Apple Computer

APPLE 2002 CASE ANALYSIS

STUDENT NUMBER 899

Executive Summary

Apple began with the mission to "change the world through technology." More specifically, the company sought out to make the personal computer an accessible and affordable device to the mass market. The proliferation of new software and hardware technology drastically changed the landscape of the industry and Apple adopted a differentiation strategy. Software and hardware integration allowed Apple products to be more "versatile," reliable, and superior in performance.

Rapidly changing industry dynamics dictated Apple's competitive strategy. In essence, the intended strategy did not develop into the "realized" strategy. In fact, empirical evidence shows us that realized strategy tends to be about 10-30 percent of intended strategy. What really determines strategy is the "patterns of decisions that emerge from individual managers adapting to changing external circumstances and the ways in which the intended strategy was interpreted." . What is Apple's mission and strategy today? Apple's mission is to deliver a highly innovative and superior solution to a customer's personal computing needs.

English: Apple's headquarters at Infinite Loop in ...

Apple I at the Smithsonian Museum

English: Apple's absolute first logo, pre 1976. Dr...

Apple's present day competitive strategy is a return to differentiation. Key elements to this strategy are an emphasis on design, service, branding through advertising, and quality. Drivers needed to attain these objectives are through the firm's unique marketing abilities, engineering skills, creativity, and R&D.

Apple's long range objectives are to obviously regain market share leadership and return the company to profitability and maximize shareholder return. Can Apple do so by continuing a differentiating strategy? Yes. To do so, every aspect of the way Apple conducts business and relates to its customers must be involved and driven by strategy. Apple's distinctive core competencies lie within their ability to provide quality products through their vertically integrated inbound activities. Not only are Apple's finished goods differentiated by quality, they are innovative and cutting edge.