(Corporate) Product Selection & Strategy Formulation - Essay Example

Corporate Strategy- Apple Incorporation Background of the Company Apple Inc. has successfully managed to create the considerable value in the highlyincreasing competitive personal computer industry through innovating and contriving a different path which is different from the other largest competitors in this industry. Apple has even successfully differentiated its products from those other market competitors through focusing over the design elegance, quality, and better service to customer through outsourcing the original manufacturing to the trusted actual equipment manufacturers.

Despite of many advantages Apple has created stiff competition for itself and external factors formidable to the firm. Apple Inc is even enjoying the overwhelming performance in the technology industry is associated with the continuous success and dominance (Abraham 2012).Corporate Strategy In corporate strategy there are two types of diversification which are: linked and constrained. Companies that use linked diversification enter new business when they are linked with other business they are already operating, if they use constrained diversification, they enter only in new business if it is based on core resources.

Apple uses the constrained diversification, Apple is a personal computer company and its business utilizes its core resources in developing the hardware and software such as, iPod, iPad, iPhone, and Apple TV that allows the Apple to share its resources among the business. This even creates the economics of scope, and that create cost savings for Apple Inc., as their resources are shared across all the multiple businesses. Apple follows two strategies which are: Growth Strategy and Stability strategy (Abraham 2012).

Growth Strategy As the company has not reached to the optimum performance; therefore, there is a requirement for reaching at the optimum performance, this helps the company in expanding its profits, and market share, sales, and market coverage and product mix among the other accounting variables and market. Some of the other strategies utilized for enhancing eth growth include the market penetration enhancement in order to ensure the provision of efficient services. Another growth strategy of the Company is vertical integration, which is an efficient strategy for enhancing the growth, in that Apple Inc.

, takes activities which are performed by its suppliers or business in its distribution or channel. Diversification strategy is also used by the company in taking effective move for enhancing the growth; in this case the company must use the potential business ventures for enhancing its operations. The endowment of company’s resources provides it a chance for diversifying its operations that reinforce its competitiveness (Ireland, Hoskisson and Hitt 2008).Stability Strategy In respects to the competition and dynamics in the technology industry, there is a requirement for Apple Inc for redefining its strategies in order to reinforce its stability.

Stability strategy is the efficient strategy in countering the competitor’s forces along with guarantee of the sustainable growth and development. Stability strategy is not new rather it is a continuation of the existing strategy of the company. Some of the main activities undertaken by the Apple Inc., in executing these strategies cover organizational model and restructuring of management. These strategies of Apple aim to ensure sustainable and efficient management and leadership with the company.

Market research and development is another vital component for ensuring the stability through which company can ensure market orientation (Ireland, Hoskisson and Hitt 2008). ReferencesAbraham, S. C. 2012. Strategic Planning: A Practical Guide for Competitive Success. UK: Emerald Group Publishing. Ireland, R. D., Hoskisson, R. E and Hitt, M. A. 2008. Understanding Business Strategy: Concepts and Cases. USA: Cengage Learning.