Apple's Business-Level and Corporate-Level Strategy
Apple is a US multinational firm with headquarters in California that creates, develops, and sells consumer gadgets, computer software, and internet services. Apple focuses on creating things that are not just high-quality but also the best, so it prioritizes product innovation for both new items and ongoing improvements for their existing products (Zylla-Woellner, 2014). This essay aims to examine Apple's business-level and corporate-level strategy, study the market environment, and identify the company's biggest rival.
Vertical Forward Integration
As of right now, Apple is a vertically forward integrated company because it owns and operates its own distribution networks, including the much-maligned retail shops. For Apple to remain vertically integrated, it must begin managing its expenses and for example should enter into joint ventures or negotiate for lease pacts for its stores which are more affordable. For Apple to achieve cost reduction impact, the company has to go on with its outsourcing policy of key parts of its products and acquire additional suppliers meant to supply them with core components so as to break independence to any specific supplier. Moreover, the outsourcing endeavors must comprise additional value chain operations since as suppliers having superior capabilities in producing components at reduced costs pass these savings to the corporation, Apple will greatly benefit from outsourcing hence be able to focus more on its core competencies that comprise innovation and design (Menzel, 2016).
Horizontal Integration
The other alternative would be horizontal integration, anticipated to produce cost savings via Mergers and Acquisitions, nevertheless, reality demonstrates that most of the time, these endeavors do not realize these expected gains. In summary, the secret to Apple's continued superior performance is reduction of its cost structure via a reduction in promotion expenses, a comprehensive supply chain, as well as an integration of combination of cost leadership and differentiation approaches bringing together the crucial elements from either side, leading to a higher value and lower cost for the consumer because of price reduction that has been made possible (Godfrey, 2017).
Apple's Corporate-Level Strategy
The corporate level strategy of Apple competes well with others on several various levels. Every product that Apple produces uses the same design methods, and these methods can be employed in several other various devices without altering its design. Moreover, Apple falls under one of the few computer-based firms that own retail stores world over. Apple's benefit of having both online and retail stores gave them this opportunity of making customers at ease buying, when their enterprises are connected and move forward simultaneously (Godfrey, 2017).Apple manufactures Apple TV, iPad, iMac, iPod, iPhone and several other software products. Apart from that customers can buy music, apps, and several more fun aspects from the App store or the iTunes store always has exceptional customer care, from the store service to the phone. Apple's Genius bar offers assistance, and kindly allow returns and exchanges. For instance, Apple could replace a customer's phone if at all there were damages that had occurred within a year of purchasing. This kind of corporate strategy have always assisted Apple to gain competitive advantage in the corporation. Apple's preciseness on manufacturing of the product, their powerful yet simple design all go towards building their reputation amongst corporations and people (Fleisher & Bensoussan, 2015). Apple should continue with this strategy since it works for them and is quite sustainable.
Apple's Business Strategy
Apple is dedicated to providing the best mobile communication, portable digital music and personal computing experience to educators, students, creative professionals, government agencies, consumers and businesses via its innovative software, hardware, services, Internet, and peripherals offerings (Sadeghi, 2012). Apple's business strategy influences its exclusive capability to design as well as develop its own application services, software, operating system, and hardware to offer its customers new solutions and products with superior simple, innovative industrial design and seamless integration (Zylla-Woellner, 2014). Apple believes in persistent investment in research and development is essential to the development and improvement of innovative technologies and products. Besides the continuous improvement of its personal computers coupled with associated solutions, Apple continues to take advantage of convergence of the mobile communications, digital consumer electronics and personal computer by developing and refining such innovations like the iPod, iTunes, iPhone as well as the Apple TV. Apple's strategy also entails expansion of its distribution network to successfully reach many of its targeted market share and offer them with superior sales as well as post-sales support experience (Fleisher & Bensoussan, 2015).
Creative Professionals
One of the most critical market for both software and hardware products is creative professionals. This segment is also crucial to several 3rd party developers offering Mac-compatible software and hardware solutions. Moreover, creative customers make use of Apple's products for a wide range of activities comprising digital video, editing as well as film production; film special ad digital video effects, titling and compositing, workflow management, digital still photography, publishing, print production , graphic design, music production and creation, sound design, audio production, web design, development as well as administration (Fleisher & Bensoussan, 2015). Apple designs high-end hardware and software solutions, comprising desktops, servers, and portable Mac systems aimed at incorporating the expandability, power as well as features needed by creative professionals. Apple's operating system integrates powerful audio and graphics technologies and features developer devices to optimize application and system performance whenever creative solutions offered by the third-party or company developers are running (Fleisher & Bensoussan, 2015).
Digital Lifestyle
Apple considers that for both consumers and professionals, the personal computer has evolved as the center of an up and coming lifestyle by incorporating in and improving the usefulness of advanced digital tools like Apple's iPhones, iPods, still cameras, digital video, personal digital assistants, televisions, as well as other digital tools. The features of the PC that facilitate this functionality comprise a simple access to considerably cheap data storage, first-rate user interface, the capability to run intricate applications (Hill et al., 2015).
Education
Through the entire history of its life, Apple has concentrated on using technology in education and has been dedicated to delivering devices for assisting educators in teaching and students in learning. Apple believes successful incorporation of technology into classroom teaching can lead to higher degrees of student accomplishment, particularly when employed to aid information access, collaboration as well as he representation and expression of student ideas and thoughts. Apple has also designed a wide range of products and services aimed at addressing the requirements of education customers. Such services and products comprise Apple's iPods, Mac computers, Apple TV, iTunes as well as different solutions for wireless networking, video creation and editing, professional development, as well as 1:1 leaning (which basically comprises a portable computer for each teacher and student alongside wireless network installation) (Abraham, 2013). Apple must go on executing this corporate strategy since it is innovative, unique and working for the company.
Apple Competitive Analysis
Apple faces an extremely competitive environment within the smartphone and consumer electronics markets. Some of Apple's competition include Sony Corporation and Samsung both of which have enjoyed considerable success not only in Asia but also globally. Because of this, Apple has been forced to embrace an aggressive strategy to counteract the influence these organizations have in international markets. Nevertheless, Apple enjoys undisputable market lead and success in America (Sadeghi, 2012). Samsung has come out as a main competitor to Apple especially in the manufacture of smartphones. The two corporations are regularly amending, nonetheless, they remain diverse. Although Samsung commands a considerable global presence and influence, comparatively, Apple has been on the rise and still stays focused. Samsung, just like many other Asian giants and manufacturers like Sony, utilizes the vertical integration as a strategy and mass produces its products (Hill et al., 2015).To increase its market share, Samsung has been able to manufacture a broad range of products that comprise medical products, smartphones, appliances and cameras amongst many others. The corporation depends on its vertical integration strategy as its major competitive strategy. Within the market level, Samsung depends on the vertical integration strategy and sustained financing of innovations (Godfrey, 2017).On the other hand, to increase its competitiveness, Apple concentrates on designing, integrating and outsourcing most of its functions. As far as research and design of products is concerned, Apple seems more focused and committed when compared to Samsung (Grant, 2016). Despite stiff competition from its peers in the market, Apple commands a huge market share and appears more competitive (Godfrey, 2017).My choice in question 3 would be different in the slow-cycle and not likely to change within the fast cycle markets. Thus, Apple because of its fast-paced innovation strategy. Apple depends on fast-moving devices because of fast changing technological advancements as well as consumer demands. Consumers anticipate that electronic devices must quickly change and keep up with the latest changes in technological advancements (Thompson et al., 2013). Therefore Apple would find it difficult to survive in a fast cycle market in comparison to a slow cycle one whereby Samsung would do extremely well because of its vertical integration and mass production.
References
Abraham, S. (2013). Will business model innovation replace strategic analysis?. Strategy & Leadership, 41(2), 31-38.
Fleisher, C. S., & Bensoussan, B. E. (2015). Business and Competitive Analysis: Effective Application of New and Classic Methods.
Godfrey, R. (2017). Strategic Management: A Critical Introduction. New York: Routledge.
Grant, R. M. (2016). Contemporary strategy analysis: Text and cases edition. New York, NY: John Wiley & Sons.
Hill, C., Schilling, M. & Jones, G. (2015). Strategic Management: Theory & Cases: An Integrated Approach. New York: CengageBrain.com.
Menzel, A. (2016). How well placed Apple is to sustain its recent success in the Consumer. New York: GRIN Verlag.
Ireland, R. D., Hoskisson, R. E., & Hitt, M. A. (2012). Understanding business strategy: Concepts plus. Mason: South-Western Cengage Learning.
Sadeghi, S. (2012). Defensive Strategy – Apple’s Overlooked Key to Success. Berlin: epubli GmbH.
Thompson, A., Peteraf, M., Gamble, J., Strickland III, A. J., & Jain, A. K. (2013). Crafting & Executing Strategy 19/e: The Quest for Competitive Advantage: Concepts and Cases. New York: McGraw-Hill Education.
Zylla-Woellner, J. (2014). Business Analysis of Apple Inc. New York: GRIN Verlag.
