Apple Computer INC. and Its Market - Research Paper Example

Introduction Apple Inc. was incorporated as “Apple Computers Inc.” in the year 1977 and is headquartered at Cupertino, California. The company was started by Steve Jobs and Steve Woznaik, two experts in domain of Sales and Engineering respectively. Apple designs and manufactures innovative personal computers, mobile communication devices, media and entertainment device, music players, software, peripherals and accessories etc. The company has designed some of the world class products which have revolutionized the hardware and software industry viz. Macintosh, iPhone, iPod, Apple TV, Xserve, Software applications like Mac OS, iOS, and digital media iTunes. The company has a strong supply chain mechanism and operates through distribution channels such as online stores, direct sales; value added resellers, telecom operators, wholesalers, retailers etc. The company is more than $65 billion in terms of revenue and is growing consistently at the rate of 47% every year. The target market for the company has been Enterprise, Government institutions, individuals, Educational institutes, etc. Apple is consistently rated as the world’s most innovative company and the user experience from Apple products has made its’ products one of the most sought after and in vogue. Each Apple product has created its own category and ruled the market as leaders. The unique selling proposition of introducing lifestyle statement which adds value to the customers is one of the major reasons for success of the company. Each product purchased is a unique experience for the user and the company has taken measures to make the experience truly enticing. Success of Apple Inc. has been attributed to its founder Steve Jobs whose relentless attitude to provide customers with the uniqueness in every Apple product has made it a common name in the world and positioned the company’s products as premium. Vision Statement Apple Inc. is not bound by a long term vision statement but the company creates vision for society and positively affects the global market with its unique and innovative products. The company has created niche for itself and defined categories which has helped Apple’s products occupy leadership position in the market. The company visualizes innovation and uses technology to simplify life for each and every Apple users thereby adding value to their lives. The long term vision of the company through not bound by boundaries have been to innovate and create products that would positively impact lives of its customers and render unique experience in product usage and purchase. Mission Statement As vision statement, Apple does not believe in having a formal mission statement. However, to simplify life and promote innovation Apple has been constantly involved in creating products which has not only enhanced brand image of the company but helped it grow manifolds. Apple introduced Apple I in 1970’s followed by Macintosh, which revolutionized the personal computing experience. The company later designed mobile communication devices like iPhone and iPod and complemented it with iTunes. The uniqueness of the products, justified innovation, and incomparable user experience offered has made the company’s mission statement quite apparent towards its vision to innovate. Corporate culture Apple is one of the most innovative companies to work for in the world with no defined guidelines as corporate culture to follow. Work culture entails and recognizes smart work and throws challenges in terms of deadlines. Work culture is relaxed, fun-loving yet demanding. Apple encourages creativity and empowers its employees to stretch beyond their capabilities to develop the best in every aspect. Apple treats each of its employees equally and is a perfect example for flat organization. There is no set dress code and work curriculum but ethics in work and creativity in delivery is maximum. The company takes care of employees with various incentives and benefits which encourage employees to innovate and build the company. Apple believes in empowering its employees of their duties and demands best output through individual creativity and perfection. The company takes up every product as a challenge and delivers the best to its customers. The fun, relaxed, casual work environment is controlled by creativity, deadlines, flexi work schedule, and challenges which brings the best out of Apple’s employees. Strategic Communications Apple, although being the most innovative company to work for, has a very restrictive and secretive work culture. Employees are encouraged not to disclose anything related to the product they are working in media or even to their peers within the same company. The company follows three forms of strategic communication to the outside world on product launch (i) Live Events (ii) Press Release (iii) Traditional Media Outlets. Live events are mainly marked by Steve Jobs speech and news coverage on internet and news media. Press release acts as a complimentary force to drive events where TV and magazines are covered with interviews from Steve Jobs. Off late, the company has also been following culture of publishing article by Steve Jobs and complaint handling by Steve Jobs through emails. The company follows highly secretive policy when it comes to communication internally where employees are not encouraged to share any details their work with peers, family etc. The company maintains surveillance over employees in order to achieve its objective of secrecy. Corporate Identity Apple has revolutionized personal computing space through its innovative products since inception. The brand has not only established itself as the most admired but also poses a unique product portfolio offering the best to customers. Apple is the only company in the world which does not use its name in the logo and yet it is very successful. The first logo of Apple was Newton sitting under an Apple tree, with a punch line of “Newton… a mind forever voyaging through strange seas of thought”. The logo had a ribbon with “Apple Computer Company” mentioned. This was followed by a logo designed by Rob Janoff which was a more colorful Apple with a bite on the right side. This represented separation of light in the form of colors, and discovery of gravity as Apple. One of the well known products Macintosh’s names was too inspired by an Apple fruit variety. The company logo has undergone a series of changes in recent times to aqua blue and finally to current logo which is appropriate to company’s current image. The new logo is white mixed with raw aluminum finish. Apple has been able to maintain its identity unique from its competitors and emerged as the most admired company as mentioned by Forbes. Corporate Image Apple is the most innovative company in the world. The brand image it has created in the minds of people is extraordinary. The company has risen against competition and has been able to beat competition with its unique products. Apple has a positive image in the minds of the users with its unique products and excellent ease of use. Apple has established competitive advantage for itself against its competitors using combination of iTunes, iPhone, Mac PC and iPod. Apple is known for its corporate culture which is relaxed and fun-filled coupled with creativity which has fostered positivity in the minds of the consumers. Apple has emerged as a world class company in a short span of time because of innovative products and its business strategy which simplifies life of its consumers. Media Relations Media relations take care of the press releases at Apple. Press release mainly focuses on new product launch, events that occur around the company, investor’s news, Apple at various events, and news on Apple retail stores product availability and launch. Press release at Apple covers events and product launch in detail that involves Steve Jobs. Any up-gradation in the product is also being taken care by the press releases. The department answers problems related to products of more than 300 million users, this has however caused problem at times when media has not answered to queries in an effective way. Apple has been in business due to its effective products in the market and its media relations policies have helped the company to maintain secrecy on its’ ideas and launch products which surprises people every time. Apple has been a company which has been profitable in times of recession and Steve Jobs has acted as an inspiration to its media relations department for every news that reaches the consumers. Internal Communications Communication strategy within Apple premises is organized using emails, meeting requests etc. Apple employees are not encouraged to exchange their project plans among themselves and the product strategy they are working on. The environment related to products is kept secret inter-departmentally and strict rules are adhered. Staff meeting mainly discusses on the views and product design to propose a superior product to the market. Apple also maintains internal communication in between various channels, distribution system and the company. This helps to create an atmosphere which is sync with Apple’s go to market strategy. The company is not very transparent with respect to internal communications and media is avoided on any new idea which the company is working to develop. Apple maintains a secretive communication for yet to be launched products but provides enough information about the corporate culture to outside world. The company also encourages its employees to follow a flat structure when it comes to new product development. Crisis Communications Crisis Communication is the communication in times of hardships or PR flaws. Apple has also faced such flaw when it reduced the price of newly launched iPhone 8 GB from $599 to $399 within 2 months of launch. This was taken negatively by the consumers and entire social media was flooded with discussions on Apple’s move to lower the price. Sensing negativity Steve Jobs addressed the consumers apologizing and providing $100 credit towards purchase of any Apple products. This helped the company to control negativity among consumers and manage crisis situation which could have the damaged the reputation of the company. Also during launch of iPhone 4 initially, there were issues which were replaced by the company’s positive strategy to recall faulty products and re-launch. Communication in times of crisis can be averted by embracing the negativity and working to create a positive atmosphere in the minds of consumers. Works Cited 1. “Apple Inc.’s Corporate Culture: Good, Bad and Ugly”, 2009, ICMR India, 5 December 2010 2. “Apple Logo” 2009, Logo blog, 5 December 2010, 3. “Apple Press Info”, 2010, Apple Inc. 4. Barney Jay, Looking inside for Competitive Advantage, The Academy of Management Executive, 1995. 5. Boston University, Research Assignment: Financial Analysis Apple Computers Inc. Financial and Managerial Accounting, 2005. 6. “Crisis Communication 2.0” Brian Solis, Apple and the iPhone price bomb, 5 December 2010, < http://www.briansolis.com/2007/09/crisis-communications-20-apple-and/ > 7. Hanna, Julia. HBS Cases: The evolution of Apple, Harvard Business School, 2007 8. Needham, David. Business in Context, Thomson 5th Edition 2010. Read More