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Apple : Function and Form - Essay Example

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Summary
This is a paper on Apple Inc.’s competitive strategy and the actions the company takes to sustain its position competitively. Furthermore, this paper explores and analyzes the competitive strategy of Apple Inc and makes a few recommendations. …
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Apple : Function and Form
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Apple : Function and Form

Download file to see previous pages... Furthermore, case studies from academic sources like Organization of Economic Co-operation and Development and International Journal of Business Administration were taken.
INTRODUCTION
Apple Inc. is an American corporation and it manufactures and designs consumer electronics and computer software products. The most prominent products include the Macintosh Computers, iPhone and iPod and the software range includes Mac OS X operating system, iTunes media browser, Final Cut Studio, and many more. The company has more than 250 retail store under its name in nine countries and it also manages an online store for software and hardware. (Forbes, 2013)
Apple Inc. was established in California in 1976 and it was called Apple Computer, Inc. in its first 30years, but the word computer was eliminated in 2007 since it expanded into the consumer electronics .It has annual sales of roughly around US$ 32.48 billion. (Mirabal, 2009).
The basic objective of Apple Inc. was summarized in its mission statement, which was to design Mac as the best personal computer, design OS X, iLife and iWork software for professionals and to lead the digital music market by bringing a revolution. Revolution is a key objective Apple Inc. has and which is integrated in its business strategy as well.
BUSINESS LEVEL STRATEGY & THE COMPETITIVE ADVANTAGE
Business level strategies are strategies which focus on specific function to increase Company’s market share and profitability. These strategies integrate the economic resources to improve the production efficiency, and they outline the core competencies of the company. Core competencies are the company’s strengths which helps them in creating the market share in the business environment. A core competency can be anything from good customer services to a unique product that competitors may not be able to duplicate or the supply chain involved. The core competencies are integrated in the business level strategy to achieve a sustainable competitive advantage. (Porter, 1985) A competitive advantage is an advantage which is gained by offering greater value through either lower prices than competitors or by providing any additional extra benefits or services. The essence of competitive advantage is in the question that “why should the consumer purchase this product rather than the competitor’s product”? Answering this question is a major challenge. (He, 2012) Generic Strategy & Strategy Clock Before we begin to examine Apple Inc.’s competitive strategy, we need to outline two major competitive themes; Generic Strategy or Clock Strategy. Generic Strategy is a model by Michael Porter, which can be applied to organization of any size, operating in every industry. The model is divided into Cost Leadership, Differentiation (creating desirable products which are unique) and Focus (specializing in a niche market). The model is then sub divided into “cost focus” and “differentiation focus” as explained in the diagram. While Clock Strategy is a lesser ...Download file to see next pagesRead More
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