Diksha Mahajan

14P077 Section B
What would you advice Tim Cook to do now?

Steve Jobs , Steve Woznaik and Ronald Wayne founded Apple on 1 st of April 1976 to develop as well as
sell PCs. Initially it was called the Apple Computer INC but was later renamed to Apple Inc on 9 th
January 2007. This was done to position the company and shift its focus towards consumer electronics
from being a computer company. It is an American MNC headquartered in Cupertino,California. Apple
develops and designs its own range of products and follows a close door policy. Some of its best known
products are Mac PCs, iPod, iPhone, IPad, iCloud, iTunes, Safari, Siri, and App Store etc. In 1998, Jobs
reshaped Apple, with senior managers who had a enriched mix of good discovery- and delivery-driven
skills, and because of this the company churned out hits one after the other, from iMac and iTunes to the
iPhone and iPad. It took some time to get things back on the track, however, from 2005-2010 Apples
innovation premium moved to 52%.
Apple Inc. is a company whose success has been attributed to its CEO Steve Jobs. Steve Jobs turned
around the company from being on the verge of bankruptcy to being one the most innovative, largest and
a successful company before he died of cancer on October 5 2011. Tim Cook was named CEO of Apple
Inc. on August 24, 2011.The current CEO, Tim Cook faces a daunting task of sustaining Apples current
success and making a great company even better. Apple Inc. has found success in MP3 players,
Computers, phones as well as tablets.
Tim Cook is a man of unique character and exceptional intelligence intends to not only make his a mark
not only on Apple but also on technology. There are few things that Tim cook could do to advance his
movement in sustaining Apple Inc in this increasingly competitive industry and ever evolving customer
requirements and tastes.
The management should be smart enough to play safe and bet on improvements in features which can
keep profit margins high. There is lot of improvement scope as well for apple. While Siri provided an
important entre into the future of search, Apple seems to be sideling many key technology trends. Thus
Apple management must carefully create new features to ensure they are durable, quick and relevant to a
wide user base.
As was the case with lot of devices like floppies, optical discs etc Apple should also scrap tech elements
that no longer make sense. We know that Apple has an excellent distribution network globally but Apple
must continue its logistics enhancement so that customers dont have to wait too long to buy any new
launches as this could lead to them falling prey to competitors.
Apples efficiency lies in its operational strategies. Starting from the fact that Apple started to focus on the
consumer market rather than the Business to Business education model, allowing Apple to streamlining
and simplifying its operations and investments and concentrate on its ability to market well which has
proved to be one of its competitive advantages. This strategy has helped them cater to the segment which
is defined by elegance, fun and premium class.
Operationally Apple has focused on giving customers designs that are elegant and simple to use and has
devised those features that make a difference to the customers usage. The limited numbers of designs
help the user in the purchase decision and making the buying experience more comfortable. In the process
of making internal decisions of which feature to include and what to focus on the company aligns itself

with the usage pattern of its customers and thereby increases its customer value while simultaneously
decreasing the cost of production because of simplicity of design and feature rationalization.
Apple has not only concentrated on its operational abilities but over the years it has constantly given
attention to its marketing department as well. Firstly, Apple has always believed that people tend to buy
what others are buying and the product becomes secondary in this case.
Tim Cook shares an excellent rapport with the Wall Street, top officials, and government authorities. He
has recently announced to pay dividends to shareholders which has created a lot more positive image
among the investors and increased the share price effectively. Thus such changes in operational
efficiencies and publicly clean image can do wonders for the company and can uplift the most
underappreciated factor behind Apples success because its evident that lot of attention is being given to
the design and snazzy marketing, which are equally important.
Are they at their financial peak?
From being at the verge of bankruptcy to downplaying its financial success before the quarterly profit
announcements, Apple does this to surprise analysts and investors.
The last quarters profits were on a different scale; however, sales in the three months up to the end of
December increased 30% to $74.6bn and the profits of $18bn were up 37%. A fast quarterly growth
witnessed since 2012. It is not a small feat for a company of that size.
Demand for iPhones
Apple has sold 74.5m phones in the quarter. The demand has been shattering expectations. The volume
sold is difficult to comprehend. It accounts for 2/3 rd of the companys revenue. The demand for the
iPhones has been so high that Apple was not able to produce them fast enough. However, Apple is too
reliant on its 7 year old product line as it is driving 100% revenue growth for Apple.
Importance of China
It is too huge a market for Apple to ignore. iPhone sales are blazing across the country. Apple outdid local
producer Xiaomi and became Chinas largest smartphone seller. Apple has had weak Chinese sales until
recently when it released its bigger screen phones.
Chinese revenues are quickly catching up with that of Europes amount for Apple. Apple should increase
the number of its stores in China as it is an attractive market, people love Apple products and this can be
tapped. With the high quality and design of Apples products it can turn the tables on Chinese smartphone
vendors despite the high price of its products.
Apple watch
After the launch of iPad in 2010, Apple has not really launched a new product in its true sense. To be a
differentiated company it must innovate constantly before the others, reduce its reliance on the iPhone,
Apple should be able to make Apple Watch a huge success. It is expected to go on sale in April. This
product is supposed to have features monitoring the wearers health, connect to an iPhone and provide
several other features keeping up with the digital hub strategy of Apple. Combined with various apps, this
can turn out to be a revolutionary product for Apple and a major growth driver.

With Apple watch, Apple could target a wider market this time Jewellery and design market rather than
the tech bloggers. It could become a fashion statement an impulsive irrational buy. That could be a
smart move.
Launching it in various colours rather that its signature White colour, Apple could usher in a new era for
its products and impress the fashion fraternity as well as target the fashion conscious youth.
Tim Cook and Steve Jobs
Jobs and Cook are different personalities and Cook will have to come out of Jobs shadow. Cook is very
skilled in operations and handling the product chain. He has turned Apple from an aspirational and
untouchable brand into an approachable brand. Tim Cook should extend the product range to a larger
consumer segment. The launch of the Apple watch and its product trajectory under Tims leadership
would be the real test.
Tim Cooks task may seem impossible but it isnt, it is daunting no doubt. There are a few steps Tim
Cook could take:

By keeping Apple populated with employees and people keeping senior managers who
are excellent at the five skills of disruptive innovation: observing, questioning, associational
thinking, experimenting and the last, networking.

By keeping the processes which encourage people to question the status quo, to observe in all
types of environments, to network wide and far for ideas, and to keep experimenting on a
everyday basis.

By keeping the spirit of Apple to think different high always and reward the ones who do.
Elaborating on the points stated above:

Apple needs to focus on marketing and advertising

Apple needs to make its advertising campaigns more fun, entertaining and brave. The Mac vs. PC
campaign needs to be revived, by making it iOS vs. Android. It could target Android over its lack of
ability to update its software regularly, over privacy and malware issues, the inability in the ease of synch
of all users content to all the devices of the user, the hang-ups, the subdued product launches, etc. Along
with this, get move people by showing them the difference Apple products can make in the lives of the
blind persons, poor children, children going to schools in rural areas, entrepreneurs. Apple needs to
creative, bold and less cautious with the message it sends across.
Not to delegate big product announcements

Tim should not delegate product announcements as they are a perfect setting for an organization to
demonstrate its enthusiasm about the product and to create the necessary buzz for the product. This way
Tim can come across as a passionate leader and innovator and educate the customers about Apples new
products and its features. It makes an impact. Tim Cook could demonstrate the current class of products

which do not have the required features, in a way relating and emphasizing with the problems faced by
people and then, demonstrating how Apple can delight the customers, demonstrating the new products
features. This could differentiate Apples products from other products. This way he could show that he
also uses the product that he is trying to sell, it would help motivate the reports.
Distinguish between design of the future and the design of the product
They arent the same. Delighting the customers requires showing them that real things can be done, and
can be done much faster if used properly and shown in the correct way. Designing products for the
present but making them meet the needs of the future which the user cant even imagine right now but
would require them in the future.
There is no reason why Tim Cook cannot be a great American business leader. However to do this, he will
have to stretch his limits and come out of his comfort zone.
Collaboration and retaining top talent
Collaboration is strategically imperative. As the lines between hardware, software, and services are
smudging, the only way out is when people work together and work well by taking functional views. With
the services that cut across different Apple devices the results are apparent. Cook must focus on the
collaboration of products that combine hardware, software, and services. A vertical integration across
products such as iCloud, iTunes, and Siri is needed.
Justify higher prices with greater quality
To be at the upper end of the industry Apple will have to justify its position through higher quality
products. Compromise on the quality could prove fatal for Apple. There is a customer segment that wants
a product that has quality features in it. Apple can continue to do good business if it focuses on the people
who care to want a great experience from their tablet, laptops and phones.
Delight the customer
Apple must continue to delight its customers in a more holistic way. Apple has an efficient supply chain
and has created an ecosystem for its customers, which makes them continue to be an Apple customer. To
retain its loyal customer base or community and remain willing to pay a considerably premium amount
for Apples devices, Apple must keep its customers delighted through iTunes, the App store, free software
upgrades etc.
Compatibility of hardware and software
They will have to keep the software and hardware integrated. Unlike, Android which has
incompatibilities amongst its various versions. The versions becomes old as soon as someone buys
because the new one is already out in the market. Apple therefore has this edge over Android.

Word Count: 2025

References
1) Apple: what do you do after becoming the worlds most profitable company? By Rupert Neate
(2015) accessed on 7th February15
http://www.theguardian.com/technology/2015/jan/31/apple-worlds-mostprofitable-company-iphone-china
2) Steve Jobs, Tim Cook, and Apples Innovation Premium by Jeff Dyer and Hal Gregersen August 31,
2011 accessed on 7th February15 https://hbr.org/2011/08/apples-innovation-premium/

3) Five Things Tim Cook Should Do at Apple (Now that Hes Done Testifying) by Dan Pallotta May 21,
2013 accessed on 7th February15 https://hbr.org/2013/05/five-things-tim-cook-should-do/

4) Apple Chiefs Discuss Strategy, Market Shareand the New iPhones By Sam Grobart September 19,
2013 accessed on 7th February15 http://www.bloomberg.com/bw/articles/2013-09-19/cook-ive-andfederighi-on-the-new-iphone-and-apples-once-and-future-strategy