In: Operations Management
Analyze Apple functional, business and corporate level strategies. Discuss what Apple are doing and how well are they doing at each level? Identify where Apple excel and where could they improve? Offer specific recommendations for improvement for Apple.
please answers should based on the question.
please explain your answers.
answers should not be less than 2 pages.
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the course is business policy and strategy
Answer :
Functional approaches of organizations aim to enhance the execution of organizational and company approaches. Functional approaches include marketing strategies and human resources strategies. Functional Level Strategy is concerned with decision-making at the operational level, called tactical decisions, for different functional areas such as manufacturing, marketing, research and development, finance, personnel and so on. Apple, for example, emphasizes R&D as necessary for future growth along with the advancement of the technologies. Apple's main business strategy is to operate with small profit margins, unparalleled economies of scale and extremely intense emphasis on customer service. Apple is also focused on developing a strategy of penetration that can be used for either new or existing goods in either new or established markets; and as Dean has stated, a strategy of penetration requires the active use of a mix. Marketing strategies have been central to making Apple Inc. a global success: to analyze how these strategies have been so crucial to their success. Apple Inc. developed and used Apple 's brand to build an 'Apple Empire' that accounted for many highly competitive markets, including the SmartPhone market, such as Apple iPhone. Consumer Electronics segment, for example, the Macbook Air, with devices such as the Itouch and Tablet PC /personal computer.
Apple 's strategies at the company level include the close consolidation of its products at moderate to high levels, namely home computers, mobiles, music stores and applications. Moreover, the company has a combination of personal computing and entertainment with a high degree of convergence, making it more effective in producing and selling items at a fairly high cost. Its corporate strategy includes forming strategic partnerships to benefit from economies of scale, tapping competitor information and sharing risks and costs. AT&T may be present for iPhone development, Microsoft for software to be used in Mac computers, and Intel for processors among the alliances that Apple has joined one. As engineering design and production are tightly regulated and centralized, Apple beats the competition by delivering standardized products on the world market. It thus is easy to recognise Apple 's goods, the only customisation being the power source due to voltage variations in various countries. One advantage of this diversification approach is that consumers will get consistent quality and design level for their favourite product, as all of these products are highly integrated and operate on the same operating system. Another corporate strategy embraced by Apple is the internationalization of manufacturing, whereby the company has built its manufacturing base in China to take advantage of low labour costs, access to raw materials, a high potential market and a favourable economic climate due to the stability of China's economy.
The brand and marketing strategy of Apple has always made it a point to portray itself as a luxury brand while at the same time concentrating on differentiating from its rivals. Apple ensures the following brand image is put forward – Apple is competing against itself and not against others. It helps Apple gain the brand-image and popularity it wants. Apple has become a dominant force in the electronics sector and this has been further reinforced by the recent launch of improved iPhone, iPad and MacBook technologies. One area that Apple beats its rivals is the differentiation of its products, where it has dominated in computers, mobile phones, digital music players and online music stores. Apple has always made a major point of providing stellar customer service and has been able to facilitate this with its AppleCare service and by employing knowledgeable sales and service staff to cater to nee customers. Another strategy of differentiation that Apple has adopted relates to the distribution of its goods, where it has built retail stores worldwide. Besides, the service quality of the business is exceptional and outstanding, because it offers a state-of-the-art standard for technological support, consistent and committed customer service and encourages consumers to first experience their goods before purchasing them. The cost leadership approach usually involves the provision of desirable and appropriate goods at a fairly low and affordable price for customers. Companies usually aim to optimize profit by effectively producing and shipping goods that boost cost savings. By delivering goods that stand out in terms of high quality and design, technological innovation and user-friendliness, these approaches have helped the company optimize profitability.
Apple has used many strategies and skills to excel in the market and become the most valued firm in the world. Apple relies more on two entirely different strategies: product placement (especially with celebrities and infamous shows) and the hype generated by positive media reviews. It's tempting to drop lots of cash on PPC ads for Google or Facebook when you want to boost your sales revenue. But, Apple knows it's not always important. Another way of using this trick from Apple is to accept a free trial plan. Offer your service or product a free sample, in exchange for a positive testimonial. Apple relies on their UVP (unique value proposition), which is a sleek product with ever-smaller packaging that works straight out of the package. It's a marketing tactic that brings juice through social media, which is very much a strategic advantage for Apple and its market share. Apple tries to minimize customer uncertainty by simplifying their site and advertising copy. They entirely eschew the terms of jargon or industry. Rather, they use easy, straightforward language and they are continually highlighting the value customers need and will be delighted by. That is part of their digital marketing brilliance; high tech with no high tech words. Apple has a very good knowledge of its customers and established trust in its market share. And, they know how to talk to them in the language that makes them feel relaxed, not frustrated and confused. Apple has developed a cool, fun, and welcoming brand identity and culture — the opposite of some of its rivals. Marketing tactics for Apple include making consumers want to become part of the culture.
Apple Inc. has great strengths in overcoming organizational deficiencies effectively. The organization can also take advantage of these strengths to leverage opportunities including expanding its distribution network. Besides, the firm will use its powerful brand identity and rapid processes of innovation to effectively create and introduce new product lines. However, Apple faces the significant threats of intense competition and imitation, which are major challenges for consumer electronics, computer hardware and software, and digital content delivery services online that impact players on the global market. It is recommended that the vigorous and rapid innovation involved in the production of company goods will continue. This creativity eliminates the detrimental impact of imitation on incomes. It is also recommended that the organization further develop the efficiency of its production processes and promote the automation of its contract manufacturers as a way to tackle increasing labour costs affecting Apple suppliers of goods. Another suggestion is to develop alliances with more distributors to increase the company's distribution network's total market reach. Apple should also take it a step further by making the battery usable so that it can be serviced more easily by the end-user instead of having to make an appointment with an Apple Authorized Service Provider. The iPhone is a wonderful product, and I would be hard-pressed to substitute it with something else only because of the shortcomings above. Nonetheless, it is also the duty of seeking such a high price tag to do everything possible to make the best all-in-one smartphone; and in all honesty, I believe Apple falls short in a few ways. Unless Apple could greatly develop the HomePod product in the future and eventually sell a lower-cost product, the company will be better placed to capitalize on the smart-speaker market growth.