Wednesday, April 24, 2013

Will Apple Sink or Swim?

Two years ago, the New York Times published an article title "Lessons on Longevity, From I.B.M" discussing I.B.M's 100th anniversary. 100 years after its opening, I.B.M has management to remain a strong company, growing with the changing times to secure its place in the world of technology.

One of the articles main points involved strategy in the long term. IBM's history involved having a near monopoly in mainframe computing that almost dried up and put IBM into a dire straight. Because of leadership, the company was able to recover by diverting its resources into new ventures, such as consulting and software. The more important point, is that in order to survive as a company, the company cannot settle on one plan to carry it 100 years into the future. It must adapt to a new strategy when the current strategy isn't working.


Apple has been in the news recently since Apple stock has dropped 40% since september. Many analyst have been trying to make sense of the slip in stock as the company has gone from being a growth stock to a value stock in the eyes of investors.

Apple became so large of a company as a result of its innovations with digital music, innovating smart phones and tablet computers. The problem for Apple was that competitors eventually figured out how to replicate all the features that made the IOS platform innovative, and reproduce it for less money. This competition has shrunk apples growth rate and product margins, making the companies financials look less appealing than they used to.

Apples success has depended greatly on innovation. This innovation has changed the game of the market they have penetrated. But for how much longer can Apple rely on that as a means to generate revenue? Apple is now a crossroads, and has to decide what it has to do in order to stay on top. But with companies like google and microsoft nipping at the heels and replicating the parts of the IOS platform that were so revolutionary, it may be unrealistic for Apple to keep innovating at the rate it has in previous years.

So what is next for Apple? Technology will certainly keep growing at an exponential rate giving all tech companies a chance to break into the next innovative product. Apples survival may depend upon taking IBM's advice, to depend on " skills, technology and marketing assets that can be transferred or modified to pursue new opportunities."

Gustin, Sam. "Apple: What’s Eating America’s Favorite Tech Company?" Business Money Apple Whats Eating Americas Favorite Tech Company Comments. Time, 24 Apr. 2013. Web. 24 Apr. 2013. <http://business.time.com/2013/04/24/apple-whats-eating-americas-favorite-tech-company/>.

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