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Apple's Corporate Strategy


Apple Inc. is a multinational company based in the USA, who manufacture and trade buyer electronics, personal computers and computer software. Its main products are the iPod, iPhone and iPad. Its software includes iTunes, iLife multimedia suite, Logic Studio, Safari web browser, Mac OS X and iWork among many others. The company was established in 1977 by Steve Wozniak, Ronald Wayne and Steve Jobs. It has since then expanded its business into consumer electronic areas. The company has from that moment developed to one of the biggest multinational companies in the world (Linzmayer, 1999).

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Apple's Corporate Strategy (Product Diversification)

Apple Inc. has adopted strategic management theories in its management ever since its inception in the year 1977. From the pioneer management of Steve Wozniak, Ronald Wayne and Steve Jobs, the company has had a series of managers who have adopted strategic management theories in managing the multinational corporation. The company has relied on the human resource approach theory of strategic management in its management, which applies to a greater extent to the emotional characteristic of human nature to manage institutions. The theory is about managing the products and people through an understanding of their psychological needs and makeup (Universiti Putra Malaysia, 2009).

Apple Inc. was one of numerous successful companies established in 1970’s. It jerked the traditional ideas of what a commercial culture should appear like in terms of organizational management. In the beginning, the company had an excellent chance of forcing out competitors like IBM by default courtesy of its founders with Steve Jobs among them. Jobs walked barefoot around the office even after the company had established itself remarkably well to a fortune of 500 companies (Apple strategic management study case, 2012). By the year 1984, the TV advert introduced by Apple became a key to the company’s attempts to differentiate and differentiate its merchandise from the products of its competitors in similar field. Since then, the company began to diversify its products and started producing a range of products for its customers. This was done under new corporate management systems adopted by the management of the company throughout the years. For instance, Apple’s first invention was the Apple I PC kit, which the company sold as a motherboard with the CPU, RAM and basic textual-video chips. It lacked features such as the keyboard, monitor and case (Apple Inc. 2005).

Then the company diversified its brand by introducing the Macintosh in 1984, which initially sold well only for its sales to drop later due to its soaring price and the restricted variety of software titles. The company later introduced the Laserwriter which it offered at a reasonable price, and later PageMaker, which was a publishing package. The company was constantly diversifying its products, and by early 2005-2007, the Intel transition came when Apple shifted to the use of Intel processors in some of its products. Apple introduced Boot Camp to help its users to install Windows Vista and XP on their Macs with Mac OS X. The success of Apple was evident in increased stock price of the company by more than tenfold in early 2003 and 2006 from around $6 per stock to over $80, which surpassed that of Dell (Apple Inc., 2005).

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Finally, came the era of iPhone, iPod Touch and iPad, introduced in the years 2007-2011. Steve Jobs announced on January 9, 2007 that Apple computer Inc. would be known as Apple Inc., since its main focus had shifted from computers to mobile electronic devices. It is during this event that iPhone and Apple TV were also announced, which showed Apple shares hit $97.80 in the following day, the highest point for the corporation at all times (Apple Inc. 2005). The introduction of the iPhone, iPad and iPod transformed the company’s management strategy into a competent one. The corporate, strategic management of Apple has since remained competent and efficient.

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