Strategy – business
Apple Computer is an American computer technology company.
In America, Apple Computer dominated the personal computer industry from 1977 to 1983. Apple is known for its innovative and modern through closed and proprietary hardware and software. Apple has a principal that success is not enough, but they want to advance innovation in the world. Therefore, Apple’s corporate spread widely in the technology industry globally.Apple has loyal customers that refuse to buy from the Apple’s competitors and loudly keep their faith in the recognized advantage of Apple products.
In the computer industry, Apple has the Supreme brand and repurchases loyalty. It is good thing for Apple, because to get the brand fanaticism is some kind like achievement, which can be prided upon.In addition, Apple Computer Inc has become a worldwide known producer and inventor of modern design computers. The company is famous for being the most spirited inventor in its previous days, making endless inventions and new innovations for the expanding world of computer technology.
This spirit marks the rise and fall of Apple Computer since its existence in 1977.II. Rise and fall of Apple ComputerII.1 Suitability, Feasibility, and Acceptability of Apple’s Chosen StrategyII.1.
1 Challenge #1: Developing GUI (Graphical User Interface)The birth of Apple Computer highlighted Jobs’, the founder of Apple Computer, key ideas on avoiding from his frustration with the bureaucratic-type organizations and the people who are not visionary.To overcome the challenge, Steve Jobs had suitably built new team of designers in order to develop Apple Computer’s famous products, called Apple Macintosh, which is manufactured away from the company’s headquarters and the production plant. This strategy is considerably acceptable since Apple Computer was now able to spawn many useful products such as the Macintosh that is very user friendly, thanks to the introduction of illustrated screen menu and a hand-held mouse unit for giving instructions.However, the development of graphical user interface (GUI) in a personal computer had not yet rung the bell of managements of Xerox PARC (Palo Alto research Center) since they showed no appreciation over the GUI. Facing this problem did not stop Jobs from finding suitable partners to develop GUI.
His strategy was to cooperate with Microsoft‘s Bill Gates that gave birth to Windows operating system, which is widely used nowadays.II.1.2 Challenge #2: Recession and Intense Competition in 1990sDuring the 1980s, Apple recorded amazing sales due to the powerful Macintosh computer. However, the strategy to sell high-margin products became unacceptable since in 1990s recession came.
In addition, Apple Computer also found that its rivals, mainly Microsoft that used to co-develop GUI, have provided damaging effect to Apple Computer since they copy Apple strategy but offer much cheaper products into the market. Immediately, at that time, computer became commodity that can be bought at cheap prize.These issues soon drove Apple Computer to change their strategy from selling high-margin products into selling low-margin products like their competitors do. In order to manufacture affordable computer, Apple Computer carried out several strategic alliances with IBM to amend Apple’s drawbacks in skills and research development.
Although this alliance was unsuccessful, Apple had learnt to redefine their cost structure to produce more competitive products. Finally, their strategy bore sweet fruits as the company can produce affordable prices that cause higher volumes which would more than compensate for the lower margins, and introduced a range of cheaper, lower-performance Macintosh computers II.1.3 Challenge #3: Declining Market Shares and ReorganizationIn the long term, the Apple’s strategy to produce low-margin computer had resulted the company’s gross margin to decline during 1990s and the company’s pre-tax profits and share price were also erratic. Lack of new ideas in main hardware products was accused to contribute to decline of Apple computer performance.In order to bring Apple into the right track, Gil Amelio, former executive at National Semiconductor, joined Apple Computer in 1996.
His strategy, which was considered to be appropriate and suitable for amending Apple’s condition, was to halve the Macintosh product range (responsible for 80 per cent of Apple`s revenue) in order to reduce costs and help to restore profitability.Amelio further restructures Apple Computer into seven profit-centre divisions: four for different hardware products, plus software, service and Internet – the Macintosh has always been an ideal machine for creating Internet products.However, this seven strategic business units fall in one core competency of Apple Computer; its was its ability to make technology easy to use in which Amelio encouraged his employees to exploit this in ways that allowed it to move further away from the cut-throat PC market and capitalize upon the new opportunities that were emerging as more and more people worldwide gained access to computers.II.1.4 Challenge #4: The Popularity of Music Download IndustryOne thing that digital technology favor computer industry is that any business that employs computer hardware could be considered as parts of computer industry.
The issue of Napster that had been closed due to illegal action had open new opportunity for legal music download industry.Under such circumstances, Apple Computer cerates new strategy by developing new killing gadgets when the company invents and massively produces iPod, a digital music player that supports legal download for 99 cents per track. This strategy highlights the Apple’s intention to rule out computer-related industry.The obvious success of iPod has put Apple Computer as a serious challenger to Sony and Microsoft. In order to remain in the computer industry, Apple get their loyal customer by creating products that have great features, such as performing good design, user-friendliness, smart marketing, and clever promotion. Their struggle to ensure the potential customers could be get pleasure from the Apple’s product.
II.2 Apple and Change ProcessSince its existence in 1977, Apple has experienced the rise and fall of computer industry, the changing customers’ demands, and the fierce competition in computer industry. This situation coins the ideas that Apple Computer should attractively find new strategy that fit the market at a given period.This change process is needed since Apple’s should distribute these assets more efficiently by concentrating on its leading position in many aspects of human’s life. Previously, PCs and Macs grow into separate and different markets. In the market, PCs control corporate and home computing.
Apple is the useful tool for many careers, such as writers, musicians, visual artists, and publisher.In addition, while mainstream business in computer hardware industry has considerably saturated as margin declines and more players exist in the market, Apple should find out new computer-business related that will boost the company sales number and revenues.Fortunately, Apple Computer find its killing gadgets when the company invents and massively produces iPod, a digital music player that supports legal download for 99 cents per track. This strategy highlights the Apple’s intention to rule out computer-related industry.The obvious success of iPod has put Apple Computer as a serious challenger to Sony and Microsoft.
In order to remain in the computer industry, Apple get their loyal customer by creating products that have great features, such as performing good design, user-friendliness, smart marketing, and clever promotion. Their struggle to ensure the potential customers could be get pleasure from the Apple’s product.III. ConclusionApple Computer is a major developer, manufacturer, and marketer of personal computers and secondary products for sale primarily to the business, creative, education, government, and consumer markets. Apple also sells operating systems, utilities, languages, developer tools, and database software.
In the intention to lead the computer industry, Apple enhances their functions as a business. Nowadays, Apple has two fundamental businesses. Those are selling Macintosh computers and selling iPods, which become Apple’s key success factors. In order to be outstandingly successful in its computer business in the future years, Apple needs to continuously advance their capacity and innovation.