Technology Management at Apple - Assignment Example

TECHNOLOGY MANAGEMENT: APPLE Student’s name Code & Course Professor’s name University City Date Technology Management: Apple Question 1 Apple’s branding has greatly influenced its success in the global market. The Apple brand has significantly improved its success in the global fronts such as Japan, China, South America and the U.S. The company has built a strong brand image through consistent designs. The real driver from the company’s brand emanates from the perception that Apple’s products are reliable, intuitive and robust. Other success factors include; Majoring on Developed Markets The U.S. market has traditionally been the company’s stronghold. In the second quarter of the 2012, 33 % of Apple’s revenue was collected from the US market, whereas 22 % originated from Europe. The focus on such markets whilst the introduction of the iPad and the iPhone offered a great purchasing power. Nevertheless, the long-term growth in consumer technology has been driven by Asia Pacific market which generates about 26 % of Apple’s revenue. Product Positioning Because many computer systems and affiliated products can be easily imitated, it is pertinent to finding strategies to extend the product’s life cycle. In this regard, Apple always reinvents its products, for instance, the App store complemented the iPhone that realized $ 1 billion in annual profits. Tentatively, the launch of iTunes stores, increased the demand for iPod. Technology The company has followed Schumpetarian model of creative destruction that has centered on the consumers in improving on its existing products (Sigal, 2010). Evidently, Apple continuously rethinks its products line and inventing a new product that redefine the traditional market boundaries. Such innovation has enabled Apple to capitalize efficiently on the “first mover” advantage that has resulted in the realization of high up-front profit margin and market share (Daft, 2011). In capitalizing the market, Apple built products that were unique, complete and essentially expensive than other products offered in the market. A number of integrated devices were launched with the aim of provisioning a more polished experience for its consumers. The announcement of Macbook Air, as the world’s thinnest laptop, made the customer to value the computer’s performance and were willing to pay a premium for the product. Subsequently, Microsoft lost a significant market share. While Apple centered on its end users, Microsoft focused on OEM, IT buyers, retailers and users were typified by conflicting interests. It furthered in focusing its interests on Enterprise buyers. The company’s vertical integration resulted to the introduction of various devices that only vertically integrated companies could manage – the iPhone and the iPad. The devices offered breakthrough innovations which shifted customer’s preference where the integrated products offered the best value proposition to the customers. Value proposition is significant in offering quality products, in order to satisfy the customers (Robbins, 2002). In maintaining the quality to its customers, the company initiated COMPASS (Charting Optimum Paths and Success Strategies) aimed at enhancing market entrants. Question 2 Steve Job’s leadership was defined by different traits and personality which can be observed from the perspective of divergent models and theories. It is well known that Steve was dictatorial, arrogant and mean-spirited, yet he proved to be a great leader. Steve Job’s abrasive management approach and autocratic style resulted to his conflict with managers such as John Sculley. Autocratic style of leadership is simply a form of dictatorial worth methods, typified by centralized decision-making process (Robbins, 2002). Steve’s vision witnessed Apple’s tremendous assets. His meticulous planning oversaw his evaluation of Apple’s assets and holdings. All department and products were surveyed in determining the essential products and what had to be withdrawn from its product line. Additionally, during Apple’s reorganization he re-managed suppliers, replaced a number Apple’s boards and simplified its product line (Khaney, 2011). Employees admit that Steve would quiz employees, and a wrong answer qualified the disqualification of the employee; a term commonly referred to as “Steved”. Surprisingly this could take place in any location. Evidently, under such stringent management, the workplace environment could not favor personal development and flexibility. Apple’s Culture Like all successful companies, Apple has a fair share of the red tape that has frustrated its employees. Such issues and projects take a “startup level urgency” where something is attributed to the company’s co-founder. The company’s cooperate culture is a divided mix of the typical Appropriate red tape consolidated with startup level urgency. During Job’s tenure, Apple’s organizational culture can be classified as a power culture (Khaney, 2011). Accordingly, Steve Job focused on most of the decision-making powers, constantly changing his subordinates for better performance and criticizing employees undiplomatically and blatantly in the case of reduced performance. According to Harrison’s Model of Culture Framework, Apple’s employees were demotivated and contributed to the underutilization of the employee. Apple’s CSR Cook appears to take public relations offensive against detractors. Apple has repeatedly taken hits for playing fast and loose with customer data from its iPad and iPhone products. Apple has an abysmal record human rights and environmental responsibility throughout its China operations (Khaney, 2011). Faxconn, Apple’s contractor, has been accused of subjecting abhorrent working conditions to its employee’s (Khaney, 2011). Tentatively, its support for polarizing political figures such as Barack Obama, has significantly earned tax breaks during Obama’s tenure. As such, it has failed in dispensing and advocating corporate social responsibility questioning Apple’s corporate social performance with respect to its financial success (Robbins, 2002) Tim Cook’s leadership style Tentatively, Cook centers on Apple’s main mission-innovation. Valuing Collaboration Tim cook’s places high value on effective collaboration, through his support for innovation. Humble He repeatedly exhibits a humble nature, both through actions and words. He furthers in placing value on humanity in other individuals. This offers an unfaltering trend in his leadership and attitude, consequently inspiring his workforce. Question 3 The company has positioned itself to a specific type of customer, wealthy, innovator, good lifestyle among others. U.S. smartphone market share suggests that the Apple is the leading vendor with about 41.4 percent dominant share. The latest report suggests that Apple shows a steady lead in the U.S smartphone users. It continuous to be the leading top smartphone maker in the U.S. to the original equipment manufacturer. Nevertheless, the company has witnessed a reduced global share in the smartphone and tablet market. Apple is rapidly losing its market share to Google’s Android System. Given the advent of the new Android devices, Apple has considerably lost its market share in the tablet and smartphone segments. Having reinvented the tables with the subsequent introduction of its iPad, the company’s share has fallen below 50 PC. A number of factors have facilitated the decline in the company’s market share in both the tablet and the smartphone market. Samsung has posed a considerable threat to iPhones market share given the introduction of their devices. Samsung has produced high-quality products at exceedingly lower prices as opposed to Apple’s the high-end devices. In this regard, Samsung has penetrated different markets in suiting the needs of different consumers. Its dominance has reduced considerably given that Samsung has begun to dominate the market with its wanting innovation. Whereas Apple has failed in the delivering a seminal products in years of its market leadership, Samsung has offered countless innovations with its robust development system. Apple outsources its structure hence offering fatter margins but offers some control to external suppliers, while Samsung’s competitiveness is streamlined by the keeping most of its manufacturing in-house. Tentatively, while Apple focuses on high-end devices, Samsung offers a product breadth which helps in scooping the users who can be driven to high-end devices. In Asia for instance, Apple has failed to satisfy the china market with its previous release of iPhone 5. Samsung, on the other hand, has brought large screen models to the customers such as Galaxy Y Galaxy Note (Jedrass, 2014). It is highly likely that Google Android will destroy Apple’s iOS. Android is free from the OEMs; making it an extremely cheap phone. Much of the smartphone growth is witnessed in the tablet and smartphone, which are shifting towards Low end devices; given the increased usage of the mobile devices. With the previous cost of the traditional PCs reducing their reach to many customers, an inexpensive android would favorably dominate the market. Apple is expected to experience a shared slip in the market share. However its profits will remain exceedingly higher, but iOS will contribute a decreasing portion of the smartphone market. Question 4 The release of iPhone6, Apple Watch and iPhone 6 Plus were aimed at reaching out to more professional users and the ‘phablet’ users. Apple’s new offering was projected at enticing the customers with expanded lineup of new products, as well as, service designs in maintaining its technological ecosystem. Further, the product released were garnered towards the promotion of product purchase through Apple Pay. As such, the company aims at benefiting from the expansion of new products, thus increasing its revenue base (CBS News, 2014). In the future, however, the company anticipates depreciated sales as witnessed by its reduce sale of tablet. Apple’s shares have considerably eroded in the recent years. The company’s devices represented about 16.1 percent of the world sales in the first half of 2013, down from 19 percent of the previous year (Jedras, 2014). Hence, Apple is anticipated a decline in the future market. Employment Option Samsung Electronics would be the first choice of employment. Samsung is entrenched in innovative thinking that meaningfully improves employee empowerment in the development of various devices and applications. Consequently, the best leaders comprehend that the customary and the usual are not synonyms to thriving and healthy. The real key to innovation and successively innovative thinking is the propensity of an organization’s open mindedness and their capability to think differently and not pose any threat to its employees. This aspect typifies Samsung workplace environment. Samsung offers a learning platform that not only improves the employee’s strategic thinking, but also improve the employee capability to think out of the box. Through flexibility, the company is able to introduce new products continuously in the market that suits different consumers. Flexibility will further offer an opportunity for individual growth through the implementation of strategic thinking from the workmates. Robbins (2002) asserts that innovation is the most precious capability an organization can have and develop. Assumed CEO New product development is important in increasing the company’s competitiveness against other competitors. In this regard, fostering an environment conducive for learning is principally important. One of the manager’s responsibility is to foster an environment that promotes an employee’s learning capabilities throughout the organization (Robbins, 2002). I will manage the base of knowledge. This pertains the cultivation of a learning culture where the employees can systematically gather knowledge and share it with other players in the organization (Robbins, 2002). In promoting innovation, all employees will be included in the design and decision-making processes. On the other hand, since the consumers play an imperative role in the development of new products, their involvement would play a greater deal in creating products that suit the consumer’s preferences. As such, an ideas management system will be included throughout the organization’s product development. Promoting rewards systems are proficient mechanisms where employees can be rewarded for a positive contribution to the development of new products. As opposed to the traditional goal setting, an incorporation of management by objectives will improve the level of innovation. In this system, performance goals are measured by the employees, managers and the progress relating to the accomplishment of the goals (Robbins, 2002). Eventually, the company will be able to realize sustained growth and product development. References Sigal, M., 2010. Apple's segmentation strategy and the folly of Conventional wisdom. Available at: . Accessed on 14th Dec 2014. Daft, R., 2012. The Leadership Experience, 5th Edition. Mason, OH: Cengage Learning. Kahney, L., 2008. Inside Steve’s Brain. New York, NY: Penguin Group. Jedras, J., 2014. Growth in worldwide tablet market may be slowing. Available at: . Accessed on 14th Dec 2014 CBS News, 2014. Apple Unveils iPhone 6, iPhone 6 Plus, Apple Watch. Available at: . Robbins, S., 2002. Management. 7th Edition. N.J:  Prentice Hall Read More