This case study is about Apple‘s Computer, Inc. , a company that has built its reputation during the enormous growth of the personal computer industry in the 20th century. As a highly innovative company, Apple has made several successful product introductions over the years. However, the issues with its strategic management also led the company to some serious failures on several occasions. Apple even reached a point where many thought they would not survive.
This paper Nil discuss the success and failure of Apple’s strategic management. Apple Computer’s 30-year history is full of highs and lows. The introduction of the Macintosh line of personal computers in 1984 established the company as an innovator in industrial design whose products became renowned for their intuitive ease of use. Apple entered the asses well aware that the conditions made the company an industry giant in the previous decade had changed dramatically, and corporate strategies would have to be reexamined.
Due to its inconsistent strategic management, the company experienced failures throughout much of the decade. Hough battered by bad decision-making during the asses, Apple continues to exude the same enviable characteristics in the 21st century. Analysis High quality, pleasurable innovation, and reinvention have become Apple’s name brand. As a knowledge-creating company with a focus on reinventing the market as much as reinventing the company, Apple’s biggest success is establishing the reputation for innovation to be synonymous as a brand. Apple was ranked No. In the 10 most admired for innovation by Forbes Magazine in 2008. From the announcing of a new multimedia tablet device to a 22-inch touch-enabled all-in-one PC to an phone G for Verizon Wireless, Apple has continuously implemented new ideas into new products. While others retrench staff and cut back on research, Apple IS succeeding in this downturn in the same way it thrived through the last one – by investing, inventing and innovating its way forward. Apple’s innovation has given users a different perspective on the way they use the computer, phones, music, and movies.
For example, Apple’s pod redefined the music player, its tunes redefined the distribution of music, its phone redefined the smartened, and its rumored media slate” tablet could redefine how media and information are accessed. The popularity of the pod affords Apple the luxury to develop product deals to market and release new products merely based on Apple’s innovative reputation. Apple’s periodic failings of arrogance and internecine warfare have also played their role in the company’s history.
The biggest failure is its “closed” system that Norse its users’ need, which has limited its own success by setting up elitist or exclusive barriers to its products The strategy error to ignoring the customer appeal f compatibility accounts for the vicissitudes of Apple’s finance. For example, it refused to license its Mac operating system until it was clear that it was getting clobbered by a combination of Microsoft and Intel. When Apple finally attempted to open up, the PC market yawned.
Another example is Apple’s mercurial interest in business users led to the Exchange Activities support snafu that rendered many Phones unusable in enterprise environments. Apple’s success can be linked directly back to its culture. Apple’s culture apparently encourages innovation in products and processes. Think Different” is Apple’s slogan. Whether it involves reducing the number of steps needed to make a home movie or to buy a computer from one of Apple’s stores, employees are encouraged to look for ways to distill a process down to its essence.
In an interview Ninth Businesslike Computer Editor, Apple’s CEO Steve Jobs pointed out that organizations need a product-oriented culture, the gravitational force that pulls the creativity of individuals all together. Otherwise, firms can get great pieces of technology all floating around but not benefit much. Apple’s “culture of innovation” lows the company to outperform the economy and its competitors by growing market share and staying profitable. Conclusion Apple is a good example to describe the industry dynamics of technological innovation.
From Apple’s case, one should learn the following: 1 . Technological innovation is the most important driver of competitive success, especially in high tech industry. Firms gain strong incentives to develop differentiating new products and services. Apple’s success relies on its continuously new products developed. For example, the tremendous success of the pod has defined Apple to an entirely new enervation as the next must have, personal electronic device manufacturer. 2. An organization’s overall creativity level is not a simple aggregate of the creativity of the Individuals it employs.
The organization’s structure, routines, and incentives could thwart individual creativity or amplify it. For Apple, the most pressing issue of the asses was not related to technology, but concerned capable and consistent management. 3. Firms often collaborate with a number of external organizations or individuals – such as customers, suppliers, competitors – in their innovation activities. Several studies indicate that firms consider users their most valuable source of new product ideas.
For Apple to further succeed in the future, the company needs a well- crafted innovation strategy to leverage its core competencies and maximize the technical and commercial successes of each project. In conclusion, Apple’s success is because the company has managed to reinvent itself over the years. Apple has differentiated itself on its innovation and design, but this is not a competitive advantage which will last forever, thus Apple will have to adapt and offer new services to keep itself ahead of its competitors.