Apple: History and Jobs
Apple Computers was founded around 1976 by Steven Wozniak and Steven Jobs. However, at first, their Apple I found no success. Fortunately, when the Apple II was launched in 1978, it became popular, and in 1980’s they sold more than 10,000 units of Apple II. Macintosh or Mac during 1979 was the in the direction of Jeff Raskin. At the same year Jobs created Apple Lisa, but because of too many innovations and adjustments of features, the shipment of Lisa are delayed and with no success at all. He was removed from the project. Jobs took the passion for Raskin’s Macintosh project.
The Macintosh was introduced in 1984 and hailed as a breakthrough in the user-friendly computing. Unfortunately, it is not as well-performing as the personal computer introduced by IBM. After Jobs’ resignation, Apple encountered many problems such as their legal battle against Bill Gates Windows 1.0 which is the same as Mac’s Gui. Apple has lost its rights of using their own GUI. They have also encountered a significant number of losses. Despite all of these Apple remained in the computer business. Apple has different CEO’s every other year since none of them lasted until they rehire Jobs and promoted him to become the CEO. In the next few years, Apple made adjustments and add some products such as the PDA, iPod, Powermacs, iTunes and the latest iPhone technology. Apple did an excellent job so far.
One of the sure elements of the Apple’s business strategy is what we called “Innovation” or the “fluid and complex.” Innovation means carrying out new ideas and applies them to modify services and products. In the business world, the trend of today doesn’t mean that will be the business for tomorrow. It’s a very complex world. There is nothing constant but change. Innovation will be successful if the ideas for updates of the computer and noncomputer industry into out effectively. For them to be effective, the company must conduct research and surveys from their client. The purpose of the investigation is to realize the needs of the majority of the consumers. Innovation also involves in another element of strategic management which is the adapting organization to the business environment. They must be adaptive to the trends and needs of the industry. The third part will be strategy formation and strategy implementation. Strategy formation means the content of the strategy while strategy implementation is the process.
In Apple Computer one of the strategies formulated by Jobs is joining the leading companies in the industry. One example is asking for legal permission of usage of Microsoft software for their Macintosh. Although Macintosh and Microsoft have some earlier argument regarding the exclusive rights of GUI, he continued the agreement. Jobs thought it is for the Apple’s benefits and later on he was proven that he did a great job. When they implemented the strategy, the Apple Computer became the player again in the computer industry. Another example is when the Apple in the supervision of Jobs made a legal contract with the leading recording companies. They made an agreement that iTunes will sell their music collections legally for their iPods. Jobs also made sure that piracy will be avoided in using iPods.
In future times, Jobs might also deal with the other leading companies aside from the Microsoft if it will be necessary. He will come up with new ideas again for the innovations of Apple computer. Therefore their strategies will continually develop.
In strategy formation, such process or procedures should be well analyzed. Once these plans were implemented, it should be carried out according to the scheme to be effective. It seems when these programs combine by Jobs fit together since it created excellent results. As time goes by, Jobs' strategies are always evolving. Evolution should be based on the trend in the business industry.
The MP 3 players of Apple is having a significant contribution to the PC industry. According to the experts, this is mentioned in the case study, the iPod and the Apple Computers have these Halo effect. They refer it as consumers switching back to Apple Computers after the long exposure in iPod with iTunes combined. Apple was divided into two divisions: the first one is computer section which deals in hardware and software and the second one are noncomputer such as the gadgets like iPod and iPhone. Apple computers started on building software and hardware components of the computer. They become one of the players of the computer industry for a long time; however, they are not the best like the IBM. Essentially their computer business is critical since that is the reason why and how they started as a business. Although Apple is not the pioneer of the MP3 industry, they are considered the leading company because of the iPod breakthroughs. The unique characteristics of iPod make it’s way to the top and the iPod and iTunes combination. A large percentage of the sales is from the iPod and even made their way to the top. iPod facilitates the sales of the Apple Computers through the Halo effect.
Dell was best known in the personal computer industry. It has the leading market share not only in the U.S. but also worldwide. It is same as in Hewlett-Packard or HP although they are in also in the printer industry aside in computers (Rojas 2004). In the case study given, it shows that the Apple Computers can compete enough with Dell and HP, but that is if Jobs or any of his successions continued their effective strategic plans for the Apple Computers. However, there is nothing certain in a business world. Innovations should continue, and they should avoid the rising, complaints of their clientele to last in the computer and gadget industry. They should always cope up with the trend.
Jobs’ excellent strategy that made iPod as the first leading company in the MP3 industry is the iPod/iTunes combinations. Just imagine large collections of music that a client will purchase through the iTunes. Their clients are so overwhelmed with the service iPod can offer. The sales were also doubled since iTunes is also included in their financial statements. If no company will surpass iPod’s strategy and continued their innovations, the iPod can remain enough for the last five years in the MP3 Industry.
Steve Jobs made a significant contribution to the company since he is not only the pioneers but also one of the leading Chief Executive Officers during those times. Although his earlier times in the Apple computers is not that lucky, he successfully managed the five tasks in tricky business. The five tasks of strategic management are the following: first is defining, sharing the mission, and forming a strategic vision; second is setting measurable objectives; third is crafting a strategy to achieve goals; fourth is implementing and executing strategy and lastly, evaluating performance, reviewing new developments and initiating corrective adjustments. In developing mission and the vision, it begins with thinking strategically such as about the firm’s future make-up and forming the vision of the business in the next 5-10 years. The next task will be injecting the sense of purpose into company’s activities. They should also provide long-term direction, give the company with a stable identity.
In Apple computer’s case, Jobs have done this the first three tasks before he resigns from the position on 1985. But the remaining tasks of strategic management continued when he entered again and promoted as CEO in the Apple Computer during the year of 1997. It is a continuous process. He even changes some of the mission statement of the company due to innovations and changing trends of the business world. One example of the fifth task that Jobs have done is making organizational adjustments such as removing some units that are not necessary and replacing them with new departments with a new set of responsibilities. Jobs also created a new division of the iPod business. Separating the iPod from the computer section has an important reason. The purpose is that the company will be more focus on their specific tasks given for better job results.