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Apple corporate strategy
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of its revenues of $76.3 billion, handily exceeding the overall retail industry 's sales growth of 4.5% (para. 13). Realization of this success is hard to grasp in an economy where brick-and-mortar stores have and continue to suffer do to low-cost online retailers such as Amazon and large, low-cost brick-and-mortar retailers such as Costco and Wal-Mart (Bajarin, 2012). Despite the odds and in only fourteen years, Apple has managed to build a highly successful retail chain that is in high demand domestically and globally. In Figure 1, the number of Apple stores worldwide tallies to 463 as the end of 2015 approaches. Why are Apple stores so successful and continue to increase in popularity when Apple products are readily available through other retailers who are more convenient and with a lower price? The reason, Apple differentiates itself from other retailers in that it offers a value-added service (Majeski, 2011). Apple doesn’t just want to sell products; it wants to show customers how to maximize benefits from technology (Majeski, 2011). Thus, in order to accomplish this goal, Apple offers a high-value customer service retail experience. …show more content…
Heisterberg and Verma (2014) state “Exceptional customer service must be the backbone of businesses in today’s tough climate” (p. 119). Apple clearly understands this principle. In Apple’s 2014 Annual Report’s Business Strategy declaration, Apple states its position on customer
The customer support and customer service functions are more than departments; they are part of an essential strategy for growing your business. In the modern business climate, customers expect answers to their questions immediately. When the right information is available anytime, from anywhere in the world, customers are more likely to have a positive experience, thus customer loyalty will be increased. It is a known fact that the cost to obtain a customer is ten times higher than to maintain and keep existing customers. (Gouran, Dennis, W.E. Wiethoff, & J.A. Doelger. (1994). Mastering communication. 2nd ed. Boston: Allyn and Bacon.) Not in Reference Pg.
Apple has garnered a competitive advantage through all aspects of the supply chain. On the production front, Apple has made many high-priced
Earl Sasser Jr. discusses why customers matter in his lecture because customers are essential in every business that have been created. He began by providing a story about a local grocery store in Norwalk Connecticut that kept expanding. Their customers were dedicated to making their store the best it could be by providing suggestions and participating in focus groups that concluded in results from the suggestions. Sasser wanted to show businesses that were not efficient in their customer care why their customers should matter because there are some companies who have leaders that have instilled these ways in their companies but there are some that neglect the fact that their customers do matter. Sasser says that if you listen to all the CEOs
The growing popularity of online retailing is attracting competition from traditional and online multi-retailers such as Wal-Mart and Amazon which are gaining considerable market shares in many of the product segments included in the specialty retail sector.
What exactly does it take to create a successful leading retail store? So many companies are in competition of gaining the shopper’s loyalty they end up neglecting other important aspects. A perfect retailer has to balance out high-quality, attractive prices, customer loyalty, and an enjoyable environment. “Target has experienced considerable growth in the last decade because its stores offer fashionable merchandise at low prices in a pleasant shopping environment.” (pg42) “It has developed an image of ‘cheap chic’.” (pg42)
Apple in the recent years had developed a competitive advantage in their market. A competitive advantage implies the creation of a unique advantage over competitors (Heizer & Render, 2011). One way Apple competes is on differentiation, or distinguishing the offerings of an organization in a way that the customer perceives as adding value (Heizer & Render, 2011). Another way Apple has created a competitive advantage is through experience differentiation, or engaging a customer with a product through imaginative use of the five senses so the customer experiences the product (Heizer & Render, 2011). Through differentiation, Apple has created a true competitive advantage over many of their competitors.
1.1 Explain the value of customer service as a competitive tool Customer service is valued as a competitive tool by many organisations. It gives you the ability to gain customer loyalty while meeting the customer’s expectations. Staff will have the skills and knowledge that will provide a competitive edge. Most organisations are known for the quality of their customer service. This means that they are known for good customer service or poor customer service.
is yet to reach its maximum potential. Truly a unique entity in its accomplishments and organization, apple through the conviction and leadership of Steve Jobs its founder and then CEO; have pioneered the revolution of mobile technology. When it comes to strength, apple Inc, has a great marketing team with great marketing and advertisement capabilities, strong brand awareness, a strong and extensive distribution channel, and most of all a vertical integration and the most obvious which is customer loyalty. With the acquisition of valuable companies such as Beats, WhatsApp, mobile payment systems with the IPhone 6, wearable gadgets like the IWatch, apple uses these opportunities to satisfy its loyal
Close to the Customer: Customer satisfaction is very important throughout all the roles that the business plays. Many companies forget about their customers, whereas successful companies have an obsession with their customers. Excellent product quality and reliability will make a satisfied customer. Great service will keep the customer coming back.
Apple depends on building a better product and in turn, the product itself leads people to purchase from Apple. However, new or improved products will not necessarily be successful unless they are priced, distributed, advertised, and sold properly (Kotler & Keller, 2012). The holistic concept encourages the marketer to integrate marketing activities and assemble marketing programs to create, communicate, and deliver value for consumers such that “the whole is greater than the sum of its parts (Kotler & Keller, 2012). This is why Apple advertises how much the new feature will enhance the consumers’ life and release snippet tutorials of how to use the new features or
...stomer service is essential in any organization. Its importance has positive implications on the business. Having an excellent customer service will motivate the organization’s employees. This will result in a win-win situation because a happy employee is a productive employee. When a motivated employee helps customers he/she will ensure that the customers are satisfied in a way that exceeds their expectations. These customers will then go out in to the public and share their experience with friends who will eventually patronize the business. In the long run the business gains more customers and increases its profits. Therefore, every organization should attempt to implement and preserve an excellent customer service strategy. This will give the organization a competitive edge above other organizations and establish a reputable image every business entity long for.
Customer service by definition is the ability of knowledgeable, capable, and enthusiastic employees to deliver products and services to their internal and external customers in a manner that satisfies identified and unidentified needs and ultimately results in positive word-of-mouth publicity and return business (Lucas, 2012, pg.7). In other words, it’s making the customer pleased so that they keep doing business with you all while making sure that the employees get along and work together well. In every business there is a form of customer service. Unfortunately, it is not always excellent or even decent. Some businesses just either don’t care or possibly just don’t have the training to deal with some of the obstacles that come with dealing with customers on a daily basis. I’ve been in the restaurant business for over 13 years and I can tell you that there are skills that some are born with and others need training on, yet either way they should be used whenever interacting with customers.
A few decades ago, businesses considered customer service as an unnecessary expense. Now, companies view it as a competitive advantage in the marketplace.
“Customer service is the experience we deliver to our customer. It’s the promise we keep to the customer. It’s how we follow through for the customer. It’s how we make them feel when they do business with us. -Shep Hyken”. (Morris). Most people know that there is inadequate customer service and excellent customer service. What separates the two? The way you take care of your customers is what will separate the two. If one has attitude and treats the customers in a way that they do not matter most likely they will not come back to the company one works for. Therefore, the company is losing sales. One main
or alternatively it can be given out as a team. This is to ensure that