Week 8 Business-Level and Corporate-Level Strategies

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Strayer University

BUS499 Business Administration Capstone

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Apple is a multinational technology corporation leading in the manufacturing and selling computers, software, online services, and consumer electronics. Apple is currently the world's most influential business in terms of luxury brands and improvement of user requirements. The company operates with high standards, which connect to a reliable business improvement process. The process of purchasing raw materials is crucial in promoting productivity in the company's business direction. Improving knowledge of the company's business direction is a critical process to facilitate daily operational methods. It is imperative to gain knowledge from data sources connected to Apple's operations. All these methods are valid in enhancing effective development in the company's outreach.

Business-Level Strategies

For Apple to attain long-term success, it requires the business-level strategy of focused differentiation since it includes narrow market segments and distinctiveness (Hitt, 2020, p. 117). A focused differentiation strategy allows a business to handle value chain activities by supporting competitive operations that increase overall sales since more customer areas will be served using existing resources (Hitt, 2020, p. 128). The strategy allows the firm involved to focus on a narrow industry segment and then ensure it robustly serves it so that there will be profitable operations for the entire area. Apple's provision of various products is feasible for the focused differentiation strategy since it can narrow down to a market segment that is not fully involved in its products.

Focus strategies target a particular buyer group and offer them specific product lines if the products are presented in a particular geographical area (Hitt, 2020, pp. 127-128). Example products offered by Apple include AirPods, MacBook Air, HomePods, iPhone, Apple TV, iPad, and Apple Watch Series, which are user-friendly machines, simple to use, learn, and addictive (Delventhal, 2022). They have achieved this because of creative thinking engineers and researchers. Long-term success is thus guaranteed when it directly researches areas where consumers do not purchase all of their products so that advertising operations can get performed in such areas. Expansion into new geographical areas is a focused strategy that promotes better performance for Apple as a technology company that sets it up for success compared to other companies.

A proposal to connect to a focused differentiation strategy is a flexible manufacturing system whereby Apple can integrate human, physical, and information resources which collaboratively work to ensure the company develops products for clients (Hitt, 2020, pp. 131-132). Compared to the competition, apple products are unique in quality and design, with features and styles that are in perfect condition. The increase in Apple's market share occurs in connection to its manufacturing process of using cheap labor and then assembling the parts to develop a final product in a feasible process (Liu et al., 2023). A competitive structure is developed in the company since it can adhere to industry standards and continue serving various clients.

Corporate-Level Strategies

Apple can attain long-term success by integrating diversification of its value-creating influences as its corporate-level strategy since the technique will be beneficial in promoting advanced market operations (Hitt, 2020, p. 195). The strategy includes economies of space, market power, and financial economics as critical tenets required to promote more advanced market performance (Hitt, 2020, p. 195). Apple can use the strategies as a unique value proposition process to support market expectations. Diversification of workers is a crucial method of the value proposition process, which can increase market power as the involved stakeholders promote new ideas. Improving corporate performance at the company will be possible by ensuring all manufacturing processes are closely connected to expected market performance. While working with existent market needs, it is possible to enhance performance after cohesively increasing consumer satisfaction with the products sold by Apple.

The strategy of financial economics is possible by restructuring assets so that existing resources can be used to serve external market needs (Hitt, 2020, p. 187). Apple can keep its marketing and products simple by constantly advertising products so that advanced needs can be attained. The advantage of Apple products is that they have a special price that is simple to use, and they know how to target their customers through home appliances in subscriptions and app downloads like AirPods and Apple Music (Delventhal, 2022). The unique value proposition is the best for Apple because they avoid price wars and have a beautiful design that works right. Apple knows their value and is not afraid to price them. Multipoint competition is the best proposal for the diversification of Apple as it competes with other products in similar geographic areas (Hitt, 2020, p. 182). Market power can be attained when involved businesses adhere to competitive environment considerations, which is imperative to ensure the business remains competitive.

Competitive Environment Analysis

At the moment, Apple's most significant competitor is Samsung in manufacturing phone products (Investopedia, 2022). The company has diversified its market structure by offering many types of products whose interconnection with market needs produces reliable performance. Samsung’s corporate-level strategy has been cost leadership and differentiation for a long time (Lee, 2017). Comparison with the one chosen for Apple in this discussion reveals that Apple will gain more sales due to introducing new markets. Offering products to narrow markets will be possible and beneficial for long-term success.

Competitive Environment Conclusion

Apple's competitive structure analysis indicates that it is the most preferred technology company in the world due to its advertising strategies and sale of products globally (Yie et al., 2021). As this status is required to increase, Apple must cohesively handle its corporate strategy, supply chain, and advertising methods so that clients' needs will always be met. The factors that affect Apple's future are Aggressive competition by Amazon, Samsung, and Microsoft products. Apple has expanded into big new markets like online payments, health, and identity in marketing products and marketing perspective (Leswing, 2021). In addition, users are comfortable with the features that deal with sensitive topics or data, such as health or finances (Leswing, 2021). Improvement of reliability when managing Apple's gadgets and then allowing them to integrate customer expectations are practical considerations that promote better market performance.

Imitations involving firms that compete based on low prices and trade disputes, especially between China and U.S. Apple, should develop more straightforward and unique by having physical function keys than a touch bar and products that can be easily accessible worldwide at a fair price. Apple should sue all the companies that have imitated their brands and develop an app system that shows if the product is originally theirs or an imitation; Apple should try not to get caught up with the trade dispute between countries so that their sales could go worldwide they should also target their fan groups more to sell there updated products. Developing new and unique features is a suitable consideration to ensure Apple's operations are not eliminated by upcoming technology firms whose uniqueness promotes their differentiation. Market volatility is common in current days due to the increase in the competitive landscape. Thus, there is a need for Apple to ensure its products' uniqueness remains deeply connected to market operations (Hitt, 2020, p. 7). Promotion of more profitable lines of business is the best technique for Apple to remain relevant regardless of its expensive products.

Market Cycles

Slow-cycle markets are the ones in which the corporation's competitive processes are protected from imitation for a long time. In contrast, fast-cycle markets are the ones where their competitive methods are not protected from imitation (Hitt, 2020, pp. 159-161). Apple's existent success can differ if it continues operating in the slow-cycle market since its existent sales have promoted its large market share. Apple's unique products need not be imitated so that its success will always be maintained.

Sources

Week 6 External and Internal Environments

Student’s Full Name

Strayer University

BUS499 Business Administration Capstone

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Date

Introduction

The industry that has been selected for this given analysis happens to be information technology, in addition, the chosen firm is Apple, Inc. Basically, it is known to be a multinational corporation leading in the manufacturing as well as the selling of computers, consumer electronics, software plus online services. In addition, Apple is also the second largest firm within the IT industry courtesy of their revenue. In the year 2013, their brand was identified to be the most valuable brand globally. The main of this paper is analyzing internal as well as external environment of Apple, Inc. alongside generating recommendations that pertain to the future strategy of the firm.

General Environment

Basically, the overall environment in which the firm operates in tends to be shaped through various dimensions of the society. Normally, there happens to be seven major segments of the firm’s general environment. These include; economic, socio-cultural, demographic, physical, global, technological in addition to political/legal. It is very challenging for the general environment to get influenced by enterprises, nevertheless, it has an impact that is quite powerful on industries as well as the firms that operate within them. When it comes to the Apple firm, the general environment segment that is known for having the largest impact on its operations as well as strategy is the technological segment.

Naturally, this particular technological segment has quite an extensive impact on the Apple’s business in addition to its IT sphere. This is a segment pertaining to the activities in addition to institutions that are linked to technology, innovations, new discoveries as well as technological changes in general (Paam, et.al, 2019). Typically, the IT industry is one that emerged as a result of technological segment advancement. In addition, it continuously has a rapid expansion because of the creation of the technologies that are new. At the moment, fast technological growth plus replacement of the old technologies are jointly driving the growth of the Apple firm alongside intensifying competition within the industry. Advanced technologies of developing hardware and software, emergence of new technologies that are wireless and the growth of cloud services – all are changes that are utilized by Apple in developing as well as marketing their new products.

Five Forces of Competition

With the external environment, the second component to get analyzed happens to be the industry environment as well as competition within the industry. The environment may get evaluated utilizing the five forces of competition model. These particular forces include: suppliers bargaining power, threat of new entrants, rivalry amidst competing companies, buyers bargaining power and threat of substitute products. In relation to the information technology industry and the Apple firm, the most crucial force happens to be rivalry among the competing firms.

Apple was able to successfully overcome other competitors through use of innovations in addition to a brand management that was effective (Cheng, et.al, 2021).The firm decided to position it’s brands as products that are exceptional which helped to outperform competition regarding product design plus performance. In addition, the firm ended up introducing novel features which were not available in the competing products. Actually, the capacity of the Apple firm to have itself distinguished amidst competitors is among its major competencies.

Future Improvements

Competitive rivalry within the IT sphere is one that is greatly increasing as more hardware leaders begin to manufacture their laptops, tablets, players as well as smartphones among others. Apple is capable of addressing this particular competition force through further driving innovation as well as having their products differentiated (Lu, et.al, 2023). Apple is considered to be a high-quality brand offering technology that is cutting-edge at a premium price. As a result, it would be of great benefit to the company if it adds features that are new into their products, have new versions of their commodities introduced as well as have innovation fostered so as to retain the industry leadership.

Greatest External Threat

There tends to be different external threats that influence Apple, Inc. The key threat is rapid technological growth plus change, this means there is a possibility of the firm being set aside by a competitor known to invent a novel technology. In case strong competitors such as Samsung end up inventing technologies and have them marketed, the market position of Apple may get affected to a significant extent (Tien, 2019). In an attempt to retain market leadership, Apple firm is supposed to introduce new products as well as acquire or develop their new technologies. Due to this, Apple is supposed to pursue its own innovations, in addition, it is supposed to monitor the latest advancements then acquire technologies that are promising.

Greatest Opportunity

The most promising opportunity for Apple is basically the iTV launch. Though the company provides TV services, the general TV infrastructure is one known for lacking sophistication as well as alignment with the general Apple ecosystem (Tien, 2019).The TV audience is basically huge plus the launching of advanced interactive TV gadget that is compatible with different Apple devices will end up increasing the popularity and the revenue of the company.

Strengths

For purposes that are strategic, it is of great importance to take into account the manner in which Apple may take advantage of its major strengths as well as how it is able to tackle its most crucial weaknesses. First and foremost, the firm is able to combine various strengths like the top innovator status plus its self-reinforcing ecosystem into attracting additional clients and having them attached to the firm’s ecosystem (Hiremath & Gupta, 2022). Expanding the firm into different niches, like television plus smart gadgets enables the company to enjoy the attention of new clients. After purchasing the Apple gadgets, they get to enjoy the value associated with the ecosystem. Through this strategy, Apple is able to tackle its weaknesses like declining market share alongside the declining gross margin. Additionally, Apple may create new software products plus online services to improve consumer loyalty plus appreciation as well as integrate present clients further into their ecosystem.

Weaknesses

Apple is supposed to take into consideration tackling its high prices weakness. While its known that premium prices are basically a part of their brand image, it is also obvious that having these prices lowered might as well impact the brand value as well as the profits. However, these high prices may end up preventing the consumers from purchasing the Apple commodities (Hiremath & Gupta, 2022). It is recommendable that Apple gets to adjust its own marketing strategy so as to offer two methods of getting products at prices that are discounted. These include; loyalty programs for the clients already existing plus different drawings and contests for the clients who are new. Through this, Apple will continue fueling the interest to its devices then have the existing clients rewarded for their own loyalty. Adapting this strategy, will enable Apple to address its high prices weakness.

Sources

1. Cheng, L. C., Chen, K., Lee, M. C., & Li, K. M. (2021). User-Defined SWOT analysis–A change mining perspective on user-generated content. Information Processing & Management, 58(5), 102613. https://www.sciencedirect.com/science/article/pii/S0306457321001096

2. Hiremath, N., & Gupta, N. (2022). Marketing Strategies used by Apple to Increase Customer Base. International Journal of Innovative Science and Research Technology, 7(7). https://ijisrt.com/assets/upload/files/IJISRT22JUL940.pdf

3. Lu, W. M., Kweh, Q. L., Ting, I. W. K., & Ren, C. (2023). How does stakeholder engagement through environmental, social, and governance affect eco‐efficiency and profitability efficiency? Zooming into Apple Inc.’s counterparts. Business Strategy and the Environment, 32(1), 587-601. https://onlinelibrary.wiley.com/doi/abs/10.1002/bse.3162

4. Paam, P., Berretta, R., Heydar, M., & García-Flores, R. (2019). The impact of inventory management on economic and environmental sustainability in the apple industry. Computers and Electronics in Agriculture, 163, 104848. https://www.sciencedirect.com/science/article/pii/S0168169918315060

5. Tien, N. H. (2019). International distribution policy comparative analysis between samsung and apple. International journal of research in marketing management and sales, 2020(1), 2. https://www.researchgate.net/profile/Nguyen-Tien-32/publication/338719419_International_distribution_policy_comparative_analysis_between_samsung_and_apple/links/63b014d1c3c99660ebbad865/International-distribution-policy-comparative-analysis-between-samsung-and-apple.pdf

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