BUS 499
Week 8 Business-Level and Corporate-Level Strategies
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Strayer University
BUS499 Business Administration Capstone
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Apple is a multinational technology corporation leading in the manufacturing and selling computers, software, online services, and consumer electronics. Apple is currently the world's most influential business in terms of luxury brands and improvement of user requirements. The company operates with high standards, which connect to a reliable business improvement process. The process of purchasing raw materials is crucial in promoting productivity in the company's business direction. Improving knowledge of the company's business direction is a critical process to facilitate daily operational methods. It is imperative to gain knowledge from data sources connected to Apple's operations. All these methods are valid in enhancing effective development in the company's outreach.
Business-Level Strategies
For Apple to attain long-term success, it requires the business-level strategy of focused differentiation since it includes narrow market segments and distinctiveness (Hitt, 2020, p. 117). A focused differentiation strategy allows a business to handle value chain activities by supporting competitive operations that increase overall sales since more customer areas will be served using existing resources (Hitt, 2020, p. 128). The strategy allows the firm involved to focus on a narrow industry segment and then ensure it robustly serves it so that there will be profitable operations for the entire area. Apple's provision of various products is feasible for the focused differentiation strategy since it can narrow down to a market segment that is not fully involved in its products.
Focus strategies target a particular buyer group and offer them specific product lines if the products are presented in a particular geographical area (Hitt, 2020, pp. 127-128). Example products offered by Apple include AirPods, MacBook Air, HomePods, iPhone, Apple TV, iPad, and Apple Watch Series, which are user-friendly machines, simple to use, learn, and addictive (Delventhal, 2022). They have achieved this because of creative thinking engineers and researchers. Long-term success is thus guaranteed when it directly researches areas where consumers do not purchase all of their products so that advertising operations can get performed in such areas. Expansion into new geographical areas is a focused strategy that promotes better performance for Apple as a technology company that sets it up for success compared to other companies.
A proposal to connect to a focused differentiation strategy is a flexible manufacturing system whereby Apple can integrate human, physical, and information resources which collaboratively work to ensure the company develops products for clients (Hitt, 2020, pp. 131-132). Compared to the competition, apple products are unique in quality and design, with features and styles that are in perfect condition. The increase in Apple's market share occurs in connection to its manufacturing process of using cheap labor and then assembling the parts to develop a final product in a feasible process (Liu et al., 2023). A competitive structure is developed in the company since it can adhere to industry standards and continue serving various clients.
Corporate-Level Strategies
Apple can attain long-term success by integrating diversification of its value-creating influences as its corporate-level strategy since the technique will be beneficial in promoting advanced market operations (Hitt, 2020, p. 195). The strategy includes economies of space, market power, and financial economics as critical tenets required to promote more advanced market performance (Hitt, 2020, p. 195). Apple can use the strategies as a unique value proposition process to support market expectations. Diversification of workers is a crucial method of the value proposition process, which can increase market power as the involved stakeholders promote new ideas. Improving corporate performance at the company will be possible by ensuring all manufacturing processes are closely connected to expected market performance. While working with existent market needs, it is possible to enhance performance after cohesively increasing consumer satisfaction with the products sold by Apple.
The strategy of financial economics is possible by restructuring assets so that existing resources can be used to serve external market needs (Hitt, 2020, p. 187). Apple can keep its marketing and products simple by constantly advertising products so that advanced needs can be attained. The advantage of Apple products is that they have a special price that is simple to use, and they know how to target their customers through home appliances in subscriptions and app downloads like AirPods and Apple Music (Delventhal, 2022). The unique value proposition is the best for Apple because they avoid price wars and have a beautiful design that works right. Apple knows their value and is not afraid to price them. Multipoint competition is the best proposal for the diversification of Apple as it competes with other products in similar geographic areas (Hitt, 2020, p. 182). Market power can be attained when involved businesses adhere to competitive environment considerations, which is imperative to ensure the business remains competitive.
Competitive Environment Analysis
At the moment, Apple's most significant competitor is Samsung in manufacturing phone products (Investopedia, 2022). The company has diversified its market structure by offering many types of products whose interconnection with market needs produces reliable performance. Samsung’s corporate-level strategy has been cost leadership and differentiation for a long time (Lee, 2017). Comparison with the one chosen for Apple in this discussion reveals that Apple will gain more sales due to introducing new markets. Offering products to narrow markets will be possible and beneficial for long-term success.
Competitive Environment Conclusion
Apple's competitive structure analysis indicates that it is the most preferred technology company in the world due to its advertising strategies and sale of products globally (Yie et al., 2021). As this status is required to increase, Apple must cohesively handle its corporate strategy, supply chain, and advertising methods so that clients' needs will always be met. The factors that affect Apple's future are Aggressive competition by Amazon, Samsung, and Microsoft products. Apple has expanded into big new markets like online payments, health, and identity in marketing products and marketing perspective (Leswing, 2021). In addition, users are comfortable with the features that deal with sensitive topics or data, such as health or finances (Leswing, 2021). Improvement of reliability when managing Apple's gadgets and then allowing them to integrate customer expectations are practical considerations that promote better market performance.
Imitations involving firms that compete based on low prices and trade disputes, especially between China and U.S. Apple, should develop more straightforward and unique by having physical function keys than a touch bar and products that can be easily accessible worldwide at a fair price. Apple should sue all the companies that have imitated their brands and develop an app system that shows if the product is originally theirs or an imitation; Apple should try not to get caught up with the trade dispute between countries so that their sales could go worldwide they should also target their fan groups more to sell there updated products. Developing new and unique features is a suitable consideration to ensure Apple's operations are not eliminated by upcoming technology firms whose uniqueness promotes their differentiation. Market volatility is common in current days due to the increase in the competitive landscape. Thus, there is a need for Apple to ensure its products' uniqueness remains deeply connected to market operations (Hitt, 2020, p. 7). Promotion of more profitable lines of business is the best technique for Apple to remain relevant regardless of its expensive products.
Market Cycles
Slow-cycle markets are the ones in which the corporation's competitive processes are protected from imitation for a long time. In contrast, fast-cycle markets are the ones where their competitive methods are not protected from imitation (Hitt, 2020, pp. 159-161). Apple's existent success can differ if it continues operating in the slow-cycle market since its existent sales have promoted its large market share. Apple's unique products need not be imitated so that its success will always be maintained.
Sources
1. Delventhal, S. (2022). Apple's 5 Most Profitable Lines of Business. https://www.investopedia.com/apple-s-5-most-profitable-lines-of-business-4684130.
2. Investopedia. (2022). Who Are Apple's Main Competitors in Tech? https://www.investopedia.com/ask/answers/120314/who-are-apples-aapl-main-competitors.asp.
3. Lee, T. B. (2017). The Corporate Strategy Office has been key to Samsung's success. Now it's shutting down. https://www.vox.com/new-money/2017/2/28/14760540/samsung-corporate-strategy-office.
4. Leswing, K. (2021). Apple is turning privacy into a business advantage, not just a marketing slogan. https://www.cnbc.com/2021/06/07/apple-is-turning-privacy-into-a-business-advantage.html.
5. Liu, T., Liu, X., Men, Y., & Zhang, X. (2023). Research on global supply chain model of multinational corporations based on Global Production Network Theory--apple corporation as an example. Highlights in Business, Economics and Management, pp. 8, 271–277. DOI: 10.54097/hbem.v8i.7219.
6. Michael A. Hitt. (2020). Strategic Management: Concepts and Cases: Competitiveness and Globalization. 13th ed. Cengage Learning.
7. Yie, C. E., Zhi, C. E., & Ping, N. T. S. (2021). A Critical Analysis of Internal and External Environment: Case Study of Apple Inc. Journal of International Business and Management, 4(10), 01-14.
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