About Apple Multi-Technology Company
How it works
Apple Inc. is a multi-technology company that was incorporated on January 3, 1977, focusing on manufacturing and selling phones, computer software, and other electronics. There were multiple CEOs for Apple, but the most well known were Steve Jobs and the current CEO, Tim Cook. Apple’s mission statement is, “to bring the best user experience to its customers through its innovative hardware, software, and services” (“Apple Mission Statement and Vision Statement In A Nutshell”, 2019) Apple’s vision statement is, “We believe that we are the face of the earth to make great products and that’s not changing” (“Apple Mission Statement and Vision Statement In A Nutshell”, 2019). Some of Apple’s modern day core values are, “We believe that we’re on the face of the Earth to make great products and we believe in deep collaboration and cross-pollination of our groups, which allow us to innovate in a way that others cannot” (Apple Core Values, n.d.).
Some of Apple’s guiding principles are, “Don’t follow your customers but lead them, be your own toughest critic, clear your mind and “think different,” cultivate your creativity, and innovation is not invention” (Guiding Principles of Apple Innovation, 2013). Apple’s organizational culture fervently focuses on creativity, diversity, innovation, teamwork, and interpersonal communication that enable the company to build consensus with new ideas, products, and development of current products. Apple has a corporate culture that demonstrates excellence, secrecy, and moderate combativeness. Apple has a hierarchy in their organizational structure that consists of divisions and upper level management to help sustain effectiveness in the organization.
How it works
Apple’s current CEO is Tim Cook and his managerial style is seen as democratic and transformational. Many employees admire Cook due his charisma and focus on cultivating the company. After Job’s passing, Cook decided to continue his legacy by concentrating on excellence and valuing teamwork within the organization. He encourages an open-door policy that allows his employees to bring their input and ideas to the table if they ever had any. With Apple’s financials, they are disclosing to have about $245 billion for the first quarter of 2019. Apple expects to have a $59 billion revenue and a gross margin between 37 to 38 percent (Apple Reports First Quarter Results, n.d.).
Apple’s marketing strategy is by utilizing segmentation, which differentiates their products from other competitors and manufacturing products that fit consumer personas. Targeting is another market strategy that Apple uses by focusing on three groups, which are lovers of music, professionals, and individuals who simply love their products for personal use (Positioning of Apple, n.d.). Another marketing approach is positioning, which allows Apple to promote and advertise their products, giving their company the most exposure to the world. This includes focusing on their brand identity, product design, and quality in order to meet consumer and company expectations.
Change within a company is inevitable, especially when the world’s technological systems are constantly evolving. Apple is one of the most successful companies in the world because of its ability to adapt to change, whether it is due to new competitors or a new market. However even when change does occur, many companies still continue to face multiple challenges. Ever since the death of Steve Jobs, Apple has been fighting its way through the industry for many years to be above its competitors. Current challenges that Apple is facing are:
Apple’s Innovator Dilemma
After Steve Job’s passing in 2011, there were many negative assumptions regarding the success of the company. There were skeptics regarding Apple’s lack of innovation and failing to deliver “successful” products. Tim Cook, who is currently the CEO of Apple, has been accused for this issue. People had high expectations from Cook after Steve Job’s passing that was devastating for the company (Goldman, 2019).
Trouble with the iPhone
In the past 3 years, Apple’s sales have dropped because it has sold fewer iPhones. In addition, this problem was also caused since the entire smartphone market has shrunk. Consumers are no longer interested in upgrading to the newest iPhone release since many believed it just wasn’t “exciting” anymore. The Chinese markets shrinkage was due to its slow economy, and is also one of the reasons why fewer iPhones are being sold in China. Apple has continuously introduced new versions of the iPhone but consumers are no longer buying it due to increased prices and disinterest (Goldman, 2019).
Is there a next big thing?
Though Apple has the ability expand its product line and distribution network, Apple is introducing the same products with a new name and a higher price to pay. Apple would need to seek growth by addressing a new external force such as a new market. Consumers are expecting something different and something that could “wow” them. However, this issue could result from the company’s lack of innovation and creativity for the past couple of years (Goldman, 2019).
Apple’s Model of Adaptive Orientation
Apple would be categorized under “Reactive Management” in the Model of Adaptive Orientation because they are a company that utilizes reactive approaches when serious challenges occur, such as pressures and demands of consumers to update their iPhones and to be the leading company in the industry. In a hyper-turbulent environment, Apple must be quick and proactive when responding to change. However, Apple would be considered to have low adaptation because they deal with issues on a “short-run, crisis basis” (Brown, 2011).