Apple Inc. Strategic Issues

The problems of Apple stemmed in the period 1985-1997 when Steve Jobs was not part of the company. Apple had a small markets share of PCs; its gross profits were decreasing; the Company’s CEO turnover was high; its share price was low (around USD 3); it was making losses and was on the verge of bankruptcy (Linzmayer 2004). Moreover, its work environment had become increasingly relaxed and it was losing its values of creativity and innovation. Moreover, its competitors were receiving great response for their products such as the Windows 95 and the IBM compatible PCs.

Hence the company had become from one of the high flying companies of the eighties to a lackluster performer on the verge of bankruptcy in the 90s (Clarton 1998). What were the Strategic Issues? The strategic issues were mainly those of a lack of leadership and an innovative culture. Moreover, some decisions taken by the management were not in the best interest of the company. For example, the company’s reliance on PDA’s was a drain on the company’s resources. Moreover, there was incontinency in the company’s policy.

For example, during the tenure of one CEO, Apple tried to move into the low priced market and during the time of a later one, the same policy was reversed (Grady 2008). Moreover, the management seemed to be too relaxed in its endeavors. For example, the launch of the Apple OS, which was supposed to be a competitor to Windows 95 was greatly behind schedule. All in all, there was a lack of leadership from the top which was the source of all the problems (Apple 1998).

There was also a lack of direction with regards the products the company would offer. For example, the company experimented with various items such as digital cameras, portable CD audio players, speakers, video consoles, and TV appliances. None of these items was a success and we hardly find them on store shelves today. Finally, enormous resources were spent on the product known as the Newton which was going to be Apple’s foray into the PDA market (Brewster 2009). Read also Challenges Facing By Ikea

Also, there seemed to be less consumer focus as Performa line was sold in configurations that confused customers. The company obviously lacked marketing leadership. Thus we find that the issues faced by the company were mainly related to lax management attitudes, lack of top leadership, and an unfocused product line with little link with the market (Grady 2009). Alternative solutions to Apple’s problems: A number of strategic solutions to Apple’s problems could be proposed. The company was of course facing great troubles financially.

Its stock price was low and it was making losses on the income statement. What it could do was sell itself to another company. That way, it could tap on to the resources of that company which could then be used to fuel development of Apple’s products. However, a merger with another company would mean that any of the innovative culture that might have been left at Apple would be diffused into the other company. Also, the brand name of Apple might get lost or just become a side-brand in the new company.

Hence due to the risk a merger would pose to the valuable brand of the company, this option can be sidelined. Apple continually faced problems with its product lines. The Newton brand consumed heavy resources and was no great success in the market. Also the company did not know what to do with its existing product lines. At one time, it tried to unbundle its products while reversing the decision sometime later. Also, the company experimented with various other products such as television sets, digital cameras and speaker sets. Read about Apple internal growth

All this makes it seem that Apple did not have good product development personnel who were innovative enough or could develop products that would be accepted by the market. Hence replacing the team could be a good option and bringing in new people would be viable. However it seems that this was only part of the problem and replacing the team would not solve Apple’s problems which were far more pervasive. There were problems with management which was lax and top leadership was also lacking. Hence simply changing the product development team could not work (Dalal). Also read Apple corporate governance issues

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with MyStudyWriters
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
Testimonials
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
BUSINESSADMINECO535
excellent work
Customer 452773, October 6th, 2023
Leadership Studies
excellent job
Customer 452773, July 28th, 2023
History
Don't really see any of sources I provided, but elsewise its great, thank you!
Customer 452697, May 8th, 2021
Social Work and Human Services
Great work I would love to continue working with this writer thought out the 11 week course.
Customer 452667, May 30th, 2021
Business and administrative studies
Excellent job
Customer 452773, March 9th, 2023
History
Looks great and appreciate the help.
Customer 452675, April 26th, 2021
Leadership Studies
awesome work as always
Customer 452773, August 19th, 2023
ACC543MANAGERIALACCOUNTINGANDLEGALASPECTS
excellent
Customer 452773, January 25th, 2024
Sociology
THANK YOUUUUU
Customer 452591, March 18th, 2021
Nursing
I just need some minor alterations. Thanks.
Customer 452547, February 10th, 2021
business
Thank you for your hard work and help.
Customer 452773, February 13th, 2023
Managerial Accounting & Legal Aspects of Business ACC/543
excellent work
Customer 452773, February 7th, 2024
11,595
Customer reviews in total
96%
Current satisfaction rate
3 pages
Average paper length
37%
Customers referred by a friend
OUR GIFT TO YOU
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat
Close

Sometimes it is hard to do all the work on your own

Let us help you get a good grade on your paper. Get professional help and free up your time for more important courses. Let us handle your;

  • Dissertations and Thesis
  • Essays
  • All Assignments

  • Research papers
  • Terms Papers
  • Online Classes
Live ChatWhatsApp