Introduction and Background
Apple, Inc is a well known name in the computer technology world; Apple, Inc leads the computer industry in innovation thanks to the award winning desktop and notebook computer known as OS X operating system (Yoffie & Slind, 2008). This paper will focus on Apple Inc., strategic management and why is it critical to the success of the organization in meeting its goals and mission. It is therefore important to define strategic management, according to Certo, Peter & Ottensmeyer, (2005), strategic management is a continuous process that directs an organization to be appropriately suited to its internal and external environment. Strategic management benefits ...view middle of the document...
Apple is different from its competitors because it produces high quality products, its products are also unique and attractive and this has helped to increase its market shares. Since Apple is known globally, 54% profits come from foreign markets (Datamonitor PLC, 2009). Apple products are easy to use and carry around, majority of its products are light, small and very easy to carry around and it has a major advantage of product diversity, there is something for every one of all ages. Apple customers are very loyal even though Apple products cost more than its major competitors. In 2007, Apple reported a net profit of 24.006 billion, this equates to an increase of about 400% (Yoffie & Slind, 2008, p.16). According to Yoffie and Slind, Apple is financed by its equity; the organization does have any debt making it less risky for its investors. In 2008, Apple sold over a 150 million IPods and according to the report by Yoffie and Slind (2008), the IPod controlled 70% of the US market for portable devices
The innovation of Apple products has led the organization t increase its expertise in I-Pod, I-Phone, I-Tunes and I-Works products. Over the years, Apple has been able to design products that are almost impossible to imitate and this has placed the organization in an advantageous position over its competitors. Apple’s PC is still one of the best desk top computers because it has a close operating system that is virus resistance.
Apple invests heavily on research, a lot more than its competitors; even with that, the organization’s products and services experience quality problems from time to time. In 2005, some consumers reported that the IPod Nano had faulty screens, when it was first introduced, iPod users complained about faulty batteries. Apple replaced the entire product free of charge at the expense of the organization. In 2008, Apple Ultracompact USB Adapter Exchange Program was introduced, almost immediately consumers started complaining; adapter’s metal prongs were breaking off and getting stuck in the power outlet, creating the risk of electric shock. Again the organization exchanged all ultracompact power adapters for a new redesigned adapter, free of charge. Product defects can ruin an organization’s reputation, warranty and other expenses.
The lack of debt mentioned earlier can also constitute to a weakness because the organization is extremely susceptible to stock acquisition by other organizations. Some investors lost their interest in the organization due to the debt/equity issue and the fact that Apple has not issued any dividends to their shareholders.
Apple Inc. is famous for its innovation way of thinking. They were able to develop product lines that are both functional and attractive in design. The iPod communicates with Nike running shoes by receiving data such as how many calories burned and the distance ran; this boosted the demand for IPods and gives the...