1. How does Apple use strategic management to compete?

2. What is leadership’s role in Apple’s strategic implementation?

3. What are key forces in the general and industry environments that affect Apple’s choice of strategy?

4. What internal resources and assets does Apple have that may give it a competitive advantage? How does Apple use those assets to craft strategy?

Apple, founded by two guys in a garage in 1976, produced the first computer with a graphical user interface (communicating with the user via icons on the screen), and had continued to innovate both in hardware and software, particularly when led by co-founder and charismatic visionary, Steve Jobs. By 2007, after 30 years of carving a niche for itself as the premier provider of computing technology solutions for graphic artists, web designers and educators, Apple had reinvented itself as a digital entertainment company and changed its name from Apple Computer to Apple Inc.

As an example of innovation in digital entertainment, the iPod portable digital music player introduced by Apple in 2001 became one of its most famous products. This success was linked to the iTunes software, and subsequently spawned the iPod Touch, Apple’s initial invasion of the gaming world. The iPhone likewise stole market share from other mobile devices, especially when supported by downloadable applications from Apple’s App Store. Apple’s computers, the desktop iMac and MacBook notebooks were still favorites with Apple’s core computing users in the graphic design and education community, and these products had been adopted by others, especially students, after the conversion to the Intel Core Duo CPU, which allowed Macs to run Windows software. The iPad, selected as one of the 50 best inventions of 2010, had successfully become the market leader in tablet computers, and Apple’s 2015 entry into wearable technology, the Apple Watch, was expanding its boundaries even further. Rumors of an Apple car were looking increasingly more likely to become reality. Was there anything Apple couldn’t do?

In October 2011, founder Steve Jobs succumbed to the pancreatic cancer that had sidelined him from active participation in Apple’s day-to-day activities since 2009. COO Tim Cook, who had been called the genius behind Steve because of his handling of the day-to-day operational business at Apple, became CEO. In February 2015 Apple closed above $700 billion in market value, making it the most valuable company in the world.

Apple’s ongoing stated strategy had been to leverage “its unique ability to design and develop its own operations system, hardware, application software, and services to provide its customers new products and solutions with superior ease-of-use, seamless integration, and innovative industrial design.” This strategy required not only product design and marketing expertise but also scrupulous attention to operational details. It also required continuous innovation and a way to anticipate consumer needs that lead to market share. Unfortunately, in almost all of Apple’s product categories, either demand was down overall (desktop/laptop computers) or competitors were grabbing share (mobile devices). Where was growth to be found? Rumors were circulating about an Apple car, and other services, such as Apple Music, iTunes and the App store were beginning to account for a growing percent of revenues. Was Apple’s future in services, acquisitions of companies in related industries, or something else? 

Given Apple’s global growth in multiple product categories, and the associated complexity in strategic execution, would CEO Tim Cook be able to sustain the level of innovation the company had been known for? Would Apple still be considered a hyper growth innovator, or was it now just a major consumer products company, like all others in the industry? In the coming years, would Apple still be able to take a bite out of all competition, or was the innovation over?