Apple Computer, Inc.:
Maintaining the Music Business while Introducing iPhone and Apple TV
Through an analysis of the case study of Apple, Inc. this paper will describe key elements that helped make Apple the successful company it is today. The analysis of the three key environments of a business will be examined, including; general, industry, and competitor environments. Also explored will be the available lessons that readers and other companies can garner from Apple’s success.
Apple’s Success Story
Apple’s success rests squarely on the shoulders of innovation. In the beginning, the founders of Apple, Stephen Wozniak and Steve Jobs focused on ...view middle of the document...
Let’s examine how this exercise benefitted Apple as they strove to take on the communication and entertainment industry.
Analysis of Environments
The study of a firm’s general environment includes looking at demographic, economic, political and legal, socio-cultural, technological, global, and physical environmental trends (Ireland, p. 45). While these trends are not controlled by the company, they are vital in helping to direct the firm’s strategic direction (Ireland, p. 45). Apple does an excellent job of using each of these studies to help define and deploy their company’s strategic policies. We will focus on four trends; demographic, economic, technological, and global.
Apple recognized trends in demographics, like the aging population. As consumers age, their needs change. Most of Apple’s products had been purchased by “tech-savvy fanatics” of the company (Ireland, p. C-24). Apple saw that their products needed to address this demographic issue and so they made changes like offering workshops and personal training for the not-so-savvy consumer. They also continued to make products diverse and more user-friendly to meet the needs of the main-stream consumer.
Steve Jobs brings a personal touch to the company as its “relationship builder”. He promotes active feedback from customers and moves the company to make changes based on that feedback. One instance that falls into the economic trend aspect of environmental analysis is the realization that consumers were finding the price of the iPhone to be too high in the current economic conditions. A slow economy had made the new main-stream consumers more aware of their spending and they were struggling to justify the high price. Jobs listened and dropped the price by $100 (Ireland, p. C-25).
From a technological standpoint, Apple kept a keen eye on the future of the industry. This focus comes directly from the previously stated mission of creating a hub for a forthcoming digital lifestyle. Apple recognized that the communication and entertainment industry was becoming increasingly digital and they decided to be at the forefront of offering products that matched this format. They didn’t stop with iTunes, but carried their success in the music industry to the film and television industry, as well.
While it may seem that Apple rules the world of communication gadgets and digital entertainment, they are not satisfied. Apple is currently working on taking their products to a global market. From analysis of these markets Apple understands that the foreign consumer will have different needs than American consumer. Cultural trends and political policies will mandate the creation of close, strong relationships with carriers, suppliers, and governments. Proactively, Steve Jobs has been working to build these relationships long before partnerships have been made, particularly in Japan.
According to our text, an analysis of an industry...