Apple Computer Analysis - Term Paper Example

At Apple, most strategies appear to have been developed on a superficial assessment of the market-need and competition, by the organization’s successive CEO’s. While, at the corporate level, it is recognized that the company should be involved in both computer hardware and software development and sales, the business and operational level strategies have undergone un-intelligent makeovers during the organization’s history.Apple’s corporate level strategies have largely focused on providing value through innovation and affordable pricing – an endeavor largely negated by Microsoft’s developing its OS and PC clones flooding the market.

The strategic decision by Michael Spindler to license out Apple’s OS to select Mac Clone vendors resulted in the tremendous loss and was soon overturned by the decision to acquire one of the clone companies, Power Computing. This move helped Apple to also open up a route of direct sales for the Apple products. Gil Amelio’s attempts at corporate restructuring to create seven profit centers would have resulted in better strategic management if it had been followed through. In contrast, the restructuring of the board of directors by Steve Jobs didn’t seem to be serving any value addition.

The introduction of new products, aggressive advertising and strategic alliance with Microsoft proved profitable as iMac became the best-selling computer in the fall of 1998, and Apple's stock price escalated to over $130 per share in March 2000. The continuous investment in research and development have also helped the organization in remaining viable.Apple’s business-level strategy is not very focused, nor it is aimed at cost leadership. It is targeting different segments - individual customers (both the low and the high end users, by providing two versions of both the desktop (iMac/PowerMac) and the Portable (iBook/PowerBook) computers); content creation professionals; corporates; school and educational centers (through eMac, a school desktop).