CASE14_Apple

CASE14_Apple - Apple Computer Inc Maintaining the Music...

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Unformatted text preview: Apple Computer, Inc.: Maintaining the Music Business While Introducing iPhone and Apple TV INTRODUCTION According to Apple Computer's 2007 10-K Annual Report, "The Company is committed to bringing the best personal computing, portable digital music and mobile communication experience to students, educators, creative professionals, businesses, government agencies, and consumers through its innovative hardware, software, peripherals, services, and Internet offerings." The company's 2005 Mission Statement reads: 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 resources 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. In recognition of current market trends, Steve Jobs has claimed that he wants 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? 5. What recommendations can be made to enhance the effectiveness of the company's strategy or to change its strategic approach for better results? ANALYSIS Key Strategic Challenges Competition and the pace of technological change are the most critical issues currently facing Apple Computer. Its strategic moves into mobile communication devices and portable entertainment downloading places the company in stiff competitive conditions from every angle. New competitors, low-priced rivals, and potential substitute products all threaten to reduce the perceived value of Apple products and the success of its strategy. Apple - 1 Apple Computer, Inc.: Maintaining the Music Business While Introducing iPhone and Apple TV Apple is also challenged to maintain its core competencies - marketing, innovation, relationship building, and brand management - as it manages a broader range of products and navigates more markets. Its customer base is now more diverse, and new sets of competitors have a wider variety of strengths and strategies. The technology and entertainment industries are constantly and rapidly changing. It is uncertain whether Apple will be able to sustain its brand's reputation for innovative design, continually release technological breakthroughs, and launch new products that will "hit the consumer...
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This note was uploaded on 03/22/2011 for the course ACCT 3391 taught by Professor Turpin during the Spring '10 term at Troy.

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CASE14_Apple - Apple Computer Inc Maintaining the Music...

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