Running Header: APPLE COMPUTER, INC.: MAINTAINING THE MUSIC BUSINESS

Apple Computer, Inc.: Maintaining the Music Business

Apple Computer, Inc.: Maintaining the Music Business

Introduction

Apple Computer, Inc. changed the word of online music drastically in 2003 by developing the Apple's iTunes Online Music Store, which is the first legal online music service. Apple online music service is the first one to have agreements with all five major record labels.

Discussion

Key Strategic Challenges Facing Apple Computer

Apple Computer, Inc. has seen many ups and downs over the life of its existence. No doubt it is a very innovative company and extremely successful. Apple got back from its down because of its one of the founder, Steve Jobs rejoining and also because of the introduction of iTunes. But securing their information from this highly competitive industry is just one of their challenges. Apple saw a way to capitalize on the emerging trend of cheap music downloads by creating a legal online music distribution network. iTunes would be the key to exploiting the market (Hitt, Ireland, & Hoskisson, 2011).

One another major challenge to Apple is the threat of existing competition as well as from new entrants. Competition has become extremely fierce in the technology sector. Technology is becoming obsolete quickly in today's world and it wants continuous improvement, change and replacement. For this purpose, Apple is introducing new technology and ideas but competitors are trying their best to outperform Apple. The best examples of competition to Apple are the Android tablets and phones which are trying to outperform iPhones and iPad.

Dimensions along Which Apple's Success Is Measured

Working efficiently and effectively is the demand of the successful business. Delegating responsibility effectively to others within the business can serve this purpose. It can also be done by making and maintaining strong relationships with the management teams, employees, consultants and vendors. Such strong working relationships can create ample opportunities for the business as well as for all the people involved in the relationship. It further creates a positive and healthy working environment. It also important for a company to stay focused on its short term and long term future because it allows the company to pay more emphasis on cash flow and goals. This prompts them to formulate planning based on the goals.

Knowledge is also very important. A business must always be mindful of the direction their companies and products are headed as well as that of its competitors. An innovative business like Apple will always need to be active in seeking knowledge in technology, prospecting new ideas and relationships and finding ways to keep motivated.

Critical Internal and External Environment Factors having Strategic Implications for Apple

Apples external environmental factors are dependent on its future because it plays a role in the direction it needs to move toward. Apple's external factors are its competitors like Hp and Dell.. There is also competition with music downloads. During the late 1990s, the emergence of music sharing came about with Napster, a freeware program offering free downloads using peer-to-peer transfers (Hitt, Ireland, & ...