Apple Inc Analysis, Elements of Competitive Strategy - Case Study Example

? Apple Inc. Analysis of the Apple Inc. Analysis Design, execution and implementation of competitive strategic policieshave been predominant focus of all the contemporary business leaders. Management leaders from all walks of life are keen to foster the efficient and effective formulation of strategic decisions that have been part and parcel of their daily activities. This is in regards to the fact that business managers make strategic decisions almost on a daily basis and it is only necessary that they efficiently execute such decisions if only they want to remain competitive in their respective market places. This paper seeks to evaluate the application of generic form of strategic decision management that Apple Inc. employs to run its shows in the electronic consumer market (Thompson, Strickland & Gamble, 2011). Also, the paper will determine the various strategic elements of Apple’s competitive and product differentiation in the market place. Further, the paper will examine the competitive strength and thereby provide indications as to why Apple Inc. is a stable competitor. Moreover, the paper will assess the financial performance of Apple Inc. and provide recommendations aimed at strengthening Apple’s market position going forward. Elements of Competitive Strategy As a major developer, Apple Inc. develops, manufactures and markets personal computers and the supporting and/or related products. These product packages are directed basically to business entities and their owners, creative industry and the general consumer markets (Marino, Hattaway & Jackson, 2011). In addition, Apple Inc also provides the consumers of electronic products with the supporting utility languages, operating systems, the necessary developer tools and the needful software databases. Therefore, according to Lashinsky (2009), Apple Inc. is the only company that designs and owns the whole widget comprising of the hardware components, software components and the driving operating system components, which in togetherness serve the varied needs of their customers accordingly (Lashinsky, 2009). In the forefront to motivate Apple Inc. is the able hand and mind of the top notch executives in the overall realm of electronic product consumption market, which form the nucleus of the executive officer’s brain trust and thereby drive the operational excellence that is needed in order to sustain the growing number of the loyal customer base that the company currently prides of (Lashinksy, 2009). Additionally, Apple Inc. has a broad wealth of software and engineering skills that enables the company to develop evolving elements as per the demands of the market as well as the global influence of the products that it specializes in (Marino, Hattaway & Jackson, 2011). In order for any consumer to fully consume and enjoy the use of products in the personal computers in specific and the electronic market products in general, he/she must be able to access the three distinctive product components that Apple Inc. has prioritized; software, hardware and the operating systems. Therefore, it is evident that the various elements of Apple’s competitive strategy work in togetherness to maximize the value that the consumer accrues. This implies that the company’s product element pieces purposefully fit together to provide the necessary millage in terms of competitive capability in the market. Further, the fact the Apple has initiated and executive strategic decisions to sign agreements with other major players in the market enables it to fully exploit the generic strategic form provisions and thus develop products that the consumers consider highly innovative since they provide advancements and/or complements the other products in the market (Marino, Hattaway & Jackson, 2011). Elements of Apples product strategy Personal computers Apple Inc. designed and distributed personal computer product line that enabled it to assemble the various product components together to enable the compatibility with the peripheral products as discussed in the sections below. These computers consist of several configured models such as the desktop and the notebook products (Marino, Hattaway & Jackson, 2011). Personal medial players The apple iPod and the subsequent development of iPod 3G have been the significant elements of this product differentiation that Apple Inc. employs to sustain the generic strategic developments following the earlier version of this device such as the Sony’s walkman that dominated the market for quite a long time (Marino, Hattaway & Jackson, 2011). Smartphones Additionally, the company designed component element in the form of iPhones, which are internet enabled, cellular as well as multimedia devices which has been touted as the future product feature of Apple Inc. (Marino, Hattaway & Jackson, 2011). Assessment of the competitive strength In order to bring out the necessary competitive analysis elements, the paper will utilize the use of SWOT analysis to assess Apple’s competitive strengths, weaknesses, opportunities and threats. The figure below documents the Apple’s SWOT analysis. Strengths Robust brand name Strong product development Sleek design and produce Financial successes and stability Strong competitive strategy Opportunities Strong and stable research and development Increasing innovative products Possibility of market extension Fast mover advantage Product differentiation Weaknesses Some products have proven faulty Price wars Conflicting market information Significant product-related sales losses Threats Threat of generic copying of Apple’s innovations The death of Steve Jobs The threat of product substitution Cut throat competition in PCs products Why apple is a strong competitor Supported by the evident domination in the market place in terms of the superior products that Apple Inc. has been continuously providing into the market, it is imperative to note that the company is a strong and stable competitor in the electronic and allied business market place. In this regard, Apple Inc. has been able to garner the requisite substantial loyal customer base. The loyal customers have been instrumental in forming the strategic decision of the business in relation to the product designs, customer feedbacks and other information that they provide to the management of the company. Further, coupled with the operational and skills sets that Apple’s employees contribute to the market, it is certain, that Apple Inc. is a force to reckon with in the electronics consumer marketplace. The company has a capable research and development department that drives the progressive innovations and thereby supports the overall strategic goals of the company. This has been a significant tool in enabling the company to foster growth and development in its various market presences and thus ensure the overall growth of the company (Marino, Hattaway & Jackson, 2011). In addition to the well equipped engineering and software skill personnel, Apple Inc. is considered as constituting one of the best management teams in the market place. The managers have remained strategic in assisting the engineers to design the necessary hardware as well as software for specific computer brands that has worked to provide a distinctively stylish and reliable line of computers. These set of computers have managed to set the standards for what the consumers consider as the technically capable personal computers (Thompson, Strickland & Gamble, 2011). Further, Apple Inc. through its vertical integration is capable of managing all the aspects of desired experience that the increasing loyal customer base is seeking. Moreover, the company’s technical capability to sustain regular but instrumental technological breakthroughs in the component suppliers’ side has enabled the company to gain its current competitive advantage in terms of performance and processing speeds. This has been highly significant in helping Apple Inc. to acquire the comparatively large customer base and attract the international accolade that it currently enjoys (Lashinsky, 2009). Assessment of the financial performance The financial results of Apple’s geographical segments have shown strategic shifts following individual product releases on specific years. In general however, the company has been touted as one of the best selling companies in the electronic consumer market. The sales have increased dramatically over the years and this has been contributed by the increasing innovative products has been consistent in meeting the ever changing demands of its increasing customer base. According to Marino, Hattaway & Jackson (2010), Apple’s business strategic formulations have been instrumental in leveraging Apple’s design and development ability in regards to its own component products; hardware, software and operating systems that has worked to sustain its financial capability over the years (Marino, Hattaway & Jackson, 2011). Subsequently, Apple inc. also faced highly influential challenges when some of its products failed to pass the test of quality and user friendly in the market. Recommendations for strengthening market position It is imperative to note that Apple Inc. has been lagging behind in providing the highly valued interoperability network that both the corporate and education oriented business entities, which actually accounts for a greater percentage of the company’s customers, have desired in order to improve performance of their respective business systems (Lashinsky, 2009). In this regard, the company should be fast and keen in designing, developing and sustaining the distribution of Apple computer-compatible internet browsers to enable the customer niche above to continue enjoying Apple’s products. Further, Apple Inc. should design and develop more portable products such as the widely acknowledged iPod, which are highly compatible with the internet browsers to enable the company to strengthen its market position. Moreover, Apple Inc. should utilize its capable research and development departments to assemble together the related components that could act as a unit consisting of the hard drive, screen, technically capable processing unit and the input device to enable it to avoid the generic form of strategic formulations that works to demoralize its workforce (Marino, Hattaway & Jackson, 2011). This will further innovation and enable Apple to sustain and/or strengthen its market position. References Lashinsky, A. (2009). How Jobs Transformed Apple. Retrieved November 21, 2011, from http://money.cnn.com/2009/11/04/technology/steve_jobs_ceo_decade.fortune/index2.htm Marino, L., Hattaway, J. & Jackson, K. B. (2010). Apple Inc. in 2010. University of Alabama Press. US. Thompson, A., Strickland, A. J. & Gamble J. E. (2011). Creating & Executing Strategy: Concepts and Readings. McGraw-Hill / Irwin. Read More