Wednesday, April 24, 2013

Is Apple losing its touch?...Literally.

Apple products are all the glam. Literally. With its "glitzy gadgets and flashy unveilings", Apple has dominated the smartphone, computer, and tablet industry thus far.  However, this was undoubtedly not the case this past week as Apple unveiled its earnings from the previous month. As Apple prepares for its new products to come out in 2014, Apple has seen quite a bit competition amongst its products over the past 2 years.  Apple's iphone has seen a lot of competition with Samsung's newly released Galaxy phones, as well as competition with the Kindle Fire and Nexus 7 amongst the tablet products.  And if that isn't enough, the Samsung Galaxy S4 is planning a highly anticipated release within the next couple of weeks.  According to an article review written by Huffington Post blogger Timothy Stenovec, "Attempting to change the way we interact with our smartphones is a bold and ambitious move from Samsung. We've spent nearly six years -- to paraphrase the words of the late Steve Jobs -- using the styluses we were born with to answer calls, take pictures and scroll through text and images." Although Samsung has battled with Apple's products over the past few years, this new product seems to be both an opportunity to expand Samsung's strategy, and a troubling scenario that Apple must begin to consider. 

 In the beginning paragraph of "The Secrets to Successful Strategy Execution", authors Gary Neilson, Karla Martin, and Elizabeth Powers start by saying that, "A brilliant strategy, blockbuster product, or breakthrough technology can put you on the competitive map, but only solid execution can keep you there." While many can argue that Apple has taken this course over the past decade as Steve Jobs continued to produce one amazing product after another.  However, that strategy that once worked for Apple seems to no longer be the strategy that's keeping them in the #1 spot for its products.  And as Samsung expands on its strategy, its new direction is focused on giving consumers a new way to not only love their phone, but interact with it in a way that has never been done.  Through a "no hands" feature,  the Samsung Galaxy S4 allows customers to answer the phone or scroll through pictures without having to touch the phone. This new strategy and its execution, and the success of both have not only been forecast by Apple's past earnings, but studies done on whether or not this is what consumers even want.

As such, my question to the class is whether or not a company's strategy execution success must always be contingent on consumers' likes and dislikes? When can a company's strategy stand alone from consumer interests?

Apple Earnins Report Fails to Prove Innovation

Samsung Galaxy S4 Review

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