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Strategic Management: Strategic Choices (business) - Essay Example

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Apple, an American multinational organization spread over 284 locations worldwide having revenue of $42.92 billion, founded more than 30 years ago is one of the top most hardware and software companies which competition envies. Apple’s focus has always been on Macintosh…
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Strategic Management: Strategic Choices (business)
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Strategic Management: Strategic Choices (business)

Download file to see previous pages... When we say Apple, we actually mean the visionary man behind the scenes who makes it all happen. Apple and Steve Jobs, current CEO of Apple, go together on this journey of revolution brought to the consumer world of electronics.
In the initial 20 years of its existence, Apple’s focus was purely on bulky, expensive MAC computers and therefore the name Apple Computers Inc was used. However, pertaining to the changing market dynamics and demand for innovative consumers electronic, Apple starting publicizing itself as ‘Apple Inc’ by 2007.
Till late 1980s and early 1990s, Apple was earning out of the high profit margins kept on the difficult to use MAC computers. Their sales volume was less because of its complicated OS systems used for those computers.
In 1997, Apple realized the dropping sales and shrinking market of the MAC computers. Although Apple was known to be makers of one of the finest consumer electronics, their operating costs were increasing and cash flow was becoming a mess. The major reason was the isolation Apple played by having very few software being compatible to its products. This was the year when technology reinvention began.
The first step Apple took was to shake hands with Bill Gates such that Microsoft continues building MAC compatible software. In just a year Apple launched iMac, an upgraded version of original Macintosh increasing the profits and sales turnover. Followed by the iMac were the first iPod and then the iPhone launched. Similar strategy was followed with Intel in 2005 when Apple started using those Intel’s motherboard and brought the Mac Pro and MacBook.
‘More than 200,000 companies signed on in that year to create Apple-compatible products, a 26% increase from the year before. That included software makers such as gamemaker Electronic Arts Inc. and corporate supplier VMware, drawn by Mac sales that are growing three times faster than the overall PC market. A cottage ...Download file to see next pagesRead More
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