Strategic Management - Meaning

RUNNING HEAD: STRATEGIC MANAGEMENT
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Strategic Management

Strategic Management
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Introduction
Strategic management is considered as the process that promotes a systematic approach to
strategy and ensures strategy formulation by integrating it with mission, vision and purpose of
the company and then implementing strategies to meet the mission and goals (Witcher,2019). In
order to understand the concept of strategic management an organization has been selected that is
Apple. Apple is a multinational American company that headquarters in California. The
company operates in consumer electronics and offer hardware and software products to its target
customers. This report further includes internal and external analysis of Apple in order to know
strength and weaknesses of the company. At last, strategic issues are identified and
recommendations or different alternatives are identified.
Company Profile
Apple Inc. is an American company that operates in consumer electronic industry, online
services and computer software and hardware. Apple Inc. ranked as the second largest
organization in the world in term of smart phones and ranked as the third largest in the world for
technological services. Apple was founded in 1977, manufacturer and designs and markets media
devices and mobile communications, personal computers and other applications (Apple,2020).
In 2019, Apple iPhone contributed 54.7% in the sales of the company at the global level and
service sector of Apple contributed 17% of revenue and other segments are wearables, home
accessories and iPad. The valuation of the company in 2019 was $ 502 billion because of
increasing shift of people towards the innovative products. The sales of the company improved
and the valuation of the company experienced its highest (Apple,2020).

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Internal and External Analysis
Internal Analysis
Current Strategies
At present the company’s strategies are formulated with the aim of achieving its vision and
mission. Vision of Apple is “Man is the true creator of change in the world, so he should be
above structures and systems”. Mission statement is “Empowerment of man; by making personal
computer accessible to every individual so that the way people work, communicate and learn can
be changed”. The company focused on product differentiation strategy and integration strategy.
At present the company established itself in the market as the luxurious brand that provides
quality services and products to its target customers. The customer base of Apple is loyal
customer base that stuck with the company products. Further, some of other strategies of the
company include effective promotion strategies, branding and leadership skills of Tim Cook.
Value Chain Analysis
Primary activities
Inbound logistics: Apple supply chain is the largest as the company has 200 suppliers that helps
the company to manufacturing, material procurement and assembly. In this Apple enjoy high
bargaining power of suppliers. The company set high standards for its suppliers and adopted
smarter methods of production (Cusumano et.al,2019).
Operations: The operations of the company take place in many nations mainly in China and cost
of production for the company is low in Asia. That indicate that Apple also focus on reducing its
cost of production by investing huge amount in setting up assembly stations in different nations.

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Outbound logistics: The distribution network of Apple includes both indirect and direct channels.
From online stores to retail stores the products and services of the company are accessible by the
target customers on the right time.
Marketing and Sales: Apple is famous for its marketing as the company has strong marketing
mix. Apple products are well known for its design, quality and innovation. Due to that customers
are ready to pay the premium prices for Apple products.
Product and services: Apple targets higher income group segment due to that products and
services offered by Apple are luxurious. Further, warranty and services provided by the company
to its customers are appreciable. Online assistance and offline assistance is available and Apple
authorized stores are also accessible by people.
Source: (Cusumano et.al 2019)