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Corporate strategies of Apple Inc
Strategic planning of apple
Corporate strategies of Apple Inc
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One of the important strategies of Apple is to differentiate its brand from other competitors, by creating their own software and hardware, and building a razor-blade business model. From the early years of the Apple, they have been a company that wants to be unique, simple and one that differentiates itself from the market. “The Mac marked a breakthrough in ease of use, industrial design, and technical elegance”. The business platform for Apple has been to make their own hardware and software, not allow third party to use its software, and to standardize their infrastructure to ensure compatibility. For example, introducing the iPod to digitize music and importantly, having iTunes as a platform, in addition to introducing the iPhone and creating …show more content…
For example, Android has multiple companies using its platform. Another important factor is Apple locks-in its customers because it provides its own technology platform like iTunes, App Store and iCloud services, which makes it harder for customers to switch to another company. Looking at the cost and benefit curve, you can see that at first developing a software is expensive. “Analysts estimated that OS X cost Apple roughly $1 billion to develop.” Although, in the short run there will be less profit, in the long run your cumulative benefits will pass the cumulative cost, which will allow greater profitability after paying off the cost. As competition grew, Apple had to find new ways to innovate their products and cut costs for more profitability. In order to do that Apple focused on adding Intel chips for faster processing speed and thinner laptops. In addition, it allowed Windows applications to run on Mac, which now offset a long-standing disadvantage to choosing Mac. Apple changed its distribution strategy by making it easy for consumers to directly use and experience Apple’s software by opening its retail stores, which accounted for 12% of Apple’s total …show more content…
The reason why protecting its intellectual property is important is because Apple thrives on being different from the crowd. A key feature that sets apart Apple from other companies is its ability to differentiate from others. In order for them to keep being different, they have to protect their property. Protecting its product will make Apple have a natural monopoly because they will be different in the market and have their own software. In addition, Apple will sustain its profits in the future because of their app platform, which will keep adding value to Apple and by not allowing its software to third party. Another important lesson learned is they keep improving products, which allows them to keep introducing new iPhone/iPad for customer to create new demand. For example, not introducing all the best feature at once and changing few things while keeping the core concept on the product. At the same time, listening to customer complaints and reviews such as making the iPhone screen bigger. Also its ability to keep exploring new platform like Apple TV, Apple Watch and possibly an Apple car in the future. Apple has learned how to differentiate its product pricing, by using personalized pricing and offering
They mainly prioritise Social and technological duo to having a big competitor like Samsung who has recently kept up with apples products. Apple use social to gain an understanding of the customers behaviour and influences. They saw the rise in mobile phone usage over the past few years and mainly focused on creating phones and upgrading them every few months to make people known that they are the most advanced company in the phone market. With the new iPhone X they have facial recognition which no one has done before for a mobile device. Samsung a few months earlier prior to the iPhone X brought out the Samsung 8 which has eye scanning technology to unlock a person’s phone but apple had one up on them for their facial recognition. To do with APPLES technological factors, they got on the trend for cloud storage on phones and being able to have a backup of all your files and photos on a cloud which you can access from any APPLE product device. However there is a limited market to deal with.
Apple continues to work on providing innovative products for its customers but marketing to such as small market has caused some problems. Its market share has been reduced to below 5% and its operating system differs considerably from the Wintel operating system used my dominant Microsoft. Costs of maintaining this difference have increased in comparison to those utilizing the competitive operating system. Software designers are not as enthused about writing programs to support Apple's operating system because of limited potential sales. The advantages that seem to come into Apple's laps are quickly removed because competitors are able to copy, steal, and share them.
From 1980 to 1996, Apple’s competitive range in the PC industry was rocky. Although Apples products were unique and well built, they were overpriced compared to competing products from IBM and others. As competitor prices dropped, Apple prices stayed the same and the company saw a decline in sales as customers opted to purchase from its competitors. John Sculley, former CEO of Apple, took many steps to improve the company’s competitive advantage. One of those steps was to compete with price by producing a low-cost computers that appealed to a mass-market. The second step was to form an alliance with rivals IBM and Novel in order to create new operating systems and applications...
Organisation Analysis Apple - Value proposition and Culture Apple - Company Description Apple Inc., was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne on 1976, is an American multinational corporation headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software and personal computers. Its best-known hardware products are the Mac line of computers, the iPod media player, the iPhone smartphone, and the iPad tablet computer. Its consumer software includes the OS X and iOS operating systems, the iTunes media browser, the Safari web browser, and the iLife and iWork creativity and productivity suites. Apple is the world's second-largest information technology company by revenue and the world's third-largest mobile phone maker. “Fortune” magazine named Apple the most admired company in the United States in 2008, and in the world from 2008 to 2012.
Cutting costs by competitors is the most logical way for competitors to be more competitive in the market. By cutting costs, there are more profits to be made and to gain market share by offering lower cost substitute products. The industry is flooded by competition, but no other competitor of Apple really focuses on creating great technical upport or brand loyalty. (Elliot, 2014)Apple’s primary focus is to develop innovative products and create a unique product that consumers can depend on the being the most highly anticipated technological device while offering great service and support for these new products. Apple uses business model innovation which introduces new products that are compatible with each other such as iTunes and the iPhone or ipod. This has proven to be a very effective business model and competitors are trying to replicate the same model to their advantage. (Jakab, 2015) By being an innovator and first mover on this type of technology, it gave Apple the competitive advantage in the market. In order for competitors to be more effective in the industry, they must attempt to gain customer loyalty and offer a simliar business strategy to that of Apple if they are to be the industry
Apple Inc is a multinational organization in America and has its headquarters in California. The organization specializes in the design as well as development of consumer electronics including: computer software 's, and also personal computers. The organization has for long been offering a broad range of communication mobile communication as well as its own company software’s. The organization has quite an upright name in the business world. For a long period it has been producing quality product and their designers really bring out uniqueness in their products (Linzmayer, 2004). Apple Inc has established itself as being the world’s leader in innovation. Thus according to statistics; it is classified as being the fourth most valuable technology
The Apple brand name is a household name, the brand value of Apple, Inc. improved to $13,724 million in 2008 from $11,037 million in 2007 (Datamonitor PLC, 2009). Apple is different from its competitors because it produces high quality products, its products are also unique and attractive and this has helped to increase its market shares. Since Apple is known globally, 54% profits come from foreign markets (Datamonitor PLC, 2009). Apple products are easy to use and carry around, majority of its products are light, small and very easy to carry around and it has a major advantage of product diversity, there is something for every one of all ages.
Overall, Apple has a creative way of marketing to the millions of people over the world. Their creative marketing coupled with their unique product meshes together to form a multi-billion dollar company. If Apple keeps using their exclusive style of marketing to a younger “hip” generation then they will be Apple customers for life.
According to Ideavist (2011), due to the increase in competition as rival companies try to capture a piece of the market share leads businesses to employ various tactics to handle such situations. Some of the strategies used by companies and that Apple could find very constructive could include the below marketing strategies to be used for future success.
Apple has launched some of the most iconic pieces of technology in the 21st century. They have not only repeatedly been named the top technology company in the world, but have also been named the World’s Most Valuable Company dozens of times. Currently, it is ranked at number two as it trades the title back and forth with Google/Alphabet consistently. A global valuation of over $700 million makes Apple a major driver in the global economy through both sales and product manufacturing. Although a technology giant, Apple does not have a massive portfolio of product offerings, instead focusing on upgrading products within its current market segments. The iPhone is one such product and it has quickly become a symbol of all things Apple with global
Apple Inc. was established by Steve Jobs and Steve Wozniak on April 1, 1976 as a computer designer, developer and seller company. However, the company shifted its focus from only personal computer to include other consumer electronics such as portable media player and mobile phone in 2007. Apple Inc becomes one of the most popular makers in its field since it seems that its popularity has increased according to a report on www.statista.com that Apple Inc’s products sales was generally increasing throughout the first quarter of 2006 to the first quarter of 2014. On the one hand, it has increased its revenue from about 14 billion US dollars to more than 170 billion US dollars in 2013. All in all, the company is highly successful corresponding to its products’ development and their sales growth in world’s market.
What is product? Product can be anything, tangible and intangible. Product is anything that the company can offer to the consumer. Apple’s products are the best of service in the market. From computer to smartphone to tablet computer, today customer believe that if they get the apple product. Even that price is high also worth it. Apple products are usually high quality, so in some case that is the best of available device for customer. However, it is not perfect, many customers leave for a series of problems, so they deeply hurt.
Until the 90s’ century, Apple had a competitive advantage over the competitor as IBM and Microsoft that justified the higher price of its PC, leading Apple to gain a high margin on its revenues, around 55%. But in 1990 Microsoft lunched its own new operating system based on Intel microprocessor, that counted 90% of the microprocessor in the world, and Microsoft earned the entire market share, leaving Apple in a niche, because developers opted for the dominant standard to deal
Computers and technology makes it easier for entrepreneurs to enter this market. Not only are major tech companies competing against one another, but they are also competing against little programmers that know how to code. In our time you will never know with certainty when a small group of engineers or computer scientists are going to create, “next big thing”. Apple has been able to have a competitive advantage over its competitor by creating the highest quality products and services. Some of Apple’s current competitors are Microsoft, Google, and Facebook, and a few other tech companies as well. Most people strongly people Apple is one of the stronger company its industry, but then again some other people have biased views. Financially, they are the strongest company in the world. Also people are always willing to pay a premium for their products because of their durability, quality, and prior experiences with Apple products. Apple is always on the look at for new innovative ideas and concept that are being produced by self-motivated entrepreneurs. They are always looking to hire bright minds and let them develop within the company. A lot of entrepreneurs, programmers and engineers do not have a problem working for Apple because of their well-established perks. Apple offers its employees of the best benefits in the world. They also fairly compensate their employees that work in the front-end store as
New product development is the process of introducing a diverse product in the existing, emerging or new market. It can originate from new technology or new market opportunities (Eliashberg, J., Lilien, G. L., & Rao, V. R. 1997). Literature defines product development as exploiting an untapped market opportunity and turning it into a value product for customer satisfaction. Development and introduction of a new product requires extensive research on understanding customer needs, market structure, emerging trends and analysing the internal & external competitive market environments. To evaluate customer satisfaction previous researches provide strong relationship between customer satisfaction and product quality, product features and value for