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Apple Inc. has been holding one of the most significant portions of the IT market for years due to the innovative vision of its founder, Steve Jobs. Although he passed away, the firm was able to keep its top position in several markets, outperforming most competitors. Since 2007, the mission and goals of the company have shifted from computer-oriented to mobile devices and the Internet of Things (Dess et al. 2019). Apple Inc. prides itself on being adaptable to the changing market landscape, and its efforts and strategy revolve around the future of mobile media and computing devices (Rowland 2019). The company, now under the new CEO Tim Cook, continues to introduce top-quality products for its customers across the globe.
The value of Apple Inc. lies not only in innovative technologies but in the ability to deliver them to its customer base in an ergonomic and smart design. Dudovsky (2019) states that outsourcing of manufacturing to locations with lower costs of resources is the primary source of value for Apple operations. Dess et al. (2019, 695) state that by 2015, Apples value had more than doubled . Tim Cook reassures the companys investors that their vision includes many opportunities ahead (Dess et al. 2019). The company excels at using its current products and an expansive customer base as a starting point for new products, such as Apple Pay and Apple Watch.
Innovation and design are the main advantages of Apple Inc. There is a rising issue with changes in the market of smartphones, which is the most profitable market for Apple Inc., as it becomes dependent on replacements instead of upgrades (Dess et al. 2019). Moreover, there are other markets related to these devices that took a portion of the consumer base (Dess et al. 2019). However, Apple Inc. was able to create a uniquely loyal customer base by making the devices and services it provides a luxury. The current disadvantage is possible to overcome through meaningful, innovative technologies, and the advantages the company has are sustainable.
The firms resources lie in the part of manufacturers and fabricating facilities that are located in regions where operating costs are the least oppressive, such as China. Dudovsky (2019) states that Apple Inc. exercises an immense bargaining power in dealing with its suppliers, and as a result, the company is able to secure cost advantage in the purchase of resources. Since the company has its unique, highly protected operating system that links the majority of Apples devices, it is resistant to imitations and bootleggers. The organization of the firm allows Apple to use its resources to its full advantage.
Steve Jobs, who played a vital role in the success of Apple Inc., passed away on October 5, 2011. Many investors had concerns regarding the future of the firm, which was reflected by a significant 24% drop in stock price following Jobs death (Dess et al. 2019). The company has been struggling with several markets since then, due to the slowdown of innovations. While Apple Inc. continues to dominate several markets, such as the digital music sales market, in 2013, Samsung took first place in worldwide smartphone sales, and Google became the most widespread smartphone operational system (Dess et al. 2019). It shows that there is an issue with the pacing of new product development and delivery.
The new CEO of Apple Inc. has his vision that he attempts to implement, however, in my opinion, he struggles to imitate the past visionarys approach instead of applying his own. Therefore, I recommend that the company should separate its efforts in the race for innovative technologies from its current products, which are getting forcibly obsolete. Optimization of the companys past products that are still widely used could retain a significant portion of customers who cannot afford Apples new vital products but can benefit from smaller upgrades and implementations.
References
Dess, Gregory, McNamara, Gerry, and Eisner, Alan. 2016. Strategic Management: Text and Cases. 8th ed. New York: McGraw Hill Education.
Dubovsky, John. 2019. Apple Value Chain Analysis. Research Methodology. Web.
Rowland, Christine. 2019. Apple Inc.s Mission Statement and Vision Statement. Panmure Institute. Web.
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