Apple - Organization Profile - Case Study Example

Apple - Organization Profile Internal Scan Prior to his death, while acting as the CEO, Apple founder Steve Jobs wasthe firm’s most valuable resource. Jobs’ incredible and unique approach and vision remained a key resource for the company, especially during tough economic times. Currently, the company has been able to revitalize itself by acquiring a new CEO, whose capabilities continue to offer valuable resources. In addition, the firm has a vast array of integrated systems of software and hardware, which it has successfully marketed to derive full value (Lashinsky 23). These software and hardware systems have long provided success with regard to the company’s profitability. Moreover, while the company’s programmers, engineers, designers, and other personnel represent key resources, Apple Inc.’s capability to exploit these personnel’s abilities to develop hardware and software ecosystems encompasses the firm’s key ability. On an individual level, the resources represent only a temporary fraction of the firm’s competitive advantage. However, the combination of all the personnel’s abilities creates the firm’s sustainable competitive advantage. The establishment of Apple stores also provided the company with significant resources for physical presence since the stores act as sales locations, as well as means of advertisement. The stores allow the company to monitor and control brand image within the market. In order to maintain its current, strategic position, and enhance its success in the coming years, Apple Inc. should establish highly innovative software and hardware to augment its current resources. In addition, the company should also endeavor to employ personnel with Jobs’ passion for excellence (Lashinsky 58). Such personnel should not only form the company’s strategic planning department, but all departments in the entire company. Situational Analysis The company has a rather intriguing mission statement that not only provides focus to the company in terms of its business operations and processes. The company’s website provides a list of its products rather than a conventional mission statement. The company’s official mission statement states that it designs Macs, the best personal computers globally, alongside OS X, iLife, iWork, and other professional software. Apple directs the digital music revolution through its iTunes online store and iPods. However, popular beliefs hold that Apple Inc. got its conventional mission statement from one of Steve Jobs’ quotes during the 1980s. Jobs’ quote can be summarized as follows: “Man is the developer of change in the world. As such, man should be above all systems and structures, and not secondary to them” (Lutchen 72). While various sources consider all these statements as the true mission statement, the company ends most of its press releases through a statement that bears a resemblance to traditional mission statements. The company ends its press releases with the statement, “Apple commits to the provision of the best personal computing experience to educators, students, customers, and creative professional across the globe through its innovative software, hardware, and Internet offerings.” The company’s mission statement provides a sense of direction, which is sufficiently flexible to the changing market situations. The company’s motivation to continue providing the best hardware, software and Internet offerings, means that it will develop technologies to adapt according to market situations. The industry has many successful competitors that pose a challenge to Apple Inc. However, the company’s strategy allows the firm to remain successful. Apple’s main competitive advantage lies in its broad array of products, especially its software, hardware, and Internet solutions (Cruikshank 81). The company’s immense resources such as personnel provide the backing for the company’s policies and strategies. This means that the company requires dedicated personnel to help it put the strategies into action, despite having the best strategies and policies on paper. With regard to the company’s primary tactics, Apple Inc. focuses on providing the market with the best possible software, hardware, and Internet solutions on a large scale level. Apple Inc. unveils its products on a remarkably timely scale, especially timing their inauguration with seasons. For instance, the company mostly unveils products it considers fun and hip during the summer and spring time. This strategy has proved effectual since customers relate such products to adventure and fun; thus promoting Apple’s sales and profit margins. The company changes its competitive strategy regularly. For instance, during economic recessions, Apple Inc. endeavors to maintain its market share and maintain its brand image by unveiling cheap products (Lutchen 83). During financial booms, on the other hand, the company’s main competitive strategy shifts to creating innovative products and enhancing its clientele base. SWOT Analysis Strengths Apple Inc.’s main strength lies in its resources, i.e. its innovate software, hardware, and Internet solutions, as well as its dedicated personnel. In addition, the company’s stores serve as advertisements and viable sales locations. Weaknesses The death of Steve Jobs placed the company at a precarious position. While the current CEO is effective, a majority of Apple Inc.’s customers remained loyal because of Jobs’ character and creativity. This is currently the company’s greatest weakness. Opportunities The advent of new technologies such as fiber optic cables reaching all over the world present Apple Inc. with a great opportunity to enhance its market share and enhance innovation, thereby not only remaining relevant in the market, but increasing revenues, as well (Lutchen 107). Threats The threat posed by competing firms remains Apple Inc.’s greatest threat. Companies like Microsoft, Nokia, Samsung, and HP threaten Apple’s position in the market. Corporate Strategy Apple’s directional strategy entails a clear determination of the company’s mission statement and the identification of Apple’s role in the marketplace. The company concentrates its business processes on what it has been successful at doing for the last few decades such as producing personal computing solutions. In addition, the company constantly initiates changes in its strategies, for instance, the shift from producing Macs to its current products was a strategic move that brought the company incredible success. Apple is currently pursuing a broad differentiation strategy. The company differentiates through offering exceptionally designed, high quality, and personalized service. The scope of the company’s strategy is vast, targeting markets ranging from unsophisticated beginner users to specialist power-users (Lutchen 112). The company’s portfolio strategy is to employ technological advances to create highly innovative products such as iPods, iPads, and iPhones and strong hardware and Internet solutions that became market leaders. Apple focuses the brand portfolio strategy to project the company’s clear identity. The market has come to appreciate Apple for its rich products such as the iPods and iPhones. Apple’s brand portfolio strategy entails reenergizing and differentiating its brands, leveraging its brand assets and entering value and high premium niche markets with fresh and innovative products. Over time, Apple acquired many companies, which play an integral part in the company’s manufacture of innovative product. Apple’s acquisitions include Anobit Company, producers of flash memory software, which Apple uses to manufacture its iPhones and iPads. Apple also acquired Polar Rose, a dealer in face recognition software, to produce camera software in iPhone brands. Moreover, one of Apple’s most successful products is its iTunes Match and iCloud provided by Lala.com, another company acquired by Apple. Lala.com deals with music streaming (Cruikshank 37). As noted, Apple’s various acquisitions are mutually beneficial as the acquired company gains through association with a key player such as Apple, while Apple, on the other hand, benefits from the small company’s innovations and specialties. Functional Strategy As a large technology-based company, Apple has an array of departments performing different functions essential to its overall performance. The company’s departments include finance, human resources, marketing, operations, IT, and research and development (R&D). However, while all these departments perform critical functions, Apple’s current strategy focuses mainly on its R&D function. Apple’s R&D function continues to play an essential role in the company’s success. This is because, through R&D, Apple continues to shock the market with its innovative products and Internet solutions. For instance, as a result of intense research and development, the company produced some of its most notable brands like iPads, Ipods, and iPhones. Recently, Apple’s R&D unveiled SIRI, a highly innovative product that set a precedent in the market (Lutchen 91). Coupled with its IT function, Apple’s R&D produces impressive brands that utilize the latest technologies. Sourcing decisions are of eminent importance to companies since they impact the company’s long term profitability and the sustainability of its goals. The global dimension of business operations, as well as supply chains, makes it highly valuable to assess the impact of a company’s sourcing strategies since an organization’s sustainability extends to its entire supply network. As a member of the Electronic Industry Citizenship Coalition (EICC), Apple Inc. benefits from a mutually beneficial relationship with key industry suppliers. Jobs’ attitude towards change set the precedent for Apple’s risk management. The founder believed that without risk or change, the company would collapse. This attitude continues in the company’s management who view risk as an extension of change (Cruikshank 45). Apple’s management takes calculated risks to achieve high returns. The company takes unguaranteed risks with its product innovations in terms of success. However, because of proper R&D, the risks often prove successful. Apple’s stakeholders include the company’s shareholders, lenders, employees, software developers, suppliers, customers, manufacturers and their personnel, and the music industry. Apple’s stakeholders require the company to remain ethical and responsible. Stakeholders like shareholders require high profitability to gain returns on investments. Lenders require regular payments and employees require fair treatment. Apple’s culture promotes human dignity through a fair work environment, making employees highly satisfied, thus positive attitudes towards customers. The company is currently running a “greener Apple” campaign to maintain environmental responsibility by lowering its products’ carbon footprint. Strategic Recommendations Based on the company and industry analysis, it is highly recommendable that the company creates a more robust differentiation strategy. The PC market shows continual downward strain on prices, thereby eroding the firm’s profitability (Lashinsky 99). Therefore, developing a strong brand image that differentiates the organization from the competitive race will diminish the effects of competition. In addition, the firm should develop closer relations with suppliers. This means not only seeking suppliers for their low costs, but also maintaining business relationships with suppliers to counter the effects of the power of suppliers. Lastly, the company should develop complementary products to access more markets with lower competition. For instance, by offering a fresh model of its iPhone brand using innovative dual-band chips will increase the phone’s compatibility with all global networks and significantly increase the prospective user base. Moreover, Apple should establish collaborative recycling strategies with Samsung. Apple should join and enhance Samsung’s charitable initiative to develop a culture of electronic recycling while helping disadvantaged school children. The company should also expand the scope of its stores to provide more direct contact with customers. Apple’s greatest challenge in implementing the aforementioned recommendations remains the highly competitive industry, which encompasses many large companies. If the company does not implement the recommendations, it may lose its competitive edge and lose its market share with time. Works Cited Cruikshank, Jeffrey L. The Apple Way. New York: McGraw-Hill, 2009. Print. Lashinsky, Adam. Inside Apple: How America's Most Admired--and Secretive--Company Really Works. Business Plus, 2012. Print. Lutchen, Mark. Managing IT as a Business: A Survival Guide for CEOs. Boston: Wiley, 2003. Print. Read More