduced market share and lower profitability earned from the licensing fees on updated software components. The company could also choose to compete like a more traditional computer/technology manufacturer and/or software developer, lowering its prices and the niche brand identity and marketing strategy it has long employed, however this would lead to more intense competition, reduced profit margins, and likely a shrinking market share. It is recommended that the company continue with its current vision and strategy of niche marketing, high-profile brand identity, and broad-scale innovation and development (Apple, 2012; NY Times, 2012; Yahoo Finance 2012).
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