Apple Corporation

Question: 1

Apple Corporation is an American company that manufactures and designs computer software, hardware and consumer electronics (Rob, 2014). The hardware and software associated with the company include: Macintosh computers, iTunes media application iPod personal music player, Mac OS X and extremely loyal user base. The company’s headquarter is located in California and the founder of the company is Mr. Steve Jobs. The company was established and founded in 1976 by Steve Jobs and other business partners.

Question one

The period before the year 2000, there were different driving forces which enabled the Apple Company to attain phenomenon success and to be the world largest company in terms of market capitalization. The company success in market capitalization was based on its potential to rely on proprietary technology rather than compatibility based on cross-platform. The apple products are believed to be compatible with all the products it produced (Rob, 2014). Apple Company had already built customer loyal in its products and this enabled it to have increased sales and revenue at the same time. In comparison to other technology companies, Apple Company concentrated with the American market which was already developed and which it was easier for it to penetrate.  The company marketing strategies were based on the needs of the customers rather than the ideologies of the management.

Basically, the company was customer based and the products were manufactured according to the customers’ demand, test and preferences and market trend(Rob, 2014). The company also achieved a huge market capitalization because of the efficient and effective distribution strategies which were used by the company.  The establishment of retail store was a huge success for the company as it managed to penetrate to the untapped markets. The Apple company products were priced highly as they were regarded to be of high quality and of high class. The company management was a genius in timing. It understood the market trend and the revolution expected in the future. Moreover, the company became successful in the computer market because of market segmentation strategy.

Apple Company capitalized and identified its market trend by manufacturing products which were unique from those of its competitors such as Microsoft. The company products were considered to be complete and expensive than those of the competitors in the same market (Rob, 2014). The company management had strong marketing strategies which informed the customer the various products it was releasing to the market. The company understood how to motivate its customer through offering free gifts and discounts. Apple Company specifically focused on the customers who purchased its products. By doing so, the company was able to offer the appropriate products and services to the customers as their taste, preferences and demand transformed.

Apple Company was able to achieve a global success through gaining control of the already captured market, bridging networks and creating new networks. Just like any other organization in the market, Apple Company took power and control of the economic markets it had previously established. The company managed to position itself between the customers and producers in the global economy (Rob, 2014). The acquisition strategy by the company enabled it to counter the potential competitors.  The company managed to bridge its networks by producing different products and services in a comprehensive package as required by the customers. Instead of producing one item at a time Apple Company managed to produce whole packaged software and hardware according to the customers’ expectations. Apple Company managed to establish new networks through the introduction of App Store, iPhones, iTunes and iPads according to its customer’s views and demand (Rob, 2014).  Gaining control, bridging networks and creating new networks are the three main pillars of competition in the economy which enabled Apple Company to be successful in comparison with its competitors.

Microsoft Company is among the companies which lost their market capitalization after Apple Company penetrated its market. Given the efficient management, high quality products, compatible product and understanding capacity of the market trend by the Apple Company management, the company managed to occupy a large market in terms of capitalization (Rob, 2014). The penetration of Apple into the computer software and hardware was a great disappointment to Microsoft Company because it could not match with the rate at which the Apple company marketing its products and penetrating the market.

The market, price, customer and product segment are the major segments which grew as a result Apple marketing strategy. Prior to Apple Company penetration in the market there was little competition and the market was dominated by few companies (Rob, 2014).  The product segment grew as most companies around the globe came to understand the need for producing complete products rather than the sum of the parts.  The pricing segment grew as the company was charging high prices for its products due to the quality of the products. The strategy necessitated other companies to produce differentiated and high quality products in order to be in position to charge high prices.

Question: 2

Steve Job who was the founder of the Apple Company was result oriented as he required his workers to give the best out of their best at their work place. He was a visionary leader because he started the company at a tender age and the company has grown to be the world largest company in the globe. He was hard working because he retired from the leadership position at an older age (Rob, 2014). He was a patient leader because despite the failure of the company some times in its development he never lost hope for it success in the future. In addition, he was a transformative leader because he used his time and resources to come up with the modern technology which would change the life of many people in the world.

Apple’s organizational culture is that the company was determined in ensuring that the employees were integrated and developed according to the company culture. The company ensured that the innovation adopted in production of the company’s products such as: iPhone and I pad were based on the quality and class culture. The management ensured that all the activities conducted in the company matched with the dynamic of the organization’s business environment (Rob, 2014). In general, Apple’s culture was based on the principles of secrecy, innovation, creativity, top-notch excellence and combativeness.

Apple Company is among the best companies in the world with the best social responsibility and managerial ethics. The company understands that respecting human right, safety, health and conserving the environment is the best way to exhibit corporate social responsibility. The company has been in the forefront towards conservation of the environment through elimination of pollution and disposal of the waste products through recycling (Rob, 2014). The company is based upon management ethics because the managers are required to exhibit integrity, empathy and zeal in their management. Just like Job Steve, Tim Cook has also adopted similar managerial strategies.

Question: 3

Currently, Apple Company is among the largest valuable company in terms of market capitalization in the world with its value estimated at $728.35 billion (Rob, 2014). The valuation is based on its stock price in the security exchange company. It value is estimated to be twice in terms of market value of the second most valued company in the world (Exxon-Mobil)

The company has declined in its market leadership of the Smartphone and tablet segments because of over competition from companies such as Samsung which are producing products with more features and which are easily accessible by the customer. The features of the products produced by Apple Company are no longer user friendly as they are complex in nature (Rob, 2014). The competitors in the market are producing high quality products and at the same time they are charging low prices. On the other hand, despite the fact that Apple Company is producing high quality products their products are regarded to be highly priced in the market. The competitors are producing differentiated products which fit the consumers’ tastes and preferences which Apple Company has not yet managed to achieve.

Despite being the world valuable company in the world, I believe Apple Company is losing it cool because the competitors are new penetrating its market segment using product differentiation and pricing strategy (Rob, 2014).

Apple Company failed in defending its market position because of over confidence and over estimation of the market. Since the company was performing well at initial stages, the management were over estimated the market and produced more that the market demand (Rob, 2014). The action created more room for the competitors such as Microsoft to match the market trend and produce their products according to the needs of the customers.

There is possibility for the android to expand its dominance in Smartphone operating system despite facing severe competition from companies such as Apple (Rob, 2014). If given an opportunity, companies such as: OnePlus, Huawei and Xiaomi have the potential to compete globally with companies like Apple. Although Apple company had competitive advantage, market leadership, massive cash flow and investment it failed because of failure of its management to gain control of the already established markets, failure to bridge the networks and failure to create new networks in the global market.

Question: 4

Apple Company decided to invest and upgrade the different iPhone with the latest version of 6S Plus, 6S, iTunes Radio and iPad as a differentiation strategy and in order to gain a competitive advantage. In order to remain a market leader an organization is required to be competitive, differentiate its products and serve the customers tastes and prevalence (Rob, 2014). As the world valuable company in the world, Apple Company has the role of adopting the diversification strategy in order to gain and maintain its market position. The company chose this direction in order to maintain its profitability position and to continue being a market leader.  The company is believed to be playing catch up game in adopting diversification and differentiation strategy in its attempt to build competitive advantage over its competitors in the market.

As the CEO of the Apple Company I would ensure that the new products to be steered and developed by the company are differentiated from those in the market and match the current market trend of the customers and the competitors.  Given that the shareholders and the board would like to see the Apple company regaining its former reputation as an innovative company rather than the follower, I do believe it is possible to uplift the performance of the company only if the management adopt the cultural principles of being at the top of the notch of excellence, ensure secrecy, become innovative, adopt creativity and ensure moderate compatibility in its systems and processes (Rob, 2014). In case considering for an employment, I would considered Apple as an employer. Given that Apple is the world largest company in terms of market capitalization, based on innovation, creativity and secrecy culture. I do believe being an employee of the company I would acquire the appropriate managerial skills as well be motivated to be a visionary leader in the future.

 

 

 

 

 

 

Reference

Rob, G. (2014). Why Apple is the world’s most successful company – the power of networks. New York Publishers.

 

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