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Apple Inc was founded by Steve Wozniak and Steve Jobs on April 1, 1976. The innovation strategy that drove the two people was the idea to think differently in the evolving technological market. There were various challenges that were encountered by Apple Inc during its initial days. However, Macintosh Computers were the first products that were launched by the company (The Globe and Mail, 2011). The company is an American company that specializes in consumer electronics, personal computers as well as computer software’s. It is worth noting that Apple Inc is popularly known for its innovative products of iPad, iPhone and iPod. It is based in California and has several stores across the United States. However, like any other organization, Apple has come under great critic for some of its policies as well as losing market position after the death of Steve Jobs. Apple also produces Apple TV as well as software’s.
HTC Corporation is another innovative company that specializes in rich mobile phones. Furthermore, the company produces tablets and smart phones which have been based on Microsoft Windows Mobile operating system. The company was founded in 1997 and is currently based in Taiwan, Taouyuan City. Just like Steve Jobs and Steve Wozniak, HTC Corporation was founded by Peter Chou, HT Cho and Cher Wang. In its formation, HTC Corporation specialized in the production of original design manufacturer. The Company has continued to produce innovative devices such as the T-Mobile MDA, the Cingular 8125 as well as the HTC Wizard. According to statistics released in 2011, the company generated up to $3.44 billion USD with operating revenue of $1.833 billion USD. There was a conflict between Apple Inc and HTC Corporation as a result of patents issue. In 2010, HTC Corporation was sued by Apple Inc who complained that the former infringed twenty of its parents.
Paragraph Two: Performance Management System (PMS)
Apple Inc maintains an objective in best personal computing and maintains high standards of portable digital technology in the competitive market. It is also important to acknowledge that Apple continues to focus on mobile communication and effective experience on the professional, home use, educators as well as the general population who desire and continue to use their products. The company is divided into various sections that include finance, operations and sales, retail, marketing, hardware, software as well as applications (Wittman et al, 2008). The Performance Management Systems at Apple Inc greatly enhances the control of the organizational innovation activities as well as keeping focus on the objective of the organization.
Performance Management system at HTC Corporation takes into account the need to become the world’s leading Smartphone Company in the world. In this regard, the management employs a competitive strategy in the technology market which focuses to present the organization as an entity that offers mobile phone services as well as customized phones. Apple on the other hand has a global presence in the manufacturing, supply chain management as well as assembling and retailing industries. These are major activities that Apple Inc concerns itself with in the daily operations of its affairs. As noted earlier, the changing world of technology has presented the organization with an opportunity to develop its property management system (Steiner, 1997). At Apple, Performance Management mechanism involves ways through which they can be bale to effectively develop a stable working environment that generates productive revenue in return.
Some of the challenges faced by both corporations as far as performance management is concerned is the increasing competition from other companies as well as the evolution of technology. It is important that a management be able to keep face with the changing face of technology if it is to be considered a market leader in the market. Failure to incorporate this change is an indication that more competitive organizations will take the market share. Furthermore, the need to put in place education and training to employees on how to use the changing technology also remains a great challenge (Graven horst, 2003). It has been noted that disruptive innovation is proving to be a major obstacles to companies such as Apple and HTC Corporation who focuses on mobile technology. This has caused uproar with other calling for an equal playing level ground.
Some of the obstacles that can be encountered in using the given system is that it is never possible to attain perfection with the system. It may not be easy to earn trust by switching to the system. For instance, it is always difficult to predict whether the suppliers involved will be able to deliver the products within a given duration of time. On the other hand, retailers are left with questioning the fact that where consumers will retain the same pattern of consumption. In terms of trust, it is always difficult to illustrate whether the system will be able to choose the right product intended for a specific purpose and so it can cause some confusion.
The other factor that discourages retailers from adopting the system is the fact that it is largely dependent on technology. This occurs in terms of the cost involved as well as its reliability. Retailers find it cost to employ technologies which will ensure that the system runs effectively (Austin, 1996). The process involved in the process of triggering the required message might therefore be hindered. In adopting technology, many have appreciate the fact that it has boosted the manner in which business transact their daily operations, however, reliability of the system might at times result in failures and as a result, render the system unreliable. On the other hand, VMI does not entirely rely on technology so as to function effectively, but when the case is used, and then the system might encounter failures which are typical of technology.
In retailers adopting the system, they might encounter resistant from some of the stakeholders in the industry. For instance, if stakeholders do not welcome the move associated with the system, then it is likely that retailers will have a difficult time trying to carry out their operations. Some stakeholders might feel that they have been shortchanged as a result of consumers purchase power (Ulrich et al, 2001). All these measures are what at times limit retailers from effectively adopting the system. Using the system is also an indication that the retailer’s information can easily be share with the manufactures hence exposing the retailer for scrutiny externally.
The performance of a firm or an institution as have been noted between Apple Inc and HTC Corporation is directly determined by the competence, qualification, and motivation of the people bearing the various responsibilities in its operational structure. That is why when a vacancy avails itself, it is important for the professionals responsible for the hiring process to effectively use the most effective vetting methods to arrive at the most suitable candidate or candidates. Selection involves collecting information on all spheres of individuality so that the candidates chosen not only demonstrate professional qualification but also the personality traits that will make them effective in delivery of the service they are being hired for.
Paragraph Three: The two organizations
Apple computers faced high challenges when it introduced the iPhone and the Apple T.V; it now competes directly or indirectly with computers, consumer electronics, cellular phones, and digital content companies. However, with all these challenges, the corporation has managed to survive well in the markets; this has been as a result of its well designed products that deliver a superior experience to users. Some of the key challenges include:
The corporation’s iphone success in the market has made it a target that coincides with the explosion of mobile security concerns. The corporation lacks experience in enterprise computing where security issues are as a must. For instance, the recent At&T email address breach; its mobile devices and cloud application do not enjoy full control that the corporation has on the Macintosh platform. This has been a great challenge for the corporation in trying to penetrate in the new market.
The corporation has no control over what to be included in their phones, the major cellular service provider’s controls very thing. The fact that the corporation has the ability to innovate new business models in cellular gives it a substantial influence and at the same time makes it very threatening when they introduce more devices and services. As a result, the major cellular service providers are unwilling to give them full control of what they should include in their devices. Apple Inc. Does not have the control of the user experience, and thus it remains critical.
Apple has long been focusing on customers rather than the competition and stakeholders. This had proved to be very effective when it dealt with only few products, but with the introduction of the iPhone and Apple T.V this attribute has been failing them. There is a very high competition in the new business and the corporation has not yet implemented a strategy to cope up with the competition. These new competitors feel threaten by Apple, and thus they are going in to great lengths to protect their business also challenge Apple through all means possible including coming up with new products.
Dimensions a long which company success can be measured
There are three main dimensions a long which we can use to measure a company’s success: survival, growth, and profits.
For a company to be said to have achieved success it should remain in the market for a long period of time. Depending on how long a company has been in the market we can tell if the company is succeeding in its operations. For instance, if a company fails to achieve its goals, then definitely it exits the market. Under this dimension, Apple can be said to have achieved success, considering the fact that it entered the market back in 1976 and up to date it is still thriving; leading IT company in the world.
Depending on a company’s growth, its success can be measured. A company which does not grow/diversify cannot be said to have achieved success. The main purpose of been in a business is to satisfy a wide range of customers’ needs. However, this applies in the long run, that is, it is a long term measure. For instance, Apple’s success can be measured based on its growth.
A company’s profitability directly reflects its success. A company making high profits is said to have achieved success and vice versa. Many company practice high financial secrecy, therefore, this can only be effectively determined by the company’s management.
External and internal environmental factors that have strategic implications for Apple’s future
Competitors have direct implications on Apple and HTC Corporation future; we are currently living in a technological era where technological advancements are at a very high rate. There are very many cellular service providers companies, and thus they will do anything possible to make sure that they gain competitive advantage over each other.
Workforce directly impacts on the success of a company. Since the early 20th century the workforce trends have been constantly changing due to the introduction of new technologies. To cope up with the employee’s changing trends can enable the Apple to meet its strategic future plans.
Paragraph 4: Implications of future challenges
As a result of the analysis given above, it is important to indicate that employees in the near future will not be able to effectively incorporate with the organization intellectual property. This will be contributed to an increasingly challenging world of technology. Employees will therefore not be able to undertake various activities in the two companies. Furthermore, there will be no knowledge development as an effective strategy of facing the competitive market environment. The organization is likely to be limited in terms of gaining from performance in the future. It is also worth noting that Apple Inc and HTC Corporation will not be able to develop and interact with the new forms of technologies.
In light of these challenges, the two organizations will lack the capacity to assess its management system. Lack of putting effective measures in place towards performance management will hinder the organizations from being more innovative in the market place. Apple Inc and HTC Corporation are currently dealing with windows network and as a result, they will be likely to face the possibility of hackers who can interfere with the internal networks of their systems. Such an orientation enables the construction of robust as well as effective firewall proof systems. On the other hand, HTC Corporation is likely to continue losing on its revenues due to the lack of economies of scale.
Lack of an effective management strategy will make it impossible for the two organizations to enter upcoming markets hence it might reduce their cost of production. The management of the two companies need to review their costs strategies if they are to succeed in the strong emerging smart phone market. Such a situation is an indication that the companies might not be able to effectively respond to the global situations such as the global recession. Apple Inc and HTC Corporation might not become more competitive due to the lack of subsidiaries in other countries. This will limit their potential to integrate.
HTC Corporation and Apple Inc are considered as being international organization owning to the fact that their products continue to attract consumers from various countries. On the other hand, limited traits as being transnational indicate that the two organization’s assets and capabilities will continue to be dispersed across the various markets. For instance, having subsidiaries is an indication that Apple Inc and HTC Corporation will be able to differentiate its products in order to gain a market advantage. It is also important to acknowledge that the two companies will not effectively compete in the worldwide market due to its limited activities in potential scale economies.
In trying to market their products, Apple Inc and HTC Corporation have continued to invest in the smart phone business. However, the limitations are an indication that they will not be able to penetrate the market with the smart phones as compared to the third world countries. As they are at the moment, the third world of mobile phone market will not witness a mobile interest penetration since the total percentage of penetration will be quite minimal. It is also wise to indicate that HTC and Apple Inc will not be able to penetrate a broad consumer market as is the case in the current market.
Apple Inc and HTC Corporation will not be able to effectively create partnership in order to sustain an advantage over their smart phone competitors. The brand name of the two names should continue to be marketed so as to continue gaining the much needed popularity. Performance Management Systems of the two companies indicates that there is no plan for a feedback mechanism that will be able to respond to the challenges noted by consumers (Nakiye et al, 1995). Furthermore, it will be impossible for the organizations to monitor the best strategies to employ in the market environment.
There is no doubt that Steve Job played a great role in the transformation of Apple to a global market player in the technological industry. His leadership skills indicate the power and the will he had to ensure that what he set out to achieve was attained. He is a lesson to several leaders who stop half way when they are perusing ventures that are at times impossible to achieve. He always reminded the multitudes that noting was that difficult to achieve. In his death, many described him as a unique leader who will indeed be missed by the world of innovation. The world of communication was simplified by the gadgets that were introduced by Steve Jobs.
Computers used to be there before the advent of Steve Jobs into the market. However, when he started Apple, not many could have imagined that computers could have been simplified and made cheaper. Steve transformed Apple into an organization that was known for selling simple and cheap computers as compared to the expensive ones that were used previously. His ideas in starting Apple were to transform the world using Apple II that was developed in 1976. Apple became famous as the initiators of the first ever market personal computer, which was a major contribution of the late Steve Jobs. After the inception of these personal computers, the world was never the same again. Through Apple, he initiated several developments that stand to date.
It was through his charismatic leadership that Apple had the opportunity to present to the world an all in one Mac computer. This took place in 1998 and was a promising technology as the world entered the twentieth century. Apple became the first company to generate a system that allows its users to use a floppy disk drive. It also contained several characteristics that were tools for using the internet. The iMac computers were inspired by Steve Jobs and were also known for the stylish nature that came with it. It is worth noting that after Job was ousted as the CEO of Apple in 1985, no major developments were made and the company remained silent for some time. However, his return in 1997 enabled Apple to once more shock the world with another development which was the iBook. This was known to be a more consumer friendly laptop.
This was not the end of his creative skills as he guided the company to more ventures. Through his ideas, Apple were able to generate a version of mp3 player known as the iPod and which had the ability of holding thousands of songs. Steve Jobs never grew tired of innovation. Further development that he initiated at Apple includes the iTunes, the iPhone, iPad as well as the glass staircase among others. As a leader, he was able to lead Apple to one of the most successful period in the history of technology.
Apple’s strategy gives it a competitive advantage over its competitors. In corporation applies the 4P’s, that is, Product, Price, Promotion, and place. It produces high quality low priced products that meets the customer’s expectations and also ensures customers awareness of its new products through promotions and delivers the products near the customers where they can easily access/purchase them.
Apple’s marketing strategy is one of the best, but according to the current business environments it has to change some of its strategies in order to be able to align with the changes. Its strategy highly concentrates on customers with very little focus on its competitors. Therefore, there is a dire need for the corporation to change its strategies in such a way that they focus both the competitors and the customers. By not only focusing on customers but also the competitors, Apple will achieve better results and remain to be the leading IT company in the world.