Question

Evaluate potential business level strategies for Apple Inc.

Answer 1

Answer-

Introduction

The company chosen for this task is Apple Inc. because of its renowned name, diversity in product lines, massive operations and vast size. Apple is an American multinational corporation that designs and manufactures consumer electronics and computer software products. A great business strategy has the potential to affect Apple for the better. But, there are many steps in business strategies that could help a company like Apple be more successful. This week’s assignment it is geared towards evaluating the potential business level strategy for Apple, for example Apple’s value discipline, generic strategy, and grand strategy. While also assessing Apple’s potential corporate and global level strategies. Finally, recommending a strategy or combination of strategies that Apple should implement. This paper will also include a rationale for the recommendation.

Evaluation of Apple Inc.’s Potential Business Level Strategy

Apple’s business-level strategy is based on many different variations within the organization. The business strategy for Apple Inc. can be said to be that Apple strides to make the best product. Here, Apple focuses on product differentiation in design/functionality as well as how to maintain their competitive advantage. Koch reacy and Wiersema introduced this concept following by the lifetime workings of Micheal Porter. According to the theory every company focuses on one of the following three dimensions: First being Customer Intimacy, second Operational Excellence and third Product Leadership. Among these three dimensions mentioned above Apple focuses on Product Leadership while maintaining the other two according to industry standards. Apple falls perfectly in following this category since its products are highly innovative and competitive than its competitors.

Schmitz, Global Strategy in companies that offer the leading-edge products and services, consistently enhancing consumer value and making the competitor’s products obsolete. Apple is the best suited example in this category since it is innovation driven, sets high standards for its niche market and then strives hard to greet those standards; this strategy sets its competitors on greater risks. The tremendous list of Apple’s innovative products includes iPad, iPhone, iMac systems, wireless multimedia and many more.

Apple Inc plans fast today and implements the very next day in order to stay prior to launch innovation in the market. For companies like this it is better to make abrupt decision and give a launch instead of waiting for better planning that may get delayed. Example is launch of iPhone 5S. It was a sudden launch with minor changes in technologies and body after iPhone 5, to deal with the success of Galaxy 5 series by Samsung. Since then Apple continues to release the s series with hardly any upgrades beside storage space and phone size. Yet consumers continue to empty their pockets to have apples latest product.

Generic strategy is basically an approach to strategic planning that firms adopt to improve their competitive position in specific market or industry. The three basic strategies by Porter that firms focus on to compete in their respective market are: Low cost Strategy, Differentiation Strategy and Focus Strategy. However Arthur A. T Jnr extended these three strategies further into five strategies.

Griffin Apple uses Differentiation strategy among Porter’s described three generic strategies since it offers distinctive products by offering high quality products that raise consumer’s value. To succeed in this strategy Apple Inc has undoubtedly employed scientific research to its business processes, a highly skilled and creative product development team, efficient sales and marketing team and a positively positioned brand name for delivering innovation and high quality products.

Masi, Strategic Analysis of Apple Inc, Apple is following differentiation strategy in a broader aspect. Apple differentiates its products by delivering superior quality, exceptional design and customized service. Apple Inc is currently targeting broad range of consumers, from unsophisticated beginners to high profile professionals Apple is there to cope up with everyone’s personalized needs and demands.

Apart of describing the specific Generic Strategy that Apple Inc. focuses, following is mentioned an analysis of all Porter’s Generic Strategies deployed by Apple Inc. in order to sustain into market by meeting its standards:

1. Low Cost Provider Strategy: Apple Inc. realizes that there is demand for Low budget consumer electronic as well, so it designed iMac computers and iBook computers for meeting requirements of basic computer buyers. The cost of this model of computer is quite low.

2. Broad Differentiation Strategy: This strategy is well discussed above. This is the generic strategy that Apple Inc purely focuses, which has made Apple Inc. leader of the innovation industry. Apple Inc. focuses on producing products for two types of market segments. One for initial users or beginners and other for sophisticated professionals.

3. Best Cost Providers: This strategy is employed to give consumers best possible services and products in a single package e.g, incorporation of iPod digital musical player.