BUS 399-Week 6 - Assignment 2
Homework1896
BUS499_week3_Assignment_1.docx1
7
Apple Inc. Strategic Competitiveness
Student’s Full Name
Strayer University
BUS499 Business Administration Capstone
Professor’s Name
Date
Apple Inc. Strategic Competitiveness
Apple Inc. is an American multinational company specialized in the designing, developing as well as manufacturing electronic and communication equipment such as phones, computers and IOS software. It is listed in New York Stock Exchange and NASDAQ. Apple products continue to be one of the world’s sorts after products. The company however continues to face competition from other brands globally (Reuters 2020). Many companies mostly android affiliated have come up with pocket friendly products which are as good as the apple products. Regardless of this, apple products continuous to cell remarkably all over the world due to their user friendly and uncompromising quality. This paper evaluates how globalization, technology change, strategic models, vision and mission statements as well as stakeholders affect the corporation’s success.
Globalization
Globalization can be defined as integration in the world in interchange of ideas, culture, views and products. Due to technology breakthrough interactions and communications from different people in different cultures and spheres making it possible for movement of information, ideas and products without much geographical hindrances. Globalization has increased the global trade more than states overall growth. Apple Inc. as any other company has been affected both negatively and positively by this globalization ( Hitt, Ireland, & Hoskisson. 2020)
The global markets has brought with them competition as well as opened market for Apple Inc. expansion. Globalization has facilitated the Apple Inc. to surpass its close competitors such as Microsoft in supplying technology related products all over the globe. It has also seen Apple open up integrated manufacturing design facilities in different continents such as Asia and Europe to enhance global network. The Apple Inc. has in its strategic management used innovative measures and uniqueness of their standard to win loyalty thus able to stand out in the competitive markets (Reuters 2020).
Globalization has also affected the markets of the apple products negatively. Due to minimum restrictions and trade barriers, there have been many competitors who have come up with products similar to the Apple’s products that are way cheaper. Companies such as Samsung and Huawei which come from regions with cheap labor and low material cost have made them have a competitive advantage over the apple company. These company uses android which appeals to users with tight budgets, easy to use and modify as well easy for the owners to customize ( Hitt, Ireland, & Hoskisson. 2020).
This has seen companies also like Google who are the providers of Android services to overtake Apple in the global market. Apple Inc. in its effort to remain competitive have gone ahead to open up factories in china where most of their production is carried out. This however has seen the company have a lot of bad publication for using Chinese manufacturing companies to build most of their products. This is indicated by some consumers willing to pay up to $100 more for the IPhones to be designed and manufactured in US (Son, Kim, Park & Kim, 2018). These are challenges that were brought about by globalization.
Technology
Technological innovation has been one of the main factors that have been giving the APPLE Inc. a competitive advantage. The industry in which the Apple Company operates in depends on the technological innovation. Technology in these sectors is changing drastically and swiftly, making the companies to change their innovations every now and then. The creation of new improved products in this dynamic world of technology has apple remain relevant. The company has transformed from their initial products such as computer which was named Apple I to, iPods iPhones, and MacBook’s (Reuters 2020).
These products have come up with differing technological innovations that attracted more uses in the global markets. Products such as iPhone have seen quite an evolution with time from a simple phone to a sophisticated gadget that has smart features to simplify human life. The use of the technology is the one that has seen Apple Inc. remain relevant in the world as well as gain popularity ( Son, Kim, Park & Kim, 2018). Technology has also reduced production cost as most of the operations in the production are computerized. This has made production become faster and more efficient thus cutting the production cost and time.
Industrial Organization Model
Resource-Based Model
The resources model explains how a firm’s internal resources and capability to with competitive advantage. The Apple Inc. uses their unique value creation that is based in differentiation strategy in having their unrivalled ability for innovation. Apple is ranked as the world’s most innovative company many times than any other company (Hitt, Ireland, & Hoskisson. 2020). This unique feature makes the customers prefer the Apple products in regardless of the higher prices that other firms. This gives the Apple Inc. a competitive advantage which makes their brand more preferred even with the higher prices.
Vision
Apple’s vision statement is “we believe that we are on the face of the earth to make great products and that’s not changing” (Reuters 2020). This statement is a clear indication that the company is always determined in delivering quality products to their clients. Not for some time but for a very long time. The use of vision statement is communicated the firms intentions and their willingness to achieve their goals. This statement shows how confident Apple Company is in being at the top of the industry for years. This drives them in giving the best the market have so as to sustain their vision.
Mission
Apples mission statement is “to bring the best user experience to customers through innovative hardware, software and services” (Reuters 2020). According to the mission statement, Apple shows their goal to give the clients the best services. This statement also shows how they are going to accomplish the intended goal. A good mission should give a goad road map to the goals of the company. The goal of best user experience shows that apple intends to ensure their clients have an easy time using their products through enhanced security and user friendly products. In pursue of this mission, the apple products have become the best crafted masterpieces that are designed to last longer. In their strategy of using innovation, apple has emerged the most innovative company in the world. This shows that the mission helps the company achieve their goals and gain market competitive advantage. This is the way mission should guide firms in achieving their goals and perform extra ordinarily
Stakeholders
Apple’s Main stakeholders include: investors, customers, employees, communities and competitors (Reuters 2020).. Each category of stakeholders impacts positively to the growth of the company. The investors are injects capital to the company in pursuit of earning returns. These investments are used by the company in expansion, innovations and management of the company production for a better production. They are the ones who keep the company on their toes to perform extra-ordinary so as to gain more profit thus attractive return on investment. This makes the company’s stock market remain competitive and more attractive. The customers are the ones who keep the company running. The mission of the company is providing good user experience to the customers. The customers’ preference on the other hand makes the company continue exploring ways to remain relevant to the market. Their feedbacks as well give hints on the areas to improver and innovations to come up with. In pursue of achieving customer preferences makes the company performance remain high( Hitt, Ireland, & Hoskisson. 2020).
The input and the dedication of the employees keeps the production running while competitors keeps the Apple company on their wheels in trying to compete for the highest spot. The communities all over the world are responsible in providing markets and exchange of ideas which are vital in the Apple Company’s performance and existence.
Sources
Hitt, Ireland, & Hoskisson. 2020. Strategic management: Concepts and cases: Competitiveness and globalization (13th ed.). Mason, OH: South-Western Cengage Learning
Insung Son , Jinsu Kim , Gwijeong Park & Sihyun Kim , : 11 October 2018. The Impact of Innovative Technology Exploration on Firm Value Sustainability: The Case of Part Supplier Management. MDPI, Basel, Switzerland http://creativecommons.org/licenses/by/4.0/
Reuters, 2020. Apple Inc. (AAPL.O) https://in.reuters.com/finance/stocks/company-profile/AAPL.O
1
Apple
Inc. Strategic Competitiveness
Student
’
s Full Name
Strayer University
BUS499 Business Administration Capstone
Professor
’
s Name
Date
1
Apple Inc. Strategic Competitiveness
Student’s Full Name
Strayer University
BUS499 Business Administration Capstone
Professor’s Name
Date
