Case Analysis

Katie Reuter
May 5, 2013
GB520-01N: Strategic Human Resource Management
Unit 1
What is Strategic Management, and why is it critical to the success of an organization in meeting its goals and mission?

Strategic management is setting priorities and goals within a business. It’s used with upper management to strengthen a company and prepare for future outcomes. Making a product that is highly profitable and easy for customers to use and benefit from is the main focus of Apple, Inc. The organization of Apple, Inc. started in the 1970’s and has been very profitable since. In 1978 they sold the Apple II and made billions of dollars from the product in less than three years. Between 1983 and 1984 Apple, Inc. lost sales and have fell into a crisis because of the slow processor speed and the compatible software. During this time it was hard for the organization due to competition.
The problem Apple Inc. was facing at this time is other companies have found easier and faster ways for people to use the different products other than Apple, Inc., during the 1985-1993 Apple, Inc. turned global, thus making sales up to 1 billion and was the most profitable PC Company in the world. Being able to turn any company global in an organization is very profitable, most people like new products.
The beginning of 1993-1997 Apple Inc. starting playing a role in K-12 grade helping out the school systems with education with the product and this helped them out tremendously. By 2008 Apple Inc. started charging premium prices on their product knowing that with their name would be sold all over the nation. They also came out with the iPod roughly selling over 150 of them. This was giving the customer portable music and other exiting things and they still sell to this day.
Today Apple, Inc. is one of the top rated organizations for iPhones, iPods, iPads, computer systems and much more. The only problem with Apple, Inc. now in this day in age is the competition. There are a lot more companies that are coming out with the same product just a different name. For example, the Kindle Fire is the same thing as the iPad, just a different name brand. A lot of people are purchasing the competitors product instead of the Apple name brand product. The reason behind this is that people would rather pay $200.00 dollars for a Kindle Fire verses $500.00 for the Apple iPad.
Apple, Inc. needs to lower prices for their products so more and more people with purchase them. In years to come this is a critical problem that Apple, Inc. faces, to be successful in any organization you have to think like the customers. Majority of the customers are going to try and same money and buy the generic brand verses the name brand product. What Apple needs to do is, if they start seeing a drop in profit they would need to start lowering prices down to match their main competitors so that more people will purchase their product.
One of the main problems in 2013 is Apple iPad verses Amazon Kindle Fire. “The Amazon Kindle Fire has been called a potential iPad-killer by the media” states (Nations, D). The Amazon Kindle Fire is $199 and can do everything the Apple iPad and do. They are very similar and it’s making the customer purchase the Kindle Fire instead.
When looking at both products “Instead of looking at the Kindle Fire verses the iPad in a direct match up of features, which would be about like comparing a Ford Escort to a Mercedes, (Nations, D). This is a great example of not only just the Amazon Kindle Fire verses Apple iPad, its everyday life. From the groceries that customers buy at the store to clothing lines at a local mall. Everything has a generic name and lower price and most of the top name brands are sold and get good profit but a lot of people are trying to save money for more important things like their children’s college or a vacation for the family, or just trying to get by with bills. So this would be a good example of why the Kindle Fire is being called the iPad-killer, because more likely people will purchase the Kindle for the lower price.
Some of the advantages of the Kindle Fire is the low cost and being able to use the amazon app store to purchase games, books, movies and much more. Some advantages of the iPad is it’s faster, has more storage and dual face cameras on the iPad 2. Both of the products use full-color back-lit displays so both of them will have problems in direct sunlight. Both of them are good but the main concern is the price.
To stay successful you have to look at your main competitors products and come out with bigger and better things to catch the customer’s eye. With doing this the product needs to be reasonably priced and affordable to the public. Otherwise the customers will go for the cheaper one to save costs.
A good example of this is looking deeper into strategic management and why it is important. Strategic management is all about change, and facing challenging situations in the work place. Being able to except the change and work through it, and make important decisions and implement appropriate strategies.
Some other examples of strategic management are resource limitations, changing environment, matching competitors, and improved decision making. Resource limitations is being able to deal with limited resources of money. A lot of business go through this and Apple Inc. went through it back in 1983-1984 Apple, Inc. was in a crisis and had to make important changes to make more profit. Matching competitors is very important, a business could go down in profit if other companies come out with a similar product. Improved decision making is very important due to change in a product or being able to come out with a new product. Strategic management is setting priorities and goals within a business. It’s used with upper management to strengthen a company and prepare for future outcomes.
References

Nations, Daniel, ed. The Amazon Kindle Fire vs the Apple iPad. N.p., n.d. Web. 5 May 2013. <http://ipad.about.com/od/Tablet_Computers_eReaders/a/The-Amazon-Kindle-Fire-Vs-The-Apple-Ipad.htm
Sind, M., & Yoffie, D.B. (February, 2008) Apple, Inc. (Case Study) Retrieved from Harvard Business Online website

References: Nations, Daniel, ed. The Amazon Kindle Fire vs the Apple iPad. N.p., n.d. Web. 5 May 2013. &lt;http://ipad.about.com/od/Tablet_Computers_eReaders/a/The-Amazon-Kindle-Fire-Vs-The-Apple-Ipad.htm Sind, M., &amp; Yoffie, D.B. (February, 2008) Apple, Inc. (Case Study) Retrieved from Harvard Business Online website