...“Case 14: Apple Computer, Inc.: Maintaining the Music Business while introducing iPhone and Apple TV” Assignment 2; “Case 14: Apple Computer, Inc.: Maintaining the Music Business while introducing iPhone and Apple TV” Anthony Green Professor Milan Havel BUS499 July 24, 2011 “Case 14: Apple Computer, Inc.: Maintaining the Music Business while introducing iPhone and Apple TV” * Describe the key strategic challenges facing Apple Computer. * Describe the dimensions along which company success can be measured. * Describe the critical external and internal environmental factors that have strategic implications for Apple's future. * Describe how Apple's strategy stands up against industry rivalry. * Describe the recommendations you would make to enhance the effectiveness of the company's strategy or to change its strategic approach for better results. “Case 14: Apple Computer, Inc.: Maintaining the Music Business while introducing iPhone and Apple TV” Describe the key strategic challenges facing Apple Computer Apple's is currently a very innovative company. It has gone through many ups and downs over the past 30 + years. From a successful company that brought in millions thanks to 2 guys a garage and a dream, to Steven Jobs, one of the founders, walking away from the company and in the process causing competitors to acquire ideas due to legal mistakes. Apple computer has faced many challenges throughout its 24 year history. Steven Jobs left...
Words: 1303 - Pages: 6
...Apple Computer, Inc.: Maintaining the Music Business while introducing iPhone and Apple TV Judith Babcock Professor Christopher B. McGrath Bus 499-Business Administration Capstone April 24, 2012 Apple Computer, Inc.: Maintaining the Music Business while introducing iPhone and Apple TV Apple Inc. manufactures and markets mobile communication and media devices, personal computers, and portable music players. They also sell software and services. The company sells the iPhone, iPad, Mac, iPod, Apple TV and professional and consumer software. Apple became a public company in 1980. Since then, they have become the most innovative company, the number one company in the world. In 2007, Apple Computer, Inc. changed their name to Apple, Inc., nasdaq: AAPL. The reason was Jobs explained was because the company was more of a consumer electronics company than a computer maker. On the same day of the name change, Apple Inc.launched the iPhone and Apple TV (Knowledge @ Wharton 2007). Some challenges that Apple, Computer Inc. face after surpassing, Microsoft’s Market Cap in 2010, scrutiny from Government agencies: The FCC, SEC, ITC, FBI, and FTC all have investigations that are underway looking at Apple’s practices. Apple’s success with iTunes gives it clout that threatens competitors in cable television, movie studios, print, gaming and more. Corporate lawsuits: Nokia and HTC are two competitors that currently have patent...
Words: 1289 - Pages: 6
...Apple Computer, Inc.: Maintaining the Music Business While Introducing iPhone and Apple TV Donna Prevatte Instructor: Jacinta Acquay BUS499 Sr. Seminar in Business Administration 31 January 2012 Apple Computer, Inc. changed online music tremendously in 2003 by developing the first legal online music service known as Apple’s iTunes Online Music Store. They were first online music service to have agreements with all five major record labels. Although initially available only for Macintosh users, iTunes sold more than 1 million songs by the end of its first week in operation (Hitt, Ireland, & Hoskisson, 2011). Describe the key strategic challenges facing Apple Computer. Apple Computer, Inc. is currently a very innovative company. It has gone through many ups and downs over the past thirty years. From a successful company that brought in millions thanks to two guys, a garage, and a dream, to Steven Jobs, one of the founders, walking away from the company and in the process causing competitors to acquire ideas due to legal mistakes. Eventually, Apple came back, thanks to Jobs rejoining and also because of the introduction of iTunes. But securing their information from this highly competitive industry is just one of their challenges. Apple saw a way to capitalize on the emerging trend of cheap music downloads by creating a legal online music distribution network. iTunes would be the key to exploiting the market (Hitt, Ireland, & Hoskisson...
Words: 1667 - Pages: 7
...Apple Computer, Inc.: Maintaining the Music Business while Introducing iPhone and Apple TV Leave a reply Topic: Apple Computer, Inc.: Maintaining the Music Business while Introducing iPhone and Apple TV Subject: Business Details: 1. Strategic challenges facing Apple Computer. 2. Dimensions along which company success can be measured. 3. Critical external and internal environmental factors that have strategic implications for Apple\’s future. 4. Dow Apple\’s strategy stands up against industry rivalry. 5. Recommendations you would make to enhance the effectiveness of the company\’s strategy or to change its strategic approach for better results. Abstract: Apple computers were started some 35 years ago by Steve Jobs and Steve Wozniak in the garage of Steve’s home. It has achieve tremendous growth and is currently one of the largest companies in the US marketing electronic technological produces such as the iPad and many other such items that are used extensively by consumers. The company is dedicated to providing its customers the best know-how and understanding through its original hardware, software, and computer related devices along with the best possible services. The major tactical challenge that Apple computer is facing is that the company’s competitors try to surpass its accomplishments and that they are bringing into the market comparable products that are much cheaper than the products marketed by Apple Inc. Introduction Apple Computer was started...
Words: 1402 - Pages: 6
...Apple Computer, Inc.: Maintaining the Music Business While Introducing iPhone and Apple TV Describe the key challenges facing Apple Computer. Key Strategic Challenges There are a number of key strategic challenges Apple Computer must face. Apple’s competitors try to exceed them in performance by producing similar products and often at lower prices. An example is when Apple introduced the iPad. Hewlett-Packard (HP) introduced the TouchPad. In order for Apple to stay on top of the market they had to come up with a new innovation – iPad 2. The iPad 2 was slimmer, lighter, had new features and a new chipset. Apple computer must continue to introduce innovative products to the market. Another challenge for Apple is in diversification. They have to continue entering into other areas of consumer electronics. The personal computer market has intense rivalry among competitors within the industry which is driving prices down. Apple stands to create considerable value through related diversification. Products like the iPod and iPhone show that Apple continues to create its path of innovation. Apple is broad in targeting their customers ranging from users’ on-the-go, at home, as well as unsophisticated users to the power users. upon level of headings; these are illustrated here. Do not begin a new page with each new heading. In a standard paper, only the abstract, the first page of the paper, the reference page, and any appendixes begin on new pages. This paper illustrates...
Words: 483 - Pages: 2
...Apple Computer, Inc.; Maintaining the Music Business While Introducing iPhone and Apple TV Roxanna Farris Professor: Shereen Turner Business Administration Capstone October 29, 2011 Apple Computer, Inc.; Maintaining the Music Business While Introducing iPhone and Apple TV 1. Describe key strategic challenges facing Apple Computer. The key strategic challenges will be focus around the company’s commitment to gain a competitive edge. Apple was not satisfied with the Apple’s Tunes Online Music Store which reached millions; they worked on capitalizing the market by the release of the personal computer. After the release of the personal computer and a change in management the public voiced the concern for a more compatible system (Hitt, 2011). Apple launched a new product and merged with another company with the intention of gaining a competitive edge. However, the results were less than favorable. So, a key strategic challenge was to change the sales strategy, making the Mac the “hub” of digital lifestyle (Hitt, 2011). Another challenge was to increase the profit margin, to outline the graphic location; that will be served, the needs of the customer, and how to satisfy those needs. 2. Describe the dimensions along which company success can be measured. Apple computer faced the challenge of Steven Jobs severing his relationship with his business partner, John Sculley. This separation was based on differences in business strategy and the direction in which...
Words: 1139 - Pages: 5
...Apple Computer, Inc.: Maintaining the Music Business while Introducing iPhone and Apple TV Overview/Introduction Through an analysis of the case study of Apple, Inc. this paper will describe key elements that helped make Apple the successful company it is today. The analysis of the three key environments of a business will be examined, including; general, industry, and competitor environments. Also explored will be the available lessons that readers and other companies can garner from Apple’s success. Apple’s Success Story Apple’s success rests squarely on the shoulders of innovation. In the beginning, the founders of Apple, Stephen Wozniak and Steve Jobs focused on providing something new to the market. They not only brought innovative products to consumers like the Mac computer and iPod, they did it in an innovative manner. Memorable advertising campaigns based on consumer reaction rather than technological jargon made the beginnings of a cult-like following. Apple lost its way in the mid to late eighties as it struggled to find its focus and protect its core competencies, resources, and capabilities. Steve Jobs returned to the company after a decade removed, recognized the speed with which technology moves and took steps to insure that Apple, Inc. was strategically focused to be the leader in new technology. The key to Apple’s success is their mission to make the Mac “the hub of the consumers’ digital lifestyle” (Ireland, 2009, p. C-16). From this point...
Words: 3066 - Pages: 13
...King Graduate School, Monroe College Master in Business Administration MG 800: Strategic Management Title: Apple Inc. in 2012 Case Study 10/03/2015 Table of contents 1. Introduction…………………………………………………………………………03 2. The Mission, Vision, and Values of Apple, Inc……………………………………03 3. External Analysis……………………………………………………………………03 4. Internal Analysis……………………………………………………………………03 5. Strategy Analysis……………………………………………………………………08 6. Conclusion………………………………………………………………………….12 7. Recommendations………………………………………………………………….12 References………………………………………………………………………….14 Introduction According to Mahsmr (2012), Apple Inc. started in 1976 as an American manufacturer of personal computers, computer software and peripherals. Originally, it was Apple Computer Inc. for 30 years, and its principal office is based in Cupertino, California. It is the very first thriving personal computer firm that has started the popularized usage of the graphical interface. During its starting years, Steve Jobs and Wozniak were responsible for the introduction of the company first innovation that was put on sale. The first personal computer product was sold then, after which, the two founders continued to produce more and more innovative personal computers. However, not all years were lucky years for Apple Inc, there were also times that the company experienced some financial struggles that led to several changes in the management. In 1997, Steve Jobs took over the...
Words: 2979 - Pages: 12
...Business Strategy Formulation Research Project Apple [pic] Submitted by: Yashraj Mahansaria 10PGHR60 [pic] Table of Contents Executive Summary Error! Bookmark not defined. Introduction 4 Activities Pursued 6 Firm’s strategic intent 6 External Analysis…………………………………...……………………………………………….7 Industry Analysis…………………………………………………………………………………….9 Internal Analysis………………………………………………………………………………….....10 Strategic Performance………………………………………………………………………………14 Financial Analysis…………………………………………………………………………………...15 Conclusion & Recommendations…………………..……………………………………………...21 References…………………………………………………………………………………………..22 Executive Summary Apple has long focused on providing the best user experiences in the world. The original Mac team labored over making the computer hide the complexity of the software underneath in order to become the "Computer for the Rest of Us." The same is true of course for the iPad, iPhone and iPods. What looks easy to use is of course very hard to create. Innovation competencies are valuable in emergent and high-growth phases of the lifetime of a product or industry segment. For mature industries, researchers have emphasized strengths in operations and execution, with the implication that innovation-oriented companies must enter early in the product lifecycle or not at all. Here is the study of Apple’s strategy to enter...
Words: 6048 - Pages: 25
...Key Strategic Challenges facing Apple Computer C. Meyer (2011) commented in his article by saying “It’s hard to get headlines with 5% market share. When your market capitalization passes Microsoft, everyone watches. For a firm that highly values control and secrecy, Apple now stands center-stage with the flood lights shining bright.” Although many are quick to focus on a company’s weaknesses, most winners lose their step by over relying on their strengths. Apple’s success has been fueled by a very distinctive point-of-view embodied in elegantly designed “insanely great products” that deliver a superior experience to users. Apple has wrung more out of secrecy and anticipation of its next products than most companies achieve through advertising. As the recent Gizmodo pre-release scoop of the iPhone 4 demonstrates, this gets harder to do the bigger you are. According to Meyer (2010), he examined seven challenges facing Apple leaders. 1) Security- With just 5% market share in the PC market, malware and virus writers have mostly ignored the Mac. However, Apple’s iPhone success now makes them a target that coincides with the explosion of mobile security concerns overall. Lacking strong experience in the enterprise computing where security is paramount, it’s reasonable to expect more problems such as the recent AT&T email address breach on the iPad. 2) High control- Several years ago, Steve Jobs said Apple wasn’t going to do a phone because it had to be sold...
Words: 1708 - Pages: 7
...MARKETING STRATEGY AND ANALYSIS OF APPL COMPANY IN IPhones Vision and Mission Statement Apple, Inc.’s Vision Apple, Inc.’s vision is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings Apple's Mission Statement Apple Computer is committed to protecting the environment, health and safety of our employees, customers and the global communities where we operate. We recognize that by integrating sound environmental, health and safety management practices into all aspects of our business, we can offer technologically innovative products and services while conserving and enhancing recourses for future generations. Apple strives for continuous improvement in our environmental, health and safety management systems and in the environmental quality of our products, processes and services. Various Management Objectives at many different Levels Apple, Inc.’s Business Strategy and Goals The Company’s business strategy leverages its unique ability to design and develop its own operating systems, hardware, application software, and services to provide its customers new products and solutions with superior ease-of-use, seamless integration, and innovative design. The company believes continual investment in research and development and marketing and advertising is critical to the development and sale of innovative products...
Words: 13655 - Pages: 55
...Apple Computer, Inc.: Maintaining the Music Business while Introducing iphone and Apple TV Fannie Person Professor Matthew Ademola BUS499- Strategic Management 10/25/2011 Describe the key strategic challenges facing Apple The technology world is a highly competitive industry and two friends Steve Jobs and Stephen Wozniak founded this company in their garage in 1976. Apple has been very successful in building cutting edge products and developing a brand that everyone knows and trusts. Apple is a highly innovative company but, they have had their fair share of highs and lows. A big challenge that Apple has faced is when Steve Jobs and John Sculley began not seeing eye to eye when it came to the direction Apple was going to take. Jobs left shortly after this to start his own business and Microsoft benefited from this. Since Apple was not successful in securing their own product ideas Microsoft was then able to make their own version of a windows system that used GUI technology. “Apple had effectively lost exclusive rights to its interface design”, (Hitt, Ireland, & Hoskisson, 2011). Being in this industry new technology is another big challenge that Apple faces. When Apple introduces a new product there is a craze among consumers that they have to it and it is sold out everywhere. This attracts Apple’s competitors and then they start to try to outdo them by producing similar products and sometimes even at lower...
Words: 1546 - Pages: 7
...Technology Industry MAN4720-011 GLOBAL STRATEGY AND POLICY Fall 2014 CRITICAL CASE ISSUES: (CI #1) INTERNAL ENVIRONMENT: Leadership The change in leadership led to changes in the internal environment and marketing strategies. (CI #2) ECONOMIC: Domestic Market Apple (iOS capable) phones are losing market share to Android capable phones. (CI #3) EXTERNAL ENVIRONMENT: Foreign Markets The Apple Corporation is criticized for manufacture issues and the lack of ability to acquire market share from foreign competitors overseas. (CI #4) SOCIAL ENVIRONMENT: Technological The Apple Corporation constantly faces criticism for various technological and security issues. I. CURRENT SITUATION A. CURRENT PERFORMANCE 2013 was a rough year for the Apple Corporation, closing the fiscal year down 29.1%. Despite the record breaking release of the iPhone 5S and 5C and a total revenue of $170 Billion, up 9.55%, net income was only $37 Billion, down 11.25% from the previous year. The Apple Corporation’s market share in smartphones was only 12.9% and 18% in application downloads. The Apple Corporation controls only a relatively small section of the computer market, but its market share has grown with the decrease in sale of windows machines. B. STRATEGIC POSTURE 1. Mission a. As of 2013: “Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution...
Words: 10734 - Pages: 43
...Assignment 2: Apple Computer, Inc.: Maintaining the Music Business while introducing iPhone and Apple TV Background on Apple Inc. Apple was created in Cupertino, California on April 1, 1976 and incorporated January 3, 1977. (Duane Ireland) Within Months of the incorporation the company created the Apple II, a second generation PC (for Apple) that created a stir in the marketplace grossing 10 Million in annual sales. In 1980 Apple decided to go public, and with over 100 million in sales they attracted stiff competition from the bigger computer companies at the time; HP and IBM. As competition heated up, Apple continued to set new trends time and time again by offering unique products in a way the consumers had never seen. Over the next 15 years Apple would set trends and have its ups and downs in the marketplace as many computer and software manufacturers did throughout out the late 80’s and early 90’s. As the late 90’s arrived, Apple was being crushed on the software front by the 800lb gorilla known as Microsoft. To counter the aggressive price tactics of PC makers and Microsoft’s chokehold on the industry, Apple introduced IMac. IMac was the affordable apple hardware consumers sought. While IMacs created growth for Apple, it was not the whole picture that Steve Jobs had envisioned for the company. In 2002 Apple added ILife to its product portfolio which created a slew of products including but not limited to; ITunes, IMovie, IPhoto and the IPod. All of...
Words: 1570 - Pages: 7
...Rev. Confirming Pages Case 6 Apple Inc. in 2009 Lou Marino The University of Alabama Katy Beth Jackson The University of Alabama John Hattaway The University of Alabama Heading into the fourth quarter of 2009, management at Apple had much to be excited about. Steve Jobs had returned to lead the company as CEO after receiving a liver transplant earlier in the year, the company had set revenue and earnings records during its most recent quarter, the new iPhone 3GS had sold more than 1 million units within three days of its June 19th launch, and consumers had downloaded more than 1.5 billion iPhone applications by the first anniversary of The App Store launch. However, Apple also faced some significant challenges as it entered the final quarter of 2009. There was some concern that Steve Jobs would not be as effective at the helm of the company as in the past since he would be working only parttime as he further recovered from his surgery. In addition, the role of former acting-CEO and current chief operating officer Tim Cook was not readily apparent as Jobs returned on a parttime basis. Analysts were also concerned that Apple might struggle to sustain its growth in the smart phone market as Nokia, Research in Motion (the maker of Blackberry smart phones), HTC, LG, and Samsung moved to copy many of the iPhone’s features. The iPhone was critical to Apple’s continuing growth in revenues and net earnings since the company was the world’s third largest seller of smart...
Words: 9853 - Pages: 40
