How Well Has Steve Jobs Done as Apples CEO - Case Study Example

How well has Steve Jobs done as Apple’s CEO? Has he done a good job of performing the five tasks of strategic management discussed in Chapter 2? Why or why not? What grade would you give him? Steve Jobs did his job well during both terms as CEO of the firm. He was the original CEO that took the company from a firm that operated in a garage to become one of the most innovative companies in the computer industry. The success of Steve Jobs as a leader can be better evaluated by comparing his actions to the five strategic tasks of management. The five strategic tasks of management are: Develop a strategic vision Setting objectives Crafting a strategy Executing the chosen strategy Monitoring developments, evaluating performance, and initiative corrective adjustments in the company’s mission and vision, objectives, and strategy Steve Jobs developed a strategic vision for the company, but was unable to fully realize the potential of the company not until he came back for his second term as CEO that started in 1997. Under the leadership of Jobs the company was able to rollout three important products: iPod, iPad, iPhone. Apple’s iPhone is considered the best smartphone in the cellular industry. The objectives of the company of being an innovative company were achieved. Today the computer division is benefiting from all the advertisements the firm receives from its digital music and cellular businesses. The company pays close attention to the release of its interim financial statements to ensure the objectives of the company are met. 2. What are the chief elements of Apple’s strategy? How well do the pieces fit together? Is the strategy evolving? Despite the growing number of sales in non-computer electronic gadgets the core business of Apple is personal computers. The market share of the company in personal computers increased from 4% to 8% in 2009. A large part of the growth came due to the increase in brand value as a consequence of the success of the iPhone. The use of branding can help companies charge a premium value for its products (Kotler, 2003). The Macintosh desktop and laptops are very popular among young consumers. A lot of these consumers are becoming Apple consumers after having a good experience with other Apple electronic products. The strategy of making the Mac the face of the company has changed to making the iPhone its primary product. Apple generated about a third of its income from iPhone sales. The strategy the company is implementing is working very well because the iPod, iPad, iPhone, and Mac computers are complimentary products. Many consumers that in the past would not consider a Mac computer are now changing their minds after having a great experience with an iPod, iMac, or iPhone. Most consumers believe that a good experience with a brand can be replicated with other product lines. 3. What does a competitive strength assessment reveal about Apple, as compared to the leaders in the personal computer industry? Use the methodology in Table 4.4 to support your answer. Among these competitors, who enjoys the strongest competitive position? Who is in the weakest overall competitive position? Has Apple’s strategy resulted in a substantial competitive advantage over its rivals in the computer industry? What is the basis for whatever competitive advantage it has in the digital music player industry? What is the basis for whatever competitive advantage Apple has? The company that represents the strongest rival to Apple is Hewlett Packard (HP). The shared values of Hewlett Packard are passion for customers, trust and respect for individuals, achievement, teamwork, and speed and agility (Hp, 2012). HP has access to economies of scale, a low cost advantage, superb logistics, and great product designs. Apple uses three configurations in its desktop product offering: Mac Pro, iMac, and Mac Mini. The three laptop product offerings are MacBook Pro, MacBook, and MacBook Air. Apple competitive position in terms of marketing power surpasses HP. The iPhone has become a globally iconic product. This product has become the anchor of the firm’s strategy. The company is solidifying its brand value by actively seeking more iPhone customers. A spin-off effect is helping Apple’s computer division which is increasing the demand for Mac products. The iTunes is the most recognizable online store for acquiring downloadable music. Apple enjoys a competitive advantage in the digital music industry since acquiring iTunes. The basis of the competitive advantage the firm enjoys is associated with the large lists of clients that the company has signed up to iTunes. The firm has millions of returning customers. Customer retention has become a critical success factor in the competitive business environment of the 21st century. 4. Is Apple’s strategy in its computer business strong enough to compete successfully against Dell and HP? Apple has a business platform that is good enough to compete head on with Dell and HP. The company has quality products that people desire. The ability of the firm of keeping a strong brand value has helped the company priced its products so that they are more profitable than the competition. The branding strategy is also inhibiting the company from penetrating the masses even further. The company lacks a computer product that can compete in terms of price with neither Dell nor HP. This product must be the top priority for the R&D people of Apple. Steve Jobs and his executive staff have to agree whether is worth diluting the brand image of the company in exchange for market share. Diluting the brand of the firm can have a negative impact in the price of all other Apple products. The Mac desktop and laptop product line offers a wide array of computing options to feed the need of computer enthusiast. As Apple grows in stature and the younger generation increases its income capacity the business model currently being used by the company should continue to succeed. 5. What steps should Apple take to improve its corporate performance and to strengthen its position in its most important markets? A way for the company to improve its penetration worldwide is by releasing a $600 Mac, an inexpensive computer that will attract the masses to doorsteps of Apple. The computer must be advertised worldwide to attract media attention to this introductory offer of the Baby Mac series. The Baby Mac is a new affordable series of Macintosh computers. The company can strengthen its competitive position in the marketplace once the iPhone 5 is released in the fall of 2012 (T3, 2012). The Baby Mac product should be pushed on to customers by selling these computers at traditional cellular phone outlet stores. Baby Mac products would then be sold at traditional cellular retail outlets such as AT&T, Sprint, and Verizon. The company can utilize other strategies to make the company grow. The use of cellular advertising is a great way to connect with the customers. It is estimated that media advertising on mobile platforms reached $2.79 billion in 2012 (Cellularnews, 2008). The growing popularity of this form of advertising should be targeted by the company. Online advertising should also be used by the company to attract new clients. References Cellular-news.com (2008). Global Rich Media Advertising to Near $2.8 Billion by 2012. Retrieved July 15, 2012 from http://www.cellular-news.com/story/30848.php Hp.com (2012). HP Corporate Objectives and Shared Values. Retrieved July 15, 2012 from http://www8.hp.com/us/en/hp-information/about-hp/corporate-objectives.html Kotler, K. (2003). Marketing Management (11th ed.). New Yersey: Prentice Hill. T3.com (2012). iPhone 5 News: Release date, price, specs, rumours. Retrieved July 15, 2012 from http://www.t3.com/news/apple-iphone-5-news-release-date-price-specs-rumours Read More