In recognition of current market trends, Steve Jobs claimed that he wanted to transform the company by making the Mac the hub of the consumers' digital lifestyle. Despite Apple Computer's recent successes, the company is facing an ever-changing competitive environment on multiple fronts.
1. What are the key strategic challenges facing Apple Computer?
2. What are some of the dimensions along which company success can be measured?
3. What critical external and internal environmental factors have strategic implications for Apple's future?
4. How does Apple's strategy stand up against industry rivalry?
What recommendations can be made to enhance the effectiveness of the company's strategy or to change its strategic approach for better results
Key strategic challenges facing Apple Inc:
Steinbock (2010) highlights on strategic challenges present in Apple Inc and concentrate on the challenge that Apple is a U.S centric company. Comparison between Nokia and Apple identifies that Nokia has a global strategy whereby 99.3% of its revenue is generated outside its home country while Apple has a U.S centric strategy evidenced by 60% of revenue being generated in the United States. This means Apple has a low market share as it has not adequately penetrated European and Asian markets.
The problem of employing a U.S centric strategy is compounded further by another strategic challenge and this is intense competition. Apple operates in an industry that is highly competitive and dynamic. Apple faces intense competition from Microsoft, Dell, Hewlett-Packard, Samsung, Sony, Toshiba, Nokia, and Google. Company Spotlight (2009) provides that changes in technology have led to the frequent introduction of new products that compete on pricing, product features, and performance. The company faces stiff competition in the mobile communication sector which has companies that are large, experienced and well funded.
Apple has managed to achieve high growth rates due to the launch of new products and therefore the company faces the challenge of sustaining development of new influential products. Meyer (2011) suggests that platform or product growth trajectories decline with age and that existing products are likely to decrease in sales due to increased age and competition. Failure to introduce new products would lead to decreased organizational growth and profits.
Another challenge facing Apple is its dependence on specific suppliers for various product components. Apple relies on third-party suppliers to provide components such as DRAM, TFTLCD flat panel displays, and NAND flash memory (Company Spotlight, 2009). Steinbock (2010) ...
The following posting discusses the key strategic challenges faces Apple.