Apple Inc.

Team Death Spiral examined the stewardship and melodic line writ of execution of apple Inc. by undert sameg a strategicalalal compend of apple Inc. s previous, present and po extial next strategic and foodstuff mathematical process. The subjective workings of the firm were examined to reveal a culture of constant unveiling and a drive to create easy to angiotensin-converting enzyme- abide byd function, liveness improving outputs. A deuce tiered corporate complex body part with Steve Jobs and Tim Cook being at the apex of anagement and a horizont wholey flat structure of vice pre expressionnts the purpose devising process is non complicated by various perpendicular levels of command and decision making. apple Inc. s internal structure has commence flexible as divisions argon specific eithery formal to develop the in vogue(p) result and maintain a emulous advantage. orchard apple trees sedulousness components were than explored and it was noted that it was not possible to absolutely define a commercialize which apple reproduciblely performed in. orchard apple tree Inc. s multi-functional product base gave a cl introductory version of the underlying strategic management at play.It was accepted that apple has delimitate its throw trade place segment, that of active electronic devices. The four main strategic management themes of M. E. Porter ( centre, differentiation and cost attractionship), G. Hamel & C. K. Prahalad (structuralist), W. C. Kim and R. Mauborgne (reconstructionist) and J. Ridderstrale and K. Nordstrom (intellect, uniqueness and intro) were examined in diswhitethorn of orchard apple tree Inc. s roughly recent performance. The down in the mouth ocean schema and the foetid note Strategy models were found to be the more(prenominal) or less relevant and helped pardoned orchard apple tree Inc. s sustained and phenomenal rise in duty performance. Finally, strategy recommendations for the future perple xity of orchard apple tree Inc were explored by the intake of a Strategy Canvas. Possible pitfalls and hypothetical futuristic products were alike explored. The single most strategic li talent identified was the departure of the chief op seasonting saturnineicer Steve Jobs from orchard apple tree which could potentially be catastrophic if not fatal for the apple brand. apple Inc. has transform over its 30 category existence at that place have been permutes in lead, product types, attach to logo and name. apple Inc. experienced decline in the early to mid- nineteen nineties still has experienced unprecedented maturation and success since the offspring of the founding father figure of Steve Jobs. Yoffie and Kim (2010) spunkylight the misdirected and turbulent time orchard apple tree experienced in the 1990s until the turn around and change (1998) in ethos/ philosophy of orchard apple tree as purported by Jobs. Jobs head was to reduce the matter of product models, c hange the mode of dispersion to hulkyr outlets and promote orchard apple tree as a hip alternative to separate computer brands (Yoffie & Kim, 2010, p. 4). apple Inc. s occurrent mission narrative states apple designs Macs, the surpass personal computers in the world, along with OS X, iLife, iWork, and superior softw atomic number 18. orchard apple tree leads the digital medicament revolution with its iPods and iTunes online introduce. orchard apple tree reinvented the planetary phone with its revolutionary iPhone and Apps en b visual senseto, and has lately introduced its magical iPad which is defining the future of supple media and computing devices ( apple Inc, 2010c). This mission statement eminentlights and gives a strong indication of where the strategic anxiety apple Inc. ntends to leave not b arly do they strive to have the shell products alone they intend to stretch vertically across product lines. To emphasis this, Ostdick (2010) comments on the persona l drive of Steve Jobs and his belief that all product foundations rotter be recycled into an opposite(prenominal) projects. The underlying guiding ethos is good because one piece of engine room doesnt work in one project, how we back tooth potentially use it outside its intended use to asseverate roundthing wise-sprung(prenominal) and successful. Parallel to the fiscal success of Apple Inc. is the longevity and stability of its board of directors and corporate structure of the firm.There be seven members on the board of directors from various professional backgrounds. The number tenure of these members is six elder age with more than half sitting for more than ten years (Apple Inc, 2009). Organisational structure is horizontal with Steve Jobs and Tim Cook acting as chief executive and direct stationrs respectively. Beneath this pinnacle argon nine vice presidents who preside over areas such as sell, hardware applied science and commercialiseing ( catch out appe ndix 1 for the current executive structure of Apple Inc. ) (Apple Inc, 2010c).These vice presidents administer the day to day running of fourteen several(prenominal) divisions (see appendix 2 for the current organisational chart of Apple Inc. ). In name of strategy Apple Inc. has dedicated divisions purely for except development of the iPhone and iPod. The flexibly of the firm is highlighted here with 0 research and development, Apple are wide-a force out to specifically develop these products. It would be logical to infer when their product career cycles light upon their pinnacle parvenue divisions may be made to further develop the current products at th time. hat Apple Inc. s culture internally is a imperious workplace where generous employee bene perishs are available. Employees are subjected even so to a strict process of ethics and headache processes outlined in e outline their document Business manage The Way We Do Business (Apple Inc, 2009). Externally Apple Busin ess . Inc. is comprehend the latest sustainable practices in various operational areas and hence attempting to change their triple bottom line (economic, social and environmental) or Corporate kind Responsibility credentials (Esty & Winston, 2009).Apple contri just nowe gentilityal programs for their staff Esty 2009 . and are pleasing the community with educational programs and scholarships (Apple Inc, 2009 Over Apple 2009). the last five years a cultural change has occurred in relation to environmental responsibilities. Apple responsibilities. recycle programs have been established, carbon emissions saving have been implemented upstream and downstream of the tag on chain and a further commitment to produce environmentally safe products (Apple Inc, 2010b). The number 1 challenge in analysing the diligence that Apple operates in is defining that attention. Apple has created its own diligence of Consumer Technology by choosing to argue in, and redefine segments of more traditional industries. Apple operates in segments of the Computer, Consumer Electronics, Music, word-painting/Video, and Telecommunications Industries. positioned itself in selected segments of the trade. In each industry it has Although Apple has its roots in the Computer Industry it is no longer just center on computers. st The change of name in January 2007 from Apple Computers to Apple Inc reflects this change of direction (Honan, 2007). . Despite this Apple generated almost 14 BN USD of gross sales from personal computers in 2009, its second highest 1 level in history and 32% of the comp every(prenominal)s total sales. Even in its traditional market segment Apple Inc. does not dominate the market with an estimated 4. 2% share of the planetary market in 2009 (Yoffie & Kim, 2010).Apple Inc. continues to gain ground, itemly in their fellowship market, the USA. Apple PC sales are estimated to be only 10. % of the US market in the 3 quarter of 2010 (see Appendix 3) (Ash, 2010), up from 8% in 2009 (Yoffie & Kim, 2010), overtaking Acer to become a distant 3rd to Hewlett Packard and dingle Computers. The personal computer industry is a USD $425 BN industry dominated by companies producing what are still referred to as IBM compatible machines that predominantly use Microsoft Windows operate clays. Major industry leading include Hewlett Packard (HP), Dell Computers, Acer, Lenovo is a Chinese company that purchased the bolshy making personal rdToshiba and Lenovo. computer business of IBM in 2005. IBM no longer manufactures personal computers. The industry is domiciliate be characterised as being in a mature growth phase with boost sales and falling footings. Leading industry consultants the Gartner Group forecast sales growth in unit shipments of almost 20% in 2010 with material falls in unit prices (Anonymous (The Australian), 2010). The industry is highly price agonistical and fragmented with thousands of underageer companies competing with t he major pseudos using common commoditised components.Apple stands apart from the lease offering a highly differentiated product, with its own operating system and unique Apple design and style. It focuses on the personal usage market rather than the corporate market and commands premium prices for its products. Despite its small market share overall Apple commanded 91% of computers sales over USD $1,000 in 2009 (Yoffie & Kim, 2010). This allows them to maintain industry leading margins of 40% in 2009. Apples margins have increase during recent years while their competitors have keep to decline (Yoffie & Kim, 2010).The orbiculate consumer electronics market is estimated to be in overabundance of USD $ 700 BN a year (Anonymous, 2010b). Consumer electronics includes entertainment, office productivity and communication equipment. The boundaries of this industry are loosely defined as product innovation and technology but convergence is blurring the edges. Leading spheric compani es include (by one industry definition) Sony, Toshiba, Panasonic, Samsung, LG, Microsoft, Apple, Intel, IBM and Nokia (The Engineer, 2010). The industry is characterized by product lifecycles which are getting shorter, nd products more technologically advanced and complex. Your phone is a computer your fridge can connect to the net profit. You can watch TV on your computer or phone and watch U-tube on your tv set The industry is rivalrous with many global players with established market heading being challenged for market share by both other established players and unsandedborn emerging brands. Prices are being driven down by aggressive competition. Manufacturers are seeking to lower costs by with(predicate) loudness turnout in low cost countries, notably China. In this environment, brand is critical.Products are too complex for many consumers to rationally compare features, functionality and price in an effective manner. Products are often purchased on the basis of the perceived price performance, with consumers associating with the product brand. Apple is sanitary positioned in this regard with a strong brand associated with Style, Quality, Useability and Cool despite having only a control range of products deep down this broader industry definition. $ The music industry is a well-established consumer industry, traditionally controlled by the recording companies.Major players Universal Music, Sony Music, EMI and Warner Music controlling in excess of 70% of the industry with a larger number of small fissiparouss making up the rest. Global sales are in order of USD $ 25 Billion in 2009 (International Federation of the Phonographic Industry, 2010b). The dominate trend in the industry is the rapid uptake of digital transfer of music as the consumer favourite(a) method of distribution. This is undermining the power of the recording companies in favour of the internet ground retailers and resulting in revenue contraction. Total recorded music sa les evenue has been in decline for the past decade, declining by 7% in 2009. This is despite continued high growth in internet base digital music sales up 12% in 2009. Music sales through digital channels accounted for USD $4. 2 billion of music sales in 2009, representing 27% of global sales increment from a base of just USD $20 million in 2003 (International Federation of the Phonographic Industry, 2010a). Apples iTunes is a leading player in the digital sales channel revolution, arguably the industry leader in legal internet music sales. This is the segment of he industry that Apple chose to compete in and redefine for its own purposes. Intellectual feature issues remain a major challenge for this industry with internet based peer to peer file sharing significantly eroding industry sales. $ %& The multibillion dollar flick industry is dominated by large movie studios with distribution traditionally handled by theatres, wherefore a secondary market through video/DVD rental s or retail stores and a 3rd revenue stream through television rights. Apple is involved only in the distribution part of the business through film transfer for rent or sale.This challenges the traditional video store business, with a new-fashioned model. To date, video downloading has promised more than it has delivered (Kane, 2007). The market is becoming increasely crowded with an increasing number of companies entering the market including internet heavy weight Google which owns YouTube and retail heavy weight WalMart (Ogg, 2010). Economies of scale make this an industry that favours natural monopolies or oligopolies. Multiple large scale players as well as a myriad of minor companies are jostling for critical mass.As with most internet based businesses price and convenience are the driving factors. Apples assault on the internet movie sale and rental market leverages their success in music with i-Store, their strength in video capable devices, iPods, iTouch and iPads and est ablished leadership in video processing computers. The software industry has many segments including copyrighted operating systems, business applications, personal applications and entertainment applications. Most providers focus on selected sectors where they can establish market leadership.Microsoft focuses on operating systems for PC (Windows) and business productivity beams that run on PCs. IBM focuses on large scale first step systems and predominantly business software and integration services. A plethora of other companies large and small compete for leadership in all the gaps in between. Economies of scale are particularly important as the variable production costs are very low. Apple has maintained its own proprietorship operating systems for its computing devices to preserve product differentiation and unique usability features. in time this has been at significant evelopment cost. Application development has been left to third parties who compete to provide market l eading solutions. With the advent of the Apps Store, Apple has entered the software distribution business with a 30% gross margin, leveraging the enterprise of thousands of independent 2 software developers large and small. By tight integration with their systems the App Store provides a captive high margin marketplace for software. This is another box segment that Apple has chosen to compete where there are synergies with the t living businesses.By providing a distribution system Apple has been able to incite more developers to create applications for their computing devices. More applications extend th the functionality and zing of their products, driving sales. This is a profitable symbiotic relationship. Despite being a relatively small player in the industry segments, Apple is an unquestioned financial success. It is now the third largest company in the world, as mensural by market capitalisation, d behind only Exxon Mobil and Petro-China. At the close of trade on the 12 th of November the Apple Inc shares were valued at USD $308. 3 (Refer to Figure 1. ) each, valuing the entire comp company at over USD $ 282 billion. During the past year the companys shares have increased in value by over 50% increased (Yahoo finance, 2010).The job is trading on a Price to Earnings Multiple of 20. 42 times compared to an industry (Personal Computers) sightly of 15. 80 times (Stock Call, 2010). The companys high valuation compared to its sales of 3. 5 times can be attributed to the high margin and high growth performance of the business. In the 3rd quarter of 2009 the company report a net profit margin of 21. 8% compared to an industry total of 4. 53%. Total sales were 67% a year earlier (Stock Call, 2010). On these metrics the company share price does not see excessive. . 3 Apple Inc. has been defined as being involved in the new technology industry. The products they deliver stretch across multiple industry boundaries some products compete in established m arkets, others are market leaders in contemporary industries spanning product development and product delivery (Yoffie & Kim, 2010). This makes an analysis of Apples competitive strategy challenging and difficult.Singular theories may fit individual product lines, but not reflect the true direction that this multi-faceted company is taking as a whole. Porters (1980) generic wine theories are an example of this the three strategies of focus, differentiation and cost leadership provide information on specific products such as computers and software but fail to examine products like the iPad and iTunes (Porter, 1998 see Part 1). An analysis of iTunes beaver lucubrates the timeliness and limitations of the application of the out-dated theory of Porter to Apple Inc. Tunes adopts both a differentiation strategy (by providing the download of music at various download qualities, the ability to download movies and tv shows and combining it all into an easy to use product) and a cost lead ership strategy (this is achieved by providing a competitive priced service for the customer, and a cost effective way for Apple to modify firmware of its products). Consideration was ideaed(p) to the theories of Hamel & Prahalad (1994), however the structuralist approach does not track the true nature of Apples efforts over the last ten years.In compare the reconstructive theories of Chan Kim and Mauborgne (2005) and their Blue Ocean Strategy in particular allow a greater analysis of the strategic positioning instigated by Apple. The Reconstructionists enamor helps accommodate advances made by Apple Inc. in redefining and creating new technology. Utilising Chan Kim and Mauborgnes six rules helps in assessing Apple Inc. s value chain matrix and their innovation in product development (Chan Kim & Mauborgne, 2005), (Chan Kim & Mauborgne, 2009).To contrast explanations for Apples recent success and to provide analysis for their future the theories of Ridderstrale and Nordstrom ( 2000) in their ground breaking book repelling Business gift arrive ats swell Dance get out contrast a different stare of competitive strategy. The use of Funky Business as an ideology helps explain the rise of emotional buying and how important the utilisation of innovation is in the 21 century business environment. Furthermore, examples allow for be given to illustrate the synergies which exist between the Funky Business philosophies and the insane asylum of Blue Oceans which at last coalesce into a strategic position. t 4 Swimming in a Blue Ocean A broad definition of Chan Kim and Mauborgnes Blue Ocean strategy is the ability for a company to regard from a red marine (an industry where competitors offer similar products or services with the aim to become a cost/market leader) to a blue ocean (an undefined and new industry that may make up industries, or create a new industry based on differentiation and lower operating cost) (Chan Kim & Mauborgne, 2005). Apple Inc. is in some view a contradictory company when it comes to its strategic analysis for its expansive product mix delivers in more than one ocean.For the purpose of this strategic analysis (and recommendations for the future) specific examples will be given where Apple Inc. has gained a competitive advantage by defining their own unique Blue Ocean. Chan Kim and Mauborgne (2005) provide a fundamental analytical tool to analyse Apples competitive strategies. This methodology comprises 5 cooking and execution principles to competitive advantage. They are as follows Reconstructing marketplace Boundaries Focus on the Big Picture, not the Numbers Reach Beyond Existing take in micturate the Strategic Sequence recompense Overcome fall upon Organisational HurdlesReconstructing Market Boundaries Apples current resurgence has its beginnings in one of its passkey blue oceans i. e. the creation of iTunes changed how people downloaded and listened to music. iTunes was originally used to co mpete with the immoral download music market, the now defunct Napster being an example. Apples aims were to provide a low cost option for customers, high fictitious character downloads and a music player interface (Chan Kim & Mauborgne, 2005).From an administrative point of view iTunes gave Apple control of digital rights and with five major record labels alter to the service gave them a different competitive advantage (Yoffie & Kim, 2010). Blue Oceans however are not constant and as good ideas make property the competitive advantage for iTunes would have eroded if it did not clunkrsify. To compete with growing technology demands, movies and TV shows were introduced to the iTunes store for purchase and rental. This differentiation created a new Blue Ocean for Apple Inc. / Currently iTunes is the market leader in visual media. Concurrently the iTunes store has the largest downloadable content on the internet . It provides a catalogue of eight million tracks, two thousand films (total downloads daily middling are in excess of fifty thousand) and twenty thousand TV episodes (Anonymous, 2010c). Prime Facie analysis reveals that the popularity of iTunes cannot be solely attributed to the product delivery but a concurrent innovation and integration with the movable products that Apple has created over the last decade.It could be argued that the iTunes blue ocean was strengthened by the constant modifyment in storage size and screen resolution quality of it iPod and iPhone range. Apple Inc. can now be seen entering its next ramification in differentiation. To do this Apple Inc. has introduced the iPad (Feb 2010) revolutionising lodgings computing. create on its iPhone operating system, Apple is attempting to reconnect with business people. Unlike iTunes, iPad services will not be the low price of music downloads.Apple will attempt to lure high profile media conglomerates to allow subscription through their iTunes service at a higher(prenominal) premium price (Yoffie & Kim, 2010). Even though news articles are change at a premium price the ability to distribute them via iTunes gives Apple Inc. a low internal cost. The most recent venture by Apple Inc. to create a unique user experience the creation of multiplayer online turn on the iPhone multiplayer gaming traditionally has been the domain of PC and ease developers (Gametraders, 2010). With this venture Apple Inc. opes to refine how people play games with each other. iPhone customers will have the capability to game wherever they can take their iPhone (Apple Inc, 2010a). This strategic move can be seen as a blue ocean for Apple Inc. which will provide a service no other mobile phone provider offers with the quality of the gaming experience. In profit to this Apple Inc. are not actually investing in gaming they are using their iPhone and OS4 operating system as a go between. With other companies vying to have their games on the popular iStore Apple Inc. have created for them a low cost product. 1Focus on the Big Picture, not the Numbers Apples current focus is on being a life style company. It integrates its products and makes them easy for the end user to operate. Steve Jobs openly states that his products set out with an idea and a neediness to alleviate customer demands (Ostdick, 2010). This strategic persuasion helps formulate new Blue Oceans. It allows companies such as Apple to create products unrestricted by current industry 1 In February 2010, Apple announced that the iTunes store had recorded its 10 billionth song download (Johnny Cashs Guess Things Happen That Way) (Ostdick, 2010). // standards and norms. Greg Joswiak the vice president constructs on this philosophy stating they never let . vice-president technology go to waste. In an interview with Reena Jana from the Harvard Business Review blog he generalises on key points concerning the innovative strategies of Apple Inc. Think of this strategy as s Think smart recycling of internal idea s and engineering, especially when cross-pollinated with other cross ollinated products (Jana, 2010). These comments were made in wake of the iPad release.Jana (2010) . demonstrates how the iPad is a hybridisation of the iPhone and a laptop and how the iPhone was just hybridisation an update of the iPod. Reach Beyond Existing Demand The fundamental tenet of this principle is, Instead of concentrating on customers they (companies) need to focus on non-customers. And instead of focus on tead customer differences, they need to build on powerful commonalities in what buyers value ( (Chan Kim & Mauborgne, 2005). Apple do this well. It is important to ). ote that there would be a minority of people that do not inority own at least one Apple product. However their competitive strategy in stretching beyond existing demand would be to sell products to existing customers in industries they would not normally consider using an Apple product. As verbalize in Focusing on the big picture tated (above), the ability to build upon and reuse technology in an innovative way is allowing apple to reach new markets and potentially new customers. $% & ( / Get the Strategic Sequence Right Apple Inc. as excelled in their strategic sequencing when it comes to the redevelopment and innovation of their portable products. Chan Kim and Mauborgne (2005) stress the importance of price, cost and adoption. Figure 2 (Golijan, 2010) illustrates the chronology of the iPod and Apple Inc. s development of the product. The timeline highlights the quality of sales on the left hand side over the ten year period models evolved and became more ready to hand(predicate) at varying price points. The success of the products allowed Apple Inc. to diversify and continually improve the product.Within this industry no other competitor has been able to hold consistent sales growth and product innovation as the iPod. Overcome Key Organisational Hurdles Yoffie (2010) shitly highlights the troubles Apple has encountered with several changes in management in the 1990s. Since the second coming of Steven Jobs Apple has been a stable entity and has not experienced the organisational problems of the past. Recent economic performance would indicate there has been no leadership or structural change within Apple Inc. It is of interest to note that otentially when Steven Jobs rejoined Apple Computers as the CEO there was a tipping point and a fight back towards a new Apple Inc. He changed the name, the logo and the ethos of the company and personally pushed Apple Inc. into its current successful position (Jana, 2010). Lets Get Funky As shown above Apple Inc. has exhibited benefit Blue Ocean strategy elements during its history, and yet after the dramatic decline during the 90s to the stellar success now being experienced, Apple Inc. has also displayed some new, contemporary strategic rudiments.Examining the quirky and mildly eccentric philosophys of Jonas Ridderstrale and Kjell Nordstrom as extolled in their manifesto Funky Business Talent Makes Capital Dance (2000) it is apparent that much of the success of the second life of Apple Inc. (circa 2000 to the present) can be attributed to a metamorphosis in business thinking and to these new strategic philosophys and ideas. As an example, central to the Funky Business strategic model are the three pump elements of Make Room for Grey Matter in the global village, a companys future depends on the intellect of its groups members.Consumers want, demand a dream, emotion, not products and services Only the Best Rake in the flowerpot In order to succeed a company must be number one in its field or even erupt Unique and Permanent Innovation Creativity leads to the redefining of the company and its markets and yet the ever changing /0 environment of the market implies the constant search for innovation, with innovation being a state of the mind (Laville, 2000).Jobs and his cohorts, since the near fatal transfer of A pple Computers in the mid 1990s have reposition and focused the Apple brand with the global modus vivendi village in mind (Yoffie Kim, 2010). Central to this theme is the enabling of consumers to compel in quasi-voyeurism, transporting their minds and bodies into Mac/Apple World, experience music, connecting to the internet and most importantly to each other in the Global community. Apple has been an industry leader in the enabling of the consumer to participate in the web world through a number of primary senses. Steve) Jobs ability to reinventing himself and redefine Apple (in its second incarnation) using ideologies akin to that of the Funky Business model resonant with the changing landscape brought close by the globalization phenomenon. Thus Jobs ability to connect with the community through technological change, institutional change and the evolution of values (Young Simon, 2005) allowed Apple to motor the crest of the wave through the first decade of the millennium harn essing the three underlying forces of excess growth of markets (eg.China, India, Russia, etc. ), Ongoing overabundance of supply (which has exceeded demand since the 90s and knows no bounds ) and technological impart (lowers the cost of information, lower barriers and the world becomes a smaller more accessible environment) (Laville, 2000), (Yoffie Kim, 2010). Apples Funky Business strategy is exemplified by its innate ability to represent the dynamics of the world of competition and how it has changed.Accordingly, Apple is able to compete in this new environment by realize that the established and entrenched large scale structures of traditional companies dont hack it and that the single most important facet of this new age of business, is the intellectual capital to discern products and get them into production quickly (Musatov, 2001), examples include Apples industry benchmarking and leadership products iMac (1998), iPod (2001), iTunes (2003), iPhone (2007) and the iPad (2010 ) (Yoffie Kim, 2010).Thus, it is not the production facility that is the most important, per se, but the minds who operate it. In interviews with Jonas Ridderstrale and Kjell Nordstrom (Anonymous, 2010a) (Anonymous, 2010e), it is clear that one economic model for the 21 century that conceitualize a Funky Business strategy can be illustrated by the strategic direction of Apple over the last decade plus, understanding of st /1 market forces, individual choice (or knowledge of the individual), freedom to choose and the ability to re-invent or present regularly and expediently. Apple Inc. trategy for the iPad ( grounded in January 2010) echo with the core elements of creating a new Blue Ocean and Funky Business principles, as described above. These (as expressed by industry commentators) were Apple core strategic elements for the iPad launch consideration of s future applications of current products as they are develop (innovate), crowd-source hype and ideas around pricing (sell t he dream, the emotion, not so much the device) and of line of work the core Funky Business principle of, Dont focus on being first focus on being the best (Uniqueness) (Jana, 2010).Coincidently, as this new Tablet Blue Ocean gathers depth and bigness for Apple, the competition are not far behind with the announcement of Samsungs new Galaxy Tab in November 2010 (Anonymous, 2010d), the time between launch, maturity and evil of competitive advantage shrinks with each new development and innovation. The Age of problem create verbally by Charles Handy (1995) points out that the Sigmoid Growth foreshorten can be used to plot out, the life of any organism, life cycle of a product or the life of an organisation.Every new life, organisation, project, or initiative, commences with some faltering at the start, grows, matures, declines and ultimately perishes. If this was the only underlying concept to this ideological graph it would not be of any use, but rather, the positive and encoura ging use of this model is that a firm can proactively start its own new sigmoid curve in any new area it wants rather than watching the old curve maximise, then decline.During any new development phase an organisation will experience what is cognise as a dip or a setback this can be due to a lack of resources, loss of direction, ineffectiveness, poor productivity and/or loss of a competitive advantage. This is completely normal and team morale must remain high through this temporary coiffure known as dipping Every time there is a new growth curve (new idea, . change in goals, new product, etc. ), it intercepts with the old Sigmoid Curve, and either climbs or descends but ultimately the cycle of a major dip will commence associated with ccompanying anxiety and setbacks. / The dip can represent a significant challenge for any organisation, as it was for Apple Inc. with a loss of direction between 1985 until December 1997 with several changes of CEOs at the helm (Scully, 1985 1993 ) and the (Spindler and Amelio years 1993 1997) (Yoffie & Kim, 2010). Apple management, you could say, went through a case of Paradigm Block the inability or refusal to see beyond the current models of thinking (JCU, Competitive strategy course notes, session two curve 11). * & + , & & * There are different eras of product interests and management change that Apple has gone experienced its inception in the 1980s when they launched the Apple 1. office the most recent period of Apples growth on a strategic canvas, from the launch of the iMac in 1998 through to the iPad launch (2010) we can visualize a series of interconnected sigmoidial curves gradually increasing with each new innovation and product launch, as shown in Figure 3.In fact, the gradual treadline / ncreasing to the right in Figure 3 reflects a buoyant and productive company with clear growth from strategic product development, delivery and acceptance (depending on the market KPI used). Presently, given the r apid development by other competitors in the tablet market, Apple Inc. would need to accelerate innovation and product delivery within the next 6 12 months to avoid another dip and loss of competitive advantage. This may require a change or transit in new management and of course a new updated product e. g. pdated iphone from 4 to 5 with more capabilities and apps (See Figure 4 Strategy canvas). . * &/ &0 1 & Future strategy scenarios which Apple may need to engage in order to reinvent itself in the ensuing post 2010 era are many and varied. Given Apples history to date and without climbing the groins of the Apple head office and being a fly on the wall it is unwise to predict what Apple may come up with next. They will however need to improve their product range or innovate around their range of iPhone, iPod, iTunes and iPad etc. o maintain market capital. They need to be constantly innovative and invest in their R&D department to have any chance of keeping the current Blue Oce ans, Blue, and require time (which is no luxury in the Funky Business world of the 21st century), to develop new Blue Oceans. potentially Apple could develop a strategy to have a lifestyle package called Apple iHome that would be able to accommodate the current avant garde execution of the new energy gurus that are environmentally friendly and the tech heads that wassail the Apple brand.The iHome could be similar to the CBus system, Smart system or Building system as they are commonly known, they could /2 incorporate their existing range and facilitate new ideas such as an iPhone that has a de novo discontinue which instead of using an security access card or pompous key you just swipe your iPhone to unlock your car, house front access or office. The CBus system can work in conjunction with, foundation appliances such as air-conditioning, automated windows, lights, security video and irrigation, effectively generating a smart home or iHome.You can remotely set up your home wi th the use of your iPhone through the net, and be able to monitor your home when you are away. The innovative potential of the iHome package is endless but the pitfalls may include, acceptance by the market, technological maturity of the appliances in question and the competitive advantage or market acceptance of these new out there products. In essences, it would be foolhardy to recommend a strategy for Apple post 2010, in that Jobs and his self-proclaimed mobile-devices company are still delivering, still leading industry segments theyApple Inc.A. Company Industry Position Apple is the iconic company behind the mouse-driven mack computer, the phenomenal iPod music-player and the recently launched iPhone. The companys marked inventiveness keeps it in the lead (Economist. com website) and secures its place in the industry. Apples relentless efforts and continual investments in research and development are seen to usher in more innovative breakthroughs that will further provoke the companys further growth and market expansion.B. Industry Characteristics. With its founder, Steven Jobs, at its helm, Apple creatively designs personal computers, portable digital music players and mobile communication devices and proceeds to manufacture and market them. The company as well offers to sell and to service related software, peripherals and gelting solutions. (Google Finance website) Apple has such an Brobdingnagian following that is made up of the individual consumers, the small and mid-sized business (SMB) enterprises, the education sector, the government agencies and the creative consumers. (Apple Inc. 008 10-K) The latter pertains to Apples special corner market composed of young and trendy people who can sustain to discard relatively new gadgets for want of more updated versions of the same products.The more recent ventures of the company include the selling of a myriad of products construct by other companies specifically to cater to such special market ni che. These products include application software, printers, storage devices, speakers, headphones, accessories and peripherals of all sorts, and digital content that are all tailored for the Mac, iPod and iPhone. Apple Inc. 2008 10-K) Apple has an established market all around the world.It has set up a dynamic marketing network through its online stores, retail stores, direct sales force, and third-party wholesalers, resellers, and value-added resellers. (Apple Inc. 2008 10-K) It should not come as a surprise to know that Apple puts up with a lot of aggressive competition in all the markets it caters to markets for computers, digital music devices, mobile communication gadgets, all the related paraphernalia and for the services attached to these products. Apple Inc. 2008 10-K) just no matter how stiff competition can be, Apple has emerged as an undisputed market leader. In fact, Apple has reaped increased earnings this economically difficult year (2008) while most of other compan ies incurred great losses. In the same tune, Apple offered last Black Friday only 8% off its new MacBook, 4% off a 20-inch iMac, 5- 8% off iPods and none off iPhones while analysts predicted discounts to reach 15% (Frommer, Yahoo Finance webpage). Apple is obviously not keen on competing based on prices.As the company behind such signature products as iMac, iPod and iPhone, Apple can well afford to price its products higher without having to worry well-nigh losing the market to competitors offering cheaper products. Technology and its optimization are among the factors behind Apples success. Its products are deemed new technology and the technological aspects of its products are optimized for exclusivity. Thus, users of any one of Apples products are bound to be captured clients for the others in the companys menu.The technological inter- relatedness of Apples products presents a distinct advantage that it is wisely making the most of. Apples products are theoretically homogeneous the market is awash with all kinds of computers, music-players and mobile phones. But then, such products are more considered as rather unique. Author McNees has written that in a mature market with highly homogeneous products, well-executed small differences can make a given product unique and sought after. Indeed, the leverage brought on by Apples industrial-design machine makes its product stand out in the market. This constitutes another major advantage enjoyed by the company. Meanwhile, there are also serious disadvantages that Apple is saddled with. For one, the company is highly susceptible to the indecent effects of a prevailing bad economic condition which both causes the market value of the companys shares to take a dive and substantially reduces the earning and spending capacity of its market.Apple also happens to be in the middle of a litigation arising from its past stock option granting malpractices. ill decisions of the Securities and Exchange Commission (SEC) at th e conclusion of the investigation that it is conducting will materially damage the companys name, financial condition and operating results. (Apple Inc. 2008 10-K) (Please see II to IX and a portion of X in the stick out document) X.Based on the foregoing, I do not recommend that the 10,000 shares of Apple be purchased now. I would recommend keeping it as cash and then buying the Apple shares when the macro-economic factors affecting the finance world and especially the stock markets have begun to improve. At this point, the market can generally do worsened and Apple might just go with such downturn with no sufficient ammunition like significant good news available. working CitedInnovation Lessons from Apple. Economist.com. 7 June 2007. The Economist Newspaper Limited. 26 November 2008 . U.S. SEC word form 10-K of Apple Inc. for Fiscal Year ending September 2008. Apple Inc. 26 November 2008 http//www.apple.com/pr/library/2008/10/21results.html.Frommer, Dan. Apples Black Friday trade No 15 Percent Discout. Yahoo Finance. 28 November, 2008. Yahoo 30 November 2008 http//finance.yahoo.com/tech-ticker/article/136179/Apples-Black-Friday-Sale%3A-No-15-Percent-Discount.Apple Inc. Google Finance. 29 November 2008 .McNees, Donald. Hat trick retaining customers, finding growth and achieving attractive returns are not easy in todays mature financial markets, but a handful of companies are doing all three. The Free Library by Farlex. 29 November 2008 http//www.the freelibrary.com/Hat+trick%3a+retaining+ customers%2c+ finding+growth+and+ achieving-a0158908311.White, Gerald, Ashwinpaul Sondhi and Dov Fried. The Analysis and Use of Financial Statements. New York John Wiley & Sons, Inc., 1998.Brigham, Eugene and Joel Houston. fundamental principle of Financial Management. Orlando, FL The Dryden Press, 1998.Apple Inc.Apple Inc. is an American multinational corporation with a focus on designing and manufacturing consumer electronics and software products. It was establi shed in Cupertino, atomic number 20 on April 1, 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne, and incorporated on January 3, 1977. The companys hardware products include the Macintosh line of personal computers, the iPod line of portable media players,the iPad line of tablets, and the iPhone line of mobile phones. Apples software products include the OS X operating system, the iTunes media browser, and the iLife suite of multimedia and creativity software.As of 2008, Apple Inc had acquired twenty-one companies, purchased a stake in two companies, and made five divestments most of them were software companies. Apple had not released the financial details for most of these mergers and acquisitions. Apples business philosophy is to acquire small companies that can be easily integrated into existing company projects. 4 For example, Apple acquired Emagic and its professional music software, Logic Pro, in 2002. The acquisition led to the creation of the digital audio workstation so ftware, GarageBand, now part of the iLife software suite.The company made its first acquisition on March 2, 1988 when it purchased Network Innovations. It has also made five divestments, all in the 1990s, in which parts of the company are change to another company. The companys largest acquisition was the purchase of NeXT in 1996 for US$ cd million. In the 2000s, Apple made the most acquisitions in a single year in 2002, with six. In the 2010s, so far the most acquisitions in a single year is 2013, with 10. Of the companies that Apple has acquired, 37 were based in the US.