Apple Computer, Inc.: Maintaining the Music Business while Introducing iPhone and Apple TV case study - Term Paper Example

Maintaining the Music Business while introducing iPhone and Apple TV Key strategic challenges facing Apple’s Computer The Apple’s Company is facing serious security issues. Since its market power surpassed Microsoft by a stunning 5%, the company has been on the spotlight. Hackers, malware developers, competitors and the government are monitoring its progress. The hackers want to send their attacks to people through the most influential service provider, Apple Company. In fact, the Apple Company is more prone to those attacks compared to Microsoft due to their inexperience in handling such security issues.

` The government and its agencies focus on companies making the highest profits and having their market power sky-rocket. Apple having exceeded the marketing power of Microsoft with profits alarming, they attracted the limelight. Government agencies are closely monitoring its business strategies and profit growth. This scrutiny facing the company slows down its growth due to conscious progress(Chmielewski, 21). Apple’s success with i tunes has given the company an effect which threatens cable televisions, prints and gaming firms.

The Apple Company needs to clarify its boundaries on what services they are offering in order to avoid turmoil from other companies. The Economies of scale of Apple Company increase proportionally to its growth. Monitoring of the activities becomes difficult making the chances of information and product leaking high. The time information passes from one body to another gets heavily affected as clarification needs to be sought before the intelligence allows it to pass. The Apple Company faces increased competition and stake holders.

As the company starts to produce more products, its competitors in the market do the same. This leads to continuous to production of different products making the firm to expand and acquire more stakeholders. The Apple Company faces regression to the mean(Chmielewski,38). This is where a firm ceases to be creative and focuses on a particular path. Its strength and ability to “think differently” gets weary and weary as this ability to depreciate. Dimensions along which company success gets measured The profit that a company makes determines the success of that company.

If the profit the company makes after paying the rent, taxes and other expenses is enormous, then the company is successful. A company with its products reaching the targeted market effectively is successful. The bigger the company’s customer base the more successful the company. Companies that have their products reaching the destined markets are companies that deliver. The companys success also gets measured in terms of how customers get satisfaction. Successful companies keep their customers satisfied and understand what their customers need.

Another way of measuring a company’s success is through measuring the employee satisfaction. A successful is a company with a well-developed working environment that compensates the hard work of employees enticing them to push more. Employees put in more effort; when they get appreciated. When the company owner likes the results of the firm’s progress, he continues to fund it and ensuring its growth. The External and Internal environmental factors that have strategic effects for Apples future External The sources of funds of the company largely affect its future.

If the sources are not well endowed, the company may lose its shares or exclusive rights in case of bankruptcy forcing it to shut down or forfeit its rights to a willing buyer with the potential to sustain it. The future of Apple Company gets immensely affected by revenues that do not exist in the form of cash. If the non-cash revenue cannot be exchanged for cash, it puts the company in a blind position as it cannot acquire money to settle debts when only cash is needed.The clients of Apple’s Company are what determine its future.

If the products Apple produces suddenly become useless, the company gets shut down because its existence is unnecessary. Suppliers play a crucial role in keeping the Apple Company in business. Any delay in either the production materials or distribution of the finished products can cause the company vast amounts of losses which affect the company’s future (Hoskisson 10).Competition keeps the creativity of the Apple Company up. The competitors help drive the company keeping its production and inventions high.

Dominance of Apple in technology will lead to drowsiness and lack of creativity. Internal The purpose of existence of the Apple Company gives a direction in which the company seeks to go. When the purpose of the company clearly gets stated and understood, the company gets a sense of direction and with this, the future is splendid. The mission of the apple company is to clarify to its employees what they are planning to achieve and in what period. The mission outlines the goals of the company giving the Apple Company employees an idea of the required direction.

Philosophy is based on the virtues of which the Apple Company got founded. The philosophy explains the reason for the existence of the company and why it chose the field of expertise. The organizational structure of the Apple Company contributes a lot on the future of the company. The organizational factors are in three groups namely Strategic Planning Long range Planning and Operational Planning. Strategic Planning is more focused on the strategies the company implements to achieve its targets and goals.

The Long range Planning Is mainly about the way the company do their organization for long term and short term goals. The operational planning is concerned with how the company’s operations are planned, maintained and executed(Hoskisson 18). Description of how Apples’ strategy stands up against industry rivalry. Apple Company has patents and rights protecting their ideas as copyrights. Anyone who steals or copies their products and ideas without their consent is fined. It is a strategy of keeping its products unique and reducing competition.

` Apple Company produces its products with ultra-high quality at a reasonable price. The production of high quality products which meet the customers’ needs enables the company to maintain its customers due to its satisfying results. Apple Company produces products that meet the target market demands. Production of products that meet the customers’ needs is a marketing strategy enabling the Apple Company to stand up against industrial rivalry; it is achieved through delivery of specified products.

Recommendations: I recommend that the Apple Company start to produce a wider range of products. This production will enable them to produce products; that are more affordable to other potential customers. Reaching potential customers with less pricey products entices them to save and go for the better advanced accessories which will lead to the growth of profit for the company. Reference Chmielewski, D.& Euinn, M.(2007), Technology: Movie studios fear the sequel to iPod: They see risk that new Apple TV signals effort to control distribution, Los Angeles Times Allison, K. (2007), Apple encroaches on Windows turf: New York, The Financial Times Hoskisson, R. H. (2007), Strategic Focus: Apple: Using innovation to create technology trends and maintain competitive advantage, Ireland.

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