External and Internal Environment

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Institution

Lecturer

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Strategic Management and Strategic Competitiveness

This essay explores a public corporation and how globalization and technological changes have had an impact on it. The industrial organization model and resource-based model will be applied to show how they would help the company earn above-average returns. An analysis of how the company’s vision and mission statement influence its overall success will be given. Lastly, the impact of every stakeholder on the institution’s overall success will also be analyzed.

Apple is one of the top multinational companies which is specialized in designing, developing, and manufacturing electronic equipment. Such equipment includes mobile phones, software, and computers. Globalization has played a considerable part in the growth of Apple in the industry worldwide. Globalization is the concept in which different economies have amalgamated to reduce barriers of international trade such as tariffs, the fees related to exports, and quotas on imports. It is due to such circumstances that have enabled Apple products to penetrate different markets in the world. Apple is a leader in innovation and creativity; hence it needs enormous investments in its workforce. They also require investments in the machines they use in production. Apple has employed strategies that utilize outsourcing, and that has assisted the company in achieving unmeasurable success to lead in offering quality products to its clients. For instance, globalization has affected the company’s business strategy. Due to the increased market and demand for apple products, customization has been done in applying the differentiation strategy. Thus, Apple has led in the production of electronics, software, and phones which have exclusive features (Sohail, 2017). To enable such, the company has heavily capitalized in research and development to reap more in the technological field.

Globalization has also had an impact on the operations and employment practices of the company. Due to the ability to access different markets, the company has managed to subcontract production plants in different parts of the world. Therefore, it has prospered in the manufacture of products and launched them in new markets. On employment, Apple has succeeded to attract talented, committed, and innovative staff members across the world. This pool of workers has helped the organization to achieve its objectives due to innovation hence leading in the technological industry. Globalization has also had an effect on the products and services provided. International markets require quality products and services from institutions. Through partnerships with different producers in the world market, Apple has used outsourcing and subcontracted suppliers to supply various components to make their products attractive and different. Globalization has also affected the company’s resources and maximization of profit. The company has been able to access the best human resources in the globe. The company also spends a significant amount of capital to increase the acquisition of capital and other production factors. Going global has enhanced the market share of Apple, which has enabled it to maximize profits. The distinct market position earned by apple is due to the marketing campaigns it has been carrying out (Sohail, 2017). This has helped Apple to gain a devoted customer base throughout the world, which has enhanced its brand equity. Thus, the company enjoys a favorable brand reputation in many countries around the globe.

Lastly, the company has to cater to the needs of its client base spread across the education sector, governments, small and medium enterprises, and large corporations. To ensure every quota is served, the company employs direct and indirect distribution channels, which also includes online sales services, retail stores, direct sales, and third-party retailers (Sohail, 2017). The company has ensured that every potential customer of their products can access them easily worldwide without struggle, and that has been enabled by globalization.

Technological changes had an impact on Apple because it produced products that led to disruption in the technological industry. For instance, the manufacture of the iPhone provided users a gadget that was different from those that existed. The device had touch controls, and it was a breakthrough internet communication device. It is due to advancements in technology that Apple has decided to make products with unique features from those of competitors through the exploration of technology within the existing technology area. The innovative nature of the company through its workforce has been enabled by changes in technology hence making it be the leading innovative company.

Apple can use the industrial organization model to maintain a considerable stake in the market. This model ensures that the competition pool is small, creates barriers to entry, and assists the company in assessing the competitor’s next steps. On limiting competition, apple can undertake some actions which can affect its market. The move will ensure that few competitors take part, which will enable it to control the market. For instance, if Apple decided to manufacture quality products with unique features targeting the majority of the clients, they would edge out their competitors. By doing this, they would be required to reduce the price of their products while maintaining the quality to attract more potential clients. That action would drive away many competitors who manufacture low-quality products and sell them at low prices. The sales of Apple products would rise significantly because many people could afford their products, and they would earn above-average returns. Apple can also create a barrier to entry in some markets, and that can limit the number of competitors in the market entering. Entry can be barred to other competitors by Apple by striking a deal with a nation to relocate its facilities.

Consequently, Apple would offer employment and profit the local economy and can strike an agreement ensuring another rival has problems starting up shop in the area. Through that, less competition is guaranteed, and Apple can gain footing through the country’s economic and political infrastructure. Lastly, apple can earn above-average returns by predicting the actions of their competitors. This is done using the game theory, which consists of the competitors and the limited decisions they can make. Through the use of matrices and tree diagrams, Apple can evaluate its next moves by simulating the rival’s selections and the probable results of the choices (Mate, 2017). Knowledge of the rival’s next possible steps can determine how Apple will interact with its competitors. After knowing the competitor's moves, the company can understand that it can be best to pre-empt the market and make the first strategic move, which will beat the competitor.

Consequently, the resource-based model can also help an organization earn above-average returns. The resources, in this case, are strategic resources owned by an organization, which allows developing a competitive advantage over the rivals. The vital resources refer to those which are rare, hard to imitate, and are unique and cannot be substituted. Apple can benefit immensely by making products that are difficult to imitate, valuable, and rare. Such products can only be attained through numerous innovations and improvements on existing technologies. The use of a business model that is focused on strategic resources can help the company record-high profits. The vital resources which are rare or valuable are due to the high cost of acquiring them or their scarcity (Edwards, 2019). Apple can leverage its innovative nature and create never seen before products that are not easy to obtain and cannot be imitated. Thus, people will strive to purchase the products for their use, and that will enable the company to attain high-profit margins compared to competitors since they are the only manufactures of the much-sought products.

Apple’s corporate mission has been changing over time. The company is considerate of the changing business landscape, which influences what the organization can do. Apple is conscious of the changes in the market and industry environment. The current mission statement states that the company designs Macs, which are the best personal computers world over along with OS X, iWork, and iLife and professional software. It says that it leads in the digital music revolution with the iPods and iTunes online store. There has also been a reinvention of mobile phones using the iPhone and App store, and it is defining the mobile media future and computing gadgets with iPad (Rowland, 2019). This mission statement is in line with the company’s objective to be the leading player in the technology sector. It has revamped its mobile phones, its software, and personal computers, which increase client experience compared to those of competitors. The company also wants to stamp its authority in the field of creativity and innovation through the creation of unique and quality products.

The vision statement of Apple mirrors its mission statement. According to their leader Tim Cook, the vision of the company is to make great products, hence the constant focus on innovation. The company believes in creating simple and not complex products, and they feel they have to control the primary technology behind the products they produce. Through globalization, the company wishes to participate in markets where they can make significant contributions. The focus of the organization is on a few projects which are essential and meaningful to them. The company employs collaboration among its staff members, which allows them to innovate differently than its competitors. The company does not settle for anything less than success to maintain the leading status while providing quality and unique products to its clients (Rowland, 2019). Both the mission statement and the vision statement show that Apple has its eyes fixed on success due to the quality and uniqueness of the products they manufacture. These statements guide the company’s actions to ensure they remain unbeaten.

Apple has different stakeholders ranging from employees, suppliers, governments, media, customers, and competitors. All these stakeholders have an impact on the overall success of the organization. The employees are the ones mandated to carry day to day activities in the corporation to manufacture the products used by clients. They are the ones prescribed to be creative and innovative to create unique and quality products. Hence, the success of the products in the hands of the clients is pegged on them. They have to ensure they maximize the resources provided to give what the client needs and edge competitors. Suppliers are also very essential in the corporation because they supply components used to manufacture the products. A go slow, or any misunderstanding with the suppliers can cripple day to day activities in the corporation because components used to make the products will not be availed. Governments in which Apple Company operates also influence its operations. For instance, regulations placed on companies such as tax, tariffs will affect the overall performance of the organization. Favorable government regulations will influence the success of the company, while punitive decisions will hurt the business and can lead to closure or retrenchments. The media is also a massive pillar in the success of the organization. When the media run negative stories about Apple, it dents its image and reputation. A company with a dented reputation does not attract clients or partnerships from other players. Hence, positive media coverage of Apple will ensure the company is successful because many people would want to be associated with its mannerisms or products. Clients are the nerve center of the organization. Without customers, the business is bound to close the shop. Offering clients quality products and excellent customer experience ensure the company succeeds in its activities. Lastly, there are competitors, and Apple owes them ethical and legal responsibility. The competitors should act justly and comply fully with legal and regulatory frameworks to allow healthy competition (Hakobyan, 2018). Unhealthy competition can lead to unpleasant business for Apple making it not to realize its objectives.

References

Edwards, J. (2019). Resource-Based Theory. Retrieved from https://opentextbc.ca/strategicmanagement/chapter/resource-based-theory/