A pair of college dropouts Steve Jobs and Steve Wozniak who managed to make the first Apple computer in 1976 founded Apple Company. Through Markkula (an experienced businessman) entry into the business, the company has seen a drastic change over the years. Amid challenges Apple experienced a lot of revolution in 2008 with invention of iPhone 3G which boosted the company’s revenue by a great margin adding to sale iPods, iTunes, personal computers and other products which were already in the market.
Suggested solutions to the current problems
The company should invest more in manufacturing, distribution and marketing to gain a competitive advantage on the sale of personal computers while cutting on research and development. It can for instance, decide to turn into contract manufacturers to produce both components and entire personal computers. It should seek to improve the quality of application software used to ensure easy use of personal computers by the consumers.
Diversification of the range of products and services is another key solution. There is need for transition for instance, from handheld PDAs to Smartphone, from TV set-top boxes to game consoles, and from traditional video games to advance. The move to introduce iPod, iTune, iPhone, and other new line of products is a good one but their versions need to be upgraded more regularly to maintain the competitive advantage.
The other critical area concerns leadership of the company. Apple needs a visionary, inspirational, and committed leadership team able to change the rules of the game to face their competitors indirectly. It requires people who understand the goals and are willing to maintain the innovative edge of the company because it seems the current leadership is adamant. Therefore, if the above solutions are put into consideration Apple has the potential to rejuvenate and get back to its original track.