Introduction
Despite the fact that Apple Inc. and the Geek Squad are both engaged in the business of technology, they distinctly provide and offer different services to the market. Simply put, Apple Inc. basically provides the hardware while the Geek Squad provides the technical support to the end-users in order to operate such hardware. Regardless of their operational differences, it can be observed in the two case studies that both organizations have become successful in their endeavors through an understanding of the five environmental forces which impact their respective companies. These include social, economic, technological, competitive, and regulatory forces which ultimately influence the business landscape for the two organizations; it should be understood that an awareness of these forces and an ability to confront and overcome them would allow any organization to achieve its desired goals.
Question 1
The innovative and competitive force of Apple Inc. has allowed it to become an icon in American industry over the last three decades (Mallin & Finkle, 2011, p.1). CEO Steve Jobs did a remarkable job turning around the company that was nearly bankrupt in 1996 (O’Grady, 2009, p.34). Through the years, it is evident that Apple has competitively made a name for itself, maintained an influx of repeat purchases, and continually generated large profit markets. The remarkable management of Apple Inc. made it a formidable competitor among manufacturers of personal computers, smartphones, and digital music players. In regard to this, Kerin, Hartley, and Rudelius (2012) mention that it is vital to develop strategies that can direct the organization toward its goals (p.27).
Technologically, the company has the distinction of being the first to manufacture user-friendly PCs for the market despite the fact that it was IBM that initiated the mass production of personal computers (Reidenbach & Pitts, 1986, p.85). For the economic aspect, it should be noted that in the 1990s, the demand for PCs grew as companies like Apple Inc. found a way to lower the price and increase the PC’s capabilities (Petersen, 2002, p.459). As the new millennium came around, there came a high demand for the Internet, creating a substantial social impact with over 2 billion PCs worldwide in 2015 (Schofield, 2016, p.174).
Question 2
In the mid-1990s, Apple struggled to maintain a foothold in the PC industry, bringing the company to the brink of bankruptcy with a $69 million loss for the first quarter of 1996 (Mallin & Finkle, 2011, p.2). During the 1990s, buyers began to switch from powerful brands such as HP and Apple to generic options known as White Box PCs, becoming substitutes which threatened the leading brands like Apple (Hill & Jones, 2011, p.25). Understandably, these less-expensive PCs became practical choices for small offices that needed several computer units for their business. Naturally, this compelled top brands like Apple to come up with more competitive prices in order to manage the marketing competition. In view of this, it should be noted that ultimately, the satisfaction of the customer underlies the essence of marketing (Kerin, Hartley, & Rudelius, 2012, p.115). In 2011, there was a decline in sales of PCs due to the introduction of the iPad and as the majority of PC consumers were price-sensitive, this increased the appeal of netbooks which were naturally cheaper; the revival of ultrabooks – which were high-performance PCs – raised the standard for the industry and increased demand for better performance in all PCs (Grant & Meadows, 2012, p.182). Game consoles and smartphones now possess abilities of PCs such as Internet access and DVD playback, drawing a lot of attention in the market.
Question 3
For any company, it is important to understand market opportunities and threats that should be managed (Kerin, Hartley, & Rudelius, 2012, p.66). Historically, it is evident that Apple has always delivered user-friendly devices to markets that positively respond to the company’s products. On the economic and technological aspects, Apple during its earlier years focused on producing low-cost computers, merging with IBM to develop an operating system on an Intel platform (Cohen & Wang, 2014, p.13). Later, it turned out that a lot of strategic changes had to be done because business was going down. This was where Steve Jobs focused on as he improved the competitive edge of the company and successfully revived the company. Jobs made sure that he had control of all aspects of the product, from the drawing table to the office or home of the end-user (Pike, 2015, p.169).
History shows that the business strategies adopted by Jobs were well-conceived and carried out because he turned things around for the company. Soon enough, Apple became a household name and firmly established a definitive social impact. Through branding and advertising, they have made owning an Apple product trendy and fashionable with its stylish design (Mallin & Finkle, 2011, p.4). Apple products are top of the line but it can also be expensive. Because of this, it is obvious that competitors now tend to manufacture look-alikes which are more affordable. Such competition inevitably affects present and future business strategies for the company since it has to compete not only for quality but also for cost.
Question 4
Through the years, the company’s business strategies under the direction of Steve Jobs have proven to be better than the competition, particularly because Apple Inc. differentiates itself from the rest. The Apple brand has become iconic and is associated with innovative thinking and having their own signature operating system that can run Microsoft applications; its offer of services like the Cloud for digital storage has given Apple a huge advantage over others (Williams, 2016, p.110). It can be stated that because of the company’s focus on research and development, it is able to produce and re-invent technological devices that are new to the market; combined with exceptional marketing management, Apple Inc. has thus gained leadership in the industry (ibid).
Smartphones and MP3s play major roles in the business. With the company’s major stake in computer electronics, Apple maintains record-breaking sales and increases in units sold by tens of thousands every year, and the profitability of the iPhone and iPod only increases as it reaps greater gross margins every year; at one point, it accounted for almost half of Apple’s total revenues (Faulk, 2015, p.209). By 2016, iPods represent more than 71 percent of total industry sales for MP3 players (Mallin & Finkle, 2011, p.5). Couple popularity with an aggressive business strategy that differentiates it from the rest and Apple should maintain its advantage for years to come. Apple devices constantly progress through generations of models by packing the latest technologies into the latest products. It should constantly redefine and revolutionize the industry with the smartphone and MP3 in order to continually dominate the industry with its competitive advantage.
Question 5
The most striking feature of the Geek Squad case study is the fact that the Geek Squad – a tech support company founded by Robert Stevens – understands how environmental forces impact its operations. Although the company would naturally be covered by regulatory issues in order to operate as a business firm, it is particularly the social, economic, technological, and competitive aspects that stand out in the case study. The social component comes in the form of a high social demand for tech services as new devices seem to be more and more technically incomprehensible to the consumer. Thankfully, the technological know-how of the Geek Squad’s so-called ‘agents’ saves the day for the confused end-users. The short video shows how numerous devices are returned to manufacturers due to the lack of sufficient technical knowledge in operating such devices. To resolve the economic burden for the customers, the Geek Squad mitigates the problem by fixing the problem. There is no doubt on the competitiveness of the Geek Squad, as Stevens elaborates how his tech-savvy agents are ‘nice’ to their customers, even in how they smell and in the way they wear their uniform. Undoubtedly, the Geek Squad owes its success to its understanding of these simple environmental forces.
Conclusion
In view of the above-stated case studies for Apple Inc. and the Geek Squad, which are both engaged in the business of technology, it can be observed that despite their distinct differences, both organizations fall under the influence of the five environmental elements that include social, economic, technological, competitive, and regulatory forces. Through an analysis of how these companies operate, it can be deduced that their awareness and understanding of how the said forces influence their organizations allow them to take action and overcome their negative impact, utilizing these forces to achieve noteworthy success in the field of technology.
References
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