Order 6265249

docx

School

University of Nairobi *

*We aren’t endorsed by this school

Course

CSO201

Subject

Business

Date

Nov 24, 2024

Type

docx

Pages

Uploaded by elishamacharia

1 Apple Inc. Strategic Firm Analysis Name Institution Affiliation Instructor Course Date of Submission

2 Apple Inc. Strategic Firm Analysis Introduction Apple Inc. is an information technology firm that develops and manufactures products in personal computers, music, and mobile phones. Company founder Steve Jobs and his friends built the first Apple computer, the Apple 1, in 1976. After the release of the Apple 11 in 1978, the computer market saw explosive growth. New releases and expansion into new areas led to the company's fastest expansion in size and profitability in its history. In or around 1984, a power struggle among executives ultimately led to Jobs's departure, along with several other high- ranking officials. However, this resulted in financial losses for the business, prompting Jobs' return in the middle of 1997 as an advisor and then as CEO, leading to the acquisition of his company, NeXT Inc. Incredible development has occurred since then. Over the years, Apple's leadership has deliberately leveraged management, internal resources, and assets to compete with other firms while maintaining control over underlying dynamics that have influenced strategic decisions. Apple Inc. Firm Mission and Vision Analysis Apple's mission statement is "to create technology that empowers people and enriches their lives." The values of an organization are the qualities and behaviors that employees are expected to exhibit while representing the firm and working toward its desired objectives. Thus, Apple's mission statement centers on providing its customers with high-quality goods and services, emphasizing various areas (Thompson et al., 2021, p.69). The firm emphasizes providing the "Best User Experience," ensuring that devices like the iPhone and the Mac have intuitive interfaces and cutting-edge extras. Also, Apple is committed to "Innovative Products," which it develops by adapting its designs to the demands of certain industries and fields, such as

3 business and healthcare. For instance, Apple's iOS 14 ad-tracking functionality and healthcare technology like Apple watches highlight its devotion to innovation. Further, Apple emphasizes "Quality Service Delivery" by providing in-depth customer service, technical support, and online services, demonstrating a personal approach to business. Apple's vision is "to make the best products on earth and to leave the world better than we found it." According to Thompson et al. (2021, pg.64), for a strategic vision to be effective, it must communicate the desired future state of the firm to managers at all levels of the organization so they can plan for the future and make strategic choices accordingly pg.64). Apple vision aims at "Product Design Leadership," which it pursues by constantly innovating and releasing groundbreaking gadgets like the iPad Pro with ultrafast 5G and M1 processor. In addition to aiming to reduce emissions by 75% and implementing cutting-edge carbon removal methods, Apple has pledged to become "Carbon Neutral" by 2030 as a symbol of its commitment to environmental sustainability. Existing Strategies and Objectives Apple employs some forms of strategic management to remain competitive in the market. To increase marketing penetration, the company opened Apple Stores throughout the globe, giving them the ability to manage their reputation and provide top-notch customer support. Apple has an intensive strategy, using market and product development to drive expansion. The main drivers of product development have been innovation and research, as shown in the ongoing modifications to the iPod, iPhone, and other devices on the market. By allowing new sellers in countries with less corporate presence, the corporation has utilized this strategy to create new markets for new goods. Using diverse media platforms, such as commercials, has improved product promotions and market knowledge by persuading people to purchase the items. Over the

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

4 years, Apple Inc. has developed significantly thanks to innovation, which has helped the company reach a secure position in the market. The company has also used SWOT analysis, which identifies its opportunities, threats, weaknesses, and strengths, for effective strategy management. Apple's key competitive advantages are economic security, efficient promotion, vertical incorporation, and mature U.S. distribution networks. However, Apple has weaknesses in quality assessment, a lack of innovation, and inadequate distribution networks in some nations, such as India. As a result, Apple's standing has declined compared to other corporations. According to Jurevicius (2018), Apple is capitalizing on several opportunities, including the growing market for wearable technology and strategic partnerships, to enhance its shareholders' return on investment and maintain its competitive edge. Because it has made monitoring strengths, weaknesses, opportunities, and threats easier, the SWOT analysis has assisted the company in maintaining a solid opposition. Apple's objectives demonstrate a comprehensive strategy for maintaining high competitiveness in the technology sector. The secret to Apple's success has been its unwavering emphasis on the user experience, with a particular focus on intuitive product design and smooth hardware, software, and service integration. This dedication guarantees usability and ease of use, setting Apple products apart from competitors. As seen by the launch of groundbreaking devices like the Macintosh, iPod, iPhone, and Apple Watch, constant innovation is ingrained in Apple's DNA. Fostering a culture of innovation and experimentation, the firm consistently invests in research and development to remain ahead of market trends. Apple is at the forefront of technical breakthroughs because it concentrates on innovation.

5 One of Apple's main competitive advantages is the company's seamless integration of services, software, and hardware. Apple stands out from rivals because of its strict control over the whole ecosystem, which allows it to provide a seamless and simplified consumer experience. The company's superior branding and marketing, characterized by slick designs and eye-catching campaigns, creates a solid emotional connection with clients and promotes brand loyalty. Apple's ecosystem lock-in approach discourages customers from moving to rivals, which is accomplished via integrated goods and services. The brand's reach and product offerings are enhanced by this ecosystem strategy in conjunction with strategic relationships, such as those with iTunes and Apple Pay. Apple's skilled supply chain management guarantees product availability and reduces manufacturing costs to improve operational efficiency further. In addition, Apple's flexibility and long-term thinking have enabled smooth transitions across various product categories, exhibiting a forward-thinking strategy necessary for competitiveness in a changing market. Apple External Opportunities and Threats Thompson et al. (2021, p.141) emphasize the necessity of identifying external opportunities and threats while doing a SWOT analysis. Finding market opportunities is critical to a successful strategy. As a result, Apple Inc. has many opportunities to cement its position as a world-class technical powerhouse. First, the firm may explore previously untapped markets by collaborating with local groups in Asia, Africa, and South America to modify items to particular needs (Khalid & Viktoria, 2023, p.65). Furthermore, Apple's entry into the automotive market, based on its CarPlay software, may position the company uniquely in the evolving environment of self-driving and electric cars. The popularity of Apple's wearable devices, such as the Apple Watch and AirPods, has created new prospects for the company, such as collaborations with

6 health and wellness groups and additional product development (Khalid & Viktoria, 2023, p.65). Strategic collaborations and acquisitions in various areas, including healthcare, education, and media, might boost Apple's product and service offerings. Developing new smart home devices controlled by Siri or HomeKit can potentially improve customers' work-life balance and overall well-being. Moreover, Thompson et al. (2021, p.141) emphasize the importance of detecting external threats to a company's financial performance and competitive status. Thompson et al. (2021, p.142) demonstrate that external threats may arise from several sources. These are examples of technical advancement, the arrival of lower-cost foreign competitors, regulatory change, demographic transformation, and geopolitical events. As a result, despite its supremacy, Apple faces significant risks in the highly competitive smartphone sector. As Khalid and Viktoria (2023, p.66) note, rivals such as Samsung, Huawei, Xiaomi, Oppo, and Vivo all have distinct products and pricing strategies. Cheap knockoffs, particularly from Asian competitors, challenge Apple's pricing strategy and may drive away price-conscious shoppers As a consequence of increased labor costs, particularly in Chinese manufacturing facilities, Apple may have to rethink its pricing or profit margins. Cybersecurity is a primary concern, needing continuing safeguards to protect corporate operations and brand image (Khalid & Viktoria, 2023, p.66). As the smartphone industry matures and Apple confronts market saturation and user apathy, focusing on innovation is critical (Khalid & Viktoria, 2023, p.66). Supply chains, production prices, and sales are all prone to disruption in nations affected by geopolitical tensions and trade conflicts. Apple Inc. Strengths and Weaknesses

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

7 The IFE matrix is shown by Yie et al. (2021, p.4) as the perfect instrument for assessing the Apple Inc. firm's internal strengths and weaknesses. Apple's dedication to product specialization and portfolio diversity across its hardware, software, and services has enabled the business to address the different demands of its worldwide consumer base. Apple's global brand notoriety is an added benefit since the company's unique products enjoy the trust of millions of consumers worldwide (Yie et al., 2021, p.4). As seen by the company's $26.25 billion 2022 commitment in the area (Khalid & Viktoria, 2023, p. 64), R&D is a vital strategic strength for Apple. Apple is dedicated to addressing consumer requirements and advancing the industry. Companies that do rigorous market research and resource planning are better positioned to capitalize on opportunities (Thompson et al., 2021, p.141). Furthermore, Apple's diversification into services, which has allowed for continued expansion and market positioning, adds to the company's overall strength. However, because it relies on iPhone sales, Apple is vulnerable to changes in the market and consumer preferences (Khalid & Viktoria, 2023, p. 65). Other smartphone manufacturers providing equivalent or greater functionality at cheaper rates pose a threat to Apple's premium pricing strategy. Chinese production and dependence on foreign suppliers are causing supply chain vulnerabilities (Khalid & Viktoria, 2023, p.65). Concerns have also been raised regarding Apple's capacity to efficiently expand into developing nations, where the demand for smartphones is expanding. Another possible barrier to entry in less developed places might be the high cost of Apple products. Apple's Competitors and Their Strategies To assess the strengths of its competitors and decide where to position itself in the market strategically, Apple Inc. must identify KSFs (Thompson et al., 2021, p.74). In consumer

8 electronics and technology, Samsung, Google, Microsoft, and other businesses offering mobile devices and computer hardware are Apple's principal competitors (Thompson et al., 2021, p.74). The company's performance improvement and competitive advantage in the worldwide market result from Samsung Electronics focusing on innovation, human-driven technology, sustainable development potential, and brand competitiveness, among other essential success factors. Google's critical success factors (KSFs) include innovation, cost leadership, market penetration and growth, brand competitiveness, customer focus, strategic partnerships, and acquisitions. Similarly, Microsoft maintains its competitiveness via innovation, brand competitiveness, customer focus, market penetration and expansion, cost leadership, strategic alliances, and acquisitions. Amazon's critical success factors (KSFs) include its concentration on innovation, brand competitiveness, customer focus, market penetration and expansion, cost leadership, and strategic partnerships and acquisitions. Thus, examining rivals' competitive strategies aid Apple in enhancing software innovation, fortifying brand positioning, and strategically collaborating to maintain a competitive edge in the ever-evolving technology sector. The Competitive Profile Matrix (CPM) evaluates how Xiaomi, Samsung, and Apple compete with one another and the strategies they use. According to Khalid and Viktoria's research (2023, p. 69), Apple obtains a perfect five in profitability and market entry capabilities. In terms of advertising and market penetration, Samsung indeed outperforms Apple. Apple's low domestic market penetration may be attributable to its premium pricing strategy and reduced advertising investment. Apple's well-known brand and loyal client base compensate for these lower rankings, while the company may expand its domestic consumer base. Xiaomi, the research's second competitor, seems lacking in several key areas compared to Apple and

9 Samsung. According to the CPM Matrix, Xiaomi seems to have space to expand in terms of financial profit, product diversification, quality, and global market penetration. Recommendations for Improvement Various competitive strategies can be used to counter the advantages of its rivals and safeguard itself from their threats. First, Apple should continue its broad differentiation strategy, putting a premium user experience, high-quality design, and innovative products (Thompson et al., 2021, p. 133). Apple is still making cutting-edge, broadly appealing goods, aligning with the company's long-standing purpose. By following Google's lead and implementing specific components of a best-cost provider strategy, Apple can counter dangers, such as fierce competition in the smartphone market. According to Thompson et al. (2021, p. 133), part of this is ensuring that the quality and cost of its premium products continue to be the best in the industry. Apple has to diversify its business by entering new markets or industries to counterbalance its weaknesses, such as over- reliance on iPhone sales. One approach is using its technological expertise in industries like healthcare, electric vehicles, and augmented reality. Although Apple has corporate social responsibility (CSR) initiatives, Apple still needs to intensify CSR (Mahmood, 2023, p. 4). Apple might be involved in several initiatives, such as setting up technological academies in developing nations. More research is needed to determine how cybersecurity and data privacy issues relate to a company's standing and bottom line (Mahmood, 2023, p.12). Further, strategic partnerships and collaboration, especially in emerging countries, may help reduce the risks associated with market saturation and geopolitical instability. Apple may be able to thrive in today's rapidly evolving technical landscape if it appropriately weighs the advantages and disadvantages of competing approaches.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

10 References Jurevicius, O. (2018). SWOT analysis of Apple (5 Key Strengths in 2018). Strategy Tools Retrieved from https://www.strategicmanagementinsight.com/swot-analyses/apple-swot- analsis.html Khalid, M. A., & Viktoria, D. V. (2023). Strategic Marketing Plan for Apple Inc. Network Intelligence Studies, 61-74. https://seaopenresearch.eu/Journals/articles/NIS_21_7.pdf Mahmood, A. (2023). Corporate Governance and Ethics A case study of Apple Inc. https://doi.org/10.5281/zenodo.7652866 Thompson, A., Peteraf, M., Gamble, J., & Strickland, A. (2021). Crafting & Executing Strategy: The Quest for Competitive Advantage: Concepts and Cases. 21 st edition, McGraw Hill Education. Yie, C. E., Zhi, C. E., & Ping, N. T. S. (2021). A Critical Analysis of Internal and External Environment: Case Study of Apple Inc. Journal of International Business and Management, 4(10), 01-14.

Order 6265249

Related Documents