Describe the Strategic Challenges Facing Apple Computer
Apple Computer, Inc.
Frances Woodyard
Jacinta Acquay
BUS 499 - Business Administration Capstone
1/29/2012
Describe the strategic challenges facing Apple Computer. The fast pace of technological change and competition are the challenges that Apple Computer is facing. Its strategic moves into communication devices and portable devices for downloading music and movies the company is in stiff competition from all venues. With no entry barrier in this business Apple has competitors, with lower priced imitation products which will threaten to lessen the value of Apple products and its strategy success (Hitt, M., Ireland, R., Hoskisson, R., 2011). Apple faces many challenges to maintain its core competencies: marketing, innovation, relationship building, and brand management. They are trying to manage a wider variety of products and traverses into additional markets. Their diverse customer base and fresh sets of competitors who have a wider variety of strengths and strategies. The industries of technology and entertainment are on a fast track for changes. Uncertainty is on management’s mind wondering if Apple will be able to maintain its reputation for their brand due to their innovative designs, frequently releasing breakthroughs in the technology world, and new products that will satisfy the customer’s thirst for the newest gadgets. Also taking into consideration is the collection of products which are no longer being developed internally It now has to depend on the negotiation skills with the movie studios and recording companies. Movie studios and recording companies each have their own competition, and copyright issues that present problems during these negotiations (Hitt et al., 2011).
Trying to balance the demands of the stakeholders has become progressively more difficult with Apple's success and growth. Also when customers, investors, partners, and governmental/legal agencies, present conflicting expectations which puts a growing amount of
Frances Woodyard
Jacinta Acquay
BUS 499 - Business Administration Capstone
1/29/2012
Describe the strategic challenges facing Apple Computer. The fast pace of technological change and competition are the challenges that Apple Computer is facing. Its strategic moves into communication devices and portable devices for downloading music and movies the company is in stiff competition from all venues. With no entry barrier in this business Apple has competitors, with lower priced imitation products which will threaten to lessen the value of Apple products and its strategy success (Hitt, M., Ireland, R., Hoskisson, R., 2011). Apple faces many challenges to maintain its core competencies: marketing, innovation, relationship building, and brand management. They are trying to manage a wider variety of products and traverses into additional markets. Their diverse customer base and fresh sets of competitors who have a wider variety of strengths and strategies. The industries of technology and entertainment are on a fast track for changes. Uncertainty is on management’s mind wondering if Apple will be able to maintain its reputation for their brand due to their innovative designs, frequently releasing breakthroughs in the technology world, and new products that will satisfy the customer’s thirst for the newest gadgets. Also taking into consideration is the collection of products which are no longer being developed internally It now has to depend on the negotiation skills with the movie studios and recording companies. Movie studios and recording companies each have their own competition, and copyright issues that present problems during these negotiations (Hitt et al., 2011).
Trying to balance the demands of the stakeholders has become progressively more difficult with Apple's success and growth. Also when customers, investors, partners, and governmental/legal agencies, present conflicting expectations which puts a growing amount of
References: Hitt, M., Ireland, R. & Hoskisson, R., (2011). Apple Computer, Inc.: Maintaining the Music Business While Introducing iPhone and Apple TV. Mason, OH: Cengage Learning Richardson, M., (n.d.)., How to Measure Success in Your Business. Retrieved on 1/23/12 from www.ehow.com/how_5583424_measure-success-business.html