STRATEGIC PLANING

Strategic Planning

[Institute Name]

Strategic Planning

Introduction

This paper continues to discuss a strategic plan for Apple Computer, Inc. It covers the grand strategies, long term objectives, interviews, SWOT analysis and Porter's Five Forces analysis.

Discussion

Grand Strategies

Apple Computer serves a niche market for education, consumer, and professional markets. Low-cost leadership, according to former CEO, John Scully, was lost to Apple in the 1980s when he made the decision not to switch to the Intel microprocessor (Lettice, 2003, par. 1). Since that time, Apple and IBM jointly developed the Motorola PowerPC microprocessor, which has technical differences from the Intel processor that some claim to be advantages, at a higher cost. The result of this is Apple now has a choice of grand strategies: differentiation or focus.

Apple chose differentiation as their generic strategy. As highlighted in other sections of this paper, Apple products have a distinctive appearance and emphasize ease of use. Because of this simplicity of use, Apple products sell at a premium. Apple has a strong background in four of the seven skills, the resources required for effective differentiation, and may have a good background in two others (Pearce & Robinson, 2002). This choice means that Apple might benefit from the following grand strategies.

Concentrated Growth

Apple's differentiation makes concentrated growth for its distinctive products a natural strategy. Apple customers expect it to continue enhancing product performance in terms of plug and play operation. Growth on these terms would be within Apple's core competency and enhance potential market gains in business markets.

Market Development

Apple has an ongoing marketing effort to convince consumers to switch from other computers to the Macintosh lines. This market development strategy should continue the attack on the run-of-the-mill Wintel competitors. Apple suffers from consumer perception that it will be hard to find hardware compatible with Macintosh computer software. Apple should double its efforts to combat this perception.

Product Development

Apple has shown its ability to develop new products, such as the recent introduction of the iPod and Apple music store, which are compatible with Windows. With a continuing product development strategy, using software and hardware development strengths, Apple should develop products that compensate for weaknesses and capitalize on strengths.

Innovation

A strategy incorporating innovation is perhaps the most important strategic decision for Apple. While the Newton personal digital assistant serves as an example of Apple's failure to successfully profit from innovation, the vast PDA market is testimony to this innovation. As indicated, Apple should apply innovative pressure to increasing compatibility with other hardware and software solutions, such as the distributed computing market.

Long Term Objectives

Apple's Long Term Objective is to grow its market on the Motorola PowerPC platform by offering innovative and leading edge products that showcase their distinctive appearance and ease of use. It should focus on retaining its share of the education, consumer, and professional markets.

Apple should increase its promotion and creation of Wintel-compatible products such as the iPod and Apple music store to gain a diverse share of the market. These products, like their flagship Macintosh product, substantiate its branding as innovative, ergonomic, and thought ...