Strategic Management Essay Example | Topics and Well Written Essays - 2000 words - 13

Strategic Management - Essay Example This essay presents a discussion about a strategy for competing against Apple Inc, a well-established and successful firm with an established brand and a capability for in-house VLSI design. Apple Inc, which first incorporated on January 3, 1997, is a company built on ability in electronic design and a capacity for taking an entrepreneurial risk at a time when the market suggested a future for personal computers and electronic gadgetry (Linzmayer, 2004, Pp. 1 – 10). Its founders Stephen Gary Wozniak and Steven Paul Jobs had an interest in electronic design and they were able to impress Armas Clifford, a retired software designer with connections and capital, who stepped in to help them with US$ 92,000 of his own funds and a secured credit line worth US$ 250,000 from Bank of America. The capital meant a lot to the backyard operation that Jobs and Wozniak had been operating to make electronic gadgets for some time. With continued success, Apple Computers went public in 1980 when Job’s initial 45 % stake translated into 7.5 million shares, worth US$ 82.35 million when Apple Stock was at an all time low in 1982 or US$ 2255.85 million in the year 2000 when the company stock record high. Within the relatively recent past, Apple Inc recorded net sales of US$ 32, 479 million in the year 2008, with a net income of US$ 4, 834 million (Apple Inc, 2009, â€Å"Annual Report for 2008†). This result is an improvement on the result for the year 2007, when Apple recorded net sales of US$ 24,006 million and earnings of US$ 3,496 million. However, despite the fact that Apple has enjoyed success, it is important for this computer company to remain vigilant in difficult economic times when competition amongst computer manufacturers is intense and efforts to exploit its weaknesses are possible. Thus, it makes sense to examine the present market environment for Apple and to reflect on a