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Strategic Analysis: Organizational & Competitive

Ernestine DeWitt-Yancy

Argosy University

Strategic Analysis: Organizational & Competitive

Managing strategic planning will be the most important aspect for a organization such as Apple Inc., especially being the second largest technology business in the world. Apple is a well known technology organization that has successfully pioneered the international market. Apple Inc. has done a terrific job so far with implementing well thought out strategic planning management with CEO’s of the organization. Apple’s paid attention to the needs of the market and continue to develop products in regard to these needs. Apple Inc. mission statement reflects truly what has come to fruition in stating, “The power to be your best” (Dowling, 2000, p. 82). Apple Inc. values in relations with management verses employees in the United States and abroad have been faced with what most business have, culture relations and subculture relations continue to be a work in progress (Dowling, 2000). This paper describes the strategic analysis Apple Inc.’s uses in the organization and speaks about their competitiveness in the technology market.

Strategic management refers to the grouping of efforts within a business that support decisions, ultimately has a positive effect for the organization. Apple Inc. strategic management requires careful analysis of their entire hubs of operations ensuring that the right business decisions have been made. Apple Inc. operations can be labeled as successful in terms of being effective with strategies, goals, and objectives (Song, 2015).

Apple Inc. is regarded as a top-notch organization `when it comes to production of technological devices. Apple is a leading producer of personal computers, phones, tablets, and IPods. Apple Inc. has been in existent for several decades and it ensures that all its products are in line with the prevailing needs of the market. Apple Inc. has been dedicated to anticipating high standards of responsibility to customers in all the products they produce. The organization ensures it provides high quality products and ensures it provides a level of technology that does not intimidate the people who are not well versed with the MAC computer. In addition to the provision of highly effective technological products, the organization has ensured that it provides a favorable working environment for its employees in order to improve the social responsibility of the organization and its image in the market. Apple Inc. has also focused on innovation as one of the major aspects that determine its access. Apple has been dedicated in making good products that satisfy their customer base through pioneering innovation of products that are efficient than their competitor, Samsung. Through such a framework, Apple has become a leading organization in the technology market whose drive for excellence as a Technology organization (Mellahi, 2014). Apple Inc. has been recorded as the most profit making technological organization due to its low production costs since most of its production services are outsourced.

Apple has been criticized for higher cost of its products. Although, the products are of high quality in relations to Personal Computers (PC), many customers have stated that Apple products are more expensive and customers prefer the more affordable PC brands. Additionally, the software used in the creation of the Apple products has been criticized for its incompatibility with other software from other companies. Anyone with knowledge of computing technology can contest that MAC are of higher quality with performance. Apple organization has already built a reputation in the technology industry that their products are of high quality.

Apple has maintained their competitive advantage in their respective markets. Apple has gained competitive advantage mainly because of the quality of its products and the uniqueness in its products. Apple provides unique products of high quality whose software cannot be compatible with other software from other companies. Users view Apple products as an indication of social status, making everyone want to have an apple product (Thompson, 2013).

Apple Inc. biggest goal set was to capture the educational realm with supplying all schools with MAC computers and smart-boards for educational purposes (Dwyer, Ringstaff, Haymore, & Sandholtz, 1994). Brilliant strategy and it worked. MAC computers are more reliable than PC, which justifies the increase in price. Another goal for Apple Inc. is to keep creating technical tools to help aid innovation success.

Apple recognized that customers demanded high quality products that allow for ease of use and allow for growth in the usage of the products. Apple did not want to have a wide market but concentrated on a narrow market that appreciated its high quality products. Apple also realized that there was a need to develop a brand name that would be recognized by the masses of users. Through such a strategy, Apple has become a highly profitable technological organization globally (Thompson, 2013). Apple has become excellent in keeping effective strategies in reach ensuring that they attain their goals and objectives. Apple Inc. creates unique products whose software is not compatible with other software from different companies. The product line ensures customers remain loyal, not by choice but by the way in which their products have been designed. This means Apple has created approving products for customers, which ensures all the profits of sales are reinvested in the organization (Song, 2015).

Apples strongest strategy as a organization is their reputation of brand name and loyalty among customers. Apple has already established a brand name that is recognized globally and with continued products being created, ex: smart televisions and music systems, among other technological products. Through diversification, it is highly possible for Apple to increased creativity and innovation (Mellahi, 2014). Apple has been successful with their strategies but has yet to learn how to implement diversification throughout the core of the organization because they need to learn other cultures values as they see it. As the world is becoming more and more diverse they have no choice but to keep learning how to capture the bigger picture in the same light as Samsung has done.

Apple is successful in its corporate level strategies by employing integration and outsourcing. Apple has been able to acquire similar level companies by ensuring that it maintains its brand name in the technological market. For example, Apple acquired beats by dre, which had been a high profile headphone manufacturing organization and its acquisition by Apple was a giant success. In addition to its horizontal integration, the organization has been able to use outsourcing as an effective strategy in maintaining the production costs of the organization. Due to the high labor costs in the US, Apple has been able to set up manufacturing plants in China due to the availability of cheap labor thus increasing the profit margins for the organization. Through these strategies, Apple has emerged as leaders in their respective markets (Luthans, 2012).

Apple has been able to take various action plans in addressing unethical behaviors. On the other hand, Apple has also been struggling with claims of unethical behaviors such as environmental pollution, underpaying workers, and cases on patent infringement with Samsung. In light of these allegations, Apple decided to investigate and came up with a strong framework that took care of all the employees in all the manufacturing plants and ensured that their welfare had been taken care of. Additionally, the organization also ensured that all its waste products were safely disposed of and Apple did not want to cause any harm to the environment. On the cases of patent infringement, Apple decided to drop all their cases, ending the patent war that had caused the organization millions of dollars. Such ethical strategies by Apple enabled the organization to handle all the allegations that have been made against them, therefore being able to maintain their positive image.

There are various strategies that Apple Inc. can adopt for positive changes in the organization. One of the major strategies Apple Inc. should adopt is being able to understand the specific areas where the changes is going to make the greatest impact in the operations of the organization. The organization should be careful in analyzing the change and understanding the specific areas that it will impact and the actions plans that are needed in containing the change. During the analysis, it is also important to develop effective communication to all the stakeholders in ensuring that they understand the change and the implications that it will have on the operations of the organization. Undergoing any change, it is also important to create a analysis of the influence that the change will have on the organizational structure of the organization. During the implementation of the change, it is also important to consider the market strategies that will be engaged for ensuring that the products are providing the needs of the market. Through these strategies, it will be possible for the organization to create a agenda that absorbs ambiguities or probabilities that may come with the implementation of change within the organization (Hitt, 2013).

In conclusion, Apple Inc. as a technology organization has been successful in the global market. Apple has been able to be innovative, providing high quality products and ensuring that they have built a product that the customers can appreciate. On the other hand, Samsung have concentrated on low pricing and diversity in ensuring that they diversify their risks while increasing revenues. Maybe this is key in why Samsung is making more profit than Apple Inc. Through such strategic management practices; Apple Inc. emerged as the leading technological companies on the planet.

References

Dowling, G. (2000). Creating Corporate Reputations: Identity, Image and Performance: Identity, Image and Performance. OUP Oxford.

Dwyer, D. C., Ringstaff, C., Haymore, J., & Sandholtz, P. D. (1994). Apple classrooms of tomorrow. Educational leadership, 51(7), 4-10.

Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2013). Strategic management: Competitiveness and globalization; [concepts and classes]. Mason, Ohio: Thomson South-Western.

Luthans, F., Doh, J. P., & Hodgetts, R. M. (2012). International management: Culture, strategy, and behavior. New York: McGraw-Hill.

Song, C., & Lee, K. (2015). The Samsung way: Transformational management strategies from the world leader in innovation and design. New York: McGraw-Hill.

Thompson, J. L., & Martin, F. (2013). Strategic management: Awareness and change. London: Thomson Learning.