Apple Inc. is one of the renowned technology companies in the world known for its innovative products and services. Established in 1976 by Steve Jobs and Steve Wozniak, the technology company initially dealt with the selling of personal computers. Over decades, the Company has evolved into offering hardware, software, and digital services. Headquartered in Cupertino, California, the Company is committed to giving customers products that align with user experience, design excellence, and ecosystem integration (Bellamy, Dhanorkar and Subramanian, 2020). Some of its products include the iPad, iPhone, and Apple TV, which portray the excellence with which the Company produces its products. One notable characteristic of Apple Inc. is that it applies the vertically integrated model system where the Company controls the entire product development process from designing, manufacturing, distribution, and retail. The approach has enabled the Company to be competitive in the market due to its adherence to quality, user experience, and ecosystem integration
However, the changing dynamics in the market, including an increased demand for technological devices, have pushed the Company towards an intention to change. In this case, there has been increased pressure to diversify product offerings, revise market strategies, and review the organization structure. The need to change is inspired by the increased competition from Huawei technologies in the smartphone market (Bellamy, Dhanorkar and Subramanian, 2020). Huawei is dominant in Asian and European markets, forcing Apple Inc. to strategize and meet the demands in the market. In assessing the need for change, Apple Inc. needs to prioritize its internal needs for change to ensure the organization achieves its goals. As such, the Company needs to reassess its obligations and approve that the commitment to achieving quality, user experience, and ecosystem integration needs to be revised to ensure it assists the organization in achieving its long-term goals. Therefore, the paper highlights the changing aspects of Apple and the techniques used to ensure the Company achieves long-term goals.
Analysis of the External Needs that Drive Change based on the Burk Litwin Model
Apple Inc. is directly affected by the activities of its competitors in providing goods and services due to the pricing and outreach of their products. Huawei, for instance, has dominated crucial markets enjoyed by Apple Inc. and has pushed for the need to change (Bellamy, Dhanorkar and Subramanian, 2020). A good example of regions dominated by Huawei includes Asia and Europe, which are the most dominant, to push Apple Inc in other regions not dominated by the tech company. To match the Company, Apple needs to assess its external needs and meet the demand in the market. This can be achieved through the assessment of the Burk Litwin Model of change to ascertain the need for change.
Burk Litwin model is a framework that enables a company to assess its external needs and provide the necessary improvement options to remain competitive in the market. The model provides a structural approach that assesses the various external factors that impact an organization. These factors include technological, economic, political, and social factors that influence the activities of the organization. According to the model, businesses are operating within external environments that are competitive and dynamic but are consistent with uncertainty. In context, the model highlights the various external factors that impact the organization in its operations. As such, the Burk Litwin model enables an organization to assess its strengths and weaknesses and establish a strong presence in the market. (Gao 2021).
The Burk Litwin model offers a comprehensive framework for assessing Apple Inc.’s external needs and provides appropriate insights on what the Company needs to improve. In the analysis, the model will highlight the social, environmental, economic, political, and technological aspects that influence the organization concerning its performance (Chen, Liu and Gong, 2021). The following is a breakdown of analysis concerning the Burk Litwin model on the external environmental factors affecting Apple Company;
Political Factors
Apple operates in numerous economic environments because its products are sold in many countries. As such, the Company has to contend with regulatory and political factors within various contexts depending on the country it operates in (French et al., 2021). For instance, the trade war between China and the United States directly affected the activities of Apple Inc. in China, especially considering the fact that Huawei is a direct competitor to Apple Inc. In this case, the political factor affecting Apple Inc. is the trade war that escalated, thus causing a decline in sales for Apple products.
Economic Factors
The global economy plays an important role in determining the purchasing power of consumers. During the recession, customers will tend to overlook luxury products like those offered by Apple Inc. and go for the cheaper options (French et al., 2021). In such cases, Apple products do not meet the expected revenue targets, and the Company struggles. However, if the global economy booms, then it means many people will go for luxurious products, and this will improve sales of Apple Inc. products. As such, it becomes possible that the Company faces uncertainty concerning the performance of its products in the market because it relies on the economic status.
Technological Factors
As a technology company, Apple has to keep pace with the trends and dynamics in the market to maintain its competitive nature in the market. The disruptive technology that is common in the market pushes Apple Inc. to innovate and constantly keep up the pace. In addition, the Company should invest in research to ensure its competitors are manageable in having a share of the market (Gao, 2021). Moreover, technology transformations and dynamics have proved challenging to Apple Inc. due to the emergence of artificial intelligence and augmented reality. These digital transformations have made it difficult for Apple to keep up the pace because the Company is working on investing in advanced augmented reality.
Competitive Analysis
Apple operates in a highly competitive business environment, with the likes of Samsung, Huawei, and Google competing for a lion’s share in the market. Analyzing the strengths, weaknesses, and opportunities of the companies is crucial for Apple Inc. because it enables it to position itself in the market (Phillips, Petersen and Palan, 2020). Competitor analysis is crucial for the Company because it enables it to strategize and improve product offerings to outperform the competitors in the market. To achieve this, the Company has to assess customer dynamics and market trends to maintain a competitive edge against its customers.
The Optimization outcome to be Achieved
At Apple Inc., the optimization outcome aimed at cost-cutting efficiency involves strategies like delayering and Business Process Reengineering. Delayering refers to the reduction of management layers to improve efficiency in decision-making (Tian and Wang, 2022). The strategy reduces instances of bureaucracy that hinder the flow of information from the management to the subordinates. Bureaucracy hampers decision-making because it focuses on policy and procedure, which at times may be different from what the Company needs to achieve at a particular time. Delayering solves the bureaucratic issue by reducing layers to increase efficiency in the operations of the business. Reducing layers of management increases efficiency in cost-cutting and improving processes to ensure the Company achieves its goals. Therefore, delayering is an important strategy in ensuring that managers work closely with subordinates to ensure cost-effectiveness, performance, and efficiency are achieved.
Business Process Reengineering is another strategy aimed at improving core business processes and ensuring the business achieves its long-term goals in cost-efficiency, productivity, and performance. The strategy is essential for Apple Inc. because the Company can implement continuous improvement processes based on the market dynamics (French et al., 2021). Business Process Reengineering enables the Company to maintain its competitive edge by continuously improving its processes to maintain a competitive edge. Apple Inc. is known for its commitment to providing quality products with customer experience, and improving its processes would mean improving customer offerings to guarantee a competitive edge against competitors. Therefore, business process reengineering would guarantee an improvement in processes within Apple Inc., which will facilitate the establishment of a strong brand presence. The continued domination by Huawei should prompt the Company to consider evaluating its product offerings and grant customers what they desire concerning pricing. Thus, the optimization of processes to increase cost-cutting efficiency will enable the organization to penetrate various markets and ensure the product is embraced due to its quality rather than its price.
The Readiness of Apple Inc. to Change
Apple Inc. has had a positive co-existence in the technology market, with the likes of Samsung and Huawei providing stiff competition. The Company’s readiness to change is inspired by the need to overcome competition and invest in a variety of markets across the globe (Tian and Wang, 2022). In addition, the changing dynamics in the business landscape have pushed the Company to innovate. For instance, the Company has since manufactured a 15-inch Apple Macbook, which is considered the thinnest laptop in the world. However, the Company has been considered rigid in its change objectives due to the constant upgrading of phones and accessories, which limits user choice and innovation.
The readiness of Apple Inc. has been entangled in mixed aspects because the Company has shown transformations over the years and has managed to remain relevant to the course of its business (Tian and Wang, 2022). A good example is that initially, Apple Inc. used to manufacture computers but transformed into a diversified market where the Company now produces iPhones, iPads, and laptops. The transformational change has seen Apple Inc. rise to become one of the most successful companies in the world. However, to effectively determine the Company’s commitment to change, the forcefield analysis would be accurate in measuring Apple Inc.’s readiness to change. The analytic framework is crucial in identifying the restraining forces and drivers.
The Forcefield Analysis for Readiness of Change within Apple
The Driving Forces
Brand Loyalty
Apple Inc. enjoys a wide customer base for its products, and this pushes the Company to continue aiming higher and looking to maintain the quality of its products constantly. The high price of Apple commodities reflects the quality they possess (Tian and Wang, 2022). The organization has never worked to reduce the cost of its products because customers have maintained their loyalty in buying the product despite the high prices. As such, brand loyalty among customers pushes the organization to innovate and improve its products to maintain its competitive nature.
Talent Pool
Apple Inc. boasts of being one of the best in accessing skilled labor due to the magnitude of the Company concerning its brand in the market. The talent pool has ensured that Apple has produced high-end products with vast user experience and quality (Tian and Wang, 2022). Having a talented pool of workers at its disposal, Apple Inc. is able to inspire change and achieve the best results. The availability of skilled labor can work to the advantage of the Company in inspiring change. This is achieved through innovative thinking and performance. The high level of performance among employees is a motivation for change within the Company to ensure it remains competitive and relevant in the market. Thus, the talent pool available as human resources at Apple Inc. inspires change because workers within the environment are motivated to give their best and are open to new ideas that inspire change.
The Restraint against Change
Competitive Pressure
Apple’s competitors, who include Samsung and Huawei, react aggressively to new adjustments in product quality, rendering Apple’s activities unworthy of competition. Samsung and Huawei products are much cheaper compared to Apple products; this explains why it becomes easy for the companies to penetrate markets and compete in segments that customers cannot afford. The competitive pressure is experienced because customers tend to go for cheaper options (Tian and Wang, 2022). In addition, the competitors are strong in the various market segments, which drives Huawei to higher levels of margin despite its products having low standards compared to Apple Inc. Thus, Apple needs to devise a way of ensuring its products achieve a particular price standard in some of them to capture market segments enjoyed by its competitors.
Reflection on Readiness for Change as a Leader
As a leader taking charge in leading change, it is important to implement change based on Kotter’s eight principles. Concerning Apple Inc., it is important to create a sense of urgency, which enables the organization to regroup and monitor competitor activities to ascertain that the Company is well positioned in the market and makes a profit (Tian and Wang, 2022). If not, then there should be an urgency to change due to increased competition from external forces. In addition, the Company has to call into action the business process reengineering to meet cost efficiency and performance to optimize production effectively. The optimization of production will enable increased efficiency and cost-effective processes that will induce cost-cutting mechanisms to facilitate savings.
Another important step is to recruit powerful change leaders who will be tasked with ensuring every team member is brought on board concerning the need for change. The change leaders are usually given the platform to explain the need to change to employees and ensure the group works within the timelines to ensure the desired change is achieved (Tian and Wang, 2022). Change leaders are an important addition to the team because they motivate employees to accept the proposed changes, and this increases the possibility of all employees accepting to be part of a project plan. Moreover, change leaders work closely with individuals to reduce inefficiency in processes and optimize operations.
Building a vision and implementing it is crucial for Apple Inc. due to the competitive market. A vision will enable the Company to follow a clear guideline in ensuring the goals set are met (French et al., 2021). A good example of the Company’s vision is described as follows: ‘to make the best products on earth and to live the earth how we found it’ shows the commitment of Apple Inc. to being the best product and service provider. In this case, upon implementing the vision, Apple will be upscaling and coming up with the best quality service and products. The organization will achieve its objective in the long run because the vision statement is understandable, concise, and short.
Reference List
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Chen, X., Liu, Y. and Gong, H. (2021). Apple Inc. Strategic Marketing Analysis and Evaluation. [online] www.atlantis-press.com. doi:https://doi.org/10.2991/assehr.k.211209.499.
French, R., Mahat, M., Kvan, T. and Imms, W. (2021). Viewing the transition to innovative learning environments through the lens of the burke-litwin model for organizational performance and change. Journal of Educational Change. doi:https://doi.org/10.1007/s10833-021-09431-5.
Gao, J. (2021). Analysis of Diversification Strategy of Apple Inc. Academic Journal of Business & Management, [online] 3(9), pp.34–39. doi:https://doi.org/10.25236/AJBM.2021.030908.
Phillips, R., Petersen, H. and Palan, R. (2020). Group subsidiaries, tax minimization and offshore financial centres: Mapping organizational structures to establish the ‘in-betweener’ advantage. Journal of International Business Policy. doi:https://doi.org/10.1057/s42214-020-00069-3.
Tian, W. and Wang, M. (2022). The Core Competentness of Apple Inc. [online] www.atlantis-press.com. doi:https://doi.org/10.2991/aebmr.k.220307.116.
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