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Apple Computer, Inc. iPhone and Apple TV - Assignment Example

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Case Study Apple Inc. Name Institution Key Strategic Challenges Facing Apple Challenges in Apple Computer, Inc. began because of disagreements between Jobs and Sculley. This was because of the differences on the best direction to take the company. Consequently, competition and technological changes in the computer industry created the major challenges for Apple…
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Apple Computer, Inc. iPhone and Apple TV
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Download file to see previous pages In an effort to improve their software products, Apple partnered with Motorola and IBM to produce a power PC chip to run the PowerMacs. Despite this effort, losses in the company increased during 1996 and 1997. While Apple was trying to market its products, a number of competitors emerged in the technological field. This was attributed to the rapid changing entertainment industry. An example of such a company is Got Voice Company, which allows users to record and send voicemail messages in MP3 format to their email accounts, a free service, challenges Apple’s Visual Voicemail on the iPhone. Apple’s effort to expand its business to include more media and software is likely to face challenges. This is an effort to maintain its tech savvy image in the production of its products. The unique design in its products has established a large customer base, which will place more pressure on Apple’s design team. Dimensions along Which Company Success Can be Measured To be able to measure Apple’s success, a number of measures can be used. From a financial perspective, Apple’s revenues can be used to indicate its success. These revenues vary depending on the product and region. For instance, Apple’s net income in 2007 from digital music amounted to $3.5 billion. In addition, other financial criteria that can be used include cash flow records, debts and net income. Customers can also be used as a measure of Apple’s success. This covers the market share, growth and customer satisfaction. By 2007, Apple controlled more than 70 percent of the digital music market. In terms of growth, Apple is aiming to capture at least 1 percent of the global cell phone market. Customer satisfaction is evident from Apple’s huge following of its tech savvy products. Another criterion to be used as a measure of Apple’s success includes its internal business processes that cover product quality, marketing effectiveness, inventory control, cost management and margins. Consequently, Apple’s success can be measured through the introduction of new products such as iPad, Apple television, iPod, iPhone and iTunes. Furthermore, these new products indicate Apple’s advancement in technology and their efforts in research and development of new and innovative products. Moreover, Apple’s strategic agreements with various companies indicate that it has grown. These include agreements with Volkswagen, Nike, Burton Snowboards and Starbucks. These agreements include Apple’s iPhone product. This affiliation with different companies has increased customers confidence in Apple’s products. Critical External and Internal Environment Factors Strengths Internal factors that have an impact on Apple’s future depend on the assets and competence within the company. Some of its strengths include its global presence, brand image, strong media content and a synergistic portfolio. The iPod has penetrated about 70 percent of the digital music market and continues to grow due to its high sales in the portable digital music industry. Recent studies reveal that Apple has opened more than 200 retail stores worldwide. These retail stores have contributed an estimated $200 million. Apple’s ability to penetrate the global market has made it provide high tech products. These products have gained acceptance in different cultures across the world. Apple’ ...Download file to see next pagesRead More
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