Apple is a business level strategy company that has been around for years. They have released many products, such as the iPhone and iPad to name a few. Their business model is based on selling their products at higher prices than other companies do in order to make more money. Apple invests heavily in research and development (R&D) because they believe it will help them sell more of their product and make even more money.
In today’s economy, competition is on the rise as businesses expand their operations worldwide. In essence, firms utilize both company-level and corporate-level tactics to gain a competitive advantage over their rivals. Business-level methods are activities undertaken by business enterprises in order to obtain a market edge through exploiting essential capabilities that provide value to clients.
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Narrowing the gap can be difficult, but it is essential to do so in order to stay competitive. This might be done in a variety of ways, such as by being unique in terms of operations and offering different products from those of rivals. The term “cost leadership” was first coined by economist John Vincent Raskin (1879-1942) and describes a company’s ability to deliver its goods or services at lower costs than its competition (Ireland et al., 2010, p. 100). This paper focuses on Apple Inc.’s business- and corporate-level tactics, which fall under the Information and Communication Technology (ICT) sector.
Apple’s Business Level Strategies. Differentiation Strategy
Apple has long been the most powerful technology company, thanks to subsequent advances in iPhone, iPad, and MacBook. One area where Apple outperforms its competition is product differentiation, where it has dominated in computers, mobile phones, digital music players, and online music retailers (Harrison & John, 2009).
Apple’s approach, as seen by the EFI-IDF competition, is to engage a single firm to provide operating system and hardware for its devices (Hill & Jones, 2012). This allows Apple to focus on product design. Furthermore, because it has earned a reputation for producing items that are highly sought after by customers, the business has positioned itself in the high-end market.
Apple’s approach to product distribution is another differentiator. The firm has opened retail outlets all around the world in order to better distribute its goods. Furthermore, Apple’s service delivery is superior, as it offers a state-of-the-art bar for technical assistance, continuous and dedicated client support, and allows customers to try before they buy their products. The company has succeeded by developing innovative, high-quality goods that are user-friendly and distinctive in terms of quality and design.
Cost Leadership Strategy
The firm has invested a great deal in product development through a dynamic R&D department (Ireland et al., 2010). The strategy of cost leadership typically entails the production and delivery of goods that are beneficial and acceptable to customers at a low and competitive price. Firms typically aim to maximize earnings by optimizing manufacturing and distribution of products that reduce costs.
This is achieved through the creation of effective scale facilities, as well as lowering manufacturing and overhead expenses, costs associated with sales, research, development and service delivery, as well as installation of current and efficient manufacturing equipment. In general, cost leadership is the most widely utilized method to gain competitive advantage in the market while remaining profitable.
Apple has utilized this approach by creating low-cost, high-quality goods utilizing cheap and cost-effective raw ingredients supported by a strong, creative management team and personnel in production, marketing, and product delivery. Apple also employs a cost leadership strategy by forming business partnerships with other successful firms so that it may focus on innovation and market intelligence.
For example, Apple provides iTunes distribution service that allows other businesses to sell music, films, and games digitally at a low cost, eliminating the need for physical disks and tapes. Furthermore, by eliminating middlemen and selling its items directly through its website, this technique becomes more effective.
Apple’s Corporate-Level Strategies
Apple’s corporate-level tactics include the close connection diversification of its goods at moderate and high levels, including home computers, personal computers, mobile phones, music stores, and software. Furthermore, the firm has a fine balance of personal computing and entertainment with a high level of integration that enables it to be more productive in production and delivery of items at reasonable costs while remaining profitable.
Another benefit of this diversification strategy is that clients may obtain high-quality and design-based goods, since all of these items are highly linked and run on the same operating system. Another business plan entails joining strategic partnerships to take advantage of economies of scale, leverage knowledge from rivals, and share risks and costs. Apple has joined a number on projects, including AT&T for iPhone production, Microsoft for software to be used in Mac computers, and Intel for processors.
Apple has employed a company strategy known as internationalization of production, in which the firm established a manufacturing facility in China to take advantage of low labor costs, access to raw materials, high potential market, and favorable economic climate due to China’s economy. In this case, Apple outperforms competition by producing standardized items on a global scale because engineering design and production are closely controlled and centralized. Because of variations in voltage across nations, it’s simple to identify Apple’s items. The only customization is the power supply owing to differences in voltage across countries (Ireland et al., 2010).
Given the presence of a plethora of firms engaged in the sector, it is extremely competitive. Apple faces intense rivalry on all fronts and lines of its business from a variety of rivals. The competition for Microsoft in computing is strong; Samsung is seen as a direct competitor in mobile and smartphones; and Apple’s main rival in portable music devices is Microsoft. With the global industry continuing to grow, competition is increasing as a result of globalization. Apple’s iPhone and iPad are often contrasted with Samsung phones (particularly the galaxy family).
In fact, according to Guglielmo (2013), the smartphone industry is extremely competitive, although Apple’s biggest competition comes from tablet businesses, where rival companies have captured around 28% of the Apple tablet market share in the second quarter of 2013. Despite fierce competition, Apple’s business-level plans have allowed it to maintain control of the market due to its strong differentiation strategy, which revolves around the company’s capacity to create and develop its own software and hardware.
Apple’s success can be attributed to a few key factors, including an unwavering commitment to producing innovative technology while providing exceptional quality, being one of the most successful and well-known companies in the world, keeping costs low by selling direct rather than through dealerships or other middlemen, and offering high-quality customer service (Guglielmo). The firm has also introduced a new iPad Air that follows the recently launched MacBook Air laptop and Mac Pro desktop (Guglielmo). This distinction has allowed the company to price its goods at a premium while still retaining its loyal consumers.
Apple’s main competitor is Samsung, which is recognized for its smartphone business line and most recently released the Galaxy S4. This rivalry is more heated because Samsung has invested heavily in competitive intelligence (where it studies what competitors are doing and then releases more advanced goods – call it mimicry or fast follower to an extent) as well as intricate supply chains and distribution channels. It’s for this reason that Samsung’s sales continue to rise.
To address this problem, Apple has established a consistent design approach platform for all of its goods. Furthermore, Apple has set up retail stores and an online store to allow consumers to purchase and enable the company to run at low costs. Furthermore, because of iTunes and App stores, the company is a leader in terms of digital music access.
Finally, SwarTech has recognized the importance of strategic partnerships, corporate diversification, internationalization, and vertical integration in maintaining market leadership. Given that Apple’s market share is being harmed by competition in this sector, the firm needs to be more aggressive at both the business and corporate levels.
However, one item may be stated with certainty: In light of the recently concluded court case accusing the two companies of patent and imitation infringement, Samsung appears to be a major threat to Apple in the phone market (Hill & Jones, 2012). Samsung, in fact, appears to have a strong future position owing to its strategic approach to invention, research and development, penetration, and promotion. In reality , Samsung has funded significantly in advertising.
Competition in Fast-Cycle and Slow- Cycle Markets
The technology industry is more on the fast-cycle market. Some goods, however, have moved to the slow-cycle marketplace (such as PCs), whilst others are still in the fast-cycle market. Smartphones and tablets have experienced the most rapid growth ever seen before, with new devices launching and being replaced almost immediately even before customers have had time to get used to them.
Apple and Samsung appear to be competing very hard in the smartphone market. For example, Samsung unveiled the Galaxy S4 smartphone, which debuted promptly on the market, but Apple struck back with a more advanced iPhone 5S before it had sunk into people’s minds.
In the future, with this development, both firms will find themselves in a fierce competition for domination of the market, and neither can be certain of being the dominant company while still being profitable. In the slow-cycle market, Apple appears to have a brighter future than Samsung.
The technology industry, like many other industries, is competitive and demanding; to succeed and operate profitably, businesses must be highly focused in their methods. Business-level and corporate-level techniques can make firms more appealing to clients. Apple Inc. has implemented company-level tactics concentrating on cost leadership and differentiation, resulting in the company becoming a dominant presence in almost all its lines of business, including Mac computers, iPhones, iPads, iTunes and App stores.
The company’s strategy of providing bespoke services through a wide range of retail locations that specialize in universal engineering design and sales is successful. Furthermore, the firm’s corporate plans for diversification, collaboration, and internationalization have been very beneficial. In this high-speed market, however, such huge businesses as Samsung face fierce rivalry.
Apple was chosen for this essay because it is a well-known brand. Apple’s business level tactics are all based on the same key idea: innovation. At Apple, the term “innovation” refers not only to the creation of new items, but also to improving an existing product line. These days, Apple does not rely as much on new product sales to drive income; rather, it profits from the consolidation and improvement of its current portfolio of goods.
For example, the new iPad models that are currently available build on progress methods and increase resolution and storage capacity while lowering product size. Similarly, for iPhone, it’s all about advancement and innovation within the existing models. Apple has also incorporated invention into its software programs to encourage consumers to use their products in innovative ways. They are encouraging innovation by allowing customers to use their products in unique ways through their App store and existing applications installed on the devices they sell.
Their business level plan, on the other hand, is also focused on diversification. On two vectors, they are diversifying: price and quality. Because of their sizes, people perceive them as being an exclusive product. Apple’s marketing approach will therefore support this type of strategy by promoting Apple’s products as being superior in terms of quality.
This paper shall evaluate whether the Apple Company’s business-level methods, corporate-level methods, and competitive environment are a good fit for it in comparison to company strategies at each level. It will compare other firm’s strategy at each level to determine which one is most likely to succeed in the long run. This is intended to identify Apple’s various levels and kinds of strategy that it employs in its operations as well as the most essential business-level approach that it will implement for long-term success.
The above should give you an overview of the various types of business-level plans discussed in this book, as well as some general information on how they work. Larger organizations are generally better at prioritizing and focusing their efforts, but these methods can also be used by small businesses to achieve similar results. This section may be skipped if you’re not interested in reading about professional strategies .
The business-level approach is concerned with a company’s position in the market, as well as its rivals and the porter’s five forces of competition. Apple uses distinction as a business-level strategy. The objective of Apple’s business-level strategy is for customers to focus on technical goods rather than expecting more.
The firm must concentrate on how to develop innovation in the invention or creation of new goods that are better than existing ones. Innovation as a company-wide strategy isn’t the same thing as bringing new products to market. Instead, it’s about improving the current form of manufactured items through consolidation and growth. The business doesn’t always rely on fresh product revenues; instead, it focuses on expanding and improving its line of present items (Khan et al., 2015).
The aim of the firm is to innovate, but it also works hard to perfect previously launched goods by listening to consumers’ ideas about what the company and industry as a whole represent. The purpose of the business is to provide an experience that differs from other computing and mobile device products as well as from the shopping mall’s atmosphere.
The company’s goal is to move up the market by paying attention to various elements that affect the industry. The kinds of differentiation created by this method include, but are not limited to, opening stores in areas where people may have an opportunity to experience the technological goods. This plan is intended to change how people perceive Apple from a single business entity into many smaller businesses. This will entice uncertain clients to have a distinctive experience with your company and, in the long run, to the corporate appearance aspect for sustained achievement.
I believe that the firm’s decision to pursue a business-level innovation or differentiation strategy was the correct one since it will enable the company to become one of the most popular businesses in the technological products industry. Customers and rivals will continue to be concerned about new product differentiators, which over time will shake up the market as customers keep buying them.
Corporate-level strategies are concerned with the strategy that identifies the current influences on the company, as well as its rivals. It also refers to factors that may have an impact on the firm and its known competitors in the coming time period. Mobile device and computer manufacturers develop regulations and procedures designed to establish innovative and creative positions that will eventually provide a competitive advantage (Sales et al., 2018).
A multi-tiered approach to planning, at the corporate level, employs business goals and a target in the market as a framework for decision-making. They are the company’s goal or aim. As they develop, market share may increase and they might take over the industry, deciding not to continue pushing and striving harder to maintain growth. This could lead to some of its rivals gaining ground and even surpassing the firm’s domination level in the market (Hitt et al., 2013). The packaging of technological goods has a pollution disadvantage because consumer awareness and understanding of pollution’s effects contribute to buyer behavior and decision making, resulting in fewer purchases.
The firm should also aim to develop cutting-edge technology products that are distinctive and beneficial for a certain group of clients, such as health-conscious purchasers (Hitt et al., 2013). Diversification is a form of business strategy that tries to increase earnings by ensuring that new goods are created and markets are entered.
The corporate strategy suggests that with the global market in mind, the perspectives and application of a variety of models intended to create diverse strategies for various locations is likely to increase. For example, a need exists for firms to carry out an PESTEL survey for each region they enter and operate in, as well as the necessity to identify competition anomalies and costs throughout the many countries.
Steel is a highly traded product. When the steel producers are taxed on their deliveries, they must pass those costs onto the consumers, thus raising prices for some products and lowering them for others. There are significant price fluctuations depending on location because of this, with some elements being more expensive than before and other aspects being less costly (Sales et al., 2018). It will force decision-makers to conduct analysis to see which country offers the best profits by incorporating global concerns into strategic management.
A firm must put in a lot of effort to achieve the highest level, and this can be accomplished using most cutting-edge ideas or methods in developing goods that compete with the market. Despite being a start-up business, this company has to make an effort to ensure it maintains its competitiveness over time. It must fight with existing businesses and new entrants who might join after them, posing a threat to the firm (Sales et al., 2018).
A company’s success is dependent on the product, and competition among companies has increased dramatically. In order to maintain customer service, quality of work, and efficiency, a business must pay attention to product differentiation methods in order to gain a competitive edge and confront rising threats from rivals.
Apple Company, together with its rivals, has devised methods for delicately altering or mixing food ingredients to generate various food products with distinct qualities. Apple Company’s major competitors in the mobile and computing device sector are prominent technology firms such as HP Inc., Sony, Samsung, and Dell Technologies among others. Due to the significant amount of money needed to establish tech equipment manufacturing plants, there are very few opponents in the tech mobile and computing industry. This is due to the high cost of establishing technology equipment manufacturing facilities.
The main disadvantage of the market is that it is more expensive to operate, which prevents new entrants. Samsung has a larger client base than Apple, which helps to maintain competition between the two firms. This motivates Apple to seek out more clients in the near future (Sales et al., 2018). It understands the importance of competing on quality and providing excellent goods and services alongside customer support for pet owners.
To begin with, Apple’s competitive advantages are to some extent protected from hesitant imitation in the slow cycle markets. This takes longer. It is my personal belief that Apple will be able to compete and thrive in both fast and slow cycle markets. During the slower cycles, it makes use of strategic partnerships to enter restricted varieties of goods or new frontiers.
When you’re done, tap the Save button. An example of this is when Apple collaborates with any of the top firms to advertise its meals products in order to extend their target market. This will be a fantastic plan since it will allow Apple to enhance technologically in order to compete successfully worldwide against other rival businesses. Apple can’t be compared historically to huge tech mobile devices and computer companies like Sony, Samsung, and DELL, but it may use tactical methods to surpass those limits that the corporations themselves achieved.
It’s more accurate to state that it will do well in a slow-cycle market since the market won’t be expecting anything new from it, and that there will be no buyers for the new goods since they would obviously choose the same products as their dogs are accustomed to (Hitt et al., 2013). The majority of buyers prefer what they are comfortable with, implying that Apple would face competition from companies like Sony, which have lowered prices.This is the aim of most customers when shopping in a retail store. In fact, familiarity with such businesses makes it much easier for loyal consumers.