Report on case study:

LEADERSHIP AND INNOVATION AT

APPLE Inc :
entering the post jobs era

GROUP -8
SUBMITTED BY: COURSEMENTOR:
RADHU ABROl 33 DR SHELLEKA GUPTA
REEYA DEVI 34 MRS RAJANI SARANGAL
PIYUSH GUPTA 31
 Table of contents
1. Introduction to apple

2. Steve job’s turnaround: rebuilding an .

. innovative organisation.

3. growth of apple ecosystem: under Steve

.. . Jobs leadership

4. Playing with different rules

5. Steve Jobs as a strategic leader

6. New era of apple : under Tim Cook's ...

. leadership

7. Challenges and cope up.

Executive summary
This report tends to analyse apple incorporation, one of
the most important consumer electronics company of
the past century, from 1976 till today. This essay
demonstrates, analyse and understand the important
changes that took place at apple inc. After and during the
leadership of Steve Jobs and Tim Cook and tends to
explain the challenges that company faced and the
innovative strategies used to overcome those. To fully
understand this, we will first briefly review the history of
the company to understand what happened after Steve
Jobs left apple inc. and how he rebuilded the
oraganisation and finally, how Tim Cook maintained the
records of achievement after he took over. The results of
these will also be mentioned along with
recommendations.
Introduction
Apple Inc., formerly Apple Com Apple Inc., formerly Apple
Computer, Inc., is a multinational corporation that creates
consumer electronics, personal computers, servers, and
computer software, and is a digital distributor of media
content.
The company has a chain of retail stores known as Apple
Stores. Apple's core product lines are the iPhone
smartphone, iPad tablet computer, and Macintosh computer
line.
Founders Steve Jobs, Steve Wozniak, and Ronald Wayne
created Apple Computer Co. on April 1, 1976, to market
Wozniak's Apple desktop computer and Jobs and Wozniak
incorporated the company on January 3, 1977,in Cupertino,
California.
Job’s comeback: 1997
Rebuilding an innovative organsiation
1] Simplified apple’s product mix
Apple's product portfolio was over-burdened with dozens of
models with no clear product differentiation.It faced stiff
competition. Jobs did something unexpected.
Jobs cut all of the desktop models—there were fifteen—back to
one.He cut all portable and handheld models back to one
laptop.He completely laid off all the printers and other
peripherals. With a simpler product line manufactured in Asia,
he slashed the total inventory by more than 80 per cent.

2] Steve Job axed70 percent of the new products, kept the 30

percent
Here we can observe 70/30 thinking at work.
- Steve Jobs knew that only few products were making
profits. So, he retained those products and stopped
manufacturing others which made losses.
- Most of the products in the Apple’s inventory at that time
were making huge losses, so he cut distributors and reduced
them from six to one.
By doing so, he saved Apple from the brink of bankruptcy and
also brought the renewed focus and energy back in the
company.

GROWTH OF THE APPLE ECOSYSYTEM

1] iPod –2001
Apple launched its first ipod ,launching a new era for the
company as it entered the consumer electronic industry.The
company capitalized on the trend of MP3 music.by 2003 apple
sold more than one million ipods and in 2007 it sold 100
million,one of the fastest selling device in music player history.

2] iTunes music –2003

It was a service through which consumers could access and
purchase online music. But the catch was that it was
compatible with the ipod only , thus restricting the entry in this
ecosystem.

3] iPhone-2007
Iphone was the ground breaking innovation of apple
and after a year appstore , the only authorised service for

loading programmes onto iphone and it was based on the

principle of seamless integration between hardware and
software giving apple the thirdparty developers’ revenues.

4] iPad –2010
The apple ecosystem reinforced in 2010 with the introduction
of ipad, a tablet computer which had been a failure ridden
product catergory , had been galvanised.

5] iCloud-2011
A cloud service for storing files that can be wirelessly
transferred to multiple ios device, by integrating the use of
multiple apple devices, ios was asignificant move towards a
mobile apple ecosystem.
 Apple has developed strategic alliances with EMI,sony
BMG, universal to become the centre of digutal hub.
In addition, apple acquired a number of small yet innovative
firms in the field of video creation , microprocessor production
to strengthen its technological competencies.
Playing with different rules
Deep collaboration
Long before Apple was first recognised as
the world’s
most innovative company in 2005 by the
Boston
Consulting Group, Apple had placed its
trademark on a
long list of technological breakthroughs
including the
mouse, the graphical user interface, colour
graphics,
built-in sound, networking and wireless
LAN, FireWire
and many more. Some of these, such as
the graphical
user interface, were seen by Jobs on visits
to research
facilities such as Xerox’s Palo Alto
Research Center, and
adapted for broader use in Apple’s
offerings. Apple’s
approach over the years had been to make
the use of a
personal computer as easy and intuitive as
possible
through developing a highly responsive
Apple practises what employees call ‘deep collaboration’, ‘cross-pollina-tion’ or ‘concurrent
engineering’. This refers to products not developed in discrete stages but by ‘all departments at
once – design, hardware, software – in endless rounds of interdisciplinary design reviews’. Other
companies have outsourced most, or all, of their product design function, relying on outsourced
design manufacturers (ODMs) to develop the products that with minor adaptations will fit into
their product lines. Apple, however, believes that having all the experts in one place – the
mechanical, electrical, software and industrial engineers, as well as the product designers – leads
to a more holistic perspective on product development; and that a critical mass of talent makes
existing products better and opens the door to entirely new products. Over the years had been to
make the use of a personal computer as easy and intuitive as possible through developing a
highly responsive operating system, establishing standard specifications.
According to Jobs: You can’t do what you can do at Apple anywhere else.

Sticking with a proprietary ecosystem

Since the introduction of the iPhone and iTunes, the Apple ecosystem has been growing
steadily with the introduction of new products like the iPad, the Apple Watch and Apple TV,
all of which share the same operating system. Buying and sharing content between devices
becomes a seamless experience, increasing users’ dependence on Apple’s iOS and ecosystem
of devices. Job’s vision of integration between hardware and software has followed Apple
throughout the years, offering a superior consumer experience. Laptop+iphoto, ipod +
itunes , iphone + wireless internet . As a result, Apple has managed to attract a high-value
customer base. Apple, reaffirming its commitment to develop core products such as
Microsoft Office for the Mac implied lower switching costs for new Mac consumers and
allowed software developers to adopted their programs for Apple. As it Increasing users
dependence on apple’s iOS & ecosystem of devices. By Switch PowerPC processors to Intel
chips, by allow Macs to run window software and by making Eco-friendly user programs.
company's strategy to minimize theft of proprietary information and intellectual property.

STEVE JOBS AS A STRATEGIC LEADER

With the return of Steve Jobs, Apple found its lost success and much-needed leadership.he
known for his knowledge of technology (he was not an engineer or a programmer, neither did
he have an MBA or college degree) but on his innate instinct for design, the ability to choose the
most talented team and ‘the willingness to be a pain in for what matters for him most’, such as
great design and user-friendliness. As Jobs understood that to be different as a company, you
have to make tough choices, in Apple’s case, this was clearly reflected in the product-markets it
decided to pursue, as compared for example to large competitors. Referring to Apple’s focus, he
noted, ‘I’m as proud of what we don’t do as I am of what we do. He mainly focus on stimulated
thinking out of the box and encouraged employees to experiment and share with others ‘the
coolest new thing’ they had thought of. Specialisation and clear specification of responsibilities
at Apple was a way of employing the best people for particular roles, reflecting Jobs’ aversion
towards a general management approach. under Jobs’ leadership, invented a whole new line of
businesses by anticipating
where the market was heading. It was all made possible by Jobs’ exceptional leadership that
enacted clear expectations and fostering work culture around living the apple values. He
combined his technical vision with the expectation of the customers.
He known as good decision maker & stood by his decision. In August 2011, Jobs resigned from
his position as CEO and Tim Cook, former chief operating officer, was appointed as CEO.

Apple’s Corporate Culture

It may not be accidental that Apple’s emblem of corporate culture is a pirate flag with an Apple
rainbow coloured eye patch, designed after a famous Jobs’ quote: ‘It’s better to be a pirate than
join the navy.’ This flag was hanging over the Macintosh building as Apple’s team was working
on the first iMac, to act as a reminder of their mission. Jobs could be inspirational, but also
experienced by employees as scary. Even though Apple did not have an official organisation
chart, one interpretation of its design was that the organisation radiated around the CEO, with 15
senior vice presidents and 31 vice presidents overseeing the main functions. In terms of this
structure, the CEO would only be two levels away from any key part of the company and
financial management was centralised. As Small teams bear responsibility for crucial projects .
As their culture focuses on intense work, creativity and perfectionism. Specialisation and clear
specification of responsibilities at Apple was a way of employing .
Apple's corporate culture promoted and expected top-notch excellence among employees by
recruiting talent of the highest caliber. As Apple adopted an organizational culture for creative,
innovation, with a focus on challenging the status quo. Excellence, creativity, innovation, and
secrecy were at the heart of their operating model. Apple's commitment to innovation is cultural,
not process-driven. The most successful products at Apple started with only a few people
without formal structure or hierarchy and little corporate oversight. Also, secrecy plays a big part
in the company's strategy to minimize theft of proprietary information and intellectual property
while maximizing its leading-edge against competitors. Apple is known for its unique 'no-
compromise' work culture and devotion towards perfection. It was all made possible by Jobs’
exceptional leadership that enacted clear expectations and fostering work culture around living
the apple values.
Entering a new Apple era

We love our smartphones. Not only have they become our most used computer, but
more importantly, smartphones provide an unimaginable amount of power at our
fingertips. However, the smartphone form factor leaves opportunities for other devices
to provide this same kind of incredible power only in even more personal ways,” Neil
Cybart writes for Above Avalon. Apple is laying the groundwork for new platforms based
on wearables, the connected home, and eventually the car that will combine to form
one large encompassing ecosystem that ushers in a new level of personal technology.
We are entering a new Apple era.”

“Apple’s product line used to be thought of as a stool with each leg representing a
different product, Cybart writes. “Consensus was set on the iPhone, iPad, and Mac
forming an ecosystem that will play a crucial role in our lives. In reality, these three
product categories are much more similar than people have been thinking. New
platforms are needed to help make technology more approachable and personal.”

“The iPhone, iPad, and Mac are converging into one central ‘brain’ while new platforms
will be formed focused on key aspects of our lives including transportation, home, and
body wearables,” Cybart writes. “In this new era, the iPhone is positioned as the center
point of our digital lives with I Cloud and Apple services representing the glue
connecting everything together. Earlier this year at WWDC, Apple unveiled watch OS,
its first wearables platform. Last week, Apple added a new platform to the mix withTV
OS. The two platforms serve as examples for how Apple will eventually embrace bigger
themes like wearables and the connected home and eventually the car.

Building Apple’s Future

Apple revealed its 10-year plan for the future this week.
If you don't remember that slide from the hours of presentations Apple
executives made onstage during the company's developer conference on
Monday, you're not alone.

Apple didn't explicitly call it a 10-year plan. And the company was very subtle
about how it showed this road map.

But look closely, and it's easy to see.

Instead of introducing flashy new products that will change your life today,
this year's WWDC conference was all about putting the pieces in place for
what comes next.

It's a Trojan-horse strategy — sneak the seeds for the next breed of technology
products into the stuff that we're already using.

A new augmented reality platform, virtual reality development tools, the

HomePod speaker, and improvements to iOS 11 on the iPad may not feel
revolutionary or even particularly useful right now, but they are the building
blocks for the technologies Apple is betting will power our future.

AUGMENTED REALITY

Ask most tech companies which product will replace the smartphone and the
answer will probably revolve around a wearable device for "augmented
reality," the tech that overlays digital images on the real world.

Microsoft has the Holo Lens headset. Google has Project Tango for Android
devices and, one day, headgear like Google Glass. Facebook announced its AR
ambitions a few months ago, and Mark Zuckerberg even said AR glasses
would replace the need for most screens in your life one day.
Apple's approach is different.

There weren't any AR goggle demos or TED-talk-esque prophecies about how

a pair of glasses will soon be the only computer you need. Instead, Apple is
starting with something already very familiar: the iPhone and a new way for
developers to build AR apps for the phone. When iOS 11 becomes available on
tens of millions of Apple devices this fall, Apple will immediately have the
largest AR platform. Even better, it'll be on the devices that people already use
not futuristic glasses or headsets. Apple will get a major advantage over its AR
competitors with one simple software update.

That won't be a game changer right away of course, and it certainly won't
deliver the kind of jaw-dropping experience being developed by companies
like Magic Leap. AR-enabled iPhones will mostly mean some cool games and
entertainment apps at first. Pikachu will look more realistic in "Pokémon Go."
You'll be able to build virtual Lego models on your coffee table. The rainbow
puke in your Snapchat selfies will look even better.

But AR on the iPhone sets Apple up for the long run by building a base of
developers already dedicated to the platform who want to make stuff for the
largest number of users they can. If and when Apple decides to take AR to the
next level with a pair of smart glasses or something else, it'll be in a better
position than companies trying to win over developers.

VIRTUAL REALITY
Apple has been hesitant to get involved with virtual reality, even as the rest of
the tech industry seemed to be hyperventilating over its prospects. But now
the time feels right for Apple, and it's offering a new set of tools in the coming
macOS Sierra software that it says will let developers connect VR headsets and
create 3D and VR content.

This isn't about attracting gamers and VR enthusiasts to the Mac. This is
about making sure Apple's most dedicated class of users has the tools it needs
to create the content of the future. Apple has historically been the platform of
choice for digital artists, filmmakers, and other professionals, and adding VR
development tools will make sure those users have what they need and don't
abandon Apple.

HOMEPOD AND AMBIENT COMPUTING

Home Pod, the new Amazon Echo competitor, is Apple's biggest new Trojan
horse of all.

Even though Apple focused on Home Pod's music capabilities and pitched it
as a new kind of home stereo, it undersold the rest of the real potential.
HomePod is also Apple putting Siri in your home in a new way and making a
long-term play for the concept of ambient computing, in which everything you
own is connected and powered by an underlying artificial intelligence.

Home Pod is a way to put Siri everywhere else when you're not looking at your
iPhone, typing on your Mac, listening to your Air Pods, or tracking your
workout on your Apple Watch. Home Pod is Apple creeping into the rest of
your life under the guise of a really nice Wi-Fi stereo. Apple may be focusing
on music now with HomePod, but it's also sneaking in a lot of Amazon Echo-
like features like controlling your connected appliances and getting updates
from Siri.

That said, it's pretty clear why Apple would want to bury the AI features of
HomePod. Pitching it as a digital assistant instead of a music player will only
open up Apple to more criticism about how it is falling behind in AI compared
with Google and Amazon. Apple's Siri is still much less capable as a virtual
assistant than the offerings from Amazon and Google, and Apple has a lot
more work to do to catch up. But there's no question that AI is a big area of
investment for Apple, and HomePod will play an important role in this
strategy as Apple makes progress.
IOS 11 ON IPAD

The biggest news with iOS 11 wasn't on the iPhone. It was on the iPad.

Apple has finally started making improvements to the software that help turn
the iPad into the laptop replacement the company has been promising for
years. There's a new file-storage system, an app dock similar to the one on
Mac, the ability to drag and drop content in between apps, and apps that float
in separate windows. The iPad is starting to feel less like a giant iPhone and
more like a touch-screen Mac.

There's still a lot of work to do. The iPad Pro's keyboard isn't as good as the
one on a normal laptop, and it's now up to developers to build compelling
apps that take advantage of all the new iOS 11 features and give people a better
reason to ditch their laptop for an iPad. The new 10.5-inch iPad is a small
move in the right direction because its larger size allows for a full-size
keyboard, but it's still not enough.

But Apple is inching closer toward its ultimate goal of creating a super thin
and portable laptop replacement, and iOS 11 feels like a huge milestone.

Future Challenges
Apple Inc. products had been one of the most popular among consumers and
investors. Further to this, most investors have been saving a lot of their
investment in the company’s stock, thus propelling them to the higher heights.
However, this momentum by Apple has been fading recently as most
investors and customers have shown little enthusiasm on the company’s
latest products.
Apple is facing a variety of challenges despite its recent success, the main
one being the ever changing competitive market. This paper is analyzing the
challenges that Apple Inc. is facing with a lot of emphasis on competition with
regard to Porters five forces model of competition. Analysis of the Challenges
Facing Apple Inc Competition and the level at which technological change is
taking place are some of the major challenges that the company is facing.
The strategic move by the company to move into the sphere of mobile
communication devices and portable entertainment devices exposed the
company to stiff competition from all sides.

These products exposed the company to the new competitors, low priced
products, and possible substitutes, thus threatening to reduce the perceived
value of its products and the success of its strategy. Either, the core
competencies of the company, which include marketing, innovativeness, and
relationship building and brand management, are also challenged.
Furthermore, the varying customer base and increasing new set of
competitors are also a challenge. Both, the entertainment industry and its
technology are undergoing through rapid and constant changes. The ability of
Apple to sustain its brand reputation by means of innovative designs and
technological breakthroughs face challenges.

Either, managing stakeholder’s demands has tremendously become difficult

because of the company’s success and growth. Besides all these, company’s
overreliance on Job’s charisma and leadership and lack of a well-drafted
succession strategy exposed the company to risk. Previously success of
Apple has been based on the company range of products, which were no
longer based on the internal developed hardware’s and software’s. It is now
depending on its ability to secure media content, which is inherent of its own
competitive forces, varying entertainment value and ownership issues.
Careful thought on its strategic management of these challenges must be
applied in order to maintain its success. Analysis of the Company Situation
analysis is one of the important steps in strategic management of a company.
It involves deeper assessment of the internal and external environment forces
that have an impact on the company’s strategy and success over time.
Internal analysis of the company identifies the main competencies of the
company, which would allow the company to implement it strategies to
achieve success, and the shortcomings, which might derail its achievement.
The core competencies of Apple include marketing, innovativeness, relation
building and strong brand. In the external environment, the company is facing
some of it’s the most pressing challenges, which are originating from the
industry and competitors. A number of current and incoming competitors are
ready to battle with Apple for a share of the market.

The zeal in competition has increased over the years and especially
concerning price of Apple’s product. Most competitors in the market can
afford to cut prices so as gain markets or even maintain market share.
Besides price, other competitive factors such as product features, quality and
reliability of the product, after sale services or products, relative prices,
capacity to market and distribute and reputation of the corporation.
Competition Currently Apple dominates in the market having a competitive
advantage based on advanced solution and innovation combination of
hardware, software, and content distribution. However, in this aspects
competition is set to intensify as the most competitors imitate the company’s
approach to appeal to customers.

The largest threat to the company is the collaboration of several competitors

and content providers to exclude Apple. New entrants are also another risk,
especially from both music service providers and players. The risk is higher
when they are from large and established corporations such as Casio, Sony,
who provide players and the likes of Yahoo, which are online companies,
which offer, downloads.
Competitors are expected to enter the market outstanding to the
attractiveness of the market and low barriers. Capital is the only primary
barrier to the entry of the market, and it is not enough to deter organizations
with a wide base of resources. Either the speed of information flow about new
technologies enables startup firms to gain legitimacy in the industry
tremendously first. The company’s entry in the mobile communication devices
market with their iPhone mobile sets exposed it to a new level of competition
where large well-funded firms such as Motorola operated. Apple depends on
revenue from a single market is reduced through relying on its core
competencies on different markets for products.
Furthermore, differentiation is allowing the company to share its resources,
technologies, and activities throughout the product lines. This helps to build a
competitive advantage that is hard for rivals to march. The company’s supply
chain engagements, reseller relations, wireless contracts, and innovative
branders are valued, thus play a pivotal role in the company’s differentiation
strategy and powerful connections with the partners. This has provided an
integral way of gaining new markets and holding on the market share.
Association with strong brand names will either raise Apples’ exposure in the
market or build consumer confidence on their products. Recommendations
Apples’ core competencies are more likely to determine the success of the
company in the new markets of music, video on demand and mobile phone
devices.

The company actions and commitments should be integrated to the core

competencies to gain a competitive advantage and strengthen it and at the
same time maximizing its value. This analysis reveals that for Apple to ensure
its strategic success, it will be decisive for Apple to protect its brand image
and adequately invest in its competitive advantages of marketing and
innovation. In order to ensure strategic success I would suggest that Apple
Inc. To engage in the low end market cautiously so as to avoid tarnishing its
brand name as a technology leader; Manage brand exposure carefully; Invest
in research and development so as to stay ahead of the competitors; Keep
away new entrants through maintaining and upgrading design appeal; Expand
its range of products and intellectual property: further enhance its existing
products in all aspects so as to maximize on value. Moreover, they evaluate
the products life and constantly assess whether it is moving away from its
internal strengths.
Conclusion Apple Inc. has been the market leader in the sphere of
entertainment and information industry for a long time. However, this status
has of late changed due to a variety of factors. The main factor is competition.
Completion has occurred mainly in the form of new entrants and competitors
coming together to have an advantage over Apple.

Lack of barriers in the industry has led to wide entry of new payers in the
industry. Capital, which is a primary barrier, cannot deter companies with wide
resource base from entering the industry. Apple must come up with new
strategies to ensure its continued growth and success.