Apple Technology: Internal and External Analysis and Competitive Strategy

This report provides an analysis of Apple Technology's internal and external environment, including a SWOT analysis. It also analyzes the company's competitive strategy and provides recommendations for maintaining the company's pricing strategy, aggressiveness in the market, and rapid innovation.

International Business Management

TABLE OF CONTENT
Executive Summary.........................................................................................................................3
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Overview of Apple Technology..................................................................................................3
Internal Analysis..........................................................................................................................4
External Analysis.........................................................................................................................5
Analysing competitive strategy:..................................................................................................6
Strategic option available by competition:..................................................................................7
Strategic recommendation:..........................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1

Executive Summary
The Apple Technology is leading at the top most level in the field of technology all over the
world. The report is explaining the concepts and ideologies from where the company is able to
lead at higher level. It includes the different analysis and strategic operation from which it will
provide an understanding theory to the individual.
INTRODUCTION
International business management reflects and demonstrate the good exportation and
import of the goods and services to the consumer over all the world. Every business organization
wants to expand their business at global level which requires to implement various theories and
methods in the specific manner. In this rapid growing world, technology is also moving ahead
with its great speedy level. Choosing an organization Apple Technology and will describe its
different methods from which they are able to obtain high success (Grabtchak, 2020). This report
will also include the internal and external environment along with its strategic operations which
will define its way of definite success.
MAIN BODY
Overview of Apple Technology
The company Apple Technology is American international organization that mainly deals
in electronic goods. They mostly focus on the products such as computer, laptops, mobile phone,
iPad, iPod, television and such more. The company is located at United States of America and
founded by the Steve Jobs and its partners. The company focus on the consumer desires and
provide the luxury products from which consumer attracts by looking its expensive and luxurious
components.
Their target market is to provide the glowing products to the consumer from which they
are able to approach more and maximum amount of people. The company is leading to
innovation and able to supply the uniqueness in their items. The Apple technology is stable at its
financial position and its turnover is around 365.85 billion US dollars in their financial year.
Apple is widely in demand by their consumers as they believe in providing the more innovation
and uniqueness in their products and services (Gardere, Sharir, and Maman, 2018).

Internal Analysis
The organization internal analysis has been done to evaluate the company internal structure
and its capability to stay in the growing market. In this context, let’s evaluate and understand the
Apple company micro analysis from which will be able to know its strength and threats
accordingly. Here, performing the swot analysis to recognize the company internal behaviour.
Strength: The first factor of swot analysis determines the term strength which indicates the
power and ability of the particular organization. The Apple company is simple and easy to utilize
from which people prefer more to utilize their innovations and products. In this rapid growing
world, the Apple has made the improvement in the technology factor and made multiple of new
innovations. Their innovation is making the consumer to attract more and utilize their products in
the maximum amount. The company also utilize the strategy where they keep the process of the
products high which makes them to look luxurious and expensive from where people attract
more (Regmi, Tobutt, and Shaban, 2018).
Weakness: The weakness factor demonstrates the concept of where the organization needs to
improve their gods and services from which they are not able to increase their sales and
productivity. The Apple technology is already a branding organization but every company has its
own weakness. The company pricing strategy is beneficial for them but for the middle class
people it seems to be not affordable for them to utilize the expensive products like iPhone. Along
with this, the company innovation is brilliant but still the production of their goods and products
are limited which creates a little difficulty or weak point of the organization.
Opportunity: The opportunity reflects the possibility to grow and develop in the definite order.
Looking at the company Apple technology they are leading the innovation in the entire world
and growing in the beneficial manner. The company had the opportunity to increase their sales
and demands in the public by their products feature and structure which makes them to increase
their sale. Consumer always looks for something new and what the Apple company is providing
them. Along with this, as it is already known that the pricing strategy is utilized by the company
is very effective and beneficial for them which gives them opportunity to grow in the effective
manner.
Threat: The company Apple is basically threatened of the competitor in the market. Generally,
the android and IOS smartphones are giving a perfect and accurate amount of competition in the
market from where the Apple can lose its share (Kalaitzi, Matopoulos, and et.al., 2021).

accordingly, sometimes Apple organization has fear of getting substituted by the other company
because of its high pricing strategy in the particular market.
External Analysis
The external analysis has been done of an organization to understand the macro factor
which affects the company growth and stability. In the context of Apple company lets, evaluate
its external environment.
Political: The Apple is one of the leading organization in technology all over the world.
According to this, the company mostly impacted by the tax inequality which has become a major
issue for the company. Along with this, the organization has be3come the target of growing and
developing company all over the world where it can reduce it market shares.
Economic: The economic factor plays an important role in the organization. The Apple has its
impact on their development as it is increasing the labour costs of the china market where the
company can also obtain the profit (Song, Wang, and Zhu, 2018). Along with this, the company
product is already in demand and if the US could increase then the rates of the Apple products
will also take a rise in pricing structure.
Social: The social factor includes the population most probably. As the future of the company is
decided by the social factors which includes the consumer expending and will grow the areas of
the company to be stable or not. The sale of the Apple products is highly in demand by the
country India where people are mostly desired and excited to utilize the products.
Technology: Technology is adopted by the Apple company it the perfect manner which is
providing them a good result. Accordingly, the company is required to focus on the research and
development areas from which they can be to evaluate the competitive advantage and can grow
effectively.
Legal: The legal structure includes the level of rules of regulation related to the legislation nd
legal structure. Recently, the company Apple has regulated the financial services sector under the
government instructions.
Environment: The environmental factor includes the structure of surroundings which impact the
company growth (Ismail, and Suhami, 2021). Manufacturing companies contains a high amount
of population which harms the environment and it causes a bad image of the company in the
market.

Analysing competitive strategy:
Apple is one of the most successful tech company in the world, this business organization
provide high quality of technology to the customer. Apple is well know for market leader who
have being ruling technological industry, this company have wide range of product which have
expensive pricing. Being king of market means Apple face huge competition, many large tech
companies like Microsoft, Samsung, Hitachi and Huawei (Islami, Mustafa and Latkovikj, 2020).
These companies also have great brand image and reputation in market, customer base of these
companies are strong enough to compete Apple. One of the most successful technological firm
like Microsoft provide intensive competition to Apple. Although, Apple effectively respond to
these competitors movement in the market. Apple's generic strategy is directly related to
intensive growth strategy which allow company to manage their pricing, marketing and business
operation. Porter generic strategy can be used to understand growth strategy of Apple and their
competitors, these generic strategy are:
Cost leadership: cost leadership means business adopt the lowest cost to sell their product in the
market, this strategy allow company to fulfil the demand of customer. Cost leadership is for
those firm who want to generate surplus profit without caring about their brand image and
reputation. Apple avoid cost leadership because they do not want to damage their brand image,
this company never adopted cost strategy to get competitive advantage. Whereas competitors of
Apple like Microsoft sometimes adopt this strategy to fulfil mass demand of software in
industrial and business area (Linton and Kask, 2017). Many large business firm use software of
Microsoft to operate their daily business activities, to fulfil the demand of these companies,
Microsoft adopt cost leadership.
Differentiation strategy: differentiation strategy in generic competitive advantage means
business try to enjoy benefit of wide range of product, in this company differentiate their product
with product of competitors allowing them to get competitive advantage. Apple use
differentiation method to get ahead of their competitors, highlighting core feature of their
product push their growth in the market. Competitors of Apple like Samsung also adopt this
strategy to win rising demand of product by the customer. Samsung not only differentiate their
product but they also use innovation as key strategy to overcome threat of competition.
Redeveloping core features of product allow company to enjoy market benefit and keep head-to-
head competition with Apple.

Cost focused strategy: cost focused leadership means company focus on niche market and
struggle to become king of that market, these niches market can be divided according to industry
size or geography. Apple target niche market where they can get potential customer, but this
company never adopt cost leadership while targeting niche market, because Apple do not provide
product in lower cost possible (VAHDATI, NEJAD and SHAHSIAH, 2018). Competitors of
Apple like Huawei focus on niche market entry with cost leadership, Huawei provide wide range
of product at lower cost to niche market where they get competitive advantage, this company
know that capturing technology industry is very challenging which means they need to adopt
cost focused method. On the other hand, cost focus strategy open partnership benefit for these
companies, in niche market Huawei have partnership with Tableau software which allow them to
become market leader.
Differentiation focus strategy: differentiation focus strategy allow company to get competitive
advantage in market, this strategy focus on provide uniqueness of product with superior
dimension of product. Apple mainly focus on this strategy because this allows company to keep
prices as high as possible that even competitors can not copy it. It is very clear that Apple's
product are very expensive as compared to any such technological product in the market.
Customer become superior in differentiation focus strategy. Competitors of Apple like Hitachi
avoid this strategy because they can not put higher price for their product. But some differentiate
product of Hitachi is way more expensive than its competitors allowing them to enter narrow
market with high cost. This provides neck to neck competition to Apple in the market.
Strategic option available by competition:
Strategic allow company to boost their growth, without strategy a company may find
difficult to survive in competitive market (Bayraktar and et.al., 2017). Apple has one of the most
effective competitive strategy which allow them to become market leader and rule technology
industry for years. Apple have various strategic option allowing them to provide neck to neck
competition to their rivals, many large firms like Microsoft, Samsung, Huawei and Hitachi have
strategic option to give high level of rivalry to Apple. Apple has three strategic option available
with them, these are:
Diversification option: diversification option means entering new market with new product,
many companies adopt diversification option of Ansoff matrix which allow them to bring
innovative product in new market. This strategic option help company to get competitive

advantage in the market because when company decide to leave existing market which is full of
competition and look for those market segment which do not have high rivalry. Apple sometimes
called these market as blue ocean market where there is no or very less competition. Apple has
strategic option to enter new market with innovative product, although this company is already
being ruling technological market.
Valuable resource: resource provide competitive advantage to company when it is high
valuable, which means company need to find those area resource which are not available with
competitors. Value resource unlock various benefit for company for example oil is most valuable
resource in the world which allow many petroleum company to become market leader
(Agyapong, Ellis and Domeher, 2016). Apple have valuable resource which keep them unique
and powerful in high competitive market, this company make good use of these resources. Value
resource of Apple are advance engineering for both, hardware and software. Apple can look for
more valuable resource which can become strategic option for the company, smartness of staff
and their skill level can provide competitive advantage to Apple.
Strategic recommendation:
Aggressiveness in market: it is recommended for Apple to keep their aggressive behaviour in
highly competitive market, this company tend to rule technology industry with their powerful
behaviour and hostile movement. Apple already have aggressive growth strategy to maintain
their effectiveness in competitive market, but still this company need to maintain that strategy
because most of their competitors like Microsoft and Huawei also becoming aggressive day by
day allowing them to capture ruling area of Apple. It is highly recommended for the company to
maintain aggressiveness in the market.
Rapid innovation: rapid innovation is one of the best strategy to become market leader, many
business organization look for innovation as key factor to provide neck to neck competition to
market kings. It is recommended for Apple to adopt rapid innovation in their business process,
although, Apple already have habit to keep innovation as priority, but still they need to adopt
innovation to bring more betterment in their existing product. It is very clear that innovation is
growing with rapid speed in technological market, many market giants are failing to provide
innovation in their product resulting in drawback and low market sales. Apple need to keep rapid
speed in innovation to maintain their position in the market.

Pricing Strategy: The company is famous and leading for the technology and its innovation. It
has been recommended that the company should maintain and focus on their pricing strategy
which is the company strength and power. Because of the company pricing strategy their
products are more valuable in the market and consumed at maximum amount. The company is
required to produce such products which are unique but affordable for the middle class families
who wants to do purchase the product but due to its high cost strategy they are unable to
consumer.
CONCLUSION
This report have discussed international business management and its importance in the
business organization. Later this report have provided introduction to Apple and understood their
position in the market. Later this report have discussed internal and external analysis which
helped in understanding those factors which affect smooth business process. Later this report
have discussed competition analysis where this report have provided clear understanding of
generic strategies which provide competitive advantage to company. At last, this report have
provided strategic option and strategic recommendation.

REFERENCES
Books and journals
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businesses: moderating effect of managerial and innovative capabilities. Journal of
Small Business & Entrepreneurship, 28(6), pp.449-477.
Bayraktar and et.al., 2017. Competitive strategies, innovation, and firm performance: an
empirical study in a developing economy environment. Technology Analysis &
Strategic Management, 29(1), pp.38-52.
Islami, X., Mustafa, N. and Latkovikj, M.T., 2020. Linking Porter’s generic strategies to firm
performance. Future Business Journal, 6(1), pp.1-15.
Linton, G. and Kask, J., 2017. Configurations of entrepreneurial orientation and competitive
strategy for high performance. Journal of Business Research, 70, pp.168-176.
Prajogo, D.I., 2016. The strategic fit between innovation strategies and business environment in
delivering business performance. International journal of production Economics, 171,
pp.241-249.
VAHDATI, H., NEJAD, S.H. and SHAHSIAH, N., 2018. Generic Competitive Strategies
toward Achieving Sustainable and Dynamic Competitive Advantage. Revista
ESPACIOS, 39(13).
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Gardere, J., Sharir, D. and Maman, Y., 2018. Consulting and Executive Coaching on Future
Trends: The Need for a Long Term Vision with Apple and Samsung. International
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Regmi, D., Tobutt, C. and Shaban, S., 2018. Quality and use of free smoking cessation apps for
smartphones. International journal of technology assessment in health care. 34(5),
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Kalaitzi, D., Matopoulos, A., and et.al., 2021. Megatrends and trends shaping supply chain
innovation. In Next generation supply chains. (pp. 3-34). Springer, Cham.
Song, Y., Wang, H. and Zhu, M., 2018. Sustainable strategy for corporate governance based on
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Ismail, B. and Suhami, H., 2021. Making Guidance of Financial Reports Using the Application
and Improving Company Profile for B2b Promotion on Indonesia Leather Shoes
MSMEs. Nusantara Science and Technology Proceedings. pp.71-80.
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