Strategic Management: A Comparative Analysis of Apple and Google

This report provides an in-depth analysis of strategic management, examining its core concepts, processes, and importance in the business world. The report begins with an overview of strategic management, including its stages and a strategic management model. It then delves into the strategic management practices of two highly successful companies, Apple and Google, highlighting their innovative strategies and business models. The report also analyzes the strategic management of Eastman Kodak, a company that struggled to adapt to market changes. Finally, the report offers recommendations for Eastman Kodak based on the successful strategies of Apple and Google, emphasizing the importance of innovation, effective implementation, and continuous evaluation in achieving long-term success. The report concludes that strategic management is crucial for any organization aiming to thrive in a competitive environment.

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Executive Summary
Strategic management is an essential requirement for gaining success in the business world.
This paper focuses on the nature, process and importance of strategic management. It is a
report on the effective strategic management of successful companies and points out the need
for an effective strategic management in companies that have not implemented it
successfully. It has been seen that an effective strategic management system is not just
financially beneficial but also provides benefits to the company such as customer retention
and sustainability of resources. In conclusion, strategic management is a highly
recommended practice that must be adopted by any organization that wants to stand out in the
highly competitive business environment.

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Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Task 1: Strategic Management and its Concepts...................................................................3
Stages of Strategic Management........................................................................................3
The Strategic Management Model.....................................................................................6
Importance of Strategic Management................................................................................8
Task 2: Strategic Management Practices of Apple and Google.............................................8
Adoption of an Exemplary Innovation Strategy................................................................8
Strategy Management System at Apple and Google........................................................11
Task 3: Strategic Management of Eastman Kodak..............................................................12
Task 4: Recommendations of Strategy for Kodak Based on Task 2....................................13
Conclusion................................................................................................................................15
References................................................................................................................................16

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Introduction
Strategic management refers to the process of creating, implementing and assessing
cross-functional results that helps an organization in attaining its goals and objectives.
Strategic management concentrates on incorporating management, accounting, marketing,
operations and development to accomplish success in the organizational level. This paper
analyses the concepts of strategic management and evaluates the manner in which a company
has successfully incorporated or has failed to do so. The first section of the paper provides a
general idea of strategic management and its contexts. In the second section of the paper, two
companies are chosen, Apple and Google both with strong innovation strategies and their
practices in the strategic management are being discussed. In the third section of the paper,
another company Eastman Kodak is selected. This company shows weak formulation or
implementation of innovation strategies and a description of their strategic management and
of the organization is provided. In the fourth section of the paper I take lessons from the
business strategies of Apple and Google and I formulate recommendations for the
implementation of business strategies that can be beneficial for Eastman Kodak.
Discussion
Task 1: Strategic Management and its Concepts
Stages of Strategic Management
Strategic management is the process of forming and implementing initiatives to attain
the major aims and objectives of a company by the management team and officials of the
company taking into consideration the available resources and on having evaluated the
competitive environment in which the company functions (Rothaermel, 2015). The process of
strategic management takes place in three phases –strategy formulation, strategy
incorporation, and strategy assessment. The first phase involves the development of a mission
or vision, recognition of the company’s threats and opportunities, determination of the weak
and strong points of the company, establishment of long-term goals, generation of secondary
and alternative strategic options, and choosing certain particular strategies to follow
(Wheelen & Hunger, 2017). Among the issues that fall under the strategic formulation phase
that should be looked after are: deciding on the new business area that one wishes to or can
enter, deciding on business areas that should be avoided, deciding on the ways to make useful
allocation of resources, choosing between the options of expanding or diversifying the
business, deciding if it would be wise to expand the business on an international level,

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deciding on whether to collaborate or form associations with other businesses, and finding
out ways to prevent an aggressive takeover. Strategic formulation includes company
decisions that are oriented specifically towards markets, resources, products and technologies
for a long period. Strategies aim at identifying long-lasting competitive advantages (Eden &
Ackermann, 2013). In fact, to state the obvious, strategic choices have serious and
multifunctional implications on a business organization.
The second phase of strategic incorporation or implementation necessitates an
organization to establish yearly goals, formulate policies, encourage and motivate employees,
and distribute resources for the proper and successful execution of the formulated strategies
(Barricket al., 2015). This phase involves the generation of a culture that is supportive of the
formulated strategy, development of an effective framework regarding organizational
policies, offering guidance in marketing efforts, preparation of budgets, effective utilization
and development of technologies, and linking of compensation offered to the employees with
the performance of the organization (Gendron, 2014). Strategy implementation is the action-
stage in the framework of strategic management. Strategy implementation enables employees
as well as managers to place into action the already formulated strategies (Chang, 2016). This
particular phase is sometimes considered the toughest of all the phases in strategy
management, since it sometimes requires serious commitment and discipline. Moreover,
successful implementation of strategies requires skilled managers who can effectively
motivate employees.
Strategic assessment or evaluation is the third and final phase involved in strategic
management. The company managers require understanding and knowledge of the extent to
which the strategies formulated and implemented are being beneficial to the organization.
This is where strategic evaluation or assessment comes into play. Assessment or evaluation of
the strategies helps managers to gain knowledge of the success and implications of their
strategies (Hill, Jones & Schilling, 2014). However, it must be noted that the strategies can be
modified since the external and the internal environment within which the company is
operating is subject to constant changes. According to (Goetsch & Davis, 2014), there exists
three basic and fundamental ways in which strategies can be evaluated, namely –
measurement of the company’s performance based on the implemented strategies, identifying
the internal and external factors that contain the foundations of the strategies, and taking
actions for the improvement and enhancement of strategies.

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Strategic Management
Strategy Formulation
Strategy Evaluation
Strategy Incorporation
Figure 1: Stages of Strategic Management
Source: [Created by Author]
The Strategic Management Model
Figure 2: Strategic Management Model
Source: [Created by Author]
The process of strategic management can be best understood and studied using the
above figure. This model provides a clear understanding of the practical approach to the
formulation, implementation and evaluation of strategies. The three important questions to be
asked while developing a strategy are where the organization stands at present, where does it

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want to see itself in the future and how can it get there (Barney,2014). The identification of
the organization’s vision, objectives and the mission are the rational points for starting in the
strategic management process since an organization’s present situation might already include
particular strategies that might be responsible for directing the company in a particular
direction. It must be noted that the process of strategic management is a continuous and
dynamic process. Any change in any one of the components of the model may affect and
initiate a change in all or any of the other ones. It must also be noted as per the model shown
in the figure that an organization’s business ethics and social responsibility has an impact on
the other strategic activities shown in the model. Again, the global issues also tend to have a
virtual effect on the strategic decision of organizations of all sizes in the current economic
situation (Slack, 2015). However, unfortunately, the process of strategic management is not
carried out as systematically as shown in the model. Most of the strategists today do not
perform strategic management in a neat and systematic manner. Nevertheless, the process of
strategic management is better applied in a formal fashion in organizations that are larger and
are well established. Moreover, organizations that operate in a complex competitive
atmosphere and in environments that are changing rapidly and constantly usually tend to be
more formal in dealing with strategic management. To state facts, formal dealing of strategic
management process has positive implications on cost, accuracy, comprehensiveness, and
successful execution of strategies on a global level.
Importance of Strategic Management
Strategic management helps an organization in being practical in the process of giving
the company its future. The major benefit of having an effective strategic management
system is that it helps organizations to gain a more rational, logical and systematic approach
in the development of the strategic choice and its formulation (Serra & Kunc, 2015). One of
the major ways to have an effect strategic management system is communication. The more
the managers and the employees are engaged in communicating with each other; the more is
their degree of dedication in taking the organization successfully forward. It is therefore,
important to evaluate and improve the fashion in which the process of strategic management
is carried out in an organization. Strategic management is highly beneficial in financial terms.
Organizations with good strategic management tend to be more profitable than the ones with
a weaker strategic management system. A strong strategic management system ensures
enhancement and growth in sales, productivity and profitability (Morden, 2016). Besides
financial benefits, strategic management has other benefits as well. Such benefits include

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recognition, prioritization and utilization of opportunities; identification of problems in
management; enhancement of organizational coordination; effective distribution of resources;
increase in productivity; motivation of anticipated thinking; enthusiastic and coordinated
approach to problem-solving; motivation for positive attitude regarding changes; and
induction discipline in the process of management.
Task 2: Strategic Management Practices of Apple and Google
Adoption of an Exemplary Innovation Strategy
Apple Inc.
Apple is ranked as one among the world’s most innovative companies(Forbes
Welcome, 2018). Apple’s innovation strategy revolves around highly developed products
with best and unique features and business models that are highly innovative. Apple offers its
customers with developed software along with sturdy and high-quality hardware encased in
fashionable packaging. Apple is known for creating new spaces in business and for creating
new market positions (Pisano, 2015). The company has given the world some of its unique
innovations such as the iPod, iPhone and iPad.
However, it must be noted that innovation is not only demonstrated in the company’s
products, but also in its business models. Apple keeps bringing up innovative business
models and new ways for the creation, retention and deliverance of value (Nylén &
Holmström, 2015). For example, the iPod and the iPhone would not have been as effectively
innovative as they had been if they had not been associated with iTunes and App Store.
Apple is even creative in its value proposition that prioritizes the product essentially as an
experience. This helped in motivating and encouraging greater ideas when the leaders of the
organization aimed at creating new and better business models. It should be noted, that
Apple’s dedication for applying innovation is driven culturally and not by process. Apple has
successfully built an innovation system that is effective for promoting creativity among the
people, developing unique ideas and launching profitable innovations (Apple.com, 2018). To
this end can be statedthat one of the reasons that Apple has achieved this is because it
promotes diversity of culture and holds advantage of innovation process and business
collaborations for gaining new opportunities in the market as well as for ensuring growth of
the business (Heracleous, 2013). Therefore, it is evident that innovative and unique
partnerships form a crucial part of the innovation strategy of Apple.

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Google
Like Apple, Google has also established its name among the most innovative
companies of the world. They strive for innovation in both their products and their
services(Google.com, 2018). They have successfully brought innovations in their products,
technology and their services. In order to attain such standards in their innovations strategies,
Google follows certain principles of innovation. The strategists at Google believe that
innovation can be derived from anywhere and even places least expected from. Furthermore,
Google gives first priority to the users and perceives money as secondary (Steiber & Alänge,
2013). To state an instant, Google implemented an innovation in order to speed up the search
functions by introducing the feature of predictive analysis or instant search, such that the user
gets access to search suggestions just after typing a few keywords. Such a feature saves the
users’ valuable time. Therefore, it can be stated that Google aims at creating a great and
innovative experience for the users and believes that such user-friendly innovations would
increase the company’s profitability.
Google believes that aiming to be better by ten times proves beneficial for the purpose
of bringing revolutionary, radical and effective innovation which forces one to think in
unique patterns. For example, in 2004, Google had innovated a new way of storing,
organizing and digitalizing all of the world’s information through their creative venture of
Google Books. Until this date, Google has been able to digitalize almost 30 million books
(Grant, 2016). Google also demonstrates confidence in their unique insights. They believe
that confidence in unique insights results in the emergence of major innovations. Presently,
having observed the huge rates of fatal car accidents due to human error, Google aims for a
life-changing innovation. They are aiming to build cars that are self-driving and work with
artificial intelligence. Their engineers are undertaking experiments with the Stanford’s
University’s team of artificial intelligence. Such innovations can only take place if one has
enough confidence in their vision.
Google has worked for the strategic development of innovative ecosystems (Gawer &
Cusumano, 2014). For example, after creating the Android platform, Google realized that
they would not be able to employ all the of the best application developers worldwide.
Hence, they made the platform open by default and allowed millions of developers to
construct applications for the android users. This helped them create an ecosystem involving
users, Google engineers, and both external and internal developers. However, besides

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everything, Google is of the view that the most important step to an effective development of
innovation strategy is the development of a vision and of a statement of mission.
Strategy Management System at Apple and Google
Apple Inc.
Apple has successfully formed an effective strategic management framework and has
successfully implemented almost all of its strategies. The mission statement of Apple
demonstrates their dedication to deliver the best experience of computing to users ranging
from, students, teachers, professionals and other consumers on a global level through the
innovative development of software, hardware and web-based service (Apple.com, 2018).
Apple’s effective strategy management and constant innovation in technology has made it the
leading organization in the digital industry and has provided the company with a highly
secure financial background. While the company has created many managerial positions, the
company was till his death in 2011 majorly led and operated by its founder, Steve Jobs, and
now by his successor Tim Cook. The company is greatly admired for its corporate culture
that demonstrates a motto of hard work and effective recreation. In the formulation and
implementation of a marketing strategy, the company gives importance to the four Ps –
product, price, place and promotion (Pisano, 2015). Apple’s strategy for product development
is to deliver user-friendly and high-quality products with innovative and unique design. In the
pricing context, Apple follows a model of value-based prices, variable pricing strategy and a
strategy of fixed price. Such effective management of strategic initiatives has made the
company the success that it is.
Google
Google’s strategic management practices has innovation built into it. They offer a
variety of products with latest innovations both in hardware and in application software. The
strategic management practice of Google works at three different levels –the corporate level,
the business level, and the operational level(Google.com, 2018). At the corporate level,
Google’s major approach is at attaining stability. They have also developed strategies to gain
sustainable growth. At the business level, Google’s main strategy is to focus on their users.
Strategists at Google aim at constant improvement. They entitle high priority to speed of
production and delivery. They also demonstrate a democratic approach towards their strategy
management (Grant, 2016). Moreover, they keep striving for improving themselves and their
strategies. At the operational and functional level, Google’s strategy is to provide flexible and

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suitable working facilities for their employees including facilities like working from home.
They have also installed innovation laboratories and have encouraged the emergence of start-
ups on the individual level. Google’s basic and fundamental strategy is to concentrate on
differentiation through the strong data centers all over the world, to develop unique
algorithms for page searching options, and to improve themselves incessantly through
innovation(Google.com, 2018). On the secondary level, their strategy is to focus on their
business growth and expansion through mergers and acquisitions, through innovation in their
products and services such as social media, g-mail, cloud computing, and mobile computing,
through the fast development of new and unique technologies, and through formation of
strategic associations to facilitate product collaborations.
Task 3: Strategic Management of Eastman Kodak
The once popular Eastman Kodak that created the best customer experience with a
camera and was one of the top innovative companies, began toface slow degradation with
their lowering standards of strategy management. Where Kodak failed to uplift their strategy
management was at the level of innovation. It is highly necessary that organizations
recognize the necessity of innovation in the products and the services that they offer
(Johnston & Bate, 2013). There exist two types of innovation –disruptive and sustaining. In
this context, Kodak was unable to withstand disruptive innovation. Poor strategy
management of Kodak has led the company to bankruptcy.
Kodak lacked innovation in their strategies and products with the developing
technology and advancing digital revolution. Kodak failed miserably in their functional
strategy (Gershon, 2013). In the financial sector, they concentrated more towards securing its
existing profit and revenue rather than paying attention to the market needs. Their major
setback came from lacking innovation in their technological development strategies. They
held back from developing innovations in their existing technology that would suit the
present digital age (Tellis, 2013). They allotted more time than required in performing
research functions. They failed to communicate and connect effectively with higher
management in the hierarchy. Moreover, they did not contain any effective strategy
management body before just recently. Kodak has also failed in their strategic management
of the supply chain (Melvin, 2018)). They lacked in information that was specific to products.
They had also failed in the formulation an implementation of marketing strategies. For
example, Kodak did not agree to sponsor the 1984 Olympics of Los Angeles and gave the
opportunity to Fuji. Furthermore, Kodak’s weak strategy management is demonstrated in

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their blindness towards new and better opportunities. They are extremely slow in the
execution of their strategies. They failed to recognize the importance of innovation with the
emergence of the digital age hoping to retain the film business (Brown, Bessant & Lamming,
2013). They also failed to implement strategies that could expose them to advances outside
their comfort zone.
Task 4: Recommendations of Strategy for Kodak Based on Task 2
Apple recognizes technology that is on the rise and are unique, and uses the
technological innovation to create a mass appeal in the competitive market (Apple.com,
2018). They integrate in the best manner their sophisticated hardware and their high- quality
software. They work together and smoothly and in case of any trouble, it is directly taken
care of by the officials holding higher positions in Apple’s hierarchy. Innovation if it is
successful can prove to be beneficial in exposing an intact market and help an organization to
gain competitive advantage. It is, therefore, recommended that Kodak works at developing a
highly effective strategy management body capable of identifying the unique opportunities in
this competitive market of the digital age. Kodak must formulate and incorporate new and
unique strategies of innovation to gain their lost market position back.
Google considers profit and revenue to be secondary and gives their users the first
priority(Google.com, 2018). This has proved to be extremely beneficial for the company’s
growth and profit structure. In this context, Kodak must take lessons from Google. They must
develop strategies to identify the needs of their customers irrespective of its impact on their
revenue. They must collect valuable customer feedbacks and suggestions to gauge the
requirements and desires of their customers and then incorporate them in their strategies. This
would help in the increase in customer satisfaction and enable the company to retain its
customers which in turn would prove to be beneficial for the company’s growth.
At the core of Apple’s success is their strategy of forming innovative partnerships
(Apple.com, 2018). Kodak must engage in strategies involving collaborating with other
profitable organizations. This strategy would help them in developing a new and informative
outlook. As Google believes that innovations can come from any place, Kodak must realize
and broaden their scope to attain a better innovation strategy.
Kodak should also build an efficient strategy management team that is able to take the
whole process of strategy management, starting from the stage of formulation to evaluation in
a systemic, target-oriented and formal manner. Such approach at strategy management has