Good Apple Corporation Strategy Business Plan Example
Until January 9, 2007 the official name of the corporation for more than 30 years was “Apple Computer”. Rejection of the word “computer” in the title demonstrated the main focus from the traditional corporation for its computer market on the consumer electronics market. After analyzing the behavior of Apple over its history, it is possible to identify a business idea in the creation of products to attract buyers for its technical characteristics, design, ease of use and the internal interface, with guarantees of high quality, providing its services to the greatest possible number of persons and the continuous development of its technologies. In this paper we will discuss the strategy of internationalization of Apple Inc.
Thesis statement: The success of Apple is associated with the basic principles of the company.
A significant impact of Apple’s success belongs to its uniqueness and principal strategic positions. We discuss these principles in the paragraphs below:
The company is managed by engineers, not managers. Apple management is entirely in the hands of engineers. Most project teams are very small, and there are always at the head of the engineers. Furthermore, all managers are engineers (not managers with MBA). That is, all the people in the project team are well versed in technology, which greatly facilitates and optimizes the work on the product (Zachary M., 2014).
Build a culture of respect between managers and employees. Since all managers are former engineers, there is a strong relationship and mutual understanding between them and staff. The atmosphere of trust and respect for each small project team creates a great puzzle success Apple. Employees are free to use and improve the company's products. All employees are entitled to use the company's new products and make suggestions for improvement, please contact directly to the project team. No bureaucracy, no coordination with the Management, no one will appreciate the product better than the engineer.
Company stimulates the growth of the employees. Employees of the company are used to perform tasks that are slightly beyond their abilities, but allow them to develop. Already after 6 months of employment, employees can join the project team to prove him. The company is interested in the growth and development of their employees and allows you to actually do it.
Priority for the deadline approaches. Apple has never delayed the entry of the next novelty. If the quality of a component until it meets the standards of the company, he simply removed from the final product. You can endlessly something to improve and refine, but easier to release new product plan, and later submit a revised version.
The company does not rely on differences from competitors. Apple does not believe that you can beat the competition by offering an improvement of some of their product. The Company generally does not focus on what competitors are doing. It concentrates on creation of a fundamentally new product that raises a particular segment to a higher level and change the status quo in the industry. Defy trends rather than follow them - that's the principle of the company.
Be easier. The design philosophy is a constant simplification. In the development of the very first models of iPod the management decided to get rid of buttons, including the power button and turn off the device. Designers complained, complained and developed which later became a cult classic scroll wheel.
Keep company secrets. The company «Apple» no one talks too much. Secrecy helps to maintain the frenetic interest in their products, resulting in the presentation of its new products constantly getting news of the day.
Balance between work and personal life. The company has a strong emphasis on the balance between work and personal life. Employees work hard, but free time they can spend on your own. Full medical insurance, generously organized by the company holidays at Christmas and Thanksgiving and friendly atmosphere of the company makes it enjoyable for people. The motto of employees Apple: “We love to work here, we work a lot, but when the job is done - we can enjoy life."
The company is constantly seeking to expand its sales market, directing all available resources to development. Apple does not seek to make a profit, and as a result of such policies geography of the company is expanding rapidly, and its total revenue is growing rapidly. With growing every year and its reputation around the world observed a pronounced upward trend in sales of their products. Now the company continues to lead an active struggle for first place at home in the United States. Also, one of its main tasks is to enter the Chinese market.
Consider Apple's activities on the basis of the theory of Michael Porter, select the strategy will ensure to improve competitive position (Dowling, S., 2008):
The threat of substitutes in the market for your products and services. This power concerns the ease with which the buyer can replace one type of product or service to others, which is extremely difficult on the roar of computers and software. Porter also noted that substitutes are particularly serious threat in the case where not only gives customers an alternative, products and services, but also significantly improves the price/quality of consumer. This kind of evidence do not play into the hands of Apple, as in its products this ratio is often worse than those of other firms.
The threat of new competitors in the industry. The computer industry is much closed to the entry of new firms, which weakens it in competition. Also takes into account the company already established in the market, to what is and Apple, which have a corresponding customer base and use its loyalty.
The degree of a bitter struggle between the existing competitors in the industry. If a high concentration of the industry or it is dominated by one company (some companies), leading company (company leaders) can dictate the conditions imposed discipline.
The ability of buyers to seek lower prices. This force can be performed under conditions that are not provided by Apple.
The ability of suppliers to achieve higher prices for products is also not feasible in a strategy of Apple.
We now characterize the strategy of the company behavior:
Concentration - the company decides to compete only in a narrow market segment. Instead of attracting all customers, offering them a cheap or unique products and services, the company carrying out the strategy of concentration, serves customers a well-defined type. This strategy Apple tried to use at the beginning of positioning their computers as a professional.
Cost leadership - this strategy is very simple. To be successful a company must reduce costs and become a leader in this indicator in the industry. It does not match the behavior strategy of Apple.
Differentiation – the difference from the rest of the product in the industry. Differentiation requires a certain cost increases. Companies conducting differentiation strategy, it should be the best design products. They need to provide higher quality and often use more expensive raw materials. They need to make large investments in customer service and be prepared to abandon some of the market share. Although everyone can recognize the superiority of products and services offered by the companies on the path of differentiation, many consumers are unable or unwilling to pay for them. This is the strategy and adheres to Apple during the entire history of the company. It positions its products as the products are not for everyone.
However, Porter argued, product differentiation is a viable strategy (Porter, M., 1979). Customer loyalty to a particular brand is a protection from competitors. The uniqueness of the goods or services offered by the companies is a sufficient obstacle to new competitors. The higher yield which is created by the differentiation gives a protection against suppliers, since it allows having financial reserves to search for alternative sources of inputs. Goods and services firms adhere to the strategy of differentiation are not easy to find a replacement. Consequently, consumers limited choice and limited ability to bring down prices. And this strategy has its flaws, but overall, I think it allowed Apple so long to be afloat despite all problems and errors.
Thus, the success of Apple is associated with the basic principles and uniqueness of the company. Currently, Apple is a corporation, a manufacturer of personal and tablet computers, music players, phones, software. Thanks to innovative technology and aesthetic design, Apple Inc. has established a unique reputation comparable to the cult, in the consumer electronics industry. To maximize awareness of its brand and establish itself as the most recognized brand in the world and in its target market, Apple has carried out a well-integrated marketing program using the product mix that meets the needs and demands of their target market
Zachary M. Seward (April 5, 2014). "The Steve Jobs email that outlined Apple’s strategy a year before his death". Quartz. Retrieved April 7, 2014.
"Apple acquires Beats Electronics for $3 billion". Engadget. May 28, 2014. Retrieved May 28, 2014.
"Apple to Acquire Beats Music & Beats Electronics". Apple. Retrieved May 28, 2014.
"iOS 7 With Completely Redesigned User Interface & Great New Features Available September 18". Apple Inc. Retrieved May 2014
Steve Dowling (December 16, 2008). "Apple Announces Its Last Year at Macworld". Apple Press Info. Apple Inc. Retrieved March 23, 2014.
Porter, M.E. (1979) "How Competitive Forces Shape Strategy", Harvard Business Review, March/April 1979.
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