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Apple INC Case Study

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

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Apple INC Case Study

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

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