Case | HBS Case Collection | February 2008 (Revised September 2008)
Apple Inc., 2008
by David B. Yoffie and Michael Slind
In January 2007, three decades after its incorporation, Apple Computer shed the second word in its name and became Apple Inc. With that move, the company signaled a fundamental shift away from its historic status as a vendor of the Macintosh personal computer (PC) line. Mac sales remained vital to Apple's future, but they now accounted for less than half of its total revenue. The company's line of iPod media players, its iTunes online content store and its newly launched iPhone mobile handset business made up increasingly large shares of its operations. In early 2008, on the strength of sky-rocketing sales in those areas and by resurgent sales of Macintosh products, Apple's revenues and its stock price reached record levels. The case explores the sustainability of Apple's current business model, one that positioned the company simultaneously in the PC industry and the consumer electronics industry. While Apple enjoyed a high market share in digital media players and in online music sales, it remained a niche player in the worldwide PC industry. The case examines the history of Apple's strategic moves under the leadership of CEOs Jobs, Sculley, Spindler, Amelio, and (again) Jobs; places those moves in the context of structural features of the evolving PC industry; and covers the iPod and iPhone businesses at considerable length.
Keywords: Business Model; Leadership; Industry Growth; Corporate Strategy; Hardware; Online Technology; Consumer Products Industry; Electronics Industry; Technology Industry;
Strategic Management: Apple Inc. Case Study Essay
1090 Words5 Pages
Unit 1 Case Analysis: Apple Inc.
GB520 Strategic Human Resource Management
“Strategic management is an ongoing process that evaluates and controls the business and the industries in which the company is involved; assesses its competitors and sets goals and strategies to meet all existing and potential competitors; and then reassesses each strategy annually or quarterly [i.e. regularly] to determine how it has been implemented and whether it has succeeded or needs replacement by a new strategy to meet changed circumstances, new technology, new competitors, a new economic environment., or a new social, financial, or political environment” (Lamb, 1984: ix).
In 2008, Harvard Business Case…show more content…
The second step in the process of strategic management is the analysis of external environment, in which the organization operates in parallel with a model of industrial organization of strategic management, while decision-makers analyze the various components of the external organization, identifying key players, and were aware of the opportunities and challenges to the environment. This includes analysis rules, main competitors, economic trends, market trends, technology sector. Apple Inc. identified their important players in the PC market such as Dell, IBM, HP, Microsoft and Gateway. From time to time, they have partnered with some of their competitors, such as in the case with IBM and Microsoft. Apple made various changes in the role of the CEO and management several times over the years in efforts to increase revenue. They began to lose its competitive advantage and had a few missed opportunities that seemed to have caused enormous reduction in profits. Apple started with Wozniak and Jobs in leadership to Scully, Spindler and Amelio, and went back to Jobs, Apple looked at its internal organization to determine how they can have better assortment and increase profits again, starting with individual guidance and innovative ways of thinking. Apple Inc. started to open their markets to the publication of basic education and the desktop, reduce labor costs and reducing R & D. They set up new servers and kept all costs low. But unfortunate for them the revenue