Question

Please write an article titled as ‘Strategic Management in Apple company

You should try to include the following components in the write-up:

• A brief introduction about the company and the industry

• External Analysis

• Internal Analysis

• Current Strategy and

• Conclusion

Answer 1

STRATEGIC MANAGEMENT AT APPLE INC.

Introduction to the company: Apple Inc is an American multinational company which has its headquarters at Cupertino, California. The company was founded in April, 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne. Apple currently manufactures smartphones called IPhone, IPad which are a form of tablet computers, Mac personal computers, IPod which is a personal media player etc.

Apple has achieved product differentiation because of its higher perceived brand value and brand-perception.

Apple is one of the largest players in the global cellphone industry. The cell phone industry is also one of the largest growing industries in the world with various technological innovations on the way. Some of the top players in the cell phone industry are: Samsung, Motorola, Apple, Lenovo etc.

External Analysis:

By performing PESTLE(Political, Economic, Social, Technological, Legal) analysis on Apple Inc, we can draw the following conclusions:

Political Factors: Apple has a large proportion of its business outside the USA. Also, a large chunk of its hardware components are manufactured outside the US. The bad political relationships in those countries along with poor political relations between the governments can impact the company.

Economic Factors: The global economic conditions such as inflation, recessions and unemployment worldwide can impact the sales of Apple products as the brand carries an image of luxury for its products and they are priced comparatively higher than that of its competitors.

Social Factors: Apple products have always differentiated themselves based on their quality, design and a perceived superior status over owning Apple products. The raise in purchasing power of common man and the need for luxurious goods will have a positive impact on the sales of Apple products.

Technological Factors: Apple has a dedicated R & D unit which comes up with new innovations for the company. Technological innovation has been the USP(Unique selling point) of Apple.

Legal Factors: Apple has had to deal with various patent and copyright claims and several other lawsuits. Patents and trademarks are an issue with which they would have to deal in future as well.

Internal Analysis: As a part of the internal analysis for Apple, we will analyze the Strengths and Weaknesses of the company. The analysis of strengths and weaknesses is as explained below:

Strengths:

One of the major advantages Apple has over its competitors is the unique design and quality of its products. Apple products have a unique design and efficiency of usage which has been its strongest advantage till date. Also, the Apple products are associated with technological innovation. Customers associate the brand with innovation and luxury and thus justify the high prices of Apple products. Another advantage for Apple is the image of luxury and status associated with the brand in the minds of its customers.

Weaknesses: One of the main weaknesses for Apple is the loss of its founder Steve Jobs which had impacted the brand to a large extent. Also another issue being faced by the company is several patent infringements. Also, another weakness is its reduced market share in its home country of USA.

Current Strategy:

At present Apple is looking at expanding in the developing countries, predominantly in Asian countries such as India. To achieve this, Apple is starting a dedicated R& D center in India. Apple's strategy is to continue its focus on innovation and design and to continue using them as its USP(unique selling point). Apple will continue to work on providing innovative devices for its customers. Also, they are focused on providing superior customer service experiences to all its customers across the globe.

Conclusion:

Apple as a company is known for its innovation and design of their products. The have achieved product differentiation based on its design and superior quality. There is scope for further innovations and growth for the company. They can aim at increasing their presence across several countries.It is backed by a strong legacy.

However, there is fierce competition in the market and thus they need to rework on their strategies to achieve the position of market leaders. They will need to alter their strategy in their home-country of USA where its market share is rapidly declining.