Competive Strategies

Topics: Apple Inc., Steve Jobs, Macintosh Pages: 4 (1239 words) Published: February 16, 2013
Competitive Strategies
Student Name

Professor Name
BUS 508 Contemporary Business
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Differences of Apple and Microsoft corporate culture
Scully (2011) gave a bird's eye view of Apple and Microsoft corporate culture. He said "In Steve's world, 'No compromises'.' In Bill's world, 'Hey, compromise is alright. We'll get it right the third time. We just want to have a land grab'." According to Scully, the two have entirely different approaches, both very, very successful. But in the era of consumer electronics, the Steve Jobs approach is a hands-down winner. Williams (2011) said that if there is one key difference between Microsoft and Apple, it is secrecy. Apple rarely shows its hand before a product is ready to ship. Microsoft usually offers sneak previews of products months, sometimes years, in advance. Sethi (2012) revealed the two corporate values that Apple implements - value and cost culture: When it comes to customers, Apple applies the notion of value. For example, Apple’s pricing strategy that is driven by its focus on the value. The customer is willing to pay a price that is equal to the product's perceived value to the customer. However, as long as the customers are satisfied, Apple is under no obligation to reduce its prices. When it comes to workers' wages and working conditions, Apple uses its dominant market position or buying power to acquire these services at the lowest possible price, thus keeping the largest share of the profit for itself and yielding the lowest possible share to the workers. It is not important that the added costs of better wages and working conditions represent an infinitesimally small proportion of the overall costs. It's all relative; if these additional costs are higher than those of Apple's competitors, they could adversely impact the company's stock price in the short run. On Microsoft's bureaucratic culture, Eichenwald (2012) wrote that 'more employees seeking management slots led to more managers, more...

References: Apple (2012). Why You 'll Love a Mac. Retrieved on February 2, 2013 from
http://www.apple.com/why-mac/its-compatible/.
Jackson, Eric (March 1, 2012). Steve Jobs Used Patents to Get Bill Gates to Make 1997
Investment In Apple
Eichenwald, Kurt (August, 2012). Microsoft 's Lost Decade. Retrieved on February 2, 2013from
http://www.vanityfair.com/business/2012/08/microsoft-lost-mojo-steve-ballmer.
Sculley, John (2011). How do Apple 's and Microsoft 's corporate cultures reflect their products?
Retrieved on February 2, 2013 from http://curiosity.discovery.com/question/corporate-
Segall, Ken (January 2011). Apple 's final humiliation of Microsoft. Retrieved on February 2,
2013 from http://kensegall.com/2011/01/apples-final-humiliation-of-microsoft/.
Sethi, S. Prakash (April 2, 2012). Two Faces of Apple. Retrieved on February 3, 2013 from
http://www.carnegiecouncil.org/publications/ethics_online/0068.html.
Wallace, Jon (May 21, 2012). Does Microsoft help Apple with Office for Mac? . Retrieved on
February 3, 2013 from http://www.insidetheregistry.com/blog/2012/05/21/does-
Williams, Justin (April 22, 2011). Leaks highlight difference between Apple, Microsoft
corporate culture
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