Apple Inc.: Challenges and Strategies

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Apple is an American company that manufactures smartphones, personal computers, tablets, audio players, and software. This company was the first to make a personal computer; now, it is a pacemaker in producing multitasking operating systems with a graphical interface. Its history started in the 1970s; like most start-ups, Apple’s story was created in a garage by two high school friends, Steve Jobs and Steve Wozniak, who specialized in computer assembly. They managed to sell dozens of first personal computers, which led to the official founding of the company on April 1, 1976, under the name Apple Computer Inc. Throughout its history, Apple has been facing several challenges but managed to deal with them through well-thought strategies. The main goal is to analyze these problems and methods to solve them.

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The Competitive Situation

The company was able to earn trust among customers and credibility among other corporations through its technologies and development paces. Apple has found category-defining products, such as iPod, iPhone, and iPad (Rothaermel 2). Even though Apple has become a real “corporate” monster, it has many competitors nowadays. Moreover, other companies seem to be respectable and to be able to offer a worthy alternative even cheaper.

It is the main threat for Apple since the balance may tip over in favor of competitors because of one mistake. Thus, one of Steve Jobs’ main strategies to deal with competitors was to sue them (Asquith and Weiss 125). Besides, Apple was continuing to develop new technologies whenever it was possible. This corporation tends to establish new mechanisms and do it most qualitatively. Because of innovating technologies and its design Apple became a cult in the electronics industry. Nowadays, it is one of the most valuable companies in the world.

Key Problems

Nevertheless, the direction of the company towards the development of new technologies entailed some problems. Nowadays, environmental safety has become a critical issue for Apple company. It is logical to assume that the more complex the technology, the more ending materials are needed to create it. Also, applying complex technologies usually leads to an increased level of environmental pollution. This issue is related to the first one, namely the competitiveness of other technology companies, as the ecological damage influences the company’s rating. Accordingly, it may decrease stock price, which will worsen Apple’s competitive situation on the market. Consequently, one may distinguish two key challenges for Apple today: the environmental issue, which includes pollution and usage of exhaustible materials, and competitors, which create a serious rivalry.

Core Competence & Value Proposition

Apple’s value proposition and core competence are interrelated, which helps this company maintain stable development. Its core competence, except designing new technologies, is a thorough product-market strategy. Nowadays, one can notice that it is successful as people are lined up near Apple Store after the release of new products (Asquith and Weiss 128). Therefore, its value proposition is prosperous as people get what they are willing. With each new model, customers are provided with something exclusive and modern that makes clients stand out. In most cases, they are also satisfied with the use of the product. These factors are the main components of companies’ value proposition, so these related concepts help Apple remain at the forefront.

Key Success Factors

One of its key success factors is the meticulous design of the technology. Undoubtedly, this helps to keep Apple’s ratings high and has so many fans around the world. Technological progress has led both to the development of devices, but on the other hand, to increased security requirements for them. It also applies to the level of electromagnetic radiation of devices and their effect on the human body. Many smartphones and smartwatches have relatively high radiation levels, which makes them unattractive to purchase. For such giants as Apple, the analysis of market requirements, one of the 5 forces studied in the course, is vital. Successful analysis of these aspects also helps the company to lead for so many years.

Indeed, any large corporation needs to prioritize cooperation with stakeholder groups and other companies correctly. In the case of Steve Jobs’ company, the three most important groups are customers, investors, and supply/distribution chains. Apple achieved such heights because it competently worked out the principles of cooperation with all groups. The company carefully selects the most talented employees and successfully performs a non-disclosure of commercial secrets policy. Before the release, it is impossible to find any leaks about the new model; in a corporation of such scale, this is a key success factor as well.

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The recommendation for the first key problem, which is the competitiveness of other technology companies, would be Apple’s investing more resources to the quality of their product. It is well known that the better quality is, the better will be “fitness of use “of the production. In turn, it will undoubtedly lead to a sales increase, which is the resolution to the competitiveness issue. Accordingly, the solution to the environmental case will be the transition to inexhaustible energy sources and applying environmentally friendly materials. For the record, Apple has recently established an innovative industrial development model that helped achieve new heights in ecology (Zuo 105). Thereby, the company both following trends by making their manufacturing safer and setting the pace in modern technologies production.


However, there may be some difficulties with these two recommendations. Firstly, investing resources in quality may not always give a 100% result; it depends on many agents, including the human factor. For a radical improvement in product quality, financial resources are needed and professional specialists. Today it is not easy to find high-quality personnel, even despite great monetary rewards. In the second case, the transition to ecological materials can mean difficulties since they have a different structure. In both cases, thorough analysis and prediction of possible consequences are required.

The Best Recommendation and Its Implementation

For Apple, supply and distribution companies that operate all over the world play a vital role. To successfully manage these parts of the system, one needs to create comfortable working conditions. Apple is famous for its decent conditions and high salaries, which allows it to hire real professionals. They, in turn, make their essential contribution to the development and prosperity of the crew. Therefore, a program of rewards and motivation of the staff should be implemented. Through pledging some monetary resources for this program, the indicators of these positions’ effectiveness would be higher and the results better.


Summing up, one can say that Apple is a legendary company with a worldwide reputation. Despite its overwhelming success and high income, today, the company has several difficulties. The first is increased competition, and some manufacturers can offer a decent alternative to its products. In this aspect, one can assume that a more substantial contribution of resources to quality and new developments will correct the situation. Also, there is an issue about environmental pollution; in this regard, it is necessary to invest in inexhaustible resources and ecological development. The company has sufficient resources to solve these problems and remains in the leading positions for many years to come.

Works Cited

Asquith, Paul, and Lawrence Weiss. Lessons in Corporate Finance: A Case Studies Approach to Financial Tools, Financial Policies, and Valuation. JohnWiley & Sons, 2016.

Rothaermel, Frank. Apple (in 2013): How to Sustain a Competitive Advantage? McGraw-Hill Education, 2013.

Zuo, Jian. Value Proposition: A New “Long March”. Springer Nature, 2020.

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"Apple Inc.: Challenges and Strategies." BusinessEssay, 13 Sept. 2022,


BusinessEssay. (2022) 'Apple Inc.: Challenges and Strategies'. 13 September.


BusinessEssay. 2022. "Apple Inc.: Challenges and Strategies." September 13, 2022.

1. BusinessEssay. "Apple Inc.: Challenges and Strategies." September 13, 2022.


BusinessEssay. "Apple Inc.: Challenges and Strategies." September 13, 2022.