STRATEGIC PLANNING

Strategic Planning



Strategic Planning

Executive summary

Apple Computer, Inc. whose humble beginnings were borne from two high school friends, Steven Wozniak and Steven Jobs, is now based in Cupertino California and is a Fortune 500 company. The company began in 1976 when Wozniak designed what would become the Apple l (Apple Computer, 2005:15).

Background and assumptions

The factors that influence strategic planning at Apple are numerous. Apple chose differentiation as their strategy. This decision means that Apple could benefit from several strategies such as growth, product development, innovation and marketing. Apple's product differentiation is a natural strategy that creates growth because of distinctive products. Apple has proven its ability to develop new products, such as the very popular iPod and Apple music store.

Today, Apple is one of few organizations able to make money in the personal computer business. The recent downturn in this market has affected Apple's strategic approach. CEO Steve Jobs suggested that today must be about the future of technology and "turning out more new products..." (Speaking, 2003:44)

Another factor influencing Apple's strategic planning is market share. Jobs suggest that there are three markets categories; professional, educational, and consumer. He feels that the professional and educational markets have suffered recently yet they have also doubled the consumer market share, which stands between 5% percent and 10% (Mossberg, 2003:55).

Rivalry also influences strategic planning at Apple Computer. Apple competes in the personal computer markets with huge rivals such as IBM, Hewlett Packard, and Dell. These are heavyweight competitors because of their well-known brands and reputations. Beyond product differentiation, Apple is currently piloting with new distribution channels by opening stores and offering its products online in order to gain competitive edge.

Discussion of the mission statement, goals and objectives

Apple's mission is "bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings" (Spears, 2003:98). Apple excels to give the best service by providing high quality products. The way Apple measures its success of their product is to keep track of their product returns, warranty costs, and the time to repair failures. The company takes into account customer satisfaction by evaluating its repeat business pattern.

In 1995, Apple Computer, Inc. suffered a huge setback in revenues. The top officials decided the company needed to go through changes in order to improve their performance. Their vision called the Formula for Success included: reorganization, financial success, target internal communications, and to integrate system of strategic, operational, and financial indicators. (Financial Executives Research Foundation) To be able to implement their strategy to fulfill their vision the new structure will have to include the enhancement of managerial accountability and improve customer focus.

Apple's goals were to increase revenue by creativity, industry alliances, customer loyalty, and product quality. Some solutions were to streamline the internal organizations and its external network. Its external network included resellers of their products, licensees, and third party developers. Apple had a direct sales force which included education and businesses and indirect sales were sales to homes ...