Apple Inc.: Competitive Analysis, Challenges, and Growth Strategies

This report provides a comprehensive analysis of Apple Inc.'s business strategies, competitive positioning, and challenges. It begins with a comparative analysis of Apple's competition and its competitive advantages, utilizing branding and positioning theories. The report discusses essential considerations for enhancing Apple's business, including the application of motivation theories like Maslow's Hierarchy of Needs and Herzberg's Two-Factor Theory to improve employee satisfaction and productivity. It also addresses the challenges Apple faces when trading across borders and explores considerations for creating a positive social impact. The analysis includes Apple's market position relative to competitors in desktop computers, tablets, and smartphones, highlighting strategies for maintaining a competitive edge through premium offers, new updates, and controlled software and hardware integration. This document is available on Desklib, a platform offering a range of study tools and resources for students.

Business Project

Table of Contents
Introduction............................................................................................................................3
Part 1: Comparative analysis of how the company is competing and its competitive
position? How does the company’s activity result in gaining competitive advantage?.........4
Part 2: Discuss what your company needs to consider enhancing their business. This needs
to include academic discussion and applied theory...............................................................7
Part 3: What are the various challenges the company needs to consider when trading across
borders?................................................................................................................................10
Part 4: Why and what considerations should the company consider when trying to create a
social impact.........................................................................................................................14
Conclusion............................................................................................................................18
Reference list........................................................................................................................19

Introduction
Apple Inc. started their business with desktop products in the year 1976. Within last decades
Apple Inc. has increased their company in to different industries along with their desktop
products. In the year of 2001, Apple Inc. broke their barrier with their famous product iPod
and eventually become market leader in the music player. On the other hand, this company
also joined the smart phone industry in the year of 2007 with iPhone which has been
succeeding widely. Generally Apple Inc. is a company of consumer goods and therefore
estimated its value needed to understand their consumers and products. It can be very tough
for Apple Inc. as this company competing with several companies throughout different
industries. One of the unique and key part of the Apple Inc. is they have a strong and reliable
customer base throughout the world. The most interesting thing about Apple Inc. is their
stores and products which is neat and very attractive. The hands on experience of their
products such as iPod, iPad, and iPhone are outstanding and this is why people from all over
the world wants to purchase their product first. This assignment is a complete analysis on the
position of Apple Inc. along with its competitors, different challenges that the company is
facing in their business and other discussion in order to enhance their business.

Part 1: Comparative analysis of how the company is competing and its competitive
position? How does the company’s activity result in gaining competitive advantage?
It is essential to understand the position of the company in the market across the world
and its productivity within the same industry. In order to evaluate the position of Apple Inc,
two theories are applied which are branding and positioning. Both of the theories would assist
to understand the position of Apple in the global market.
Branding
Apple has manufactured an exceptionally solid reputation and an extremely efficient brand.
As per investigative promoting information, it can be presumed that Apple is the most costly
brand on the planet (Polonsky and Waller, 2014). Everybody consequently connects Apple
with development, plan, quality, otherness, and so forth. Apple always think of innovative
way to produce the products, all around composed or of the most noteworthy quality; in that
case the reputation of the company would decrease rapidly.
Advancement and quality are directly related to the high costs of the products, the high value
of the product ensures the client who purchases a good quality item, and this is an average
plan of action both from a mental and a business perspective. According to the psychology,
the higher the value provides the better item which will efficiently provide satisfaction to the
users of the products. The Apple Inc provides its products in a stylish box for the branding.
The boxes assist the users to have maximum satisfaction from the products. Otherwise, if the
company would utilize cheap boxes to deliver the products, its business would decrease
dangerously and the process would hurt its overall profit as well.
Apple Inc has gained reputation in the worldwide market of technology. The strategic
position of the company assists it to be stable in the market of smart phones (Wilson et al.,
2014). As the company is increasing its brand value, Apple Inc will grow rapidly in terms of
its productivity and reputation. After Steve Jobs, the CEO of the company passed away, the
overall productivity of the organisation was hampered. The next former CEO Tim Cook
changed its branding strategies to promote the apple products and it helps the company to
attract new customers. Tim Cook is solely responsible for the launch of Apple Watch which
is considered as the most innovative product of Apple Inc.
Look at its position in relation to its competitors
Positioning
Apple Inc mainly targets the elite class people of the society that includes wealth people as
well as innovators, people with good lifestyle and jobs. This group of people find the apple

products very useful as the products are designed to provide maximum satisfaction to the
users. It can be very tough for Apple Inc. as this company competing with several companies
throughout different industries. One of the unique and key part of the Apple Inc. is they have
a strong and reliable customer base throughout the world. The administration team of the
company focuses on designing the items that can be useful for businessmen. On the other
hand, if the company would target poor people of the society to provide cheap products, the
sales of the Apple products would decrease rapidly. The pricing strategy which Apple Inc
applies for its product assists the company to hold a repudiated position within the perpetual
map (Nicholas and Steyn, 2017). The company can face challenges if the competitors of the
company start to increase its productivity and provide same quality of products. This types of
challenges also known as the macroeconomic deflation problem.
Apple is considered as the most successful brand across the world as it provides efficient
service with innovative products. The company mainly focuses on the aspects where they can
upgrade their business by applying positioning strategy.
Apple produces different kind of products like Macbook, iMac, iPhone and iPod. Apple is
leading in the industry of tablets. According to the analysis of smart phone sales, Apple has
made the highest percentage of Smartphone sales with 45% in 2012. IPhone6 is the second
most sold device in 2016 with 200 million products. Apple is situated in a good place of
positioning map. The sales and the growth of the company are increasing rapidly and the
administration team is upgrading their iOS to improve their service quality. However, the
company faced several complexities when the CEO of the company, Steve Jobs passed away.
The production quality of the company decreased rapidly during this time.
The perpetual map of Apple Inc
(Source: Kerzner, 2013)
Choose what’s appropriate for your company

As Apple Inc holds the highest market in the smart phone industry, the competitors of the
company are growing rapidly. In order to maintain the highest position, Apple Inc needs to
implement several strategies that can assist to provide efficient productivity as well as
servicing. The appropriate strategies which can support the company to maintain the
competition in the market are:
Premium offers
for quality
products
Tim Cook who is the CEO of Apple Inc prefers to provide great quality
of products rather than offer cheap prices. The company focuses on the
aspects which provide maximum quality to satisfy the users.
The company needs to offer several offers to attract more customers
towards its products as the company has high competition in the market.
However, the company prefers to focus on the quality over quantity.
New Updates As the trends of the market is changing rapidly, the demand of the users
are also changing. The Apple Inc prefers to improve the products
simultaneously to efficient the satisfaction of the users. The iPhone is
improving it version from it’s the first generation.
Controlling the
hardware and
the software
The apple Inc provides efficient hardware as well as software service to
the users. The company also controls the software updates which can be
modified as per the preferences of the customers. the company introduces
new features in its new update that can increase the satisfaction of the
users. The software updates are easily available for the iPhone users.
(Source: Rutkowska, 2014)
COMPETITORS
Desktop and Laptop Personal Computers
Microsoft provides operating system to run the personal computer and its reputation is
constant since 1980s. On the other hand, Apple Inc has the reputation to maintain high
satisfaction for providing high quality operating system like Macintosh (Jeston and Nelis,
2014). MacOS operating system is considered as the most efficient operating system which is
preferable for desktop as well as personal computers. Major competitors of Apple Inc in the
aspect of personal computers are HP, Dell, Acer and Sony.
Tablets
According to the Becker et al., (2013) in the industry of mobile computing imitators industry,
iPad is considered as the revolutionary business model. Apple Inc is considered as the biggest

as well as profitable selling company in the tablet industry. The company has competitors in
this field as well which are Samsung, Alphanet Inc. (GOOG), Nokia and Microsoft.
Smartphones
In the smart phone industry, BlackBerry Limited (BBRY) which is a Canadian Giant use to
dominate the whole market. BlackBerry is also known as the former research in Motion
Limited. The market of BlackBerry decreased when Apple Inc launched iPhone in the smart
phone industry (Schwalbe, 2015). The iPhone forced BlackBerry to change its marketing
strategies several times. However, iPhone is still leading in the U.S. smart phone market. On
the other hand, Apple Inc still has competition in the smart phone industry as the Android
Operating system is delivering efficient OS for non apple products. Google has also launched
smart phones with its operating system. The major competitors of Apple Inc in the smart
phone market are Samsung, Huawei, Lenovo and HTC.
Part 2: Discuss what your company needs to consider enhancing their business. This
needs to include academic discussion and applied theory
In order to enhance the business, Apple Inc. should apply lots of theory of motivation and
needs. Such theories are Maslow's Hierarchy of Needs Theory, Herzberg's Two-Factor
Theory and more. These theories can be very much helpful for the company.
Maslow's Hierarchy of Needs Theory
This theory of motivation is applied in Apple Inc. The manager of Apple Inc. has pioneered
ways to inspire their employees by wisely reflecting on the needs of job design, retribution,
leadership, and so on. Apple Inc. meets the physiological needs of employees by providing
sufficient salaries for employees to meet their basic requirements (Sekaran and Bougie,
2016). This is also helping the company to pay monthly payments to their employees. It also
offers its employees financial incentives such as savings plans, investment flexible benefits,
investment possibilities and also options for buying shares.
 Apple Inc. offers employees a good dining environment. For example, Café Macs
which is their corporate cafeteria, this place is to have lunch, dinner or any food on
campus, this also offers a wide selection of great quality foods. This place sells
several types of foods for example pasta, sushi, salad, pizza and many more. The
eagerness and the ambiance of this corporate cafeteria are always great. Every day,
minimum one from Apple's top officials will be present in Cafe Macs, for example
Tim Cook who is the current CEO. Apple Inc. additionally provides a decent working

atmosphere in terms of water, housing and further facilities which an employee
should need.
 In the view of Eriksson and Kovalainen (2015) afterwards, Apple Inc. meets the all
the safety needs of its employees by producing them with proper job security,
benefits, and a harmless working atmosphere. Apple Inc. delivers health insurance for
their full time and part time employees, including those people who work just 15
hours per week and also have been with Apple Inc. for minimum of one year since the
year of 2010. In addition Apple Inc. also offers pensions and health insurance to their
employees.
 Apple Inc. therefore meets the social needs of employees and also developed a
positive team (Bergvall-Kåreborn and Howcroft, 2013). Apple also ensures that their
employees are aware of being part of entire company. For example, from its absence
of bureaucracy in the projects, its engineering-oriented culture, its prominence on
loyal and passionate loyal employees, this massive organization has kept the corporate
environment of its early days. And that environment is an important part of what
needs to be successful along with a friendly workplace.
 In addition, Apple Inc. meets the estimation needs of its employees by promoting self-
esteem and respect for others and praising hard work. The rating system assists to
recognize people's contributions and the importance of celebrating success. Such as,
Apple Inc. current CEO Tim Cook noted that from June, employees will receive a
larger discount on every Apple products. Employees already get 25% off Macs and
other iOS products, however within few months, company will also provide $500
extra discount on the Mac and for iPad the discount is $250. The low coat MacBook
Air prices only $ 250 after applying the discount, which is very cheap.
Herzberg's Two-Factor Theory
In order to understand the attitude and motivation of employees, Frederick Herzberg
proposed Herzberg's two-factor theory; this theory said that there are some factors in every
workplace which lead to job satisfaction, whereas a distinct set of some factors causes
dissatisfaction also.
This theory suggests two factors; first one is intrinsic factors associated with job satisfaction
and on the other hand extrinsic factors associated by job dissatisfaction. The motivators are
the one who satisfied within the organization, the dissatisfaction is the hygiene factor.
 The motivators are signified the physical needs which were observed as
supplementary benefits. Motivating factors include performance, recognition for

achievement, increased responsibility, chances for development and growth, creative
and stimulating work.
 Hygiene factors signified the physical needs that individuals expected and wanted
from the organization (Kim et al., 2015). Hygiene factors include politics and
management, administration, working circumstances, interpersonal relationships,
wage, job security, position, employee bonuses and personal life.
Herzberg's two-factor theory is also applied in Apple Inc.
 The working staffs of Apple are commended and recognized by managers for their
achievements through promotions and bonuses (motivational factors). The tasks of
the employees are very significant, interesting, stimulating and motivating for the
employee (motivating factors).
 The pay structure of Apple Inc. is reasonable, appropriate and also competitive
(hygiene factors).
In addition, the company provides health plans to their employees and offer a clean, safe and
hygienic work environment, as well as modern and well sustained work equipment for its
employees.
Figure 1: Herzberg's Two-Factor Theory
(Source: Schwalbe, 2015)
Part 3: What are the various challenges the company needs to consider when trading
across borders?
Apple has not adjusted its Smartphone to highlights and appearance. One may imagine that
Apple takes the idea of "worldwide" to the perfectionist level by utilizing a brought together
approach, an institutionalized outline for all districts, a similar item run for all nations and no
noticeable personalization, additionally called area, except for the wellspring of vitality, the
cost and the attributes of the administrators.

The point is that operating all over the world does not mean simply offering a product to
multiple markets globally (Chang et al., 2013). It also includes pronouncement the
denominator that can be utilized by a particular product which is regionally blind. On the
other hand, Apple recognizes multilevel customization. Indeed, even the kind of building
compares to the culture of the nation. For instance, the Parisian Apple Store is designed in a
Haussmann a style assembling that is in a perfect world suited to Parisian compositional
taste. Or if nothing else to what it got used to. Bob Bridger, VP of Apple Retail Development,
clarifies what innovative ideas make Apple stores so well known.
• Various approaches possible:
With the current passing away of Steve Jobs, a concentration of serious consideration has
concentrated on both the man and the organization he has constructed (Sekaran and Bougie,
2016). While the consideration and imagination of Jobs have been given credits, and the
wonderful time of development he managed, another factor has stayed regarding that. This
factor is the urgent part that corporate culture played in Apple's prosperity.
The reason behind the success of the apple products are the core values that is implemented
constantly to provide effective services. The Apple stores around the world are made in a
manner that provides same experience to all potential customers. All the employees of Apple
Inc follow the same culture. The culture of the company assists the customers to experience
the same every time while they use any apple products. The technical department of Apple
provides excellent service to the customers regarding the products.
• Does it standardise/ adapt its products/ services?
All Apple stores around the world follow same culture that can provide same experience to
the customers whenever they visit to but any apple products. The services that the employees
of this company provide to the customers are efficient as it is dependent on the particular
culture. The products of the company have an international look that individual people can
experience (Montgomerie and Roscoe, 2013). The products are made by following the same
culture and the products provide maximum satisfaction to the users. The products adapt the
standardised strategies for the global market and the products of the company are made with
innovation and elite class look that people can use without any difficulties. The technical
support department of Apple Inc provides efficient servicing all around the world regarding
its products.
• Leadership styles

1. Unlike Steve Jobs, who was the CEO of Apple INC. Tim Cook has adopted different
entrepreneur practices to develop unique leadership for the employees of the
organisation.
2. Numerous were worried that Cook did not have Jobs' venturesome visionary style, but
rather he has his own qualities. Heoften portrayed by Apple representatives as
magnetic and mindful. Up until now, his command has been portrayed by a more
noteworthy concentrate on existing items and the advancement of business and
representative relations.
3. Rather than just proceeding with the inheritance of Jobs' totalitarian administration
style, Cook has tackled his qualities and concentrated on encouraging coordinated
effort among Apple's armoury of gifts (Bryman and Bell, 2015). This is considered as
extremely demonstrative of the style of equitable administration, which advances
accord, particularly among high-positioning representatives, particularly before
achieving agreement choices.
4. In a Flagrant move from Jobs' "Development First" approach, Cook expresses that "it
can make just a couple of things awesome." Tim Cook, notwithstanding, can settle on
troublesome choices. At last, Cook’s attention on existing authoritative qualities, the
significance that ought to be shared among pioneers and the absence of
micromanagement plainly show a popularity based leadership style.
5. Tim Cook is managing the operations of Apple Inc from 2011 as a leader. His
involvement in the product engineering can be seen regarding the launch of iWatch.
• Organisational Structures
The authoritative structure of Apple can be portrayed as progressive or hierarchical. This
structure was created by its founder and previous CEO, Steve Jobs, to ensure the particular
usage of his imaginative thoughts and an unmistakable vision for the production. Tim Cook
expected that Apple's hierarchical structure had been liable to change since its administration
in August 2011. Specifically, Cook commended the decentralization of basic leadership to a
specific degree keeping in mind the end goal to encourage development and innovativeness at
various levels. In any case, the structure remains to a great extent hierarchical.
According to the Lund and Nielsen, (2014) the grouping which is product-based is considered
as a unique feature for the organisational structure of Apple Inc. IPod, iPhone and Apple TV
belongs to the portfolio of Apple Inc which is considered as the result of collaboration that is
product based.

Figure 2: Organisational structure of Apple Inc.
(Source: Vanhaverbeke and Chesbrough, 2014)
It can be broke down in light of a progression of difficulties confronting the organization, for
example, the quickly declining life cycle of innovation items and declining offers of iPhones,
iPads and Mac items. It can be contended that Apple's hierarchical structure it might be liable
to a few changes in the medium-term point of view (Grefen et al., 2013). All the more
particularly, the components of the authoritative structure of Matrix and the divisional
hierarchical structure can be incorporated into the authoritative structure of Apple Inc. to
expand the productivity of the improvement of new items. Apple has not adjusted its
telephone as far as highlights and appearance.
• Staffing
Figure 3: Staffing Process of Apple Inc
(Source: Shenhar, 2015)
Recruitment At the present time, many world-class companies recognize more value than