There has been a lack of product innovation since the death of Steve Jobs. This needs to be resolved immediately before Apple suffers from a decrease in market share, revenues, and brand reputation. To achieve this Apple has three alternatives. First, they could broaden their diversification base, and acquire business that will help to strengthen their market position for their current industries (Thompson et al., 2014). Second, they could divest units which lack strategic fit, are in unattractive markets, or are in a competitively weak position (Thompson et al., 2014). This would allow them to focus their resources on the stronger business units (Thompson et al., 2014). Lastly, they could pursue multinational diversification, as an alternate avenue for sustained growth and competitive advantage (Thompson et al., 2014). Evaluation of Alternatives The first alternative is to broaden the company’s business scope into complimentary businesses (Thompson et al., 2014), this will help to strengthen the market position and competitive capabilities of the business units that Apple already participates in (Thompson et al., 2014). There would also be the possibility of realizing economies of scope. Additionally, it splits the business risk between more strategic business units. However, this may be difficult and very costly to implement. It may be difficult to determine the appropriate business(es) to acquire. This alternative has a high level of uncertainty associated with it. Additionally, it may not deal with the declining demand in the PC industry or help to sustain their profitability (Alternatives). The second alternative is to divest certain business units, therefore retrenching to a narrower diversification base (Thompson et al.... ... middle of paper ... ...e this market needs to be defended from possible new entrants (WS19) (WS19). Increasing the market share to 75% in the next two years will secure a strong competitive position in the market for Apple (WS19). Divesting the Mac unit will allow Apple to redirect some of its focus and resources to this industry, as to maintain product innovation and brand loyalty. Apple needs to sustain their profitable, which can be achieved through divesting the Mac unit and product innovation in the remaining units (WS19). The target is to have gross profit margins increase by 5%, year over year, for the next 5 years (WS19). Conclusion Works Cited Thompson, A., Peteraf, M., Gamble, J., Strickland, A.J.. (2014).Crafting and executing strategy: The quest for competitive advantage, concepts & cases. In Okanagan School of Business, Strategic management 1 (pp. 214-255). McGraw-Hill.
Within the last decade Apple has become one of the largest growing companies in the world and the largest valued company in the United States. According to a recent article in The Guardian, a global financial news website, “Apple set a record by becoming the first company to be valued at over $700bn (£446bn).” (Fletcher, N. 2014) This comes as no surprise to the average computer aficionado and shareholder as Apple has been making a name for itself since its inception. From its earliest Macintosh models to today’s iPhones, Apple has been a trailblazer for software, technology and revolutionizing the way we communicate on a Macro level. Their dedication to innovation, quality and service has made them
Arthur, A., Thompson, Margaret, A., Peteraf, John, E. Gamble, A., J., Strickland III. (2014). Crafting & Executing Strategy: The Quest for Competitive Advantage 19e: Concepts & Cases. C6-C25.
only used by big business and the government to a small box used by ordinary
Cutting costs by competitors is the most logical way for competitors to be more competitive in the market. By cutting costs, there are more profits to be made and to gain market share by offering lower cost substitute products. The industry is flooded by competition, but no other competitor of Apple really focuses on creating great technical upport or brand loyalty. (Elliot, 2014)Apple’s primary focus is to develop innovative products and create a unique product that consumers can depend on the being the most highly anticipated technological device while offering great service and support for these new products. Apple uses business model innovation which introduces new products that are compatible with each other such as iTunes and the iPhone or ipod. This has proven to be a very effective business model and competitors are trying to replicate the same model to their advantage. (Jakab, 2015) By being an innovator and first mover on this type of technology, it gave Apple the competitive advantage in the market. In order for competitors to be more effective in the industry, they must attempt to gain customer loyalty and offer a simliar business strategy to that of Apple if they are to be the industry
On October 5, 2011 Steve Jobs passed away in his home in Palo Alto California; Jobs had been battling pancreatic cancer since 2003. Steve brought so much different technological advancement that most people use everyday without knowing who created them. Everything that Jobs created, he did because he understood what his customers wanted, and where the market was going. Steve Jobs believed in all of his products and innovations he sold to people, and had faith in the people he worked with was what really shaped Apple. After leaving the company and then returning, Steve Jobs’ influence made Apple one of the top computer companies in the world.
Apple has made reasonable management of its human and material resources since its innovational approach demands effective strategic allocation of its resources to the development and utilization of its productive resources to support its innovative investment strategies. Effective strategic control brings power to Apple’s decision-makers to allocate its resources to confront the technological, market, and competitive uncertainties which are inherent in the innovation
In diversification an organization tries to grow its market share by introducing new offerings in new markets. It is the most risky strategy because both product and market development is required and it may be out of the core competencies of the business firm and there lies the challenge and the statement “With high risks come great rewards”.
The major issues facing the company comprises of there being multiple businesses with different demands. There are separate levels of performance and success as well as growth chances for each of the sector and the firm needs to tackle with issues in each of these divisions (Dube, J.P., 2004).
While being a leader in consumer electronics innovation, Apple has reliably produced proprietary hardware and software, which has provided the company with a competitive advantage in gaining a share of any market into which they have ventured. The company’s creator, Steve Jobs, helped to transform the ways in which the the company has been extremely successful in the field of multimedia with his creative product innovations. With the globalization of Apple, the company has received tremendous amounts of success as well. Because of making the company global, Apple also owes its success to their use of unique business strategies. This paper will discuss the history of Apple, Inc. and its strategies for globalization as well as the growth tactics
According to Ideavist (2011), due to the increase in competition as rival companies try to capture a piece of the market share leads businesses to employ various tactics to handle such situations. Some of the strategies used by companies and that Apple could find very constructive could include the below marketing strategies to be used for future success.
Apple is a leader within its industry. In order to retain their current customer base and attract new ones, they have designed a marketing mix that will appeal to the market:
Apple’s SWOT analysis includes strengths that adhere to its great success; such strength is Apple’s marketing and advertising campaigns. Apple incorporates its products to portray a sleek, new, cool, the latest, and must-have technology image to its consumers. Our customer loyalty allows us to continue growing as a corporation and increases our already well-established brand awareness and reputation. Our strong financial performance is an outcome of our internal strengths highlighted. Apple’s weaknesses include, but are not limited to our patent infringements, defects that occur in our products, our declining market share, as well as our incompatibility with other os devices. Realizing our weaknesses allows us to develop goals that will correct these areas we currently need work on. The opportunities of our external environment; such as the ...
From 1980 to 1996, Apple’s competitive range in the PC industry was rocky. Although Apples products were unique and well built, they were overpriced compared to competing products from IBM and others. As competitor prices dropped, Apple prices stayed the same and the company saw a decline in sales as customers opted to purchase from its competitors. John Sculley, former CEO of Apple, took many steps to improve the company’s competitive advantage. One of those steps was to compete with price by producing a low-cost computers that appealed to a mass-market. The second step was to form an alliance with rivals IBM and Novel in order to create new operating systems and applications...
Apple management must bridge the perceived innovation gap with some sort of product breakthrough. Otherwise, it is reasonable for the company to accept lower Street expectations built upon the premise that while the company remains an exceptional production, distribution and branded business, the days of unparalleled enterprising innovation and leadership may be ebbing.
Introduction and Background Apple, Inc is a well known name in the computer technology world; Apple, Inc leads the computer industry in innovation thanks to the award winning desktop and notebook computer known as OS X operating system (Yoffie & Slind, 2008). This paper will focus on Apple Inc., strategic management and why is it critical to the success of the organization in meeting its goals and mission. It is therefore important to define strategic management, according to Certo, Peter & Ottensmeyer, (2005), strategic management is a continuous process that directs an organization to be appropriately suited to its internal and external environment. Strategic management benefits organizations by providing personnel, capital, helps to set standards and most importantly activates people. For an organization to have a successful strategic management plan, the mangers must learn to think strategically and have the ability to evaluate their environment and develop new ideas.