Sample Business Case Analysis on Apple INC in 2012

Case Analysis on Apple INC in 2012

  1. How well did Steve Jobs do during his term as Apple’s CEO? Did Jobs do excellent work of executing the five functions of strategic management? What grade would you award Jobs and why?

To attain a completely deviant result from strategic planning, leaders structure diverse outlooks propelled up by value-building processes that enable organizations to attain excellence. Steve Jobs was able to shape a company through a strength-based tactic that has attained helpful deviance. When Jobs came back to Apple, the corporation was valued at $5 billion but at present, Apple is worth roughly $170 billion (Gallo, 2012). Steve Jobs was able to integrate a generative set of elements into the company’s strategic planning practice, producing positively unexpected results. Steve structured Apple’s strategy by the use of storytelling, creating a strategy around grabbing opportunities and generating major abilities that distinguish Apple in the market.

Strategic stories facilitate organizational members to build up the aptitude to plan paths for the future by forming a clear picture that describes the organization’s characteristics and the route it plans to undertake (Hitt, Ireland, & Hoskisson, 2012). Jobs’ capacity to make strategic stories allowed him to jointly form a market and persuade investors and customers of the value of Apple’s products. To place Apple in grasping opportunities, Steve Jobs connected the company’s strategy with insights into outside opportunities. Jobs’ strategic resolution supported an opportunistic perception because he pushed organization members of Apple to form the future. Steve Jobs identifies his task as a CEO to innovate by generating products that users do not know they want. Steve Job would be given a grade of A if he were to be graded. This is because he was able to form strategic goals, made them real, and finally, he was able to execute his vision and goals.

 

  1. What are the main aspects of Apple’s strategy? How well do the pieces link together? Is the strategy growing? If so, how? If not, why do you take this stance?

Apple’s competitive strategies were well fit for their purpose, this is because they employed the cost-based tactic to strike their competitors and presented a classy product at a lesser price. Marketing of the next generation of inventions assisted them in leapfrogging their rivals. Regardless of some hindrances, Apple continued bringing new inventions to the market. This is after realizing that novelty would have to be the firm’s strategy against big corporations like IBM and Microsoft. The fresh strategy for the firm is to target three strategic regions of the market and for it to be a challenger in the computer business, digital players, and phone sectors. This makes the company appear more like three separate firms, which allows them to expand and develop as a company. All these parts fitting collectively assist Apple in increasing its market share. With the manner, technology is continually shifting and the manner that users are purchasing these items the strategy is continuously changing and expanding together with the economy (Porter, & Kramer, 201

  1. Complete a competitive strength evaluation and use the method in Table 4 to outline and support your answers.
major success factors

 

Apple inc. Hewlett-Packard Acer
Strength rating Strength rating Strength rating
Manufacturing capability

Technological skills

Distribution ability

Financial resources

Relative cost position

Quality management

Music player

8

9

7

8

6

9

9

9

8

7

9

9

8

7

7

5

6

6

5

8

8

Total 56 57 44

What does your competitive strength review disclose about apple compared to the leaders in the PC industry? Among Apple’s rivals who have the best competitive stand? Who is the weakest generally? Has Apple’s strategy resulted in a substantial competitive advantage over its competitors in the computer business? What is the foundation for the competitive advantage Apple has in the digital music player business?

The assessment performed reveals that Apple is positioned as the second major company in the computer business, behind Hewlett-Packard and ACER is the weakest computer-manufacturing corporation. The technology, quality, ability to come up with new products and designs are the competitive benefits of Apple. These advantages stimulate certain niche of consumers to offer more money for an Apple computer than others do. These advantages put forward a special product for example who owns a Mac has possession of a high-quality computer. If Apple did not possess high scores in these features, it would be positioned in third place. Therefore, this supports and reveals that the separation strategy based on quality and technological progress is a significant relative advantage (Porter, & Kramer, 2012). Apple is placed as the superior company when it comes to the music player category, while Microsoft is the weakest. Although it does not have the best quality items, the tactic based on design and music networking has situated Apple as the major supplier of MP3 players. The crucial competitive advantage and the reason behind the success have been technological progress and novelty. The intricacy of the technology used by the company has assisted Steve Jobs in achieving vital agreements in music, developing the most significant item, which is iTunes.

  1. How do Apple’s tactics in the computer business compare to the strategy of Dell and HP? Do you think Apple’s strategy is adequate to contend effectively against Dell and HP? Why or why not?

Apple will by no means be able to compete against Dell and HP. Microsoft has domination with its operating system and makers of normal PCs are vicious. This makes it very difficult to transform people’s routine and costly Apple computers make the circumstances even most terrible. However, Apple aims at pursuing a product differentiation tactic where Mac would be identified with designers and smart people. This was confirmed by Steve Job´s speech where he talked about Apple and the product and what it means. He said how a person needs to be different in order to purchase an Apple. Through this tactic, Apple will be successful over Dell and HP in aiming that niche of specific consumers because Apple presents a much more precious computer than its rivals (Li, & Jin, 2009).

  1. What are Apple’s most significant markets? What steps should Apple take to improve its corporate performance and to strengthen its position in its most important markets?

The major risk Apple is facing is the ambiguity in the firm´s future devoid of Steve Jobs as the leader. As a corporation, Apple´s major step now should be paying attention on building confidence across its shareholders. They should make clear the path that the company will pursue now devoid of Steve and also to be keen on launching fresh products or developing the existing ones, to promote that confidence (Yoffie & Rossano, 2012). Furthermore bringing fresh items in the market will have a very positive outcome in the Stock Market of any kind of a business. Apple is not doing well in foreign markets or in any case, not that much as in the US, so any future strategic plan should be driven into this path. Apple has dealt with sustaining and steering the product and the brand of Apple in the international market and earnings above the standard gain from exploiting the right invention. The phone business is more important to Apple and nowadays the use of mobile phones is a requirement and is no longer a prestige. Arguably, each person has a mobile phone presently irrespective of whether is young or old adults. Apple should focus more on the mobile business because it presents numerous benefits and earnings in the future.

References

Gallo, C. (2012). The Innovation Secrets of Steve Jobs: Insanely Different: Principles for Breakthrough Success. New York: McGraw-Hill.

Hitt, M., Ireland, R. D., & Hoskisson, R. (2012). Strategic management cases: competitiveness and globalization. Cengage Learning.

Li, Y., & Jin, Y. H. (2009). Racing to market leadership: Product launch and upgrade decisions. International Journal of Production Economics, 119(2), 284-297.

Porter, M. E., & Kramer, M. R. (2012). The competitive advantage of corporate philanthropy. Harvard business review, 80(12), 56-68.

Yoffie, D. B., & ROSSANO, P. (2012). Apple Inc. in 2012. Harvard: Harvard Business