Apple Competitive Advantage - Essay Example

? Apple Inc Case Study Task Apple competitive advantage The company was initiated with a strong focus to provide quality services to customers towards .meeting their demands satisfactorily. It adopted effective diversification policy, which was based on its strength, and capacity, which facilitated its competiveness. Currently, it holds about 80% of the market share who receive its quality broadband services (Lynch 2009). Critically, the company first performed sufficient analysis on competitor’s core competence and weaknesses, which provided superior understanding of the best approach to adopt. The company in its approach, designed strategies based on the market player’s weaknesses and customer generational needs to ensure faster growth. In particular, it integrated superior infrastructural set up than market players, which provided modern recording and sales techniques. This is to ensure that customers receive modern musical services based on broadband and iPod technological enabled systems. Ideally, most customers in the music industry including recorders consider modern technological enabled production system, which ensures good quality hence superior returns. This element enabled Apple to develop its .market rapidly due to its advancement in various aspects, which was a weakness to renowned market players. Variably, the company also integrated its management techniques to ensure effective administration of its resources to ensure quality proceeds, a concept the dominant firms poorly executed. It also provided favorable recording terms with initiation of subsidy fund system to poor artist who would could not sustain recording expenses. This aspect attracted most artist to its services coupled with it modern techniques of production. Further, its technological capacity through adoption of Apple computers, which offered a breakthrough towards effective management, and coordination of web music highly, attracted most individuals including Michael Jackson (Lynch 2009). It is imperative to note that its launching strategy also propelled its performance since it communicated basic information where it provided potential services, which were unique to its rivals. 2. SWOT analysis on Apple business model Apple designed its operations based on superior strategies with a strong focus to gaining competitive benefits and provision of quality services to customers globally (Lynch 2009). In particular, its infrastructural capacity provided its greatest strength, which has significantly contributed to its competitiveness and general performance. Modern generational musical production and publishing techniques is critical towards production of superior music with high demand. Variably, its sound management practices have also enhanced its operations compared to its rivals since the administration of its affairs is based on clear ideals and principles. The company has a substantial market share with strong strategic alliance network portfolios, which facilitates its sales and financial prospects for example Nokia and Samsung service providers. Quality production and delivery of service to consumers also forms its major strength in this industry where quality greatly affects performance potentials. Imperatively, the strengths contributed greatly to its sound performance compared to its rivals, which operated on inferior management practices, adopted low quality generational musical infrastructure and poor strategic coordination. Similarly, the company’s opportunities include increased demand of its services, market expansion, new ventures and diversification capacities, and favorable legislation to regulate the industry effectively. Observation of these opportunities is vital since they hold the organizations continuous competitiveness and performance capacity. The organization also faces various threats and weaknesses, which should be addressed to ensure sustainable growth without providing unwarranted leeway to new entrants (Lynch 2009). The strengths and weaknesses include possible new entrants, legislative complications especially with the evident disagreement with MySpace, which is its main rival over copyright legislation. Evidently, organizations with strong growth orientation should adequately analyze their core competences and weaknesses to ensure progressive performance based on quality principles. Clearly, the organization adopted porter’s diversification strategy of effective business operation and growth. 3. Main areas for the successful launch of products Most marketers and researchers have asserted that a products success in terms of sales and returns is dependent on how well the launch process is executable. Evidently, most firms with low sales have been compelled to perform re-launch services to facilitate effective performance. This is a basic strategy in a products life cycle, which ought to be undertaken with an elevated capacity of professionalism. In particular, the process seeks to highlight diverse aspects of the products portfolio including its uses, precautionary measures and its satisfactory ideals. Therefore, it is critical for companies to develop a strong brand of items and to ensure execution of effective launching process. Ideally, Apple Company in its bid to gain advantage and delivery of superior services to customers compared to its rivals performed an exemplary launching process. The launch ensured effective delivery of the products strengths and was acceptable by many. The process was designed appropriately and adopted basic successful launching strategies, which has promoted the company’s performance (Lynch 2009). Effective launching strategies, the company adopted include, obtaining of effective suggestions from various professionals and customers about various potential issues for example launching venue. This facilitated proper communication of the services issued and consumer participation, which is vital towards attaining competitive advantage. Similarly, the launching process provided relevant quality services, which are customer, oriented than its rivals are. The company in its capacity executed effective pre-launch awareness of sales channels and distribution systems, which enhanced the products growth. Clearly, organizations require proper pre-launch strategies with an aim of relaying preliminary information about the product. This is to ensure sufficient acceptance of the product and services provided for detailed evaluation by customers. Quality is also an element, which the company greatly considered which was evident through its launching procedures and quality of services. 4. PESTLE analysis To sustain competitive advantage and good performance Apple Company should develop relevant policies, which are in coherent to PESTEL elements. Ideally, internal and exterior factors greatly influence organizational performance. In the music industry, which is, characterized with continuous changes especially in legislation and technological aspects, require persistent analysis of organizational capacities. This is to ensure effective execution of activities towards the realization of quality performance. In particular, political and financial factors influence institutional progress in various ways. Political synergies influence environmental stability towards ensuring an appropriate business environment while economic elements influence the allocation of resources and purchasing power of customers (Lynch 2009). As such, Apple Company must operate under essential policies and strategies with flexible capacity to integrate various challenges. Similarly, the company must consider in detail its social and technological capacities, which is vital for the provision of quality services to consumers. It is significant for institutions to ensure coherent relationship with customers and adoption of modern equipment to advance performance. Evidently Apple Company, which enjoys noble social standing with its customers, should strive to maintain the position to sustain its competitiveness and market share. Variably, it needs to maintain and advance its technological set up based on dynamic changes within the field and client needs. As indicated, modern technological capacity in the industry is significant towards maintaining customer base and attending to their needs effectively. Apple Company enjoys these aspects together with its strong management system compared to its rivals hence should consistently build strong social and technological capacities. Consequently, ecological and legal elements also influence performance in the music industry (Lynch, 2009, P, 1). Legal processes require regarding recording, publishing and CDs sales processes faces stiff regulations in various countries and must be considered effectively for meaningful growth. Evidently, Apple is currently in, a legal tussle on copyright agreement deal with MySpace company which is its market rival. Such differences may results to major losses since some individuals may have an unfair advantage. The company should seek for effective legal redress towards building strong and fair regulations. 5. Decision making processes As a means of maintaining good performance in the current competitive music industry, Apple through its management should develop sustainable strategies based on the corporation’s policies. Evidently, choice-making processes in organizations are dependent on effective analysis and evaluation of the institutions SWOT capacities. This is to facilitate the development of sustainable plans, which are result-oriented and can be undertaken with available competences (Lynch, 2009, P, 1). Clearly, effective decisions should be based on SMART principles, which give specified limits, to ensure quality output. Apple in its mandate should develop specific decisions towards addressing specific customer wants and identification of new market segments with high potential. Similarly, it should adopt measurable and attainable decisions, which can be tenable through efficient procedures while upholding quality aspects. The decisions set should also be realistic in nature to ensure effective market positioning and formulation of manageable promotional activities. Sound performance is dependent on superior decision making which provides explicit, computable and realistic programs with requisite capacity to steer the organization to greater heights. Organizations, which seek advantage performance in the music industry, must develop quality policies and strategies, which are customer oriented. They must also advance their operations through integration of modern music production and publishing techniques with strong capacity to facilitate quality performance. Similarly, they should make quality decisions, which are realistic and specific towards achieving organizational goals. 6. Apple Five Forces in the case study Apple Company adopted various forces, which facilitated its rapid growth compared to its competitors. Ideally, various organizations adopt various strategies for success as suggested by Michael porter or Bowman. Critically, institutions consider strategies, which can be supported effectively with their competence levels (Lynch 2009). Its success also demands detailed analysis of organizational internal and exterior influential factors for growth. In particular, Apple Company applied customer power strategy, supplier power, differentiation force, price force and competitor power. These elements greatly steered its performance towards ensuring customer satisfaction, which was its main founding mission. The company adopted effective pricing system, which was fair to consumers with no compromise to quality. This aspect facilitated enlargement of market share than its major rivals who asserted their concern about the price issue. The companies as reported were worried and asserted the possibility that Apple would become a price leader, a factor that they could not easily bear. Similarly, the company’s differentiation strategy also provided advantage force, which ensured its sustainable growth and development. Through its diversification strategy, it developed strong operating scope and strength based on its ability which provided modern production techniques. According to Lynch (2009), the company provided a breakthrough in the industry through the introduction of its superior computer systems, which facilitated various production programs and sales. Consequently, competitor and customer power also provided a requisite force, which facilitated the company to its superior performance. Through its detailed analysis of consumer demand and competitor weaknesses, it developed relevant systems with essential capacity towards the provision of satisfactory services to consumers. The company also ensured the development of programs, which are unique to market players to advance its growth. Further, the company applied supplier force by building strong strategic alliances with other potential institutions in various parts that facilitated its service awareness and distribution of CDs. Evidently, the company through its computer aided services ensured valuable marketing and distribution of its merchandise and services. Reference Lynch, R 2009, Emergent strategy: who will stop Apples dominance of the music industry business Viewed on 5th April 2012, from < _apple_case_study.pdf> Read More