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The Entrepreneur's Environment

Formative Assessment

Success of Apple Inc. as Entrepreneurial Company

Prepared by: ID No: 000680312




1 History of Company3

2.1 Organizational integration...........................................................3

2.2 Differentiation strategy............................4

2.3 Gaining control4

2.4 Bridging networks...5

2.5 Strategic resources and competences5

Conclusion and Recommendations ....6


Word Count: 1540


Entrepreneurship is essential in the everyday business environment and has

a critical role in the globe economic system. Entrepreneurs are the makers and
leaders of the community who modify the way individuals live, work, play and lead.
Entrepreneurship progressed in America before 100 years and had a magnificent
impulse on the landscape of culture and the economy of the USA (Lazonick, 2013).
Nowadays the entrepreneurship of USA is an international movement and has
become a standard for the entrepreneurs and policymakers around the world. The
USA is known as the country of the globe renowned famous entrepreneurs as Steve
Jobs and his entrepreneurial firm Apple Inc. that is known as the worlds most famous
and wealthiest corporation in the world. Apple was founded first of April in 1976 by
Steve Jobs, Steve Wozniak and Ronald Wayne in order to trade the Apple I personal
computer kit. Nowadays approximately 35,000 employees around the world work for
Apple and it reached income of US$32.50 billion from annual sales in its fiscal year
2008 (Apple Inc., 2013). The main reason of apples unique popularity in the
technology market is its philosophy of extensive visual design to its exclusive
promotional initiatives.
One of the main motive that motivated myself to analyse Apple Inc. is its
unparalleled, simple magnificent brand image that company has made in the
technology industry during 40 years. ''Think differently'' which is a motivating slogan,
made consumers believe that convenience and creativeness along with high-class
can lead to a successful and beneficial entrepreneurial firm as Apple Inc. Apple has
achieved higher position than any other firm in developing information and interaction
technologies that necessary for everyday life. The result of this Apple become one of
the wealthiest entrepreneurial firm in history. It was complicated for me to
comprehend companys key of being successful in technology market but I used, in
this paper, following approaches to explore Apples success:

Organizational integration

The internal learning procedure that lead in Apples epoch-making digital gadgets
required employees that have a wide range of efficient skills and hierarchical
obligations. This organizational integration was essential to the improvement of the
technological innovation, which underpinned Apples expansion. Among workers the

firm could build a cult-like engagement. It means Apple hired employees who had the
concept, which would be assisting to change the world (Kahney, 2010). Since first
day in technology industry Apple was more than an entrepreneurial firm: it was a
motive. Apple used strategy of being become a pacesetter in making user-friendly
pcs, which could make individuals highly skilled, innovative, and impressive workers.
Founder of company, Steve Jobs, had skills for aligning himself with genius
employees who were essential for firm to obtain its strategy and success. For
instance, new entrepreneurial firm, Apple Inc., had to compete for employees with
genius skills, technological, and management labour with giant ICT corporations as
IBM, Motorola and Xerox that had an ability to offer workers the realistic chance of a
career for long period of time with one frim and at the end provide with good
retirement conditions. No doubt that first days Apple was a company with unclear
future as the result it could not entice employees away from old giant entrepreneurial
companies by guarantees of amazing career future. Instead of the above offers,
Steve Jobs could find fantastic way to attract professional employees to his company
as the inducement of worker stock options. Company could sign contact with
professionals, after brilliant offer by Jobs, and firm grew large (Kahney, 2010).

Differentiation strategy

According to Porter's model, Apple is using strategy of differentiation. The company

bring to the market a different range of items in technology field as for ordinary
computer purchasers it offers the iMac and iBook product lines and professional
buyers can get PowerBook and G series PCs. Company focuses more on innovation
and quality than low cost items. For instance, company uses Macintosh operating
system for all its devices because of its uniqueness in the technology industry where
most other companies rely on Windows or Android. Company has varied its items
range off late by iPods, that brought a big success in brand identity name of Apple in
technology market. None of technology companies have been capable to duplicate
companys exclusive quality of product, stability and design. With the help of
differentiation strategy, Apple can charge relatively a high price than competitors for
their products (Porter, 1992).

Gaining control
Good entrepreneurs search for positions of manage and strength in the economic
networks where they running business in order to occupy the valuable role of
middleman between suppliers and buyers in the networks that make up our

international economy (Moritz, 2010).

These intermediary roles are very valuable, based on the manage they can apply
over the commerce flows in their network. Company can create and keep this role
with the help of tactically obtaining opponents this describes the countless mergers
and takeovers that have been done over the past several years. Purchase
techniques of apple depicts how mergers and mastery can also be utilized to pre-
emptively counter the appearance of any prospective opponent.
The significance of middleman roles also describes how Apple exercised manage
over trade circumstance in companys supply chain networks. Magnificent stringent
costing on providers can be result of exploitative work circumstances in the factories
where a lot of firms produce their products. But this make it possible them to achieve
minimum cost (Kahney, 2010).
Apple outsources the manufacture of its products to big companies as Foxconn in
China. By this Apple reduces operation expanses to the minimum consequently
improves profit margin. The last but not least, company could position firm in the
networks by relationships with the reliable partners results in high power control and
strength to impact the technology market (Moritz, 2010).
Bridging networks

Personal relationships and networks with other entrepreneurs, bankers, government,

friends and relatives may play an important role to develop business efficiency
because with the help of making good networks with banks, investors company can
open a way to resources of external financing to begin new business (Hook &
Yardon, 2013). Owners of Apple Inc. could easily find money for start-up because
young entrepreneurs had skills as how to create Bridging Network with investors and
financial institutions in order to obtain advantage for their organization in the future.
For example, Apple.Inc got one of the first start up investment from Jobs high-school
friend, Allen Baum, and his father. In addition to this Jobs and Wozniak could gain the
attention of Markkula who invested $200,000. After this investment company could
produce Apple II that brought first big revenues to company (net revenue of $710,380
and a net profit of $48,882) in 1977 (Hook & Yardon, 2013).

Strategic resources and competences

Strategic sources can be described as the effective resources of companies that

have direct influence on the durability and expansion of the frim.
Without doubt the most useful sources of Apple was Steve Jobs, its founder. He had

a capability to recognize what the clients want before the customers even understand
what they want. From 1985 to 1997 Apple faced the worst problems in its history as
number of unsuccessful products like digital cameras, portable CD audio players,
sound systems, companys market share and stock value continued to hurl down. By
using unique skills, ambitions, vision and business approach as several cost reducing
actions and making the decision to concentrate only on two markets as consumer
and professional Steve Jobs could return company to the position where it was
before black days (Lazonick, 2010).
Apple Inc. has a powerful research and ambitious team that includes cautiously
chosen and high skilled soldiers. This is a useful strategic source for
entrepreneurial company as its opponents have tried heartily during long period of
time to copy their strategic resources without any success.
Additional strong points of Apple were strategy of diversification that was analysed
above and product design teams. First product of Apple was Macintosh PCs that
became popular item in the technology market. Instead of concentrating only on
improving its PCs range, company brought new product into new market field by
acquainting the iPhone and iPod and iTunes music store that totally modified the
digital music market. These items secured position of Apple as a true global
figurehead and assisted them to improve companys brand image (Moritz, 2010). In
the issue, Apple's clients approach to be loyal to the company. It has always given
significance to innovation to produce their items better rather than competitors. For
instance, the iMac range of PCs has a unique all-in-one design and offers in 5
colours. Company pay attention more on features, appearance and excellent client
support service and is making a trend in the global technology by developing music,
images and animation. The last but not least strategy is retail outlets and after sales
consumer support owing to client's preference mostly relies upon the physical
presence. In order achieve customer preferences Apple has opened 86 stores
around the world and these also serves as a way of marketing and advertisement
(Apple Inc., 2013).

It is concluded from strategic entrepreneurship analysis at APPLE Inc. that in

technological industries are never easy to contend with. It does not seem possible to
become a successful entrepreneurial company without good business technique.
Apple Inc. efficiently used all above mentioned entrepreneurial techniques in its
business since many years but nowadays we can see that company gradually lose
ambitious to invest in advancement owing to they waste their time and persistence to
thinking about getting value that was made in the past than analysing and applying

the innovative investment techniques that will bring worth in the future. From my point
of view firm needs to make a drastic modifies annually and company should not
waste its sources and abilities to keep competition advantage in this industry
because Steve Jobs cannot come back again to return Apple to its current position as
the worlds wealthiest and greatest company like he did in 1997. Otherwise I estimate
that the end of innovation will be destiny of Apple.

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2 Lazonick, W. (2010) Innovation Business Model and Varieties of Capitalism:
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3 Lazonick, W. (2013) The Theory of Innovative Enterprise: A Foundation of
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November 2016].
4 Michael, Porter. (1992) The Competitive Advantage of Nations, Hong Kong:
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5 Moritz, M. (2010) Return to the Little Kingdom: How Apple and Steve Jobs
Changed the World. The Overlook Press. Second ed.
6 Hook, J. and Yardon, D. (2013) Apple CEO Cook, lawmakers square off over
taxes. Wall Street Journal.
7 Apple Inc. (2013) Apple more than doubles capital return program. Apple
press info. Available from: http://www.apple.com/pr/library/2013/04/23Apple-
More-than-Doubles-Capital-Return-Program.html [Accessed 8th November