Apple iPhone Strategic Management: Theory, Practice & Positioning

This report delves into Apple's strategic management of the iPhone, focusing on the strategic positioning plan necessary for maintaining a competitive edge in a market with rivals like Samsung and LG. It highlights key elements of Apple's strategic position, including brand identity, product design, qual...Read More

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Apple
Strategic management theory and practice

Strategic management theory and practice 1
Contents
Introduction...........................................................................................................................................2
Product..................................................................................................................................................2
Strategic position plan...........................................................................................................................3
Specific strategy as the option to sell the product..................................................................................5
Conclusion.............................................................................................................................................6
References.............................................................................................................................................8

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Introduction
The strategic management states to the management of the resources of the company to attain
goals and objectives. It comprises the strategies which are to be carried for the better
performance of the organization. In order to understand strategic management, strategic
positioning plan of the iPhones has been discussed in this report. iPhone is having
competition from competitors like Samsung, LG, Windows phone and Sony. In order to
compete with the competitors, Apple is required to position its iPhones. Apple requires
strategic position plan for the iPhones to grab maximum share in the market. At a time, Nokia
was capable enough in having the largest market share. But the past experience of the
company is learning for the Apple to position its products. This report includes the strategic
plan position of the Apple for iPhones. The factors comprised by the strategic position plan
are brand identity, product design, quality, and advertisement. This report comprises the
selection of iPhone for the strategic position plan. The specific strategy used by Apple is
discussed to sell iPhones.
Product
iPhone is taken to set up a position plan. Apple deals in various products like MacBook, iPad,
watch, computers and more. Out of all the products, iPhones are quite popular and have
competitors in a wide range. So, the company is required to update and position its products
on the regular basis. iPhone is the best tool for businesses. It helps employees to solve their
problems in the creative ways and in collaborating effectively (Kara and Arslan, 2019). The
hardware and flexible platform of Apple create a unique environment to build custom apps
for the businesses. iPhone is secure, reliable and harmonious in the office environment and
easy to deploy. The experience provided by the iPhones delivers the information needed most
by the customers. Apple ensures that customer needs are undertaken and the right
communication channels are used to resonate with the customers. The company also keeps in
the notice the offerings of the competitors. The company believes in adding differentiated
elements to its products (Hayran and Gürhan-Canli, 2016). The communication channels are
used by the company to connect with the identified customer target of iPhones. The company
conveys the differentiation along with the value-added aspect of the iPhones. It addresses the
value-added attributes which are important for the audience.

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Strategic position plan
The positioning of a product is a marketing effort. It can be done with the help of promotion
and advertising. The brand identity, elements, and communication collectively play a
substantial role in the positioning of the product. The positioning is the emotional value that
customers have towards a product of the brand. In the case of iPhones, the brand identity is
reflected in the core beliefs about design, imagination, and innovation (Good, 2016). Apple is
positioned as a luxury brand and conveys a great emotional connection and devotion among
the customers. The factors which are to be covered in the strategic position plan are:
Brand identity: A sense of luxury comes across at the time of opening a new iPhone
package. The company constantly groom its plan to cater to the changing tastes of the
audience. The company requires design expertise to present the best possible. The company
has even shifted from mere products and services to a lifestyle (Kalro, Sivakumaran, and
Marathe, 2017). Apple even embraces a free trial program. The trial of the iPhone is offered
by the company in exchange for a positive testimonial. Apple is already an established brand
what it needs to do is to maintain its image in the market. This brand associates its products
not with the technical detail but with the feelings and emotions of the customers. The way
Apple introduces its products makes a customer feel that they have the best product in the
world. Apple even earns higher prices with its top features and specifications (Payne, 2017).
Product design and quality: Since the beginning, Apple has been developing products
which have been an essence of project and quality. The company always come up with
innovative technology and better designs. It resulted in robust command in the market and
charges finest prices of the products. The name of the company has become synonymous to
the premium design and quality of the products (Lakshmi and Kavida, 2018). Customer
behavior has a significant role in the product design. A deep understanding is established by
the company what customers feel, need and what is wanted by them. Apple serves customers
better than other manufacturers. On the other side, companies like Panasonic and Sony are
identified to make products without putting customers at the center. Apple undertakes the
features and the convenience lookout by the customers. The company integrates the desire
and needs into the product design. The products of Apple are required to have a distinctive
look and highly commendable (Doz, 2017).
Apple can have design team which work on the iPhones specifically. Such a team should be
cut off from the other operations of the business. Such a team is required to focus on the

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design of the iPhones rather than the day-to-day minutiae (Johnson, Tian, and Lee, 2016).
The company should even give information to the product development team when they
initiate the work. Every detail of the design process should be elaborated in detail. Such a
team will be responsible for offering the final product. Apple should be able to keep tight
control over the quality and it should know what is going to be in the production process
(Wang, 2015).
Apple is required to have the benefit of being in controller of hardware and software along
with the technologies. The company is required to update iPhones with the latest and newest
technologies in the market. The company can also define its position by offering innovative
products. Apple can take sufficient time for the innovations as hastening the product design
stage can be a drawback. The company should take risk of launching the innovative products
in the new market. The product will be surely successful if it covers all the aspects
(Brexendorf, Bayus and Keller, 2015).
Apple offers iPhones of high quality at high prices. The company does not comprise when it
comes to high quality. The company exports from the top suppliers like Samsung and HTC.

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Samsung also offers high-quality products at high prices. But it does not hold the position
higher than the Apple iPhone. As the map represents Apple iPhone holds the top position.
After Apple iPhone has attained a position in the market place. Windows phone is followed
by Samsung phones. Apple has attained customers of mainly higher class due to the higher
price charged by it (Iacobucci, Grisaffe and DeSarbo, 2017). The customers like to use
iPhones for business purposes also as it has become a status to have one.
Advertisements: Apple follows the advertisement, “the less the better” philosophy. The
company believes in the clear and straight messaging. Add on, the company can make use of
the minimalistic colors which will work wonder. The mediums to be used by Apple in
promoting messages can play a significant role in positioning iPhones. The company needs to
drop heavy cash on the advertisements. The company needs to consider two strategies,
product placement, and buzz created by positive reviews in the media (De Mooij, 2018). The
superior customer service should be the theme of the advertisement. The advertisement of the
Apple is required to appeal to target customers. The ad positioning can be helpful to create a
loyal customer base. The advertising managers can be hired as they have an idea about the
target audience before placing the ads. The advertisement is planned by Apple keeping in
mind various demographics like age, education and social status. The advertisement is also
made keeping in focus buying patterns, interests, and lifestyles of the customers (Wheelen,
Hunger, Hoffman and Bamford, 2017).
Specific strategy as the option to sell the product
The strategies are developed in the number of ways by the company. These are derived from
the object attributes, application, and type of the customers involved. All these attributes
represent an approach in developing a specific strategy.
Using product characteristics and customer benefits as a specific strategy
This strategy mainly focuses on the features of the product and customer benefit. Apple is
capable of providing the quality products. The company can build integrity in the
marketplace by disaffecting customers and suppliers. It can help in differentiating itself from
the competitors by using exceptional parts and services. The company creates high-quality
products. But the company can invest in the research and development to overcome the issues

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faced in the battery. The company can even contact with the top suppliers to maintain high-
grade parts for the iPhones (Nguyen, Zhang, and Calantone, 2018). The company can make
use of social media advertising to sell the products. Apple can buy ad space on social media.
The interested customers can be targeted on the several social media platforms. Facebook,
Twitter, and Instagram are the prevalent social media platforms to build customer
relationships and access to more people. It is the lower costs to acquire customers. The ads
can be shown by the company representing how a product can change lives and make it better
(Zhang, Liang and Wang, 2016).
The customers believe in buying experiences and they buy in person. Apple can make
available the updates on a regular basis. Add on, the company reduces the customer
confusion by streamlining their web. The Apple store can even offer the opportunity of test
driving the products. It helps in understanding the whole features to the customers (Batey,
2015).
Conclusion
iPhone is having competition from a large number of the customers. So, Apple is required to
set up a strategic positioning plan so that it can set up its position in the market. The strategic
positioning plan for iPhone comprises several important factors like brand identity, product
design and development, and advertisement. All these three factors are helpful to the
company in maintaining its position different from the customers. Apple is already an
established brand, the company is just required to maintain and stabilize its brand image by
making several efforts. The company can focus more on its design in order to differentiate its
products. The innovation designs should be concentrated more. The issues related to the
battery should be resolved fast by the company. These should be repaired or replaced in a
short span of time. So that, the company can maintain loyalty with the customers. The
company is required to invest more funds and time on the research and development. The
advertisement is used by Apple to target a wide range of the customers. The products of the
company can appeal to the customers who are new to the product. For instance, the features
of the new model of the iPhone can be introduced in the advertisement. The customers like to
buy mobile sets which are differentiated and new, so the advertisements can be quite helpful
to the company in positioning products. Finally, the strategy using product characteristics and
customer benefits can be helpful to Apple in positioning.

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References
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Brexendorf, T.O., Bayus, B. and Keller, K.L., 2015. Understanding the interplay between
brand and innovation management: findings and future research directions. Journal of the
Academy of Marketing Science, 43(5), pp.548-557.
De Mooij, M., 2018. Global marketing and advertising: Understanding cultural paradoxes.
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Doz, Y.L., 2017. Strategic management in multinational companies. In International
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Good, J.E., 2016. Creating iPhone dreams: Annihilating e-waste nightmares. Canadian
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Iacobucci, D., Grisaffe, D. and DeSarbo, W., 2017. Statistical perceptual maps: using
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