Porter's Generic Model and Apple Inc.

This assignment explores Porter's generic model and its relevance to Apple Inc.'s business strategies. It delves into the company's use of intensive strategy and premium pricing to achieve competitive advantage. The report examines the suitability, acceptability, and feasibility of these strategies in gaining profit and revenue for Apple Inc.

Strategy, Enterprise
and Innovation

INTRODUCTION
In today's modern world each business organisation are focused on adopting most
suitable strategy in order to reaching at higher position at market place (Scholes, 2015).
Innovation is refers as the process of translating thorough, ideas and invention into proper goods
and services which create value for firm as well as customers. Apple Inc. is a most popular
American multinational corporation which manufacturers and designs consumers electronic and
computer products. Apple is famous for its innovation and high quality of goods and services
which are offered to their customers in order to satisfying their current needs and wants. This
report contents the study about distinctive internal sources and capabilities that are helpful in
gaining competitive advantage at market place. The external environment and their impact on the
entrepreneurial activities. It identifies key drivers of changes from the external environment and
its impact on competitive forces which are helpful in influencing profitability of firm will be
discussed in detail to highlight the profitability and attractiveness of the industry.
Section 1:
A) The internal resources and capabilities that give the organisation a competitive advantage.
A core competency is a concept of management theory which introduced by Gary Hanel
and C.K. Prahalad. Ir can be considered as a harmonized combination of various skills,
knowledge and resources which helps in distinguish a firm in the market place. Core competency
is a most essential term which helps in creating differentiation among organisation or its
competitors who are available at market place. Core competencies are widely applied by each
business organisation because it is more effective in generating high competitive advantage at
market place in order to providing high competition to their competitors. Apple is applying
various marketing strategies and spend a huge amount in effectively implementation of activities
in right direction and the applied strategies are distinctive an innovative as compared to other
business organisation.
Internal resources can be stated as the resources which are used for productivity within
organisation including staff member's development. Competitive advantage can be gained by two
ways: Internal and External factors. Internal factors plays an important role in making APPLE
gain competencies level. It makes growth and enhance productivity as well as performance level
of a firm.
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As a well known brand Apple is providing variety of products and services to their
potential customers with more innovative features and components in their new products. The
major identity of Apple is its patent which is more different from other competitors. The patent
has its own right and there is not any authority to other organisation to copy the same. Apple
provide its symbol of their each products which make standout its products as compared to other
brand and products. Benchmarking: It is most valuable method through which capabilities can be polished
and thus company can lead market share but to attain that it requires to follow some
certain steps like preparing reports of the rival company and analysing it in such way
that the point should be highlighted where the APPLE lacks and thus working on it to
enhance and use it as strengths.
 Internal Seminars: Seminars should be conducted in order to gain knowledge about
unseen methods and sections which can bring change in performance and productivity
in positive manner (Verbeke, 2013).
Apple Inc. is focused on arranging internal seminars in order to establishing sustainability
among employees, so that they can perform in most efficient manner. It is required for apple to
maintain their staff for long time so that productivity can be enhanced in appropriate direction. Technological development: Most important factor is development of technology which
boost company sales and revenue graphs. In APPLE, technological development can be
done as in current still there are some sections on which advancement is necessary for
more growth.
 Internal Audit: This approach starts with the premises that every firm has certain tasks
which is must to perform (Drucker, 2014). There are six primary functional areas which
are Operations, marketing, Research and Development, financial accounting, HRM and
Information systems.
Depending on products, markets, industries and individual structure may very. Thus, they may
have impact on functional areas.
The internal environmental analysis process proposes assessing an organisation's internal
activities by doing the following:
 Analysing strength and weaknesses.
 Categorising strengths and weaknesses to lead in competitive advantage.
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 Investigating the potential of these strengths to lead competitive advantage.
 Evaluating abilities of competitively resources and capabilities to serve as the basis
for an appropriate competitive strategy.
These all elements are very much effective in generating high competitive advantage at
market place, each business organisation focused on expanding their business activities in order
to providing high competition to their competitors, so that significant profit and revenue can be
achieved in efficient manner (Tebbe, 2011).
B) The key drivers of change in the external environment and their impact on the entrepreneurial
activities of the organisation
According to the view point of Ashim Gupta, 2017 Main drivers and components of external
environment include competition, customers, resources, technology and laws and regulation set
by government.
(Source: External Components, 2017)
The essential key drivers of changes and their impact on firm:
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Illustration 1: External Factors

Competition: It relates with the enterprise who produce and offer same products. It is very
essential for an enterprise to have relevant information about all its competitors for formulate
better policies for business and to capture a larger market share (Atuahene-Gima, 2013, May).
Customers: Individuals who are the end user of a company's product are known as customers.
For better satisfy the needs and wants of its customers and to get their loyalty. The needs and
demand of customers are changed rapidly as per the change arises in the market trend. Apple is
widely focused on identifying the new trend and needs of customers and produce innovative
goods and services as per the requirement of customers. It is not easy for firm to adopt various
changes, so this has a huge impact on organisational growth and success.
Technology: This include the technology use by company to make final products for its
customers. Technology improvement help an enterprise in make quality and featured products
for its customers. Advancement in technologies are helpful in implement various changes at
work place which has a positive impact on organisational performance. In this modern era
technologies are changed due to effective and new invention arises at the market place. New
technologies are effective in generating high profit and revenue in future timing.
Laws and regulation: All organisation are liable to abide the rules and regulation of legal system
of every country. New rules and regulations are add due to political and social changes. Apple is
a multinational company who is widely affected by Brisexit because new rules and regulations
are implemented and people of country may be affected doe this.
Resources: Every enterprise use different type of resources for make final products for its
customers. Availability of these products and quality of these products affect the business
process of an enterprise (Chaudhri, 2012).
C) The impact of competitive forces that are influencing entrepreneurial activities of firm and
profitability within the organisation.
Each business organisation is focused on attaining competitive advantage through increasing
their performance. There are so many competitive forces which are having impact on influencing
entrepreneurial activities of firm, some are described as under:
Competitive rivalry: This is fundamental activity for starting up any kind of new business firm.
As a reputed company Apple Inc. has various competition available at market place who are
providing high competition through providing high quality goods and services to their customers
in order to gaining attention of them. Samsung is considers as the major competitors of Apple
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Inc. as they are providing best and high quality product with more advance feature in order to
rendering high competition at market place. Samsung is also having variety of products and
services such as number of mobile series, laptop, computer and many other electronic gadgets.
They are focused on providing highly innovative products in very reasonable price, this cause
major impact on growth and sales of Apple Inc.
Bargaining power of suppliers: This is helpful in measuring the power of supplier and how
much it has control over the potential to increase their prices and profit. For introducing a new
and innovative product organisation needs to provide proper information about the product in
order to creating awareness among people, so sales can be increased in most efficient manner.
Bargaining power of buyers: Customers are the king of market and it is the major responsibility
of firm to satisfying the needs and wants of customers through providing effective and beneficial
products and services (Arnholt and Soto, Motorola Mobility, 2011). It has direct impact on
organisational performance, because customers are mainly focused on affect the price of product
through bargain about price and quality.
Threats of new entrenches: This is the major issue which is faced by each firm due to high
competition at market place. It is easy for competitors to join the market place, with the
emergence of greater risk or decrease in market share.
Threats of substitute products: In today's modern era there is huge competition available at
market place, customers are having variety of choices in products and services and if are not feel
satisfied they ca easily switch with the services of firm and go towards other firm who are
providing similar kind of services in most significant manner.
At the market place the bargaining power of suppliers are high as compare to the
bargaining power of buyers. As a international brand Apple Inc. provide goods in very high cost
due to its high quality and innovative features, so bargaining is rare, people have to purchase
goods at given prices as company is not making any kind of changes in their products.
Section 2
A) Two strategic options that could be pursued by Apple Inc. in order to increase its
entrepreneurial activities.
Business organisation are focused on adopting most suitable and appropriate strategy
which are helpful in influencing growth and revenue of company at market place. As a
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multinational brand Apple is concern on providing high quality and advance products and
services to their potential buyers in order to satisfying their needs and wants (Choi, Samsung
Electronics Co., Ltd., 2013). Apple Inc is mainly focused on following intensive and premium
pricing strategy, which are more effective in improving their entrepreneurial activities at market
place, these are critically describes as under:
Apple's Intensive strategies( intensive growth model):
This strategy is categorised among various components that are very much essential in
enhancing growth and profit at market place. These all are described as follows:
Market penetration: Apple has variety of products which are providing support in increasing
sales of firm through attracting large number of customers. Apple use market penetration as its
most effective intensive strategy for growth. Market penetration is concern on gaining large
market share through selling more of the available goods and services which are having a huge
positive impact on consumers choice. For example Apple Inc, applying this tensive strategy by
selling more iPhones, iPads, Mac-book and laptops to its selected market in order to gaining
attention of large number of customers. For this company can easily achieves more sales through
adding large number of authorized customers and seller to its targeted market (Kuratko,
Hornsby and Covin, 2014).
Porters generic model:
(Source: Porters Generic model, 2017)
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Illustration 2: Porters generic model

Company is using various strategies as per the different6 situation of marker in respect of
creating awareness among public about the offered product or service. Porter's generic strategy is
also effective in gaining high profit and revenue at market place. In this company is not going to
reduce their provide for any particular product or service. At the situation of product
differentiation Apple Inc is focused on establishing differentiation in their products to their
competitors, as they are not concern about the price factor.
The strategy of market penetration is more effective than porters generic model, so
company is mainly focused on using market penetration in order to ganging more profit and
growth at market place.
B) The selection of each strategic choice suitability, acceptability and feasibility.
Apple Inc. is popular just for its high quality products and services which are very much
attractive in nature. They are using various strategies for enhancing their market share and brand
awareness, among them intensive and premium pricing plays most effective role at market place.
Intensive Strategy:
Suitability: Apple is using this as their fundamental strategy for gaining more profit and revene
through offering high quality products to their customers (Sutherland, 2014).
Acceptability: With the help of this company get more profit and gaining attention of customers
and it is widely accepted by market and its people who are willing to taking advantage to offered
services of Apple Inc.
Feasibility: As it is helpful in generating profit and this is adopted by company to sustain their
profit for long time.
Premium pricing:
Suitability: This is most suitable in setting up the price of product that are introduced by Apple
Inc. at market place.
Acceptability: As a big and multinational brand people are very much attracted towards the
innovative feature of products, so there is no need to make any changes in their price. This is
widely accepted by people who are regularly using the products of Apple Inc (Wonglimpiyarat,
2012).
Feasibility: This is the most effective strategy which is used by Apple Inc. since their beginning
and it is more effective in gaining profit and share at market place.
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CONCLUSION
As per the above report it has been concluded that mostly business organisations are
focused on gaining competitive advantage at market place in order to providing competition to
their competitors. Strategy can be considered as the plan of action which is designed to attain a
long term or desired objectives and aims of any business firm. This is a method or plan which is
chosen to bring the solutions of given any problems that are arises at work place in order to
achieving desired goals and aims.
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