The Strategic Reason for the Apple Inc.
The Mission Assertion, Global Vision, and Values of Apple, Inc.
Steve JobsїЅїЅ famous offer goes such as this: "Man is the originator of change nowadays. Consequently he should be above systems and set ups, and not subordinate to them. "
"Apple is committed to having the best personal processing experience to students, educators, creative experts and consumers throughout the world through its progressive hardware, software and Internet offerings. " (Apple Inc. Mission Assertion. . . , 2012).
From the above mentioned perspective, this research highly agrees that the company has a unique and excellent strategy and applications of creating impressive products that meet up with the worldїЅїЅs latest computer design and modernization. There are others that attempted to imitate the task of Apple Inc, but, they just failed. The iMac and iBook, Ability E book and G Series products of Apple Inc. only showcase the AppleїЅїЅs command on the brand new technology that integrates in its music, images, and animation lines.
Company History
In 1997, Steve Jobs overran the procedures, and became a CEO through the struggling period of the business. Then, in 2001, he introduced the ipod touch which eventually became so popular in the market, and even turned out to be the forefront in the music players industry. Consequently, in 2007, Apple Inc. started out its stint in the phone industry with its innovative I Mobile, which also turned out to be one of the most successful products of the business. The business not only regarded for its consumer goods but, most of all, because of its competence in producing electric products. Shortly after, Apple Inc presented the tablet computer systems that have become a phenomenon in the computer market atlanta divorce attorneys part of the globe.
Culture of the Business
At Apple Inc. , organizational culture takes on a very important role in the enhancements and interest of the employees to produce unique and innovative products. (Zakomurnaya, 2007). Relatively, Steve Jobs had influenced a lot in the ways that individuals think and work within the business, the innovation-venerating culture is the core principle of the visitors to sustain the artistic and ground-breaking culture of the company. Apple has been the most successful computer and electronic digital company worldwide that stems from the original aspect of the employees їЅK and that is the individuality and excellence, for the business only accepts gifted people that are always ready to take challenges and become a innovator of advancement. Apple Inc. has had the opportunity to foster command through continued determination program that this implements for the valuable employees through Fellows program that rewards employees who've showcase their excellent technical leadership contributions to the business.
Zakomurnaya (2007) remarks that Apple Inc. in 2006, has reached a global twelve-monthly profits of $ 19. 3 billion for its products that comprised of Macintosh desktop and notebook, iPod digital very good music player, Mac Operating-system X operating-system, iTunes Music store, X server G5 server among others. These products are sold through online and third-party wholesalers. Apple has 170 stores worldwide, specifically in Canada, Italy, and Japan, in the united kingdom and in america. In addition, Apple employs more than 20, 000 staff from all elements of the globe.
Corporate Governance and Stakeholder Relationships
Leadership has been included in the organization governance of Apple Inc which first all set up by Steve Jobs before he remaining the company. Though, there have been several downturns in the business, still through the brilliant head of Steve Jobs, he was still able to save the company by overhauling the management when he returned to office in 1997. JobsїЅїЅ sight for details, consistency for high-quality creations, as well as world-class product designs have taught the employees to be a big area of the worldїЅїЅs trend of technology.
The astonishing skills and knowledge that attained by the existing leaders and employees were just being inherited from the late Steve CareersїЅїЅ exceptional governance of individuals in the organization. Working out and working principles that employees obtained from the management of late Steve Jobs possessed taught the whole people in Apple Inc so many things which provide as guiding concepts to allow them to continue the legacy of the man behind the remarkable successes that Apple Inc. is enjoying nowadays.
As Chandler (2000) described that the most unique characteristic of Apple Inc is its entire implementation and procedures of bureaucracy among its people. However, the accountability always a part of that flexibility. Being dependable and answerable to even small errors and prepared to take initiative to improve it immediately, and make the merchandise close to perfection is the worth and ideas that Apple Inc. want to impart to the earth. It is still a little bit understandable to commit flaws while in creating the products, but once, the products are about to pass the product quality control, they must be all correctly created and assembled.
The Opportunities and Hazards from the Alternative Environment of Apple Inc
PESTEL Evaluation of Apple Inc.
Political Factors
їЅE Apple has exposed home recycling facilities rather than shipping wastes abroad.
їЅE The US federal government has announced incentives for those US-based making companies.
Economic Factors
їЅE Exploiting global sales with no per country product deviation means acknowledging highest national appraisal benchmarks.
Sociological Factors
їЅE Consumers expect for its strong commitment of the Apple Inc. to its їЅїЅConsumerїЅїЅs Green My Apple CampaignїЅїЅ
їЅE AppleїЅїЅs rating for toxicity became most detrimental as ever before in 2007.
Technological Factors
їЅE The integration of revolutionary technology and latest enhancements has contributed enormously to the high standard of resource chain systems, as well regarding the creation of the merchandise, in order to the companyїЅїЅs success, progress and success worldwide.
Environmental Factors
їЅE The company has improved the objectives of individuals locally that it could double its attempts and initiatives in recycling the seed wastes.
їЅE The recycling advancement program of Apple Inc. is specifically made limited to the elite category of customers.
їЅE Apple Inc has been also mixed up in green development program in the areas where it performs.
Legal Factors
їЅE New regulatory insurance policies in america require manufacturers to have initiatives and be in charge enough for the wastes recycling.
їЅE The European RoHS standards carry manufactures into account.
PORTERїЅїЅs Five Forces Model of Apple Inc.
Bargaining Power of the Suppliers
їЅE The bargaining power of the suppliers is only moderate since the time that Apple Inc. decided to use Intel processors, it includes lowered the creation costs of the business.
їЅE The strong vertical integration helps a lot Apple Inc. of never to count too much on the 3rd party suppliers.
їЅE The product differentiation strategy justifies the expenses of the products to the clients, and start, the resource costs are being recovered through the pricing strategy of the merchandise.
їЅE Getting big discount rates from buying large volume of raw materials from the suppliers.
The bargaining vitality of the suppliers of Apple Inc like the collaboration Apple has with the Intel has created new amazing product lines that are lower in creation costs, so much so, they are also bought from affordable prices on the market.
Bargaining Power of the Buyer
їЅE In order to counteract the bargaining vitality of the clients, Apple Inc has been focusing on its market.
їЅE They retain more technicians for the repair of the program.
Competitive Rivalry
їЅE There are other computer companies such s Dell, Horsepower, ASUS, ACER, and Sony among many others; with these rival companies they have a great deal of selections for the customers that most likely lead them into difficulty of deciding on the best one for them.
їЅE Unlike in Apple Inc, there are limited options which have high quality and elegance that can simply attract customers to make a choice.
Threat of Substitution
їЅE The market-skim pricing is set because of their products.
їЅE The rivalsїЅїЅ products provide many features and benefits.
їЅE However the competitive advantage of Apple could it be offers hosting of products to serve as its replacement must be sustained.
їЅE Apple Inc should also continue to wthhold the uniqueness of the merchandise to have the ability to sustain the loyalty and patronage of the consumers.
Threats of New Entrants
їЅE The uniqueness of the online marketing strategy and the elegance of the AppleїЅїЅs products have been improving the competitive advantage of the products on the new entrants in the same industry.
їЅE Customers of Apple are most likely increasing their market demands for services from the business.
Nelson (2010) admits that Apple Inc. happens to be operating in an extremely competitive industry of highly technical gadgets / computer product lines. The existing opportunities of the company can be utilized further in the leverage of the intellectual optimization of the employees as well as in the further promotion of the brand image of the business together with its strong digital strategies in creating services to be able to sustain gradually the competitive benefit of the business as well as the merchandise in the international market.
A SWOT Research (Strength, Weaknesses, Opportunities and Threats)
їЅїЅSWOT analysisїЅїЅ (2012) asserts that it is pivotal for Apple Inc to use SWOT analysis to examine both opportunities and hazards that the business faces at present. And, for the fragile areas of the business, through data and studies from SWOT examination, the management has a great chance to recognize the weaknesses, and also find solutions. On the other hand, SWOT analysis will also help the management for taking Apple Inc. to the right course where the objective, eye-sight and goals of the business lie.
Strengths
First and foremost, Apple products are made perfect. Apple Inc. has been recognized as the perfectionist company that creates its products properly even in a single or two endeavors. The companyїЅїЅs world-class and high-quality designs of products like the Macintosh computer systems, iPhone, and ipod touch will be the existing proofs.
Weaknesses
The weak areas of Apple Inc. is the fact that most of its products are out on the market, and most of the consumers throughout the world have recently been revealed and bought by the consumers even though it isn't widely employed in the business purposes. Since, Personal computers are the the one that are mostly within the business enterprise world. Another drawback of Apple products, they are really significantly expensive as to compare to the products created by its rival company IBM, which really designs its products for business and office purposes.
Opportunities
However, business analysts also believe the market difference between Apple and its rivals makes also an opportunity do some business orders even on that small device. Furthermore, it's very practical, that for Apple to promote its highly profiled products to corporate and business world. For instance, businesses nowadays start using iPhones already because of the diversified top features of the devices that even the employees can search on the net, email and other people can just put it inside their pocket and can take it anytime and everywhere.
Threats
Rival mobile phone companies like HTC and Motorola have been marketing their Android smart devices in the market, and it is obvious that individuals are started to increasingly use these devices today, more than that, the growing tablet computer market from these competitors also a risk for Apple Inc regardless of the constant reigning of ipod touch in the market. Still, the market and profits can be divided among its rival products. And, it will decrease definitely the gross sales of Apple Inc.
Evaluation of AppleїЅїЅs Current Business-Level Strategies in relation to SWOT Analysis
Competitive/ Interactive strategies
1. Enderie (2004) founded a fact that the most competitive benefit of Apple Inc. is its marketing methodology and methodologies for the company really understands steps to make the consumers get excited about its new products which come out in the market. It is obvious that the company is not focusing on the latest technological features of its products on its marketing, advertisements and campaigns; alternatively, it stresses the benefits that the consumers can get from using the merchandise. The way the product can help the consumers to reside a life in an improved way.
2. Another effective business strategy that is found in Apple Inc. is its ever unique and innovative hardware design that creates elegance impression in the sight of the meticulous consumers. (Enderie, 2004). There is absolutely no other company that can imitate the best-designed hardware that Apple has in each product, best example of this are its iPod and MP3.
3. Apple Inc. has learned perfectly the significant role of using the company company logo on its products. As the consumers can see, the Apple custom logo is always put on the upper right aspect of the laptop where the screen is open up. Other vendors do not concentrate on the value of the strong existence of the company logo on the merchandise itself. (Enderie, 2004). Actually, it is the most reliable and cost-efficient form of advert that always phone calls the attention of every person who sees it. Naturally, in TV advertising, Apple emblem always has a larger part and the idea of the commercial which really stores in the significant icon. It even began to show up in Television shows which really promote Apple custom logo and its own significant advantages to the lives of the consumers. Because of this, Apple logo has been a phenomenon symbol in Apple computer systems. Apple logo says about the merchandise.
4. Apple's Steve Jobs Up-Closed Marketing
Steve Careers even came through to stage to give a talk for the huge benefits that folks can get from Apple products. (Enderie, 2004). This man never acquired sick and tired of educating the individuals in any occurrences about the beautiful contributions of the products in the new generation as well regarding the next generation to come. He always emphasized that folks should reside in a better world by using groundbreaking technology through ground breaking products. The ever before relentless back-up made by Jobs even led to the strong competency of the merchandise as well as the company over its competitors on the market.
Evaluation of the fitness of current corporate-level strategy in relation to SWOT Analysis
Diversification
Apple Inc. started to use a corporate-related diversification strategy in 2001, where it added digital music through the launching of the lightweight music player, as well as the ipod device and and was the iTunes Music store. to its business software and computer technology market. The brilliant idea has one thinks of due to strong relationship between your computer products and the personal entertainment needs of the consumers. Because of this, the business has been able to reduce its operational expenses and it manifested in the higher margins and decreasing the expenses of the merchandise.
Internationalization
їЅїЅStrategic ManagementїЅїЅ (n. d. ) discovered that the most effective international strategy of Apple Inc. is having global standardized products. The only change that Apple makes in their products is the energy source since not absolutely all countries have the same electric power voltage. Other that that, the executive, design and developing is centrally handled. The main concept of the products is adopted from the U. S. , but the complete creation of the products is done in China by IT solution companies such as Foxconn and Inventec because of its cheaper labor costs.
Innovation
Innovation is the major reason there's a boldness associated in every launching of Apple product. Though, the business possessed some uncertainties in every product launching how the new product could surpass the success of the ex - ones. However, it is amazing that each product always turned out to be successful. And, the business strongly believes it is just for the companyїЅїЅs genuine determination to give the latest invention and modern application of technology to the planet with every technology that Apple has completed.
Mergers
Apple Inc. was going to merge with AdMob, however, it was quickly received by Google. After that incident, Apple discovered its lessons well; after, it closed the deal immediately with the online music site Lala. com. Because thereof, it is just appropriate to consider this merging effort in order to become more flexible as the business has started to move from regular computers to iPhones and mobile pcs.
Acquisitions
Since from the start of its procedure, Apple Inc. has already purchased 21 software companies, as well as purchased stocks and shares in two software organizations, and bought 11 small companies. (Strategic Management, n. d. ).
Alliances
Alliances have contributed too much to the sustainability of the operation of the company. And, the reasons that Apple Inc. interact the tactical alliances are to exploit economies of scales, monitor and learn the competitionїЅїЅ strategies, manage hazards and limit and share operational costs, bought all economic prices atlanta divorce attorneys industry. The most effective alliance that Apple has is with the AT&T for the creation and starting of iPhone; another one is with Microsoft for the introduction of the Microsoft Office software for the Macintosh personal computer and to come back the favour, Apple Inc has to incorporate WEB BROWSER in all AppleїЅїЅs computers. In addition, it has alliance with both Intel and Horsepower.
Assessment for the need to enhance the companyїЅїЅs governance, ethics, culture, composition and control systems to match with its strategy.
Current Composition and Control Systems
The evangelism has been embodied in the organizational composition of Apple Inc. And, it could not be possible without the fantastic efforts of its valuable employees who have been dedicated and happy enough to sacrifice even their time for his or her personal stuff just to meet up with the deadline of each project. It is instill in the imagination of the employees that their suggestions is vital in attaining the goals of the business. Jobs experienced created cultural prices among employees they are bigger than what they think. Meaning, the corporate employees are well determined to excel in the workplace and present their completely loyalty to the business. In exchange, the management gives increasingly more financial privileges to the employees who remained loyal and focused on their jobs after all these years. And, what sort of management motivates and trains the employees is somewhat a control system at work that lead the labor force to be self-driven and be perfectionists all the time. With trained and focused with the same notion and principles and that is to be remained in managed to be before every competition despite of all legalities the strong integration of revolutionary technology and innovation, the company framework remains competitive in the stiff competition. At the same manner, the employees have been and labor-related criticisms that were thrown to the company in the previous years.
Nevertheless, not absolutely all workers have received better reimbursement, and experienced nice working environment. Take the circumstance of China factories, there have been media information that the working and living conditions of the manufacturing plant employees in Foxconn place and its own subsidiaries are experiencing malpractices by the management. There are amount of employees who have been involved in incidents in the herb scheduled to inefficient and inadequate safety and risk preventive measures executed by the management. All these disadvantages of the labor composition of the company must be given priority of the mom company in order to prevent bigger problems soon.
With the existing issues, patrons may withdraw their trust and patronage from the business and it could consequently harm the offering performance of the merchandise in the international market that may also affect enormously the success of the business. The downsides could happen in just a short period of time when there is negative issues that associated with any business, especially, if the general public will see out that the company is liable to the issues.
Conclusion
Apple Inc. is the one of the worldїЅїЅs most adored companies. Apple brand has marked significantly both in the hearts and minds of millions of consumers for its acknowledged high-quality products, prestige, integrity and unique technology. The business has been able to attain its peak of success as well as expansion and profitability in simply a short time frame because of its highly regarded brand name and reputation in the computer and electronic digital industries.
Nonetheless, Apple Inc. has relatively forgotten something very critical in the long-term sustainability of the business and this is the human capital. There has been a great deal of labor issues pertaining to the manufacturers and legal circumstances filed in court with reference to this aspect. Apparently, the Apple headquarters has not shown full support of resolving the labor issues that might effect on the entire operation of the Apple business from other parts of the world.
Recommendations for Improvement
їЅE Apple Inc. should continue steadily to use its product differentiation strategy.
їЅE It must continue inventing new and most innovative products.
їЅE R & D should exert more effort in finding better and effective ways to lower further production costs to be able to reduce the prices of the products to stay competitive
їЅE Maintain the highest level of innovation.
їЅE Most of most, Apple headquarters should give utmost sizeable attention on the increasing labor problems, pressures and psychological conditions that Chinese personnel are experiencing nowadays. The company should form an investigative committee to resolve the labor conditions that arise in Foxconn flower and its own subsidiaries in the united states. If these issues would continue to be on the global information, definitely, it'll ruin the good reputation that Apple Inc. has projected in the eye of the consumers. It'll cause bigger problems especially to the entire Apple firm, and it could cause the consumers to withdraw their trust and confidence from the AppleїЅїЅs products.
