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Week 8: Business-Level and Corporate-Level Strategies Assignment

Introduction

There is increased competition in the current business environment as more firms increase operations to a global level. As a result, firms utilize both business and corporate-level strategies to have a competitive edge against their rivals. Strategies for business level are efforts undertaken by companies with a competitive advantage in the specialty market. Actions may involve looking into different ways of satisfying customer needs and demands. Apple, Inc. can achieve satisfying customers by developing unique ways of carrying out operations and making products that vary from their competitors. I will concentrate on the business and corporate-level strategies related to Apple Incorporation.

Business Level Strategies

Apple incorporation business strategy can be grouped under product differentiation. To distinguish its products from other rivals, this inclusion is essential yet beautiful. Four elements comprise Apple's Business strategy.

The company has focused on its services and products' advanced capabilities and features as a competitive advantage. The debut of the device called the iPad is a beautiful example. It was an ingenious product. The sole purpose was to store songs and had a shuffle feature to listen to thousands of songs. In addition, the introduction of the Macintosh was also a first of its kind. It used a graphical user interface. Further, the company launched the iMac, which with it came to a new design. Instead of dull beige boxes, the company introduced a more translucent machine that came in different shades that the company would become well known for (4).

Another competitive advantage that the company has is that the products and services offered are fast-moving. However, the first moving advantage might be challenging. For instance, the company may fail to develop innovative capabilities and features when making new versions for existing products. This may affect the competitive advantage that the company has.

Customer experience is a critical central pillar of the company's business strategy. For instance, it has become common among loyal customers to take videos of them unboxing a new version of Apple products and upload them to YouTube. The success of this is linked to the company's ability to create a customer experience that merely goes beyond the process of purchasing the product. For instance, after the purchase process, using an Apple product is easy. A customer can unbox the product, pug it to a power source, turn it on and start using it. No additional downloads or installs are required. In addition, there are Apple Stores in over 25 countries globally; thus, the availability of the product is not a problem. In addition, it is easy to consult with Apple staff if an individual is experiencing a problem with a specific product, thus contributing to the user experience.

Apple's business strategy is more of vertical integration. In that, the company has developed professional ways of making software and hardware and offering services. The company's vertical integration sets it apart from competitors. There are immense benefits accrued from implementing vertical integration. For instance, Apple has a type of ecosystem made possible by integration. Software and devices under the company work well with each other and sync easily. One application can seamlessly work on different devices simultaneously, and the user interface is not affected. The same applications can, however, not pair with devices from other companies. Thus, it creates a form of a closed ecosystem. By making such an ecosystem, the company switches costs of the competition from its customers. In addition, the ecosystem also brings about a way of creating a relationship with the already existing market.

The company's business strategy also seeks to stop relying on iPhone sales such as iPhones and focus on other services. For instance, some changes have taken place in the company in the recent past. Bill Stasior was removed as the head of Siri, Chief Angela Ahrendts also left the company, and the role of machine learning and A.I. (artificial intelligence) was given to John Giannandrea (3). All changes took place within a three months' timeframe. It revealed the commitment of the company to shift focus to other business departments and services to reduce dependence on the sale of iPhones alone.

Corporate Level Strategies

The company's corporate-level strategies are made up of diversifying products at both high and moderate levels. An example is music stores, software, mobile phones, personal computers, and computers. In, addition the company has integrated both entertainment and personal computing at a higher level. It allows the company to be more efficient in delivering and producing its products at a relatively competitive price and remain profitable. An advantage of the diversification strategy is that customers can get high-quality products with a good design standard. In addition, all products run on the same operating system and are highly integrated. Forming strategic alliances is another corporate strategy used by the company.

Doing this makes it possible to share risks and costs, gain knowledge from competitors, and benefit from economies of scale. An example of alliances that Apple has formed is with AT&T to produce Microsoft software used in Mac computers and Intel processors and iPhone production (6).

Another corporate strategy is the internalization of production. The company's production base is in China since it has a low labor cost, favorable economic environment, stable economy, high potential market, and access to raw material. With China being the base of operations, the company can produce high-quality products to stem global competition. Further, the company pays attention to manufacturing and engineering design; thus, it is straightforward to identify an Apple product. According to the specific country, the only variation is in the power source customized according to the voltage requirement.

Competitive Environment

Competition faced by the company is very dynamic. There is the continuous entry of new companies into the market. The existing ones are also gradually coming up with more innovative ways of improving their products. The emergence of innovative products from the already existing companies is the most significant threat to the company. Competition has become increasingly challenging due to the existence of new technology that some of these companies possess. Over time there have been numerous companies that have come up to compete against Apple. They mainly include Nokia and Samsung that are also in the industry of mobile phone makers. There is also Microsoft that specializes in making computer software. However, this discussion will focus on Samsung due to its vast market share in similar products that Apple is offering.

Apple has, over the recent past, taken over the American markets. Samsung has, however, also managed to take over a particular portion of the market share. Most of the competition is based on the making of smartphones. Samsung has focused on developing markets as the target of their products since they are more affordable in these markets. Markets include Africa and China. It is a problem since the developing markets are more likely to go for cheaper alternatives since Apple's products are higher. To mitigate the risk that competition brings, it must try to shift production to other products. The competitive advantage that the firm requires is to enter new markets and develop new unique goods.

Market Cycles

Apple technology being a technology industry primarily lies within the fast cycle market. Some products like P.C.'s, however, can be moved to a slow cycle market. Tablets and smartphones have, over the years, seen the fastest growth. So fast that some versions hit the market and were quickly replaced by other devices even before customers got familiar with them. Samsung and Apple are trying hard to outdo each other in the smartphone market. For instance, it is a common trend where Samsung can develop a product, and Apple responds by making a better version of the same effect once it hits the market. Thus, both companies will increase competition to ensure dominance in the existing market in the future.

Sources:

1. No author. October 29, 2020. Apple, Inc. Annual Report. https://s2.q4cdn.com/470004039/files/doc_financials/2020/ar/_10-K-2020-(As-Filed).pdf.

2. No author. March 6, 2015. Apple's greatest innovations: in pictures. http://www.telegraph.co.uk/technology/picture-galleries/6099399/Top-10-Apple-innovations.html.

3. Broussard, M. February 18, 2019. Apple's Recent Leadership Changes Suggest Transition From iPhone Reliance to Focus on Services. https://www.macrumors.com/2019/02/18/apples-leadership-changes-services/.

4. Feinberg, B. & Thomke, S. January 9, 2009. Design Thinking and Innovation at Apple. https://store.hbr.org/product/design-thinking-and-innovation-at-apple/609066.

5. Hitt, Ireland, & Hoskisson. 2020. Strategic management: Concepts and cases: Competitiveness and globalization (13th ed.). Mason, OH: South-Western Cengage Learning

6. Maxwell, R. & Miller, T. July 7, 2016. Global Media Giants. p. 369-382.