Final Strategic Plan
Running head: STRATEGY PLAN EVALUATION (APPLE INC.) 1
STRATEGY PLAN EVALUATION (APPLE INC.) 2
Strategy Plan Evaluation (Apple Inc.)
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Introduction
Apple Inc. is a multinational company which is based in the United States. The company has its headquarters in Cupertino, California and deals with consumer products in the Information Technology (IT) industry such as computer software (iTunes, iWork, and IOS), electronic gadgets (Macs, iPods, and iPads) and watches. This paper tries to analyze the strategic plans of the company at the business, corporate and global level. Besides, this paper also provides a recommendation of strategies which the company implement to have a competitive edge over its competitors and remain sustainable in the long run.
Evaluation of Potential Business Level Strategies for the Company
The business level strategies adopted by Apple Inc. are all centered on one concept which is innovation. On that note, the following is an analysis of the potential business level strategies which can be embraced by the company.
High-Quality products at High Prices
Apple Inc. has chosen the strategy of providing high-quality consumer products at high prices in the electronics market (Hitt et al., 2012). The company has assumed that customers will afford to buy top quality products in design and functionality such as computers and phones made by the company at high prices. For instance, the company’s computers are comparatively expensive in the market because of their high quality. Also, if you compare the prices of the iPhone models made by the company to other phone models such as Samsung, Huawei, and Techno, you will realize that they’re certainly more expensive. This is because the company has strategically infused quality in the design of its products.
A leader in Disruptive Innovative Technology
As earlier noted, the company has become the leader in the electronics industry in designing innovative, disruptive products to more than meet the expectations of customers (Coccia, 2018). Most of the products made by the company such as iTunes and others have brought to an end already disruptive markets in the industry. Nonetheless, such products have opened doors and created new markets in the industry which were not in existence. For instance, iTunes allowed customers to download music and songs online legally without infringing on the law.
Highly Remunerating its Employees
Apple Inc. corporation has made a commitment of highly rewarding its employees in all the counties the company has operations in (Hitt et al., 2012). Also, the company provides attractive packages to its employees such as health and life insurance, paid vacations and holidays, products discounts if they purchase the company's products and fitness centers to keep physically fit. Notably, the company has placed a high value on its employees and staff to try and create a conducive environment to breed innovation and creativity and best customer service through its service centers.
Evaluation of Potential Corporate-Level Strategies for the Company
Apple Inc. corporation has engaged in the following corporate-level strategies to have a competitive advantage over its main competitors in the technology market.
Product Diversification and Differentiation
Due to the intense competition in the electronics market, the company has implemented a differentiation model on its product supply chain. The company has been able to manufacture and innovate many product lines such as iPads, iPods, Mac computers, iTunes, and iPhones to boost the sales made by the company. That is, the company is not dependent on a single line stream of revenue in the competitive electronics market. Moreover, the company has also differentiated its products from other products in the market by infusing quality in the design and functionality of its products thereby charging high prices on them (Coccia, 2018).
Merger Alliances and Acquisitions
The company has acquired or contracted with other software firms in the industry to continue design products with the highest quality in the market (Hitt et al., 2012). The company seeks to partner with specialists in their respective fields to improve on the design of its products and also innovate new ones with superior performance features and designs. With that in mind, Apple Inc. has also formed strategic alliances with major companies in the industry such as IBM, HP, Microsoft, Toshiba among others to shield the company from the effect of high supplier bargaining power in the industry.
Assessment of the Potential Global Strategies for the Organization
The following is an evaluation of the global strategies implemented by Apple Inc. company to remain sustainable in the long-run.
Expansion into New Foreign Markets
The company in its inception was targeting the local US high-end market selling educational and home use products. However, ever since, Apple Inc. corporation has strategically expanded into new high-end foreign markets to sell its products (Coccia, 2018). The company's manufacturing and assembling points are in foreign countries such as China where the company can lower its production costs and get new developing markets to sell its products. Apple Inc. sells its products in almost 140 nations around the globe. This strategy has helped the company gain a competitive edge over its competitors by focusing its attention mainly on improving the innovation of its products to meet customers' expectations.
Global Retail Supply Stores
Apple Inc. has also opened up global retail stores in many countries around the globe in economies which the company has penetrated. Also, the company has partnered with reputable international suppliers from other foreign nations to distribute and sell its products (Hitt et al., 2012). Such arrangements allow the company to be in control of the market price of its products and position the brand of the company into the consumer's mind. These retail stores are located in countries such as Qatar, Dubai, Russia, UK, and France among others where there are high-end customers.
Recommendation of Strategies Which Apple Inc. Should Use
First and foremost, the company should continue producing and selling its products at an international or global scale to tap into other developing high-end markets (Coccia, 2018). This is to gain a competitive edge over competitors in the respective industry. Secondly, the company should further continue diversifying and differentiating its products from those of other competitors to uniquely position the brand of the company in the consumers' minds on significant electronics appliances such as TVs. Besides, this strategy will also boost the revenue streams of the company. Lastly, the company should continue conducting market research in the technology industry for the organization to innovate on its existing products regarding their design and functionality and also create new revolutionary products.
References
Coccia, M. (2018). Disruptive Firms and Technological Change.
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2012). Strategic management cases: competitiveness and globalization. Cengage Learning.