This paper applies the strategic management model to Apple Inc. as of the early 2010s, examining the company's current competitive position, corporate governance structure, and internal and external environment. Using a SWOT framework, the analysis highlights Apple's strengths in branding, innovation, and financial performance, while also identifying challenges related to manufacturing practices and competitive pressures. The paper evaluates several strategic alternatives — including narrowing product lines or competing on price — before recommending that Apple maintain its established niche marketing, high-profile brand identity, and broad innovation strategy. Implementation, evaluation, and control mechanisms are also briefly addressed.
As of 2006, Apple Computer still held a relatively small market share in the personal computer sector compared to leading manufacturers such as Dell and Hewlett-Packard; however, its share was growing, and its profitability was quite high thanks to a dominant position in the MP3 player market and strength in other technology segments (Case Study, n.d.). The company's vision and strategy of innovation — along with its vigorous protection of intellectual property rights — are made clear through both its actions and its own public statements. Apple's performance further speaks to the brand image and operational practices it pursues as a means of achieving greater market share and profitability (Apple, 2012; NY Times, 2012; Yahoo Finance, 2012). There appears to be a high degree of cohesion among the company's mission, objectives, values, and operations, allowing it to function as a well-integrated organization (NY Times, 2012).
Stock in Apple Inc. is publicly traded, and executives at the company own significant portions of stock, having derived considerable wealth from stock benefits and ownership (Yahoo Finance, 2012). Board members bring extensive experience in business and technology enterprises and have been notably successful in their strategy of giving company executives sufficient latitude to innovate and drive growth while maintaining a high earnings ratio (Apple, 2012; Yahoo Finance, 2012). Until his death, and certainly at the time of the original case study, Steve Jobs was the most prominent executive at the company and was by all accounts instrumental in its success (Apple, 2012; Yahoo Finance, 2012; NY Times, 2012).
The external environment facing Apple is shaped by economic, technological, and ethical issues — the latter including human rights and environmental concerns (NY Times, 2012; Gupta, 2012). Because of the company's strong retail control and the perceived uniqueness of many of its products, however, it is able to address these challenges largely on its own terms (NY Times, 2012; Gupta, 2012). Suppliers and governments represent the most influential external actors in the near term, yet neither has exercised major constraining influence over the company, and its profitability has continued to grow (NY Times, 2012; Yahoo Finance, 2012).
As both the case study (n.d.) and more recent information make clear, Apple maintains strong and cohesive marketing campaigns, with effective branding serving as a major driver of success and contributing to high profit margins and a strong financial position (NY Times, 2012; Yahoo Finance, 2012). Research and development constitute a central element of Apple's operations, with innovation serving as the primary engine of success in the technology industry. The company's processes are designed to move projects from development to production quickly, and Apple typically releases new products or significant updates at least annually (Apple, 2012; NY Times, 2012). Human resources management has become a more recent concern due to negative publicity surrounding the company's manufacturing facilities; while this could ultimately affect sales, it had not yet produced a measurable impact at the time of writing (Gupta, 2012; Yahoo Finance, 2012).
"Evaluating options and justifying continued niche strategy"
"Executing and monitoring the recommended strategy"
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