Case Study Report: Strategic Management of Apple Inc.

Student number: STU200857
Module: Strategic Management
Case Study Report: APPLE INC
Date for Submission: 14.02.2024
Word count: 3886

Question 1
Summary
Apple Inc. has effectively generated significant value in the fiercely competitive personal
computer sector by inventing and adopting a distinct approach that sets it apart from its main
rivals, effectively distinguishing its products from theirs. The competition prioritises quality,
design elegance, and exceptional customer service, while entrusting the production process to
reliable original equipment manufacturers. However, despite the advantages Apple has
established, the intense rivalry in the sector and other outside factors pose significant hurdles
to the company.
The consumer market for personal computers/notebooks is experiencing a growing trend
towards commoditization, resulting in fierce competition among companies in the sector,
which in turn is causing a decline in prices and the possibility of harmful price wars.
Harnessing vital assets and qualities like Apple has achieved a strong market position and
commands high prices due to its exceptional design teams, skilled software and hardware
engineers, substantial research and development budget, extensive patent portfolio, and
effective leadership by CEO Steve Jobs. Regrettably, Apple cannot rely on its past
achievements. The position is transient, and Apple must consistently explore novel strategies
to sustain profitability and generate value for consumers and shareholders. The personal
laptop market is reaching a point of saturation as it matures, resulting in a decrease in new
purchasers and an increase in replacement buyers. To sustain its growth, Apple must also
explore emerging and growing markets as potential sources of income. After evaluating
Apple's substantial financial reserves, the primary strengths and skills of the company, as well
as its main resources and talents, and taking into account its present position in the sector and
the many trends in the wider economy, it is evident that Apple has the potential to generate
significant value through continued diversification related to IoT. The rich history of
groundbreaking products including as the iPod and iPhone demonstrates that the company is
highly capable of sustaining its trajectory of innovation. It achieves this by developing a
digital lifestyle convergence solution that seamlessly integrates users' on-the-go and at-home
digital experiences.
Intended strategies.
The commercial approach employed by Apple may be categorised as product differentiation.
More precisely, the international technology corporation distinguishes its goods and services
by emphasising a combination of elegant design and cutting-edge features.
Apple has leveraged the sophisticated features and capacities of its goods and services in
order to establish a competitive edge, in line with its business strategy. Apple has released
several notable innovations, including the iPad, which was the first device of its kind to store
numerous songs and had a simple shuffle feature. They also developed the Macintosh, the
first computer to utilise a graphical user interface. Additionally, Apple launched the iMac,

which revolutionised computer design by replacing boring beige boxes with vibrant,
translucent instruments in colours like "Bondi Blue," foreshadowing the distinctive aesthetic
that Apple would later become renowned for. The inaugural corporation to achieve a $1
trillion valuation methodically enhances the characteristics and abilities of its products, whilst
establishing novel benchmarks for the industry. Consider photographs as an example. Apple
significantly propelled the worldwide photography business with a variety of breakthroughs,
as seen in the table below.
The advantage of being the first is a component of Apple's competitive advantage. It must be
emphasised that Apple's competitive edge may be difficult to maintain in the long run. More
precisely, the leadership team might not succeed in guaranteeing the inclusion of inventive
features and abilities in future iterations of its items, hence jeopardising the company's
competitive edge.
 Improving client satisfaction: Emphasising client experience is a fundamental
component of Apple's company approach. It is commonplace for enthusiasts of Apple
to produce movies of themselves unboxing their newly acquired Apple items and
sharing the footage on YouTube. This occurs because to the business's achievement in
establishing a client interaction that surpasses the mere act of acquiring a product.
For instance, initiating the use of any Apple gadget is really effortless. Customers
unbox the device, connect it to an electrical source, power it on, and begin using it.
There is no requirement to set up or download any software or files. There are over
518 Apple Stores located in 25 nations and territories. These stores provide customers
with the opportunity to test items and receive assistance from knowledgeable
personnel, which greatly enhances the overall customer experience.
 Enhancing the Apple environment: Apple's commercial strategy is typified by vertical
consolidation, where the corporation possesses superior knowledge in software,
hardware, and services simultaneously. Apple's vertical integration is a significant
differentiating characteristic that distinguishes it from its competitors. The corporation
has greatly profited from its vertically integrated approach. Apple's competitive
advantage is mostly derived from its ecosystem, which is facilitated by seamless
integration.
Emergent strategies

Opacity around items: Apple divulges little details on the characteristics and information of
its new products. Consequently, individuals get enthusiastic about the good and cultivate a
sense of anticipation. This marketing approach employed by Apple is considered one of the
most effective.
Crafting an immersive encounter: Apple places great significance on customer experience
and holds it in high esteem. The company ensures that its customers enjoy a positive and
memorable purchasing experience. They ensure that every interaction point with customers,
including their physical and virtual shops, advertisements, and products, provides a
captivating and compelling experience for their clients.
Apple maintains a straightforward approach by ensuring simplicity in its marketing strategies
and product offerings. Their advertising use accessible language that is easily comprehensible
to the general populace. The product layouts and characteristics are uncomplicated and do not
inundate the clients. Although the language used is uncomplicated, they effectively
communicate the details of the items and how they contribute to streamlining your life.
Retaining clients: Rather than employing discounts to entice new consumers, Apple
prioritises the retention of its existing, loyal customers through the provision of exceptional
customer care. The client service promptly responds to customers who provide complaints
within a 24-hour timeframe.
The NPS index: Apple use the Net Promoter Score (NPS) as a metric to gauge the inclination
of consumers to endorse the firm's products and services. By implementing this approach,
salespersons refrain from engaging in up-selling or cross-selling with consumers who lack
interest in purchasing more items. This effectively mitigates the risk of customers departing
the stores with feelings of frustration and dissatisfaction.
What is Apple's tactical promotion plan?
Outlined below are many strategic initiatives that Apple implements to get a competitive
edge. Emphasise value: Apple directs their attention towards their Unique Value Proposition
(UVP). Apple demonstrates a willingness to determine the pricing of its products according to
their inherent worth, without fear. They promote the unique value proposition (UVP) of their
goods, highlighting how they enhance various elements of their consumers' life and provide a
specific price for them. Devoted patrons recognise the value and willingly accept the cost.
Attracting visuals: Apple employs really attractive pictures. Images facilitate the transmission
of a greater amount of information compared to words. The visual elements have a more
enduring influence on clients and are more easily remembered by them in relation to the
product.
Comprehending the objective market: The organisation possesses a deep understanding of its
clients' requirements and seamlessly integrates them into each of its novel offerings. Apple's
ability to satisfy client demands is crucial in maintaining its loyal customer base.