The Apple Computer Company
Companies’ perception of how the world business works could be miscalculated and wrong. Companies are usually surprised by the entrance of new competitors in the scene. Moreover, businesses’ that are protected by deep and large moats may find their market defense easily breached. The apple computer company is no exceptional as it is also challenged by this phenomenon. This paper will focus on how the CEO of the apple computer can cope with this challenging phenomenon and the changes he should initiate to make the company competitive in the market. The paper will try to advise the CEO how he can initiate the changes by putting into consideration the four forces that transform and collide the global economy (Dobbs, Manyika, & Woetzel, 2015).
The four forces that collide and transform the global economy according To No Ordinary Disruption By Richard Dobbs, James Manyika and Jonathan Woetzel include; the aging world, people, and capital, the increase of emerging markets and the rising technology. The rising technology affects the natural forces that control the market competition. The perception of the world economy was formed during the great moderation. The rise of asset prices, the fall of the cost of capital, the abundance of resources and prosperity of generation after generation. These factors influenced this perception but the great moderation period is gone (Dobbs, Manyika, & Woetzel, 2015).
Therefore, the CEO of the apple computer company should understand the new trends in the world economy which are no longer the same as during the great moderation period. The apple company was the first company in the market to produce high edge computerized devices that dominated the market for a long time. However, the apple company can no longer boast of the largest controller of computer devices in the market (Tapscott, 2000). The apple computer company manufactures devices that range from laptops to mobile phone devices. Recently the apple company has faced stiff competition from other giants companies that produce similar devices such as Samsung and Sony. This is a clear indication that a different world market is forming and shaping up. The apple company was recently involved in a court case where they accused Samsung of stealing their technology to develop a similar device they manufacture (Krugman, 2003).
The apple company was able to win the court case, but this is not a guarantee that the stiff competition they face is over. According to the Richard, the rise of technology is inevitable, and the apple company has no control over it. The company has been producing high-end devices that have not been affordable for ordinary people who make the highest percentage in the world. Emerging companies such as Samsung have noted this gap in the market and have been able to similar devices that are cheap and offer the services as the apple devices. Therefore, a large market share that has been dominated by the apple computer company has been lost to these emerging companies. The CEO of the apple company should consider producing devices that are affordable to the ordinary people (Pavitt, 2009).
The CEO should also consider investing heavily in developing new technology for their devices. Their current technology is no more unique as even small companies in china are now able to manufacture the same devices as apple computer company. Rather than the CEO use a lot of resources in court battles over copyright issues and theft of technology, he should direct his energies in improving and developing their current technology. This will guarantee the company a step ahead in the market. Technology is also changing the job market across all the geographies, sectors, and employers (North, & Thomas, 2007). Therefore, the apple company should reset their intuition about where whom and how they recruit their personnel. The apple company has been sourcing for its engineers and soft developers mostly in the United States. The CEO should consider sourcing for new employees across the globe. This will help to bring fresh ideas and technology that can help to improve the current company technology and secure its position across the globe market (Wallerstein, 20110).
According to Richard, the companies that will succeed in the race for securing market positions across the globe in the ever emerging new market are likely to consider the following traits. First they should think about the next opportunity urban and clusters, countries and regions and allocated their capital and talent accordingly. Secondly, they should price and customize products so they can win local tastes and win the majority of the population which made up by the ordinary people. Thirdly, they also need to control and design their multichannel routes to the world market and rethink about their, marketing, branding and sales strategies. Lastly, they should overhaul their organizational structures, operating practices, and talent strategy. The apple company is not exceptional to these traits as the competition is getting tight from the emerging markets. The CEO of the apple computer company should consider adopting these traits in his future plans for the company (Freeman, Clark, & Soete, 2006).
The CEO should rethink of his strategies to retain the company management, market, and control in the United States. Emerging powerful economies such as china and other countries in the Middle East are great potential for the company to survive in the market. For example china, is a big potential market where apple Computer Company can sell their products as the society has the purchasing power (Dicken, 2007). Therefore, the CEO should consider setting up full operational company branches in such areas to develop devices with the native language and programming mechanism. They should also listen and offer their goods and services according to each region demands. Therefore, these steps are very crucial for the CEO to put in consideration if he wants the company to hang on to its market share in the world economy.
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