Apple did not start off with the right or anticipated impact as IBM, a computer manufacturing company, was its fiercest rival. Apple had introduced two computers Lisa and Macintosh, which were expected to bring stiff competition into the market. However, between the two, the Macintosh fared better. For instance, after the Apple II was introduced in 1997, the company sold over 100,000 units by the end of 1980 and generated revenue amounting to 100 million. This made it assume a new position in the market as a leader. The company still enjoys considerable influence on today’s market. However, with other rival companies developing technologies to make competition even stiffer, Apple needs to respond with a strategy towards growth and achieving a sustainable position. While the company relies on its own concepts to manufacture products, there is a need to consider the potential of expanding its knowledge base hence understanding consumer needs even better. For this reason, Apple should resort to acquisition or joint relationship with other companies in the tech and communication such as it did with IBM.
The proposition in question is that Apple should invest in acquisition, merger or joint relationships with other companies, which are in the same line of work or others related to communication technology and entertainment. For instance, Yoffie, Cohn and Levy (1992) noted that companies such as Compaq and Dell, alongside IBM, posed a great threat. However, Compaq did not do fairly well compared to the other companies. Apple could use this opportunity to get Compa q on board and invest in already existing resources, as well as technology. The idea is to expand the company’s coverage and venture into other markets whose services and products complement those the company already manufactures. For instance, the iPhone and iPads, as well as the Macs, have done considerably well in the market since their introduction. These devices can be used for various purposes alongside communication, which is the primary need.
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A closer analysis of Apple’s internal environment demonstrates that the company has a good reputation when it comes to manufacturing quality products. For instance, during the 1990s, Apple manufactured and assembled most of its products in its factories, which are considered to be state-of-the-art and among the most automated and modern across the industry (Yoffie, Cohn & Levy, 1992). Based on such a reputation, it means that the company enjoys a dominant position in the market, which is acquired through ensuring consumers about the quality of its products. Arguably, such kind of impact has allowed Apple to maintain rather high prices for its products. It is important to note that other skeptics have felt that the company should reduce the prices of its products to make them more accessible to even more willing buyers. However, the management has remained adamant with its pricing model. Such kind of attitude towards the market has not had any negative impact on the company’s revenue. Based on the financial statements recorded, Apple experienced a considerable profit margin, which is a sign demonstrating the company’s reach and influence in the market. Thus, while enjoying this particular position, it is important to consider the potential benefits of acquiring or merging with other companies to promote better service provision.
One other major strength in Apple is the personalized effect of its products which promote the idea and feeling of ownership. The Apple IIs were based on the concept of serving the interests of men, women, and children, which made it rather successful (Yoffie, Cohn & Levy, 1992). In the modern-day, Apple has invested in cloud services whereby one is able to connect his or her devices easily without having to begin tasks a fresh after shifting from using an iPad to a Mac. Furthermore, a technology-based service such as Facetime allows individuals to communicate each other via the internet regardless of whether one is subscribed to a cellular network or not. Such a feature has promoted increased connectivity between and among individuals as well as companies when conducting virtual business meetings. That being the case, there is a need for Apple to consider investing in other areas. In order to achieve, the company must and should have access to knowledge or information about consumer needs and preferences. Understandably, consumer preferences are volatile and they change rapidly, which might mean a shift in demand and supply. However, to remain at the top as a global leader in the communication sector, Apple could leverage the already existing influence that companies such as Compaq and Dell have when it comes to consumer following. Access to information could help Apple, in collaboration with these other companies, to manufacture products that are specific to clients’ needs. For instance, it would be a good business idea to invest in the revamping of Compaq’s image through manufacture of products but based on a hybrid technology between the two companies. In the event that Compaq consumers realized the new brand, they would have been drawn towards purchasing the products. The idea would have been to manage the Compaq’s business model of providing low-cost products. In this case, they would not only cost individuals less, but also be high on quality. Apple could have considered partnering with these others companies thereby remaining relevant, which can be achieved through the proposition in question. Apple would be promoting its brand through the influence that others companies already have.
Yoffie, Cohn and Levy (1992) explained that Apple’s federation approach, which considers the potential value of getting into relationships with other companies, was effective when the company chose to partner with its chief rival, IBM. Such a business relationship could also bring about more profit and growth for the company in today’s market. Individuals are already aware of the uniqueness of Apple products. While that is the case, the company faces pressure when it comes to ensuring that already consumers remain loyal to its products and services. In the same manner that Apple chose IBM as a partner, it should do the same with other known companies such as Tesla, as has been noted.
Conclusion
Apple is indeed a global leader when it comes to production and sale of communication technology devices such as the iPhone, iPad, Apple watch and lastly, the Macintosh computers. However, but just like every other organization, it needs to consider the future as pertains to the volatility of consumer preferences. To remain relevant access to information is key. The recommended course of action ensures that Apple maintains its position, while also exposing itself to more consumers. It can leverage the influence of other potential partners to advance its products and services, hence solidifying its position in the market.
References
Yoffie, D., Cohn, J. & Levy, D. 1992). Apple computer 1992. Pdf.
