Question

Recommend a strategy or combination of strategies Apple Inc. should implement, and include a rationale for the recommendation.

Answer 1

Strategies are of three types:

1. Business strategies (Cost leadership, differentiation and focus)

2. Corporate strategies (Stability, Growth and Diversification)

3. International strategies (International, Multi national and Global)

Strategy recommendation and its rationale is illustrated in the table below;

Strategy	Recommendation	Rationale
Business Strategy	Integration (cost leadership, differentiation and focus)	Apple is known to manufacture high value goods. The present strategy of Apple is differentiation (it offers unique products) and focus (it caters to few concentrated customer segments). There is lot of scope for Apple to cater other segments through low cost pricing. Apple can continue to produce differentiated products and cater to customers of low cost groups.
Corporate strategy	Diversification	The present product portfolio of Apple is confined to electronic goods. Apple is known for its quality products produced by highly competent staff. Apple can diversify its product portfolio nd continue to produce high quality goods.
International strategy	Global	In the era of globalization supported by digital and social media, large number of companies are aggressively pursuing global strategy. Apple can move towards a standardized product at standardized rates for all its customers across the world. It will further enhance its image as a reliable brand.