Implementation, Strategic Controls, and Contingency Planning - Essay Example

The following is a strategic plan for implementation of Apple Incorporated, in line with its generic and grand strategy, which might include effective outsourcing for its raw materials and formulation of sustainable competitive advantage via a remarkable business model that is a cut above the other. Organizational Change Management Strategies Aside from the horizontal integration of all involved departments, Apple should manage to give more voice for its customers. In this way, all departments will have consensus effort of not just formulating highly innovative products, but those that would truly matter to its customers and prospective buyers. One of the noted weaknesses of Apple is its poor relationship with the market than Microsoft (Iftikhar, 2013). This means that for many years, Apple has the consensus of specifying its own standards, rather than the standards of customers. This could mean more of a production-centred management strategy of products, rather than market or customer-centred approach. For this reason, it is necessary to ensure that Apple will take seriously the necessity of ensuring the voices of the customers are constantly heard in its production setting. On the other hand, Iftikhar noted that the products of Apple have very short life cycle, implying that constant maintenance of the research and development department has to be initiated. This prevailing management system has to be changed for good. Thus, the research and development department has to be dynamic, but on the other side, should also be one of the most expensive departments at Apple. Thus, it is necessary to ensure huge capital for this reason. The management therefore, in order to ensure a sustainable competitive advantage should further double its effort in research and development, primarily for the associated expenses of its actual operation. This is to suggest that point that Apple should primarily put the context of adjusting its budget for research and development much more than what is has tried so far from the past until recently. In addition, Apple according to Iftikhar has very low presence in the advertisement. The marketing department should therefore try to improve its strategic approach in communicating its product offerings. This means that in order to ensure a sustainable growth for its offerings and retention in the market, Apple should ensure constant communication and a wide coverage of its message to its market. Finally, Iftikhar also pointed out that Apple has very small market occupation. This issue is one pertaining to organizational management strategy that requires change. After all, this one could point to the fact that Apple gets a less business in the US compared to its Microsoft rival. A necessary management strategy is relevant for this. Thus, Apple requires the move to improve or enhance its market occupation, at some point or certain level. Key Success Factors Technologically speaking, Apple has the edge over its competitors. This has been proven for years. Thus, this aspect should be concentrated or focused on, because it leads to the firm’s sustainable competitive advantage for now. However, considering that the other competitors are also working on this area, it is necessary that Apple should make sure that its dynamic implementation of research and development should always be twice as much its competitors. This has important management implication. In the first place, the management should always ensure that the human resource and every department should be more than ahead or advance in thinking than their competitors do. On the other hand, the major products of Apple have been noted to be success for many years and are considered to be linked to status in many countries. This is a remarkable signature of Apple that can hardly be emulated by its competitors considering that it is associated with its brand strength. It is remarkably integrated in its brand, and it is hard to beat the established brand in the market, because of the added value of its linked products or offerings (Lannon & Baskin, 2011). This is one of the reasons why it is hard to beat Apple based on its brand performance in the market. The customers have substantial image that they have associated with the brand of Apple. In addition, it is also a remarkable observation that once Apple introduces its software, it also comes along with its introduction of its own hardware. This makes the firm expert in its field, and is known to have its own unique approach in ensuring highly innovative product offerings. After all, this is one of the essential component of Apple’s market innovation in its industry, that can necessarily be viewed as its remarkable strengths, at some point. Risk Management Plan In order to ensure success and elimination of future risks, Apple should be consistent in ensuring various options or plans. Plan A -> if success, then implement and proceed to evaluation. Plan A -> if failed, then proceed to next plans or options (A, B, C and so on.) and then proceed to evaluation. Evaluation is always necessary on the part of Apple, because this is a way of testing further its market competence. In order to keep an eye for this, the following contingency plans are necessary, especially for identified risks. Contingency Plans for Identified Risks The following are probable risks for Apple. First, the industry where it belongs has existing brands that are more than willing to come up for Apple (Calkins, 2012). Added to this, there are many applications out there that are free, and which means customers can download them for free, allowing the market share for Apple’s iTunes application for instance to decrease. If this will constantly happen, it might come to a point that the firm will also struggle with its other products to come up with a sustainable market share in the future. In addition, Apple’s expensive products could be a threat, and the prevailing technological advancement everyday is even threatening its sustainable competitive advantage when it comes to technology. Thus, one plan for Apple is to ensure the quality of its product offerings to be substantially higher at all times compared to what its competitors are offering. Also, constant upgrade of its applications that will have to be a cutting-edge or always above than those free downloadable items out there. In order to lessen the product price for Apple, it might as well improve its value chain to save some probable costs. References Iftikhar, R. (2013). Implementing Strategic Management. Retrieved from http://www.slideshare.net/raboz/strategic-management-at-apple-inc Lannon, J., & Baskin, M. (2011). A Master Class in Brand Planning: The Timeless Works of Stephen King. Hoboken, NJ: John Wiley & Sons. Calkins, T. (2012). Defending Your Brand: How Smart Companies Use Defensive Strategy to Deal with Competitive Attacks. New York, NY: Macmillan. Read More