Apple Marketing Strategy Plan - Case Study Example

Apple Marketing Strategy Plan Introduction Apple Inc. is one of the best and largest multinational Companies in the world founded by Steve Jobs and Steve Wozniak in 1976. The Company was incorporated in 1977. The multinational company’s headquarter is in Apple California in the U.S. The company designs and sells high quality electronic, computers and computer software. It is also the innovator of iPods, iPhones, iPads, Mac Os. X operating system. The company has been successful and boosts as the most valuable company in the world. Its operations have led to the expansion of their stores in more than ten countries and online stores (Werner and Randy, 13). Strategic Plan Strategic plan is a document that states an organizations goal and the actions needed to achieve these goals and objectives. The strategic management using a strategic planning implements the plan (Agre, 34). There are different types of strategic plans and Apple Inc. has used several. The key strategic plan used by Apple Inc. is international strategy, which has helped the company to operate as a multinational company for many years. The introduction of the iPod is a key example of the company’s entry to the global market using an international strategy. Strategic Management Strategic management is simply the continuous process of formulating, implementing and controlling the company’s plan to achieve its objectives. Strategic management is a changing process that changes from time to time due to the internal and external environment, thus it is the work of the management to ensure that the changes do not affect their strategic plans (Kreitner, 44). Apple Incorporation is not exception, thus the notable success and being named the most valuable company is mainly due to its effective strategic management that is key in identifying its strength, weaknesses, opportunities and its threats both internally and externally. Since strategic management is composed of other processes, it is wise to explore the processes that ensure strategic management is successful. The strategic management ensures that it identifies the current position of the company, the best way to utilize the resources available while using their creativity and the laid strategic moves to ensure positive returns for a long time (Kreitner, 47). Strategic Formulation Strategic formulation is the first process by the management to formulate the strategic plan of Apple Inc. Strategic formulation simply implies to setting long-term goals and the best strategies to allocate the company’s resources and ways to market its products. Its mission statement lays down Apple Inc. strategic formulation, “Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings” (Hill and Gareth, 120). The vision statement that proves that Apple Inc. is determined to ensure system changes in the world boosts this mission statement. The vision statement states, “Man is the creator of change in this world. As such he should be above systems and structures, and not subordinate to them.” The vision and mission statements should be revised since they are outdated and do not alter well with the multinational company (Hill and Gareth, 121). Environmental Scanning Apple Inc. has to ensure that its strategic formulation can bring the best output to ensure that the company’s objectives are realized thus, the company uses environmental scanning to ensure it formulates the best strategy. Environmental scanning is exploring the internal and external environment to note the progress of the company and the best move to facilitate better returns (Hill and Gareth, 135). Apple uses SWOT analysis to gauge its internal and external strength, weakness, opportunities and threats. The main strength of Apple is; iTunes music stores that generate much need profits, its expertise in developing software and hardware. Apple’s niche ensures the company does not engage in price competition, face-lift, designs and brands are adorable and loyal. Their partnership with Intel Computers and their efficient research and development departments boost Apple’s strengths. Apple Inc. has several weaknesses that have affected it and made business hard for the company. The weak relationship with Microsoft is the major weakness since Microsoft is used by most people in the world thus reduction of its sales. Apple has a weak presence in the international market and its market share lags behind major competitors. Internal relationship breakdown between the former boss Steve Jobs and the employees led to reputation loss of the company (Werner and Randy, 56). The external world has provided business opportunity to the company thus improving its status in the international market. Increase in worms and viruses gives Apple the opportunity to develop an antivirus in solving the virus situation in the PCs. Apple online sales of computers have increased sales rapidly due to the increased use of online business. The brands produced by Apple are quality and efficient giving the company an opportunity to sell more due to the large population and individualism (Kreitner, 69). These opportunities are limited due to the threats the external environment brings. The major threat Apple faces is the lack of compatibility of Apple’s software with other companies’ software. The international market provides strong competition from other heavy weights in laptop segment. iTunes sales are on the decline due to the free music downloading cites and this is a major threat to the company since iTunes provides a big share of the revenue. Apple products are expensive and the technology is switching very fast (Kreitner, 86). Apple’s management has addressed the SWOT analysis thus formulating a strategic plan that will capitalize on its strengths and opportunities while not exposing their weakness. This will minimize the threats it faces. Joining ventures and moving to foreign markets are the main methods used by Apple when formulating its strategic plan. This strategy has made Apple to become one of the most successful companies in the world and its diversity in locations makes its market wider thus higher returns. The company also uses PESTEL frameworks to survey the microenvironment that could eventually affect the company (Werner and Randy, 57). Competitive Advantage The management is thus able to formulate the best strategy after reviewing the environmental scanning report thus has to use competitive advantage since the PESTEL framework identifies completion as the major microenvironment that affects the success of the company (Agre, 80). Competitive advantage has no clear definition but it can be defined as a superior performance in a company that is relatively higher than in the other competing companies in the industry. Competition advantage is in form of either cost or degree of differentiation that the company is able to exploit at the expense of the other companies. Apple Inc. relies on its major competitive advantages namely; innovative products, designs and branding of its products. The innovation of iPhones is a great innovation that other competitors could not find a better way to dispose. The brands and designs of Apple are also very attractive and classy in comparison with its competitors (Kreitner, 66). A good example is the Apple logo which is much attractive thus, most people for it. The mac laptop and iPod are high quality brands that have helped the company to reduce competition thus earning more. Apple innovation of the iTunes helped the company to sell music without incurring the cost of disks. This innovation brought huge profits and goodwill to the company. Role of Ethical Consideration Ethical consideration is an important feature of any company’s strategy plan. Apple Inc. is not exceptional since it identifies that ethical consideration plays an important role in creating the company’s image. The workers are more productive in a company with ethical policies and strategic plan since they enjoy better working environment (Boone, 48). Apple’s strategic plan is ethical since the company’s workers and suppliers treat their customers with the respect they deserve. Their products are of high quality thus they do not break the code of ethics when advertising their products and the price of their products is justifiable. The products traded at high prices do not show exploitation of the customers since their quality is there for all to see. Social responsibility and its roles it plays in Apple’s strategic management plan Social responsibility is the relationship between the company and the society or the advantages brought about by the operations of the company. Companies are encouraged to conserve the environment during their production and participate in Cooperate Social Responsibilities (CSR) (Boone, 53). Apple has the worst social responsibilities amongst major multinational companies. This is because the management refused to engage in Carbon Disclosure Project (CDP) that advocates for the disclosure of the amount of carbon released by the company during its production. Apple’s management argues that it is laying other eco-friendly methods of producing energy in their company. The company also states that it recycles most of its waste to ensure that it conserves the environment (Kreitner, 112). Apple has a bad reputation in Taiwan due to the anti-social responsibilities it portrayed in the Taiwan-based electronics manufacturers. This is because it violated the children and labor rights. The company has violated children rights and exploited them to offer cheap labor in their supply chain. The production of iPads, iPhones and iPods in Taiwan proves that Apple is reluctant to offer any CSR and it continues to violate laborers rights. The employees worked under strict working schedules that involved long working hours, poor working conditions and poor payments (Boone and Kurtz, 139). The management needs to change since the anti-social responsibilities behaviors are tarnishing the company’s name. The company should also get involved in the CDP to prove to the world that it is preserving the environment and that its operations are not contributing to the rapid global warming and climate change. This move will promote the business continuity strategy. Business Continuity Business continuity plan is a tool that ensures the management is thoughtful of the calamities that different internal or external factors can cause if the management does not plan on the best ways to handle the calamities before the calamity occurs. Business continuity plan is very important since it ensures the company stays running during economic downturns, natural disaster and bad publicity. Apple Inc. have been affected by the lack of having a business continuity plan a good example being the decline of the company’s popularity and the huge losses it experienced in the early 1990s (Boone, 77). Steve Jobs was one of the best CEOs in the world and he took the company to a new level making it to become the most valuable company in the world. The company had no business continuity plan of replacing him before the unexpected death of the innovative and excellent CEO. This was a shock but later the appointment of Tim Cook has maintained the standards of the company but the structural leadership has changed due to the lack of a business continuity plan (Koontz and Heinz, 1991). Structural Leadership, Evaluation and Control Structural leadership is the hierarchy of the employees involved in a company. Employees have different levels under different structural leadership (Koontz and Heinz, 203). During the reign of Steve Jobs, Apple Inc., individualism and secrecy were the major component of the success. The company had a strong culture that comprised of hard work, innovativeness and creativity. This culture is still in use but Tim Cook advocates for teamwork to ensure better results from the workers (Boone and Kurtz, 80). The structural leadership change was seen as a loss of control but in the evaluation using the Quantitative Strategic Planning Matrix (QSPM) to ensure the current strategy and management is doing its best to ensure it evaluates the strategies formulation process in the best way possible and in full control of the company. Strategy Implementation This is simply the translation of the chosen strategic plan into the organization’s action to achieve strategic goals and objectives of the company (Werner and Randy, 23). The new structural leadership of Apple Inc. has laid a good strategy plan by tackling all the important points and innovating the different ways to market their products and using their competitive advantage. This means that Tim Cook and his management have the creativity and know how to implement their strategy. Measurement guidelines available to verify strategy effectiveness There are several ways to measure the effectiveness of a strategy but the best method is using the financial ratio method. It is evident that Apple’s financial has been improving and this is an indication that the strategic plan is good and it has been implemented effectively (Werner and Randy, 37). Works Cited Agre, Philip. Computational Theories of Interaction and Agency. Cambridge, Mass. [u.a.: MIT Press, 1996. Print. Boone, Louis E. Contemporary Marketing, 2013 Update. s.l.: Cengage learning custom p, 2012. Print. Hill, Charles W. L, and Gareth R. Jones. Strategic Management. Cengage Learning, 2012. Print Koontz, Harold, and Heinz Weihrich. Essentials of Management: An International Perspective. New Delhi: Tata McGraw-Hill, 2007. Print Kreitner, Robert. Management. Boston: Houghton Mifflin Co, 2009. Print. Kurtz, David L. Boone & Kurtz Contemporary Marketing / David L. Kurtz. Mason, OH: South-Western Cengage Learning, 2012. Print. Werner, Jon M, and Randy L. DeSimone. Human Resource Development. Mason OH: South-Western Cengage Learning, 2009. Print Read More