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Apple INC Case Study — Presentation Transcript 1. Case study: Apple Inc- Strategic leadership and innovation at Apple Inc - By RenjithSreekumar 2. Contents1. Introduction2. Explanation of Adapted Framework3. Q1. What are the Key features of the Apple Industry?with Michael Porter‟s 5 forces, SWOT (Opportunity, Threat)4. Q2. What is your evaluation of Steve Jobs as a strategic leaderwith John Kotter – Leading Change model5. Q3. Has Apple engaged in strategic innovation?with Strategic Innovation framework6. Q5. Should Apple rethink its closed ecosystem, proprietary approach?7. Conclusion 3. Introduction1. Objective of group B5‟s presentation- To analysis Apple‟s case with effective frameworks- To extract answers of questions from frameworks2. Expected outcome of presentation- Apple‟s key features- Apple‟s competitive advantage : Strength and weakness: Innovation factors- Predictions of Apple‟s future - Suggestions for Apple 4. 3. Basic framework of case studyExternal analysisStrategic choiceStrategy implementationCompetitive advantage1) The strategic processMissionObjective Internal analysisAdapted from Barney and Hesterly (2006).2) Michael Porter‟s Five ForcesAdapted from Porter (2005).New entrantsCompetitorsSubstitutesLevel of threatSuppliersBuyers 5. 3) SWOT (Strength, Weakness, Opportunity, Threat)Adapted from Ferrell et al (2002).4)Barney‟s V R I O theory5) John Kotter‟s leadership theory6) Strategic Innovation framework 6. Q1. What are the key features of the Apple industry?1) External key features- Michael Porter‟s five forces framework Adapted from Porter (2005). 7. 2) Internal key featuresProduct diversification and innovation for long-term development (music, internet, computer)Integration of software and hardware Laptops + iPhoto, iPod + iTunes, iPhone + Wireless internet- Technological improvement with unique design- Transcended the barriers of computer industry to cross manyaspectof industries (iTunes, iPod, iPhone) 8. Loyal customer baseStrong Apple culture and communityApple has created a youth culture and trendAn ambitious LeadershipTyrannic style Motivate employeeAggressive visions, brilliant, powerful and charismatic Q2: What is your evaluation of Steve Jobs as a strategic leader? Centralized, disciplinarian style of leadership. Mechanistic approach to organisation Core strategies – product based, aimed at driving the market Style has taken Apple from brink of bankruptcy to being hugely profitable John Kotter – Leading Change Adapted from Kotter(1995, p.60) Q3. Has Apple engaged in strategic innovation? “ Strategic Innovation is the creation of growth strategies, new product categories, services or business models that change the game and generate significant new value for consumers, customers and the corporation.” Adapted from Palmer and Kaplan,(2007, p.3) Strategic Innovation framework Adapted from Palmer and Kaplan, 2007, p. 6. Q 5. Should Apple rethink its closed ecosystem, proprietary approach? Advantages and disadvantages of closed ecosystem This Source: Ars Technica(2009, 27 October). Apple, Dell big market share winners for the first quarter. http://arstechnica.com/old/content/2008/04/apple-dell-big-market-share-winners-for-the-first-quarter.ars Apple should rethink its closed ecosystem because… Apple should open up because….. The US and Euro zone PC markets are relatively mature. The biggest growth will continue to come in geographies like Asia and South America. In these markets, price, and not the badge on the case, is paramount. Apple should focus more on the developing countries to top the world market. If you are reshaping a market, often it helps to have a closed platform initially to drive that market in a useful direction. Apple cannot stay closed too long because open solutions will catch up and surpass it. “Overtime, the limitations of the closed solutions become increasingly clear, and as people bump up against those limits, frustrations increase, and more and more effort is put towards making the open solutions better even to the point that eventually they exceed the closed solution.“ Adapted from „From closed to open‟ (2009, 27 October). http://www.techdirt.com/articles/20090719/1514125593.shtml Conclusion 1. Summary : Steve Jobs - Leadership style - Spiritual leader : Products - High quality technology (software and hardware) - Closed ecosystem - Innovation : Customers - Loyal customer base Conclusion Recommendations to Apple 1) Collaborate with more technology related industries and companies. 2) Aim for more interaction with customers. 3) Make the iMac more compatible. 4) Loosen the closed ecosystem approach. 5) Prepare for Apple post Steve Jobs.