Apple Inc., 2008 Case Study

Executive Overview Apple has been established for over 30 years since Steve Jobs and Steve Wozniak founded Apple Computer in 1976. During Steven Jobs’s tenure as CEO, Apple’s mission was to bring an easy-to-use computer to market. However, Apple was not performing as good as Jobs projected, so he resigned in 1985. In the following 12 years, Apple experienced three different CEO’s and still could not be brought back to life. Under John Sculley, Apple worked to drive down costs by switching much of its manufacturing to subcontractors. But these efforts were not enough to sustain Apple’s profitability. During the Michael Spindler years, international growth became a key objective for Apple. Yet despite Spindler’s efforts, Apple lost momentum. Soon after Gilbert Amelio replaced Spindler as CEO, he proclaimed that Apple would return to its premium-price differentiation strategy. Despite some austerity moves, Apple lost its competitiveness and could not regain its share in the market. In 1997, Steve Jobs came back again as the CEO of Apple. This time he had a new game plan, and Apple started to focus on the digital lifestyle for consumers. Internally, Jobs worked to streamline operations and to reinvigorate innovation. This proved to be Apple’s most successful business strategy to date because a once ineffective company now has ruled the computer world. In order to understand this situation, Apples competitive advantages and industry forces must be analyzed. Competitive Advantages Apple has been in business since 1976, and has built quite a few competitive advantages along the way. Obviously, innovation has been at the forefront of Apple’s ability to compete in the world market. Other than that advantage, brand loyalty, product differentiation, superior quality, and retail strategy are also its advantages when competing with other brands. Innovation Steve Jobs and Steve Wozniak sparked the PC revolution, making the world of computers on Apple’s head. The Apple II launched in 1978 drove the PC industry to $1 billion in annual sales in less than three years. Even if initially regarded as a toy by many other businesses, Apple soon revealed itself as a feasible substitute to the traditional mainframe. It continued to demonstrate its ingenuity. For example, it was the first to introduce a computer with color, a graphical interface, and many other firsts. These inventions defined Apple and its business strategies. On the basis of its all bundled package of hardware and software, Apple became synonymous with usability. Brand Loyalty In 1998, Jobs recognized that customers really wanted a Macintosh. Apples brand commitment is strong. Since 1970s, Apple user communities have been founded to connect together with enthusiasms. One of the main reasons to this is Apples ease of use. Adding extra hardware and software to a Mac is almost as easy as plugging speakers into a stereo system. Due to this advantage, Apple forms a strong relationship with its consumers, especially within the education and desktop publishing industries, which accounted for 60% and 80% of its market position respectively during the Spindler years. Product Differentiation Apple’s system continues to be one of the advantages because its closed operating system is not subject to the computer viruses and hacking that often destroy the Microsoft Windows operating system. In marketing its Mac products, Apple stressed characteristics that differentiated them form other PCs while also highlighted their interoperability with other machines. Apple trumpeted the Mac as an â€Å"Everything-ready† device that worked well with other devices. The feature of the closed system while incorporating well with other devices makes Apple more unique than other PCs. Superior Quality Apple’s high-quality bundled software distinguished the Macintosh line, such as iLife suite and iWork. In 2001, Apple introduced MAC OS X, offering a steadier environment than previous Mac platforms. In addition, Apple always urged its users to upgrade OS X every 12 to 18 months, with the aim of always providing a stable operating system to its users. Retail Strategy After Jobs returned to Apple, he revamped Apple’s distribution system, removing relationships with many smaller outlets and extending its presence in national chains. In 1997, Apple also started a website to sell its products directly to customers. Its retail strategy was regarded as a huge success. More importantly, people who visited the stores for iPod products usually checked the Mac too. This â€Å"halo effect† greatly benefited Apple’s Mac business. Porter’s Five Forces Analysis of Apple Current Competition Apple’s current rivalry is very competitive and intense. The PC industry has quite low switching costs, so the current competition is pretty high. Apple confronts tough competition from IBM, Dell, HP, and etc. Threat of Substitute Products The more differentiation of the product, the less likely the change to a substitute will happen. Apple’s operating system differentiation can always require higher pricing. However, owing to technology improvement, the â€Å"digital convergence† of PC and CE (consumer electronics) products has become more substantial in the PC market. Many different alternative devices have started to replace PCs. Therefore, this threat is becoming higher to Apple. Threat of New Entrants This threat is low since the existing companies have established powerful brand awareness. The computer industry is very saturated and new entrants would be reluctant to enter this industry. Bargaining Power of Suppliers There are two types of suppliers: microprocessors and operating systems with few sources as well as memory chips, disk drives, and keyboards with many sources. The bargaining power of the former one is high since there are mainly two sources: Intel and Microsoft. The bargaining power of the latter one is low since numerous suppliers exist in this industry. Bargaining Power of Customers As mentioned earlier, the switching costs are low. Such situation places the customers in a strong position that only companies with high product differentiation could increase the switching costs. Since product differentiation is one of Apple’s advantages to compete in this market, the bargaining power of buyers is not high to Apple. Conclusion Generally speaking, the PC industry is an intensely competitive segment. With technology undergoing paradigm changes, it could make life hard for Apple to deal with these shifts. These dynamics does not seem advantageous for Apple but simultaneously Apple has been able to maintain its technological brain and designer approach to walk away from this difficult position. Actually, Apple could transform some of these problematic features into opportunities. We all know that a key factor in bringing people into the stores is the popularity of the iPod. Most of the time, the purpose of People coming to the stores is not for Mac. No matter what brings customers to Apple stores, Apple should take advantage of this chance. This halo effect needs to be capitalized to the maximum extent. In addition, although some people complain Apple’s closed operating system, it is still seen as a secure, safe, and reliable system. Apple should try to make its system less closed, incorporating more other devices. Thus, people can use Apple more easily without too much restriction.

Organization Behavior in Action Essay Example | Topics and Well Written Essays - 750 words

Organization Behavior in Action - Essay Example Even the Steel Workers Union member commented, â€Å"She’s just human and honest with people. I don’t say that about many CEOs.† This admission from a perceived opponent illustrates the extent to which Tilton’s genuine yet charismatic leadership is able to transcend the barriers of companies and deeply motivate and effect change from within. With respect to her vision, it is indisputable that Tilton is perhaps one of the most visionary CEOs of modern industrial America. Too many CEOs are all too eager to write a company off as a net loss as soon as it ceases to generate a profit. However, Tilton is able to see beyond the red ink of the balance ledger; in fact, she is able to see beyond the product that the firm was originally producing. In such a way, she is able to reduce the firm to its core profitable elements. As such, she does not judge the industry by its bottom line or even the demand and/or quality of its original product. Accordingly, this display s keen powers of insight which all too many CEOs do not possess. Lastly, it is one thing to take a failing industry over and work to turn a profit from it. It is entirely another to win the trust of the workers and prove to them that your sole interest in the firm is not strictly monetary; i.e. the process of winning the people. When asked by one of the firms she had recently purchased if she was going to â€Å"strip and flip† the firm, Tilton responded, â€Å"It’s only men I strip and flip. My companies I hold close and near to my heart†. Even though it was an off-hand and candid remark, this quick witted sarcasm showed a true form of vision. In this way, Tilton is able to quickly win the hearts and minds of the employees while allaying their worst fears that she is only riding their firm for a quick profit. Question 2: Which positive and negative leadership traits and styles were displayed by Tilton? As previously stated, Tilton’s powers of charisma, vi sion, and winning the hearts and minds of her employees is likely second to none; however, she also possesses an undeniably sharp talent of decisiveness and motivation. This is at least partially proven by her tireless work and late night efforts that she devotes to her firm on a daily basis. Conversely, there are a few negative implications regarding Tilton’s leadership traits that are referenced in the work. Not surprisingly, many of these weaknesses are born out of the extreme strengths that she possesses. For instance, a strength that Tilton possesses is her application of power and influence within the firms that she takes over. However, as she states herself, this leads to a type of â€Å"benevolent dictatorship†. As such, this has its own negative implications of a leader who accrues absolute power (also referenced in the text as â€Å"overleading†) and may lend herself to micromanaging aspects of the firm that would best be left to lower-level management . Likewise, it was a bit disconcerting reading about firms that are on the verge of bankruptcy being toured by their new CEO who is flaunting many tens of thousands of dollars in expensive clothing, cutting edge fashion, and an â€Å"8 carat diamond necklace†. In order to further gain the rapport of the firms under her leadership, it might help to tone down a bit of the gratuitous luxury with which she presents herself; especially since many of these workers are doubtless living directly on the poverty line.

Festivals and Events. The New Age Essay Example | Topics and Well Written Essays - 2500 words

Festivals and Events. The New Age - Essay Example This concept has become so popular in recent years, however, that there is now the danger of having a glut of such events that are aimed at the same demographic group (Santino, 2009). This has been a most interesting development in regards to the creation of even more specialized festivals and events that are truly unique to one particular geographical region. This is showing great signs of success and is likely to be a trend that will continue into the future. This report at three different such festivals and events in the nations of England, Wales, and Scotland. Focused on will be the background to such events, the type of tourist that is target, and its economic and tourism related benefits that are arising in the region as a result. 2. The Green Man Festival - Wales 2.1 Festival Background The Green Man Music Festival is generally held over a four day period in the Black Mountains of Wales. It has been in existence for only ten years and was formed in response to the increasing d esire to host a truly independent music festival within the region. It is quite an eclectic event that definitely appeals to a particular demographic group. The event was the brainchild one family from Wales, and the festival now truly takes on a family type atmosphere, as many of the visitors come year after year, creating a reunion type atmosphere. The festival itself is designed to have quite an intimate feel to it, yet it has multiple attractions and performers to keep things going around the clock. The location itself is also another unique component of the festival, as it is in the wilderness, yet is only 3 hours away from either London, Manchester, or Brighton, and only 90 minutes away from Bristol. The developers and designers of this particular festival wanted to provide a unique and different experience, realizing that not everyone can travel to multiple festivals each and every year. From the reality that this is one of the only festivals in the entire United Kingdom to h ave a 24-hour alcohol beverage license to the reality that they have developed many options for children to enjoy as well, the Green Man Festival has developed a truly niche market that has positioned itself for future growth despite its young age. 2.2 Linkage to Tourism Development (Visitor Numbers and Economic Impact) The Green Man Festival began as a small and intimate event on the Wales calendar, but today is by far the largest music festival in the country. The first year, the festival attracted 300 people, yet it received rave reviews from most in attendance, and the festival even had to move locations in its second year in order to accommodate all of the interest. Now in its tenth year, the Green Man Festival attracts more than 15,000 people annually, and its economic impact is felt far and wide. While the event itself has grown into four days of music and festivities, permission has recently been granted to allow attendees to remain on the festival ground for an entire seven days (Frost & Laing, 2013). This has allowed the surrounding areas in Wales to benefit from this tourist event as well, as thousands of travelers now descend on the region annually. The Green Man Festival is about more than just music. The organizers of the event have created an event that is known region wide as being non-corporate and ethnically minded. They have