Apple Strategic Management
STRATEGIC MANAGEMENT
Apple, Inc.
Strategic Management Case Analysis
Kait Vinson 4/18/2011
Vinson |1
STRATEGIC MANAGEMENT CASE ANALYSIS: APPLE INC.
SECTION ONE: CORE PROBLEMS & ISSUES In the transition from Apple Computers, Inc. to Apple Inc. over the past decade, the company has faced many problems with its strategy in regards to navigating the personal computer industry. Some of the initial problems included the fact that all of the company’s computer products ran on different operating systems. There was a lack of compatibility with IBM computers which garnered the majority of the market will into the 1990s. In addition, CEO Steve Jobs’ management style that dedicated company spending on Mac computers was a point of contention. All these initial problems ultimately caused Apple’s fall in market share from 11% in the 1980s to around 5% in the 1990s. In an effort to regain and obtain more market share, Jobs created the retail stores for Apple, including online and physical store locations. While Jobs’ vision to create an easier purchasing option in addition to a unique buying experience is clear in retrospect, it was not effectively communicated externally of the company. This caused discontent with Apple resellers who thought that Apple’s new retail stores were competing with their business, leading to a series of lawsuits eventually settled outside of court. The lack of solid connection between Apple Inc. and its resellers has proven to be a challenge for Apple, in addition to the diversification of its product lines. With the speed of the technology industry accelerating, Apple’s main strategic issue will be how to allocate its resources involving different product lines and reconciling those products with the unique buying experience Apple has created as a retailer.
SECTION TWO: SWOT ANALYSIS
Strengths
Differentiation of product areas: Apple’s transition from a computer into a technology company has put the company in an advantageous position
Apple, Inc.
Strategic Management Case Analysis
Kait Vinson 4/18/2011
Vinson |1
STRATEGIC MANAGEMENT CASE ANALYSIS: APPLE INC.
SECTION ONE: CORE PROBLEMS & ISSUES In the transition from Apple Computers, Inc. to Apple Inc. over the past decade, the company has faced many problems with its strategy in regards to navigating the personal computer industry. Some of the initial problems included the fact that all of the company’s computer products ran on different operating systems. There was a lack of compatibility with IBM computers which garnered the majority of the market will into the 1990s. In addition, CEO Steve Jobs’ management style that dedicated company spending on Mac computers was a point of contention. All these initial problems ultimately caused Apple’s fall in market share from 11% in the 1980s to around 5% in the 1990s. In an effort to regain and obtain more market share, Jobs created the retail stores for Apple, including online and physical store locations. While Jobs’ vision to create an easier purchasing option in addition to a unique buying experience is clear in retrospect, it was not effectively communicated externally of the company. This caused discontent with Apple resellers who thought that Apple’s new retail stores were competing with their business, leading to a series of lawsuits eventually settled outside of court. The lack of solid connection between Apple Inc. and its resellers has proven to be a challenge for Apple, in addition to the diversification of its product lines. With the speed of the technology industry accelerating, Apple’s main strategic issue will be how to allocate its resources involving different product lines and reconciling those products with the unique buying experience Apple has created as a retailer.
SECTION TWO: SWOT ANALYSIS
Strengths
Differentiation of product areas: Apple’s transition from a computer into a technology company has put the company in an advantageous position