Apple

Apple Computer, Inc.: Maintaining the Music Business while Introducing iPhone and Apple TV Abstract In reading this case about Apple and looking at the questions that needed to be answered for this assignment I learned a lot. First and foremost I learned that Apple has an exceptionally good thing going and whatever it is that causes them to continue to have one success after another is exactly what they need to continue to do. They are an amazing company and have made people able to sink together those digital parts of their lives from banking, music, entertainment and communication. They have made major advancements in their company moving them from just a personal computer based company to those consumers on the higher end of the spending levels to having products that are easy to use for those new into the technological environment and having them be at a cost that is reachable for a larger consumer base. Apple had a part of the computer market share but nothing that was going to allow for dominance in the personal computer market by any stretch of the imagination. While their products where and continue to be amazing the pricing on their personal computers still puts them in the highest reaches for the regular consumer. In order for them to stay relevant and find new ways to reach a larger customer base both in products and pricing they were going to have to take their business model and go vertical. Apple needed to continue to produce the products that it was currently so successful at and where it had and still has an exceptionally loyal customer base. They needed to do this while coming up with new and innovative ways to reach more customers, come up with new technology and once again amaze the world with their brilliance. In the article that this paper is being written about from our book, Steve Jobs, stated what his plans for the company in the future where, to make Mac “the hub of [the consumers’] digital lifestyle.” Once again, Apple did not fail to amaze. In 2002 Apple introduced a suite of software applications with things ranging from iPhoto, iTunes, to iMovies and eventually stepped consumers into the world of the iPod, iPad and now my personal favorite, the iPhone. They came into the scene of the music industry when there was a plethora of illegal online download music options due to the development of peer-to-peer music sharing and made it legal. Apple was the first legal online music service to have agreements with all five major record labels. They were apple to have a platform that was only available to their Mac users and they still managed to sell over 1 million songs in the first week. Now, not only did their customers want their Mac computers, they needed something to make that music portable. If I have all the music, I want to be able to run with it, walk with it and take it with me wherever I go. Introduce the iPod. The possibilities were endless and obviously Apple has managed to take advantage to them one step at a time. As Apple continued to consume the market, the competitors came into the picture, with more less expensive options. I will tell you that my first portable music device of this caliber was not an Apple product. I went with the less expensive competition. Honestly, my first Apple product was the iPhone and I can’t ever see myself using anything else. It has become my right hand, it has my music, my banking, my school access, my calendar to keep track of where I and the rest of my family needs to be when and has made itself indispensable in my life. Steve Jobs was able in my life to do just what he set out to do, make it “the hub of … [my] … digital lifestyle.” I now have my iPhone 4 and am patiently (not really) waiting the release of the iPhone 5. I travel nowhere without my iPad. I am looking into the purchase of my first Macbook as my graduation present to myself. The only thing I at this point have no interest in, which may be more due to a lack of knowledge and understanding is the Apple TV. That may also be because honestly our DirecTv and Netflix meet our personal needs at this time. What dimensions can the success of Apple be measured' I think the easiest way to measure their success as a company is to do what I am doing right now. I am sitting in a packed Panera Bread. There are ten tables within my eyes view with an average of four people to a table. Ages range from early twenties to middle sixties and everyone has a phone on the table. Of those I see two, that’s right, only two that are not iPhones. I also see parents entertaining the toddlers with their iPads so that they can have conversations with the other people at the table. I know that there are other more effiecient ways to measure success of a business, but how better to gage your success than to see your products at work. None of this mentions the fact that I’ve heard more than one conversation this morning discussing the purchasing of the iPad 3 that is available in stores today. I sound like my own personal advertisement for Apple! As technology continues to advance and other companies are able to come out with more advanced compatible products it will be important for Apple to make sure that they stay ahead of the game. They need to make sure that they continue to be the company that comes out with the newest and the greatest advancements. They always want to have the newest gadget with the coolest technology. It is evident from their release of the iPad 3 in stores today that they understand the importance of just this philosophy and are making sure that they are doing it. Something else that I think they need to make sure they take into consideration is the economy. Families are still struggling in these tough economic times. Making sure that there is a version of their products, even if it is the last iteration, available to those that cannot always afford the newest and greatest will be key to an extended customer base. Apple has major internal core competencies in that it has continually been able to depend on its own organization to develop the advancements in technology that it needs to succeed. Time and again it has outdone its competition even so much as making some of its own products less than useful. I see a problem with internal environmental factors such as competing against themself for their own market share. Do I love my iPhone' You bet I do! Do I love having access to my music' You bet I do! Because I have my iPhone do I need an iPod' You bet I don’t! They do have an ability to continue to upgrade their own products and by doing so, they push their older products down in price if not out of the market place all together. I do not see people talking about, using, purchasing, or even wanting a Nano. I do not see people purchasing iTouches and iPods unless they do not have the need for a smart phone or due to the financial expense that comes with a smart phone and this pushes some of their products out of the market. Apple’s strategies are amazing. During a recession when most companies are cutting back on costs for things like advertising Apple is pushing forward and spending. By taking the bulk of the advertising on most advertising mediums they are getting their products sold. Honestly, if I was to go out to purchase another tablet type product like the iPad I could not even tell you who else makes and sells them as the advertising for these other similar products are virtually non-existent. Honestly, I don’t think there is a thing that I could come up with that would be better or more effective than anything Apple isn’t already doing. They are the leader of the pack as far as music availability and advertising of their products. They are the leaders in the smartphone industry, continually coming out with the next great thing with items like Siri on the new iPhone 4S. The new iPad 3 has unbelievable HD graphics and who could ask for more' It seems that Apple has an uncanny ability to always be the company that comes up with the newest and greatest and they always seem to do it first. Whatever is causing them to do that is exactly what they need to keep doing! Bibliography David, F. R. (2011). Strategic management: concepts (13th ed.). Boston: Prentice Hall. Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2011). Strategic management: competitiveness & globalization: concepts (9th ed.). Australia: South-Western Cengage Learning.