Apple Strategic Management - Paper

5197 Words21 Pages
Apple Inc. Analysis & Strategic Management
Introduction
Strategic management is the process by which an organization drafts, implements and evaluates cross-functional decisions that enable the organization to achieve its long-term objectives. It entails the process of specifying the mission of the organization, its vision, objectives and the development of the various strategies to achieve the objectives of the organization. Apple Inc. (Apple) has managed to create substantial value in the highly competitive personal computer industry, by innovating and forging a path considerably different from those of the largest competitors in the industry. The corporation also successfully differentiates its products from those of the competitors by
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Bill Gates and Microsoft were encouraging Apple to license their OS in the early 1980s, because they were developing software for Apple and had much riding on the success of the company. When Apple did not license, Microsoft began developing their operating system, Windows. (Apple Inc. 2010c).
Apple Corporation also operates in the music industry. The company enjoys a dominant market share in the music industry though competition is tough. According to Jade (2006), though digital music sales are growing rapidly, the Recording Industry Association of America (RIAA) states that digital sales of all music are still low. Deutschman (2000) notes that Apple’s sales in the music industry amount to between 66% and 75% of downloads and 80% of music players (Apple, 2005). Apple is part to a suit alleging monopolistic practices concerning their market share dominance of players and downloads (Apple Inc. 2010b)
The other players in the download market are (the revised) Napster, Yahoo Music, Rhapsody, and illegitimate file-sharing services among others. Portable music players competing with the iPod include those made by Creative, Samsung, iRiver, and Sony. A major point of contention between these services and player manufacturers is the control of a variety of incompatible Digital Rights Management (DRM) schemes.
Strategic moves and competitive moves
The portable personal computer industry has many viable and successful
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