CAPSTONE

Week 8 - Business-Level and Corporate-Level Strategies

Tyrell Wilson

BUS499 Business Administration Capstone

Dr. Brian C. Grizzell

Date: February 27, 2023

Week 8 - Business-Level and Corporate-Level Strategies

In this study, both the business-level and the corporate-level strategies that Apple Inc. employs will be analyzed, and the influence that those strategies have had on the company's success will be measured against the backdrop of the external environment in which they were implemented. Specifically, this study will focus on the relationship between Apple Inc.'s success and the external environment in which it operates. Apple Inc. is a multinational technology firm that develops and manufactures mobile devices, such as smartphones, personal computers, and tablet computers, and the software and services associated with these products. Apple Inc. is one of the most successful companies in the world, and it has continued to maintain its position at the forefront of its industry because of the efforts it has adopted on both the company level and the corporate level. In this article, we will analyze the business strategies that Apple Inc. employs and compare them to those utilized by some of the company's most significant competitors. We aim to determine which of the two groups possesses the most significant potential for long-term financial success.

Business-Level Strategies

Apple Inc. takes an approach at the corporate level that places an emphasis not just on differentiation but also on concentration. Apple Inc. has put into action a differentiation strategy by moving its emphasis to the provision of products and services that are unique and forward-thinking in nature. The products and services that Apple Inc. provides are distinguishable from those of its competitors by an exceptionally high level of quality, design, and overall user experience. Apple Inc. has also employed a focus strategy, which is the decision by the corporation to concentrate its efforts on a chosen number of product categories, such as smartphones, personal computers, and tablet computers. This strategy has been successful for Apple Inc. Apple Inc. has also significantly emphasized providing various services, such as the streaming service Apple Music, Apple Pay, and Apple Care. Apple Inc. has maintained its position at the forefront of the global technology industry by following and implementing this strategy (Michael, 2020).

The company's forward-thinking innovations, long-lasting brands, and loyal customer base are Apple Inc.'s critical sources of competitive advantage. Apple Inc. is renowned not just for the high quality of its products and services but also for the pioneering spirit for which it is known (Michael, 2020). The goods and services that Apple Inc. provides have a stellar reputation in terms of quality, aesthetics, and user experience, all of which contribute to their extremely high level of demand. Apple Inc.'s brand is not only one of the most well-known and respected in the world, but it is also an essential contributor to the firm's overall success. In addition, the products and services that Apple Inc. provides are supported by loyal customers who are willing to pay a premium for Apple Inc.'s products and services.

By capitalizing on the company's core competencies, Apple Inc. has developed a competitive advantage in the global market for technological products. The products and services that Apple Inc. provides are distinguishable from those of its competitors by an exceptionally high level of quality, design, and overall user experience. In addition, Apple Inc. is the proud owner of a formidable brand that is highly regarded and garners extensive global awareness. In addition, the products and services that Apple Inc. provides are supported by a loyal customer base that is willing to pay a premium for the products and services that Apple Inc. provides (Almeida et al., 2021). In addition, Apple Inc. has developed and advertised its goods and services in the market by capitalizing on its core strengths, which it uses to produce those goods and services. Apple Inc. has been able to develop and maintain a powerful position in the technology market by offering products and services that are both unique and ahead of their time. This has allowed the company to grow significantly throughout the years.

Apple Inc. has sustained its competitive edge in the technology market because of its business-level strategy of separating itself from the competition and focusing on core strengths. This has allowed Apple Inc. to maintain its dominant position in the industry. Apple Inc. has created and maintained its dominating position in the market by capitalizing on its essential skills, including the development of revolutionary technology, the cultivation of a powerful brand, and the steadfast support of its client base. The products and services that Apple Inc. provides are distinguishable from those of its competitors by an exceptionally high level of quality, design, and overall user experience. Because of the firm's strategy, Apple Inc. has maintained its position as the leader in the market for technology products by focusing its attention and resources on a limited number of product categories.

Corporate-Level Strategies

Apple Inc.'s strategy at the corporate level is centred on the diversification of its operations and the vertical integration of those operations. Apple Inc. has implemented a diversification strategy by expanding its commercial operations scope to encompass various product categories and service domains. Apple Inc. sells the following types of products: mobile phones, personal computers, and tablet computers, as well as the software and services that are associated with each of these product types. Apple Inc. provides various services to its customers, including the streaming service Apple Music, Apple Pay, and Apple Care. Because this approach was put into action, Apple Inc. has significantly increased both the size of its business and the number of people that make up its customer base (Almeida et al., 2021).

In addition, Apple Inc. has implemented a strategy known as "vertical integration," in which the firm is responsible for managing both the manufacturing and distribution of its products and services. The supply chain that Apple Inc. has adopted is vertically integrated, which means that the firm controls the production of its goods and services from the very beginning to the very end. Apple Inc. has complete command over the distribution of its goods and services as a result of the fact that it operates both physical and virtual stores. Because of this strategy, Apple Inc. has maintained complete control over its products and services and guarantees that they are of a very high standard.

By utilizing the strategy that is being carried out at the corporate level, Apple Inc. has given itself an advantage over its competitors in the market for technological products and services. Adopting Apple Inc.'s diversification strategy has allowed the company to grow and increased the number of customers it serves. Apple, Inc. can keep complete control over the production and distribution of all its goods and services because it employs a strategy known as vertical integration. The company developed this strategy. As a result, Apple Inc. has been able to exert complete control over the products and services it provides and guarantee that these offerings are of exceptionally high quality (Lu et al., 2023).

Apple Inc.'s corporate-level strategy of diversification and vertical integration has generally enabled the business to grow and expand its customer base. This strategy has also helped Apple to reach a wider variety of consumers. The company has accomplished this goal by expanding the number of customers it serves. Adopting Apple Inc.'s diversification strategy has allowed the company to grow and increased the number of customers it serves. Apple, Inc. can keep complete control over the production and distribution of all its goods and services because it employs a strategy known as vertical integration. Toyota developed this strategy in the 1940s. As a result, Apple Inc. has been able to exert complete control over the products and services it provides and guarantee that these offerings are of exceptionally high quality.

Competitive Environment Analysis

Samsung is the corporation that represents the most significant competitive challenge for Apple Inc. A South Korean technology business known as Samsung produces and manufactures mobile devices such as cell phones, personal computers, and tablet computers and the software and services linked with these products. Samsung is the most significant competitor that Apple Inc. faces in the sector of information and communication technologies.

Both Apple Inc. and Samsung have adopted business strategies that significantly emphasize distinguishing themselves from their rivals and focusing their attention on fewer things. These two companies have each implemented a differentiation strategy, with the primary emphasis on providing unique and forward-thinking products and services to their target markets. Both companies focus on a minimal number of product categories, including mobile devices, desktop computers, and tablet PCs, to maximize their efficiency (Lu et al., 2023). These companies have, throughout the past few years, refocused their efforts on delivering various services, including streaming and payment services, among others.

Both Apple Inc. and Samsung focus on vertical integration in addition to variety in their corporate-level strategies, which is another resemblance between the approaches taken by the two firms. Both of these companies have put into action a strategy for diversification, which comprises expanding their operations to cover a greater variety of product classes and service options. This has been done in order to attract more customers. These companies have adopted the management strategy known as vertical integration, which indicates that they are in charge of both the production and distribution of their customers' products and services (Lu et al., 2023).

Competitive Environment Conclusion

The outcomes of the study suggest that Apple Inc. has a better probability of becoming victorious over a more extended period. Apple Inc.'s strategies at both the business and the corporate level are more laser-focused and forward-thinking than those that Samsung employs in its operations. Apple Inc. has created a formidable brand that is instantly recognizable and exceptionally highly esteemed in nations worldwide. In addition, the products and services that Apple Inc. provides are supported by a loyal customer base that is willing to pay a premium for the products and services that Apple Inc. provides. Apple, Inc. can keep complete control over the production and distribution of all its goods and services because it employs a strategy known as vertical integration (Almeida et al., 2021). Toyota developed this strategy in the 1940s. As a result, Apple Inc. has been able to exert complete control over the products and services it provides and guarantee that these offerings are of exceptionally high quality.

Market Cycles

Apple Inc. and Samsung would each have access to a unique set of chances in the market for products with either a slow or a fast cycle. As a result of the importance it places on innovation and the strength of its brand, Apple Inc. would enjoy tremendous success in markets that operate on a more long cycle. The products and services that Apple Inc. provides are distinguishable from those of its competitors by an exceptionally high level of quality, design, and overall user experience. Apple Inc.'s brand is not only one of the most well-known and respected in the world, but it is also an essential contributor to the firm's overall success. In addition, the products and services that Apple Inc. provides are supported by a loyal customer base that is willing to pay a premium for the products and services that Apple Inc. provides.

Samsung is in a solid position to attain tremendous success in markets with short product life cycles due to its dedication to efficient production and broad portfolio of goods and services. The products and services that Samsung provides are distinguished by having prices comparable to those of competitors and being widely accessible. In addition, the products and services that Samsung provides are backed by a vast distribution network, which enables them to be marketed in a variety of different marketplaces across the world (Almeida et al., 2021). In addition, the products and services that Samsung offers benefit from a diverse range of marketing and promotional activities that contribute to the overall development of the brand that the business has established.

Apple Inc. is more likely to achieve long-term success due to its emphasis on innovation, strong brand, and vertical integration approach. The products and services offered by Apple Inc. are distinguished by their high quality, design, and user experience. Apple Inc.'s brand is also one of the most powerful in the world and a vital factor in its success. Apple Inc.'s approach to vertical integration has enabled it to control the manufacture and distribution of its products and services, thereby ensuring their high quality. In contrast, Samsung's business-level and corporate-level strategies emphasize cost-efficient production and various products and services (Tien, 2019). In addition to being supported by a vast distribution network, Samsung's products and services are accessible in various markets. Apple Inc. would succeed tremendously in slow-cycle markets due to its emphasis on innovation and strong brand. Samsung would be more successful in fast-cycle markets due to its emphasis on cost-effective production and extensive product and service offering.

Sources

1. Almeida, M., Sousa, E., Rodrigues, C., Candeias, M. B., & Au-Yong-Oliveira, M. (2021). Samsung vs Apple: How Different Communication Strategies Affect Consumers in Portugal. Administrative Sciences,  11(1), 19.

2. https://en.wikipedia.org/wiki/Apple_Inc.

3. Lu, W. M., Kweh, Q. L., Ting, I. W. K., & Ren, C. (2023). How does stakeholder engagement through environmental, social, and governance affect eco‐efficiency and profitability efficiency? Zooming into Apple Inc.'s counterparts.  Business Strategy and the Environment,  32(1), 587-601.

4. Michael A. Hitt. (2020). Strategic Management: Concepts and Cases: Competitiveness and Globalization. 13th ed. Cengage Learning.

5. Tien, N. H. (2019). International distribution policy comparative analysis between Samsung and apple.  International journal of marketing management and sales research, 2020(1), 2.

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