Apple's Business Strategy Analysis

This assignment analyzes Apple's successful business strategy. It examines how Apple utilizes differentiation strategies and Porter's Generic Strategies to create unique products, overcome competition, and achieve its goals. The analysis emphasizes the importance of consumer feedback, innovation, and effective implementation of strategic decisions.

Strategic Management
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1 EVALUATING COMPANY'S APPROACH TO BUSINESS STRATEGY
DEVELOPMENT AND IMPLEMENTATION..............................................................................3
TASK 2 POSSIBLE STRATEGIC DIRECTION THAT THE SELECTED COMPANY COULD
FOLLOW IN THE FUTURE FOR SUSTAINABLE COMPETITIVE ADVANTAGE ..............6
TASK 3 IMPLEMENTATING THE CHALLENGES THAT MAY BE REQUIRED IN THE
COMPANY AND MAKE RECOMMENDATIONS TO ACHIEVE THE CHANGES................9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
In the current era of globalization businesses are facing tough competition among each
other that creates barrier while functioning in the international market. Thus, in regard to possess
better opportunities at the global market it is essential for businesses to undertake effectual
strategy approach such as Blue Ocean and Porter's Generic strategy. Moreover, strategic
management can be defined as a formulation and application of crucial goals and objectives that
are undertaken by the firm in order to plan for its future strategic direction (Hitt, Ireland and
Hoskisson, 2012). In this study, Apple organization has been undertaken and implements unique
business strategy within last several years in order to retain customers for long term. Also,
business evaluates the possible implementation of challenges faced by them and provide
recommendations for the same in order to overcome the issues.
TASK 1 EVALUATING COMPANY'S APPROACH TO BUSINESS
STRATEGY DEVELOPMENT AND IMPLEMENTATION
It can be assessed that it is essential for business to plan effectual strategy development
and implement it within firm to attain high market share and profits. However, in regard to
become successful, businesses need to implement talent and resources to attain best advantage.
There are different approaches which can be adopted by business such as Porter Generic Strategy
and Blue Ocean strategy to achieve desired outcomes. Further, different strategic approaches
helps in improving profitability, increase in market share, boosting customer’s satisfaction and
accomplishing the targets under defined budget (Hubbard, 2014). Also, in order to assess the
business tactic it is essential for the firm to determine the internal and external business
environment that influences the activities. It is essential for business to analyze the environment
in which they operate so that they can determine the opportunities present and attain competitive
edge over rivals. Furthermore, it is crucial for enterprise to determine the needs of customers and
its stakeholders so that management can plan the strategic approach accordingly and thus
implement it within firm to satisfy the needs of consumers. A proper stakeholder analysis needs
to be carried out so that customers, employees and competitors requirements can be assessed so
that best results can be accomplished (Lowson, 2004).
Apple management identifies different strategic options that helps in achieving business
strategy development and implementation in order to achieve desirable results. Further,
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implementing the successful strategic approach helps in accomplishing outcomes that success
can be attained by business in terms of increased customer base, market share and profitability.
Apple adopts an effectual approach to strategy development that helps them to succeed towards
organizational goals and attain competitive edge from other rivals. Here, Blue Ocean and Porter
Generic Strategy needs to be implemented so that organization can develop its business and
attract potential customers to utilize the products and services of business in an effective manner
(Marren, 2007). Through adopting such type of strategy it assists organization to find suitable
outcomes and thus achieve competitive advantage in near future. Also, management of the firm
is required to determine the needs and requirements of the customers and thus provide them
particular products and services so that satisfaction can be attained. It helps in achieving brand
loyalty among consumers. Apple management decides to continuously re-invent their products
by involving unique design and features so that more and more consumers can get attracted
towards business and purchases the products that helps in enhancing the sales performance of
firm (Moutinho, 2011).
TASK 2 POSSIBLE STRATEGIC DIRECTION THAT THE SELECTED
COMPANY COULD FOLLOW IN THE FUTURE FOR SUSTAINABLE
COMPETITIVE ADVANTAGE
Furthermore, it can be assessed that after evaluating the possible strategic direction that
has been selected by the firm i.e. Porter Generic Strategy that helps business to follow it in future
and sustainable competitive edge can be achieved over other rivals. For example, there are
varied competitors available for business such as Amazon, Blackberry and Samsung who all
launches tablets over the past years (Varbanova, 2013). Therefore, it is essential for Apple to
bring certain innovation in its features so that they can bring continuous innovation in order to
overcome rivals and reach towards targets. Adopting Porter Generic strategy and within that
implementing differentiation tactic helps Apple to differentiate its product from rivals. For
instance, Apple introduces unique feature gadget in market that attracts consumers so that best
results can be attained. Following are the different competitive advantage that has been earned
by Apple in order to become successful and overcome rivals (Vinzant and Vinzant, 2000).
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TASK 3 IMPLEMENTATING THE CHALLENGES THAT MAY BE
REQUIRED IN THE COMPANY AND MAKE RECOMMENDATIONS
TO ACHIEVE THE CHANGES
It can be evaluated that there are different challenges faced by business and thus, it is
essential for the management of business to overcome those challenges so that the best results
can be obtained. Apple can face different types of challenges while implementing business
strategy. These issues are to be ignored through the use of different types of approaches (Perrott,
2011). They are: Financial issues – Company may face the problem of lack of finance in the
implementation. At the time of unavailability of finance, the strategy cannot be applied
effectively. It may disturb the entire budget of the project. In that case budget should be
arranged from stable sources. For instance, Apple involves different sources of funds like
issue of shares, retained profits, venture capitalists etc. can be very effectual. Funds are
required to make sure that all activities can be complete effectively (Piercy, 2012). Skilled manpower – Another challenge in front of the business is lack of skilled
employees. In order to implement a strategic approach, adequate contribution is needed
from all the resources. Employees act as an asset for the organization, without their
efforts it is impossible to achieve the goals and objectives. Company can make value
from their innovative ideas and talent. In that case, it is important to make use of highly
standardized recruitment practices. Effective human resource management can arrange
highly skilled workforce for the organization. It will help in gaining competitive edge
over the other companies (Trim, 2004). Market conditions – Presently the business environment is highly competitive. For Apple,
the major business competitors are Samsung, Microsoft, and Google etc. Apple is being
known for its luxury products. The market conditions are needed to be favorable to
ensure that business is achieving success. For instance different economic factors such as
recession, inflation, purchasing power etc. highly influence the business activities of
Apple (Tsiotsou and Goldsmith, 2012). Market changes can also be noticed with regard
to consumer taste and preferences. Hence, issues related to market forces can be
eliminated by analyzing trends, applying forecasting techniques, through regression
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analysis etc. Company can appoint experts who are capable of reading the market
conditions in best manner possible. Lack of planning – It is one of the most common issue faced in the process of strategic
implementation. Planning is the foremost function of the management. It is done to
ensure that all other functions can be performed with perfection. Lack of planning may
result in some unwanted consequences which could be disturbing for the business. Hence,
in order to avoid this issue, there is a need to prepare schedules and timescale. All
activities are to be completed as per the decided time period. Delay in one activity may
cause delay in other activities also (Webb and Hogan, 2002). Poor leadership – Another issue which can be faced during the implementation process is
poor leadership. Leaders are the face of an organization and they hold multiple
responsibilities. They are also responsible for taking the organization towards the path of
growth and development. Good leaders can influence the minds of the employees in a
positive manner and can show them the right direction. Problem of poor leadership can
be resolved through application of efficacious leadership style (Mintzberg, 2004). In the
absence of good leadership, employees may deviate from the path of growth. Competition - The main issue faced by the management of Apple is of competition, as
business faces tough competition due to the presence of rivals such as Blackberry,
Samsung etc. All these competitors provides high level competition at the time of selling
the products at both domestic and international level. Therefore, in order to overcome
such challenge, business needs to determine the needs and requirements of customers so
that best products and services can be delivered to target audience (Cardwell, 2015). Ineffective human resources - Furthermore, another challenge faced by Apple consists of
ineffective human resources as it affects the operations of firm in market. For example,
lack of skilled workforce in business affects the implementation of strategic management
and thus, in order to solve such issue it is essential for the management of organization to
focus on an effectual recruitment and selection process so that skilled and talented
employees can be selected in order to attain best goals (Ellsworth and Drucker, 2004). Security and privacy - Moreover, business also faces challenges regarding security and
privacy of software so that other competitors could not hack or copy it. For instance,
Apple vs. Samsung case identifies that Samsung has copied its technology which was
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patented by firm and thus, Apple wins the case over Samsung. Therefore, it is essential
for organization to patent or copyrights its technology and software so that no other
business can copy and use it within their gadgets (Ritson, 2011). Communication - Communication is the best way through which senior management
provides information to each other as well as subordinates so that best strategic planning
can be done in order to attain future objectives. For instance, if business fails to provide
effective information then long term goals and objectives cannot be attained effectively
and efficiently (Marren, 2007). Adopting efficient leaders business faces issues regarding adopting efficient leaders so
that the best results can be attained. However, business sometimes fails to implement
such leaders and it provides negative impact upon the business and formulation of
strategy. In order to overcome such issue it is essential for firm to inspire the leaders to
take effective action and also provide them best training and development sessions so that
the desired outcomes can be generated (Uliwick, 2005). Technology – technological issues can be faced by business because at several times
when business founds itself as a leading technology service provider fails to provide
effective services as compared to competitors affects the performance of firm in market.
It is essential for business to provide best technology products and services in order to
attract customers towards firm and overcome such issue (Hubbard, 2014). Future growth – It is another challenge that is faced by Apple because it helps firm to
obtain future growth and, needs to undertake best technology services to customers so
that the desired results can be attained in the form of client satisfaction. In regard to
overcome such issue business needs to adopt effective technological products and
provide best services to consumers so that future growth can be attained (Brannick,
2001)? Rewards – It is also essential for the human resource department of Apple to design
effective reward and incentive system so that it does not influence employees in a
negative manner. For instance, if proper rewards have been provided to employees then
they should be highly satisfied and thus work effectively to attain organizational goals
and objectives (Greasley, 2009).
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CONCLUSION
At the end, it can be concluded from the study that strategic management helps in
achieving success within business. Also, implementing strategic management approach such as
Porter Generic Strategy and Blue Ocean strategy helps in developing business and implementing
actions to attain goals in future. Apple management focus on such approaches and thus provide
required innovative products to consumers in order to satisfy their needs. Further, there are
different challenges and issues that are faced by management in regard of technology, consumer
preference, competitors’ products and finance etc. that influences the business decisions to
launch new product in the market. Moreover, business overcomes such challenges by
implementing strategic options and thus achieve positive results. Also, it is essential for firm to
plan effectual strategy at the time of launching products and services such as change in lifestyle
of people, economic growth and consumer preference etc. so that business can expand its
operations globally.
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REFERENCES
Books and Journals
Baker, M., Kubal, D. and O’Rourke, T., 2006. How to use innovative approaches to retain key
talent. Strategic HR Review. 5(6). pp.5 - 5.
Bergeron, C., 2004. Build a talent strategy to achieve your desired business results. Handbook of
Business Strategy. 5(1). pp.133 - 140.
Brannick, J., 2001. SEVEN SRATEGIES FOR RETAINING TOP TALENT. Journal of
Business Strategy. 22(4). pp.28 – 31.
Greasley, A., 2009. Operations management. John wiley.
Hitt, M., Ireland, R. D. and Hoskisson, R., 2012. Strategic management cases: competitiveness
and globalization. Cengage Learning.
Hubbard, G., 2014. Strategic management. Pearson Australia.
Jeffs, C., 2008. Strategic Management. SAGE.
Johnson,. S., 2010. Exploring corporate strategy. Prentice hall.
Lowson, H. R., 2004. Strategic Operations Management: The New Competitive Advantage.
Routledge.
Lynch, R., 2006. Corporate strategy. Pitman publishing.
Marren, P., 2007. High-functioning business strategy. Journal of Business Strategy. 28(6). pp.37-
39.
McManus, J., 2011. Revisiting ethics in strategic management. Corporate Governance. 11 (2).
pp.214–223.
Miller, A., 2000. Strategic management. Irwin/McGraw Hill.
Mintzberg, H., 2004. The strategy process. Prentice hall.
Moutinho, L., 2011. Strategic management in tourism. CABI.
Murthy, P. N. D., Atrens, A. and Eccleston, A. J., 2002. Strategic maintenance management.
Journal of Quality in Maintenance Engineering. 8(4). pp.287–305.
Novicevic, M. and et.al., 2008. Historicism in narrative reviews of strategic management
research. Journal of Management History. 14(4). pp.334–347.
Perrott, E. B., 2011. Strategic issue management as change catalyst. Strategy & Leadership.
39(5). pp.20 – 29.
Piercy, F. N., 2012. Market-Led Strategic Change. Routledge.
Ross, S., 2013. How definitions of talent suppress talent management. Industrial and
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Commercial Training. 45 (3). pp.166-170.
Sadler, P., 2003. Strategic Management. Kogan Page Publishers.
Silzer, R. and Dowell, E. B., 2009. Strategy-Driven Talent Management: A Leadership
Imperative. John Wiley & Sons.
Snyman, R. and Kruger, J. C., 2004. The interdependency between strategic management and
strategic knowledge management. Journal of Knowledge Management. 8(1). pp.5–19.
Stacey, R. D. 2007. Strategic management and organisational dynamics: The challenge of
complexity to ways of thinking about organisations. Pearson Education.
Stensaker, B., 2014. Factors affecting strategic change in higher education. Journal of Strategy
and Management. 7(2). pp.193 – 20.
Trim, J. R. P., 2004. The strategic corporate intelligence and transformational marketing model.
Marketing Intelligence & Plannin. 22(2). pp.240–256.
Tsiotsou, H. R. and Goldsmith, E. R., 2012. Strategic Marketing in Tourism Services. Emerald
Group Publishing.
Uliwick, W. A., 2005. Business Strategy Formulation: Theory,Process and the Intellectual
Revolution. IAP.
Varbanova, L., 2013. Strategic Management in the Arts. Routledge.
Vinzant, C. J. and Vinzant, H. D., 2000. Strategic management spin-offs of the Deming
approach. Journal of Management History (Archive). 5(8). pp.516–531.
Webb, L. K. and Hogan, E. J., 2002. Hybrid channel conflict: causes and effects on channel
performance. Journal of Business & Industrial Marketing. 17(5). pp.338–356.
Whipp, R., 2000. The Management of Strategic and Operational Change. Management Research
News. 11(1/2). pp.27–28.
Online
Cardwell, J., 2015. 4 Barriers Keeping You from Implementing Your Company’s Strategy – and
Tips to Eliminate Them. [Online]. Available
through:<https://www.connectionsonline.net/News/Strategy-Execution/4-Barriers-to-
Implementing-Your-Strategy.aspx?id=20046172> [Accessed on 25 January 2016].
Ellsworth, R. R. and Drucker, F. P., 2004. Critical Issues in Strategic Management. [Pdf.].
Available through:<http://www.cgu.edu/include/MGT%20659%20Critical%20Issues
%20in%20Management.pdf> [Accessed on 25 January 2016].
Ritson, N., 2011. Strategic Management. [Online]. Available through: <
file:///C:/Users/user/Downloads/strategicmanagement.pdf>. [Accessed on 25 January
2016].
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APPENDIX
Following are the different approaches to business strategy development and thus implement it
within firm to achieve desired outcomes. These are as follows-
Porter Generic strategy
Management of Apple undertakes this strategy in order to gain competitive edge over
others and thus facilitate business to introduce unique and innovative design and features in its
product to attract consumers and enhance market share. Further, it is beneficial for business to
determine the environmental factors where it operates and thus take proper decision in achieving
organizational goals (Stensaker, 2014). Furthermore, such approach can be used by firm in order
to effectively understand the performance of business and thus attain competitive advantage over
rivals. It involves cost leadership, differentiation and focus cost and focus differentiation. Here,
Porter states that it is crucial for business to adopt its strategy which might be either
differentiation or cost leadership. However, such tactic will allow Apple to have better
competitive advantage within wide segment and with focus on cost leadership and
differentiation. For instance, implementing cost leadership will encourage Apple to obtain
effective cost in operation and improving its features and quality of products (Uliwick, 2005).
Hence, it assists firm to satisfy the needs of consumers and attain goals. On the other hand,
differentiation strategy focuses on motivating enterprise to attain diversification within its
product range and gain competitive advantage over others.
Moreover, Apple undertakes hybrid strategy for better success and enhanced competitive
advantage. For instance, in the period of economic breakdown, firm obtains cost leadership and
improves the brand image of the firm in the marketplace. Apple can also use differentiation
strategy so that they are able to produce differentiated products and services in order to attract
customers and provide them satisfaction (Baker, Kubal and O’Rourke, 2006). On the other hand,
Apple management can also undertake cost leadership strategy so that they are able to produce
effectual products at best prices and obtain diversification in its product range. However, once
Apple achieve differentiation strategy then they are able to charge high prices for its products
and services. While, adopting focus strategy, it states that they are hybrid strategy and ths allows
business to obtain enhanced focus over both the factors i.e. cost leadership and differentiation.
Implementing such type of strategic approach within business helps in developing and growing
the activities in order to attain desired aims (Bergeron, 2004).
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Blue Ocean Strategy
It is another crucial strategy that helps business to bring innovation within marketplace.
Thus, uniqueness in product range and services assists Apple to obtain competitive edge and
overcome rivals to achieve desired results. However, such strategy is useful for business at the
time when firm is looking for market expansion and attain desired results. Firm also avoids
costly competition and facilitate in minimizing innovation cost (Brannick, 2001). For instance,
management of Apple does not focus on adopting Blue Ocean Strategy because they were
planning to adopt different strategy and models so that desired results can be accomplished.
However, considering the existing market conditions, business can undertake this strategy as it
helps in allowing the expansion of business outside the boundaries and encourage firm to launch
products and services in new emerging marketplace (Greasley, 2009).
However, it can be evaluated that it is a risk taking approach as motivation is not up to
the market then it might be possible that productivity of business decline and leads firm towards
failure. Further, applying better Blue Ocean Strategy, it helps firm to focus over certain crucial
principles. While, such principles are distinguished among formulation and execution rules.
Within, formulation laws it consists that business reaching beyond existing demand,
reconstructing market boundaries, focus over brand image and orientation not in figures (Sadler,
2003). Further, on the other side execution principles involves overcoming the crucial
organizational issues and develop strategy execution so that desired outcomes can be attained.
Hence, it can be evaluated that through applying different business strategy development
practices such as Porter Generic Strategy, it assists in achieving desired market goals and
objectives. However, it helped Apple to achieve high profits and raise its stock price more by
80%. For example, the firm successfully launched new iPad and become the most successful
technology company to enhance customer base and profitability (Snyman and Kruger, 2004).
Business also focuses on raising the customer share through differentiating the products as per
the target segments and thus provide them required products in order to win satisfaction.
Company also decreases it prices at the time when new version of smart phone or iPad has been
launched. It improves the sales of firm in market and thus build brand image in market.
These are discussed underneath-
 Pricing the products as per the consumer segments- Here, it can be stated that the
business prices the products as per the requirements of different consumer segment and
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attract them in order to attain satisfaction. Apple launches its products with diversified
features and develop unique product portfolio in order to attract large set of consumers
and thus achieve results in the form of high sales and profitability (Whipp, 2000). For
instance, when Apple launches it’s most recent iPhone 4G version it adopts marketing
strategy and decreases the prices of its 3G version to certain amount and thus attracts
youth to purchase particular product so that best results can be attained. Furthermore,
such strategy helps in allowing the individual to capture high margins and undertake
penetration strategy so that more price conscious people purchases 3G version and
become iPhone user. It is the competitive advantage of firm that it helps in attracting
consumers and also possess opportunities to evolve and re-price their successful product
so that more and more clients can be attracted towards business (Jeffs, 2008).
 Keeping business eye towards future- Further, it helps in attaining sustainable
competitive advantage and thus helps firm to keep their eyes upon future strategic
direction so that success and growth can be accomplished. For instance, as Apple
continues to launch innovative products and services, expectations of people rises.
However, management is required to focus themselves upon the future strategic options
by improving the technology and features of the iPads and iPhones so that a lot more
customers can be attracted (McManus, 2011). Media also focuses on business tactics as
it plans to launch new products with unique features every year and influence its
consumers to achieve desired targets. Due to such reason, Apple has never stopped
innovating and its every product range increases its popularity and sales every year.
However, the sales of iPad has increased by 111% in its fiscal first year and the
organization still maintains 74% market share in the tablet product range. However,
there are numerous competitors available such as Blackberry, Samsung etc. which gives
tough competition to rivals and thus provide advantage to Apple. Further, continuous
innovation and forward strategy helps Apple to focus in future and develop strategic
option in regard to overcome competitors and achieve desired objectives (Miller, 2000).
 Listening to the clients- Furthermore, it is also crucial for business enterprise to
effectively listen to their clients in order to provide those desired products and services
and thus achieve results. For instance, with the help of social media, customers
undertake a variety of different places that helps in making available the products and
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express the opinion of clients to utilize the particular product so that consumers can be
attracted in order to achieve sales (Ross, 2013). Further, business is required to adopt
unique marketing strategy and thus launches its innovative products i.e. iPhone 4s and
iPad and thus helps firm to enhance their demand and sales in market as compared to
competitors. It is the unique way through which business listens to their customers’
needs and wants and thus provide those required products and services in the near future.
For instance, the new iPad is not that much similar to iPad 2. It involves varied unique
features such as new screen, 4G, faster processor and better camera quality helps in
attaining desired objectives (Silzer and Dowell, 2009). But firm does not totally redesign
the product. While, the new iPad involves certain major concerns that was expected by
customers at the time of initial launch of iPad. Thus, business directs its research and
development and marketing team to involve desired features as stated by consumers so
that required product can be produced in order to make the iPad successful. Moreover,
there are several companies that try to compete with Apple but it overcomes them by
introducing unique product range with innovative features and designs and success in
market (Stacey, 2007).
Furthermore, implementing Porter Generic Strategy helps in achieving sustainable
performance within business and thus overcome the challenges faced by firm. Also, it can be
stated that Apple undertakes effective business strategy that helps them to develop its products
and services in market and attain desired goals. Management of the firm is required to implement
effectual strategies so that desired goals can be attained. Implementing Porter Generic strategy
helps Apple to develop its products and services by adopting differentiation strategy so that
unique design products and services have been developed in order to achieve desired targets
(Johnson,. 2010). Thus, undertaking such strategy helps in implementing best action so that
future goals can be attained by firm. It also helps business to determine the strategic decision
making and achieve overall organizational goals. For instance, by implementing the required
changes it helps firm to achieve desired objectives in terms of sales and profitability. Apple
launches unique quality products and services as compared to competitors and thus attract target
segment so that best results can be attained (Lynch, 2006).
However, once the strategies have been developed, it helps the firm to implement it
within the business so that it does not impact on the organization. Apple involves it senior
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management team in order to implement the changes and thus, achieve success so that best
outcomes can be accomplished. However, business entity implements the best suited strategic
option so that encouragement among organization can be earned in order to achieve desired
outcomes. The team members develop strategic map that helps in identifying and assessing the
critical factors so that it helps business to attain success (Murthy, Atrens and Eccleston, 2002).
Implementing the strategic factors helps business to succeed good performance so that success
can be attained in regard to satisfy the needs and wants of consumers in the marketplace.
However, adopting good performance measures helps in focusing the business to attain success
in the business. Further, in regard to guide the business, performance measures can be a
competitive advantage as it helps in driving alignment and common purpose across the business.
For instance, if business adopts desired outcomes i.e. world class customer service, measuring
the volume of customer queries and providing them desired products and services helps in
accomplishing desired results (Novicevic and et.al., 2008).
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