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Presented at University Of Liverpool, Management School in part fulfilment of Strategic Organization Module.

Presented at University Of Liverpool, Management School in part fulfilment of Strategic Organization Module.

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Apple INC Case Study Apple INC Case Study Presentation Transcript

  • Case study: Apple Inc
    - Strategic leadership and innovation at Apple Inc -
    By
    RenjithSreekumar
  • Contents
    1. Introduction
    2. Explanation of Adapted Framework
    3. Q1. What are the Key features of the Apple Industry?
    with Michael Porter’s 5 forces, SWOT (Opportunity, Threat)
    4. Q2. What is your evaluation of Steve Jobs as a strategic leader
    with John Kotter – Leading Change model
    5. Q3. Has Apple engaged in strategic innovation?
    with Strategic Innovation framework
    6. Q5. Should Apple rethink its closed ecosystem, proprietary approach?
    7. Conclusion
  • Introduction
    1. Objective of group B5’s presentation
    - To analysis Apple’s case with effective frameworks
    - To extract answers of questions from frameworks
    2. Expected outcome of presentation
    - Apple’s key features
    - Apple’s competitive advantage
    : Strength and weakness
    : Innovation factors
    - Predictions of Apple’s future
    - Suggestions for Apple
  • 3. Basic framework of case study
    External analysis
    Strategic choice
    Strategy implementation
    Competitive advantage
    1) The strategic process
    Mission
    Objective
    Internal analysis
    Adapted from Barney and Hesterly (2006).
    2) Michael Porter’s Five Forces
    Adapted from Porter (2005).
    New entrants
    Competitors
    Substitutes
    Level of threat
    Suppliers
    Buyers
  • 3) SWOT (Strength, Weakness, Opportunity, Threat)
    Adapted from Ferrell et al (2002).
    4)Barney’s V R I O theory
    5) John Kotter’s leadership theory
    6) Strategic Innovation framework
  • Q1. What are the key features of
    the Apple industry?
    1) External key features
    - Michael Porter’s five forces framework
    Adapted from Porter (2005).
  • 2) Internal key features
    • Product diversification and innovation for long-term development (music, internet, computer)
    - Integration of software and hardware
    Laptops + iPhoto, iPod + iTunes, iPhone + Wireless internet
    - Technological improvement with unique design
    - Transcended the barriers of computer industry to cross many
    aspectof industries (iTunes, iPod, iPhone)
  • Loyal customer base
    • Strong Apple culture and community
    • Apple has created a youth culture and trend
    An ambitious Leadership
    • Tyrannic style
    • Motivate employee
    • Aggressive visions, brilliant, powerful and charismatic
  • Q2: What is your evaluation of Steve Jobs
    as a strategic leader?
    • Centralized, disciplinarian style of leadership.
    • Mechanistic approach to organisation
    • Core strategies – product based, aimed at driving the market
    • Style has taken Apple from brink of bankruptcy
    to being hugely profitable
  • John Kotter – Leading Change
    Adapted from Kotter(1995, p.60)
  • Q3. Has Apple engaged in strategic innovation?
    “ Strategic Innovation is the creation of growth strategies,
    new product categories, services or business models that change the
    game and generate significant new value for consumers, customers
    and the corporation.” Adapted from Palmer and Kaplan,(2007, p.3)
  • Strategic Innovation framework
    Adapted from Palmer and Kaplan, 2007, p. 6.
  • Q 5.
    Should Apple rethink its closed ecosystem, proprietary approach?
  • Advantages and disadvantages of closed ecosystem
    • This
    Source: Ars Technica(2009, 27 October). Apple, Dell big market share winners for the first quarter. http://arstechnica.com/old/content/2008/04/apple-dell-big-market-share-winners-for-the-first-quarter.ars
  • Apple should rethink its closed ecosystem
    because…
  • Apple should open up because…..
    • The US and Euro zone PC markets are relatively mature.
    • The biggest growth will continue to come in geographies like Asia and South America.
    In these markets, price, and not the badge on the case, is paramount.
    • Apple should focus more on the developing countries to top the world market.
    • If you are reshaping a market, often it helps to have a closed platform initially to drive that
    market in a useful direction.
    • Apple cannot stay closed too long because open solutions will catch up and surpass it.
    “Overtime, the limitations of the closed solutions become increasingly clear, and as people bump up against those limits, frustrations increase, and more and more effort is put towards
    making the open solutions better even to the point that eventually they exceed the closed
    solution.“ Adapted from ‘From closed to open’ (2009, 27 October). http://www.techdirt.com/articles/20090719/1514125593.shtml
  • Conclusion
    1. Summary
    : Steve Jobs
    - Leadership style
    - Spiritual leader
    : Products
    - High quality technology (software and hardware)
    - Closed ecosystem
    - Innovation
    : Customers
    - Loyal customer base
  • Conclusion
    Recommendations to Apple
    1) Collaborate with more technology related
    industries and companies.
    2) Aim for more interaction with customers.
    3) Make the iMac more compatible.
    4) Loosen the closed ecosystem approach.
    5) Prepare for Apple post Steve Jobs.
  • References
    1) Barney, J.B. and Hesterley, W.S., (2006). Strategic Management and Competitive Advantage, Pearson, New Jersey, pp. 5-15.
    2) Ferrell, O.C., Hartline, M.D. and Lucas, G.H., (2002). Marketing Strategy (5th Ed.), South Western, pp.50-73.
    3) Kotter, J., (1995) .Leading Change: Why Transformation Efforts Fail, Harvard Business Review, March -April, pp.59-67.
    4) Palmer, D. and Kaplan, S., (2007). A Framework for Strategic Innovation, InnovationPoint LLC, pp. 1-24.
    5) Porter, M. E., (2008). The Competitive Forces that Shape Strategy, Harvard Business Review , vol. 86, Issue 1, pp.78-93.
    Websites
    1) From closed to open (2009, 27 October). http://www.techdirt.com/articles/20090719/1514125593.shtml
    2) Ars Technica(2009, 27 October). Apple, Dell big market share winners for the first quarter. http://arstechnica.com/old/content/2008/04/apple-dell-big-market-share-winners-for-the-first-quarter.ars
  • Thank you