Analysis of Apple’s Strategy from the Perspective of Core Competences

1907 Words8 Pages
In the 1980’s, the level of success held by executives was judged on their ability to delayer, de-clutter and restructure their companies (Prahalad and Hamel 1990, p. 2) However during the 1990’s this started to change giving way to a much more innovative and arguably effective criteria involving the concept of core competency with most managers being rated on their ability to identify, nurture and exploit core competencies that result in growth and overall development. According to Prahalad and Hamel (1990, p. 79 - 91), The concept of core competence which emerged in the early 1990’s is the notion business’s or organization’s can do well or succeed by becoming the best in their field or industry in a few key knowledge areas or key skills absent of a structural competitive advantage. With traditional company structures and strategies failing to meet expectations and a growing need for effective practices being sought after, managers in present day industries have had no choice but to evaluate innovative types of organizations so as to identify strategies, structures and approaches that deliver. This analysis of Apple’s strategy, with particular regard to core competencies; will help us to gain insight and understanding into what core competencies the company has, how these competencies influence their success or lack thereof and what other modules covered during the course of study would work best in the company’s current situation. The world renowned Apple Inc. was created by Steve Jobs and Steve Wozniak in the year 1976. The two, who dropped out of college, are the founders of the multimillion technology company that is today valued at around $460 billion. Apple Inc. is worth more than the joint value of technology giants such as Google and Microsoft. The company had a very successful beginning with the sale of its Apple I and Apple II
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