Apple Inc.

Apple Inc. Case

Introduction

Apple Inc. started off as "Apple Computer" was founded in 1976 by Steven Jobs and Steven Wozniak a pair of college dropouts. "Sometimes when you innovate, you make mistakes. It is best to admit them quickly and get on with improving your other innovations". This is a quote by Steve Jobs. This quote still runs through the bloodline of the company till this day. The company was best known for its Macintosh personal computers in 1980s and 1990s. Despite a strong brand, rapid growth, and high profits in the late 1980s, Apple almost went bankrupt in 1996. With this, Jobs went to work, transforming "Apple Computer" into "Apple Inc.” with innovative non-PC products starting in the early 2000's (Yoffie, 2011).

Apple started in a modest manner with the sale of its Apple I. which was viewed as 'crudely designed' (Thompson, et. el., 2012). Job's mission was to bring an easy-to-use computer to market, which led to the release of the Apple II in 1978. The subsequent Apple II and Macintosh (Mac) computers enjoyed more success with ground breaking features. It drove the PC industry to $1 billion in annual sales in less than three years (Yoffie, 2011). The Apple II had problems competing with rivals in terms of speed and software availability however that did not stop Apple selling more than 100,000 by the end of 1980.

In 2000, Jobs was named permanent CEO and oversaw the launch of the iPod which in later years was responsible for the resurgence of interest in Apple Computers. Jobs and Tim Cook, Apple's Chief Operation Officer was believed to be largely responsible for the turnaround in fortunes of Apple. According Yoffie (2011) Jobs provided the vision while Cook and other members of the executive staff were responsible for the execution of the vision which they did with great efficiency.

This week case highlights the primary concepts of Key Success Factors (KSFs). Our text teaches us that KSFs are those attributes and competencies that have the greatest impact within the marketplace, and Apple seems to be a perfect example of this. In this case analysis, Apple's key success factors will be analyzed. This analysis will also examine what industry changes are on the horizon that might have an impact on the current or future key success factors of Apple Inc.

Apple’s Key Success Factors

As we begin to look into Apple’s Key Success Factors (KSFs) it is clear to see that their main key factors for success are: Innovation, Brand Power, Creating Trends and Being Unique. With that said there are so many more KSFs that allow a company such as Apple Inc. to continue succeeding in the industries they are in. Some of these other factors are clean marketing, simple but effective products, great customer service and in store experience, and many more. For the purpose of this analysis we will focus on Innovation and Being Unique.

The Innovation links in with Apple’s free spirit and an open-minded business approach. Apple's Innovation can be broken into three subset areas; product, business process and business model innovation (Yoffie, 2011). The product innovation refers to how Apple enhances features on their current products and services. An example of this is the iPod and the devastating effects on its competitors the Walkman. Nowadays the Walkman is barely in existent. It is rarely seen due to how Apple has dominated that market with their product (iPod). Kim and Mauborgne (2005) explained with their Ocean Strategy that the business process innovation refers to reengineering business processes by building entirely new markets to meet untapped customers’ needs. Apple creates the need for its new innovation and delivers its new created products into the market quickly (Bajarin, 2011). Lastly, the business model innovation refers to the introduction of an entirely new value proposition to the market (Yoffie, 2011). An example of this is the combination of Apple's iPod and iTunes media store. The products cannot be understated as it is the first sustainable music-downloading business model of its kind. Another KSF of Apple is how unique they are as a company and in everything they do. The company's business strategy leverages on their unique ability to design and develop their own operating system, application software, and hardware (Yoffie, 2011).

Now/Future

Apple has now become a leader in the electronic product industry, and with products such as; iMac, iPod, iPhone, iTunes, iPad and lastly the app store Apple is slowly changing the digital industry completely. With their current differentiation strategy and distinctive marketing campaigns that positions the brand as a hip alternative to other