6BUS1264-0105 Strategic Management Assignment Sample
INTRODUCTION:
Strategic decisions are those made by management that have an impact over a period of years, decades, or even longer than the life of a particular project. Considering that these are crucial choices that will have long-term consequences, it is very improbable that they will be changed in the near future. Strategic choices are long-term in nature, and they may typically be updated or revised over a lengthy period of time, usually three years or more, if the situation changes. All of these choices have a long-term influence on the performance of the supply chain in question. They are made at the highest level of management, include a broad range of uncertainty, and are associated with a high degree of risk. Strategic choices, on the other hand, are the backbone of a company, and they have the potential to boost the profitability of everyone involved in the business, including all of the stakeholders (Rabetino,2021).
STRATEGIC SCOPE:
The strategy regarding the products and services that the company has decided on, and that they are going to offer over a period of time to their customers is known as strategic scope. This includes analyzing the target market where they are to be sold.
Strategic scope is one of the set of decisions that a company makes in the strategic planning process. The other decisions include strategic goals and selecting factors that are key to meet the goals.
CORPORATE STRATEGIC ANALYSIS
The process that researches the environment of a business organization, within which it operates, strategic analysis for corporations is the process of strategic planning that is done for decision making process, and for efficient and smooth working of the organization (Agwu,2018).
Strategic analysis is essential to be constantly reviewed by strategic planners from time to time to ensure smooth functioning of the organization. The process of strategic analysis helps to determine the areas that are doing well for the organization, and the areas that need improvement. To achieve goals and mission it is very important for the organization to have strategic analysis.
All types of organizations that are successful have a proper strategic planning process, and they enable strategic analysis to monitor their strategic plans. The strategic planning process is a long-term task, which also requires keeping in consideration the competitors of the organization to be able to become the best in the market (Fuertes,2020).
CORPORATE STRATEGIC ANALYSIS OF APPLE
Steve Jobs and Stephen Woznaik founded Apple in the year 1976 . Apple is one of the innovators in the computer industry. Apple Inc. is a multifunctional corporation that is known for production of consumer electronics, computer software and personal computers.The products produced by Apple are different from other technology companies. Apple targets different markets (Darling,2018).
PRODUCT DIFFERENTIATION.
Apple is known for its innovation. The detailed study of Apple shows that Product differentiation is the reason for Apple’s success at its peak. With the introduction of Newton in 1993, Apple pioneered the PDA market. Apple introduced the iMac in 1998 which was easy to use, and later updated it in the following year 1998. The most important point in its history was the introduction of a highly stable operating system in the year 1999 with the introduction of iBook. The launch of iTunes in 2001 marked another history for Apple.
APPLE’S NEW STRATEGY OF MAKING ITS PRODUCT A HUB FOR DIGITAL LIFESTYLE
Apple launched its own shop despite complaints from Apple sellers who were opposed to the move. The launch of the iPod served as the focal point of the digital lifestyle, and it fundamentally altered the way people listened to music in general. In 2002, they made significant breakthroughs in flat panel LCDs for desktop computers, and in 2003, they made significant advancements in laptop computers. After then, the iLife bundle was made available. The launch of the Itunes Music Store online in 2003 marked the continuation of Apple’s digital lifestyle strategy. Apple introduced the world’s fastest computer in 2003, and it was called the PC (Mac G5) (Makadok,2018).
BCG MATRIX OF APPLE
The growth share matrix that classifies different business units or products into four different categories i.e. Dogs, Stars, Cash Cows and Question Mark is known as BCG Matrix. These classification is based on market share and the growth of the business, relatively to the largest competitors present (Kools,2020)
- DOGS: Products that have the potential to grow but fail due to slow market growth. In the case of Apple , Apple’s iPods when launched were considered to be big but they failed to catch the market due to low customer demand.
- STARS: The businesses that have the characteristics of high market share are considered as stars. What distinguishes them from cash cows is that their respective industries have the potential of growth in future. The iphones are undoubtedly the stars for Apple. The company sets new sales records with each new launch of the Apple iphone.
- CASH COWS: Apple iTunes and Apple Macbook and iMacs have achieved the position for which they are known to be a cash cow for apple.
- QUESTION MARK: One product that is Apple’s question mark is Apple TV because it did not realize its true potential and could make only little money (Ivanova,2019).
FOUR ELEMENTS OF APPLE BUSINESS STRATEGY
Apple is known for its multi functionality, its products are differentiated on the basis of simple and attractive design and for advanced functionality. Its strategy consist of the following:
- Apples focuses on the products design and functionality: As a base for competitive advantage Apple has adapted advanced features and capabilities for its products and services as a business strategy. Innovation of Apple’s product base is not limited. Apple is known to be updated with its system which gives it tremendous competitive advantage.
- Apple considers enhancing customer experience: The most important pillar for Apple business is focusing on customer experience. The company is successful in creating customers’ experience beyond the purchasing process of the product. It is extremely easy for the customers to use apple products. There are more than 500 Apple Stores in 25 countries and regions providing customers with all that they require with the help of highly effective staff.
- Continuous strengthening of its ecosystem: The company has advanced its expertise in software, hardware and service. The process of vertical integration by Apple is a major factor that makes it unique from its competitors. Vertical integration gives advantage to its ecosystem. Apple’s software and devices work well with each other. Its customer interface helps it differentiate products from other companies, which gives it a closed ecosystem. It is one of the reasons for Apple’s leverage that it has built with its customers and thus offering more options of other products and services.
- Decreasing dependence on others: Company focuses on services and other divisions. It reduces its dependence on sale of iPhone only, and prioritizes sale of its other services and other businesses.
Critical examination of model
Product differentiation is a strategy in which a company uses conceptual difference to differentiate its items from those of its rivals. It is a kind of marketing strategy. Its reputation as a technological trailblazer has been established as a result of the fact that it provides a set of simple-to-use products that also covers a broad range of product categories, including product features, product mix, collaborations with other firms, and reputation in the marketplace. It is possible to gain a large economic advantage from product diversity in monopolistic competition because it allows for the more efficient use of limited resources. It is measurable that the reduction of environmental hazards has a positive impact on the bottom line. The fact that product differentiation acts as a barrier to entry reduces the likelihood of new competitors joining the market (Bogers,2019). Because the alternative product provided by a firm is more appealing than the replacement product, the chance of substitute goods being given in the future is decreased. In the short term, the company’s efforts are concentrated on transforming its strategy into a sustainable competitive advantage. In order to be economically successful, a product differentiation strategy must be one-of-a-kind and difficult to replicate. Because of these disadvantages, it is difficult to replicate the method in question when they are combined (Khamidov,2020). In addition to strategic alliances, Apple has been involved in a number of other initiatives as of late. The formation of an alliance may provide a long-term competitive advantage to a firm in circumstances when a strategic partnership is rare and difficult to reproduce, and the company has the organisational structure to capitalise on the relationship. Steve Jobs overhauled the firm’s board of directors in 1998. That year, the corporation went into a patent cross-licensing and technology deal with the Microsoft Corporation, which was signed the next year (Bindra,2019). Its software development approach was to focus all of its efforts on refining and expanding the Macintosh operating system, which was initially debuted in 1984 and has been under continuous development since then. As a result, they made certain that all of their endeavours were coordinated in the same direction so that it would be effective. A major portion of Apple’s software assets were required to be sold as a result of this decision. When it comes to income, Apple’s strategic connections are worth their weight in gold over the long haul. A number of factors are required for a successful strategic partnership, the most significant of which are mutual commitment, cooperation, and confidence between the two parties concerned. Apple was able to achieve success in this situation as a result of the factors listed above.
RECOMMENDATION OF NEW STRATEGY
The company has a premium pricing strategy, this strategy of Apple makes it less popular among the moderate income group. It is a trend for customers to get Apple products after a few years when they are available at a discount rate, and because of this its market for newly launched products goes down. In this regard the company should form a strategy to attract all groups of people unlike only the premium group. Along with reduced prices, more vibrant colors should be introduced to attract all groups of customers. To cope up with the market the company needs to be more vibrant and keep in consideration social factors affecting the market. It is also essential to provide free services to drive more and more customers.
CONCLUSION
Because Apple goes above and beyond just a computer company, they develop items for their target demographic, which has resulted in a slew of royal consumers who think that the products make their lives better, more enjoyable, and cooler. Apple’s success, as well as its competitive edge, can be attributed to two primary factors: well-designed products and high usefulness. Its fresh and unique strategy, which includes product placement as well as an approach to insiders and influencers, is creating a stir among the new technology-savvy generation of consumers.
References
Agwu, M.E., 2018. Analysis of the impact of strategic management on the business performance of SMEs in Nigeria. Academy of Strategic Management Journal, 17(1), pp.1-20.
Bindra, S., Parameswar, N. and Dhir, S., 2019. Strategic management: The evolution of the field. Strategic Change, 28(6), pp.469-478.
Bogers, M., Chesbrough, H., Heaton, S. and Teece, D.J., 2019. Strategic management of open innovation: A dynamic capabilities perspective. California Management Review, 62(1), pp.77-94.
Darling, E.S., McClanahan, T.R., Maina, J., Gurney, G.G., Graham, N.A., Januchowski-Hartley, F., Cinner, J.E., Mora, C., Hicks, C.C., Maire, E. and Puotinen, M., 2019. Social–environmental drivers inform strategic management of coral reefs in the Anthropocene. Nature ecology & evolution, 3(9), pp.1341-1350.
Fuertes, G., Alfaro, M., Vargas, M., Gutierrez, S., Ternero, R. and Sabattin, J., 2020. Conceptual framework for the strategic management: a literature review—descriptive. Journal of Engineering, 2020.
Ivanova, A.S., Holionko, N.G., Tverdushka, T.B., Olejarz, T. and Yakymchuk, A.Y., 2019. The strategic management in terms of an enterprise’s technological development. Journal of Competitiveness, 11(4), p.40.
Kakhkhorov, O.S., 2020. The theoretical basis of strategic management of higher education system. Scientific reports of Bukhara State University, 3(4), pp.290-302.
Khamidov, O.K. and Kakhkhorov, O.S., 2020. The specific areas of strategic management of higher educational institutions. Scientific Reports of Bukhara State University, 3(4), pp.280-289.
Kools, M. and George, B., 2020. Debate: The learning organization—a key construct linking strategic planning and strategic management. Public Money & Management, 40(4), pp.262-264.
Makadok, R., Burton, R. and Barney, J., 2018. A practical guide for making theory contributions in strategic management. Strategic Management Journal, 39(6), pp.1530-1545.
Rabetino, R., Kohtamäki, M. and Federico, J.S., 2021. A (re) view of the philosophical foundations of strategic management. International Journal of Management Reviews, 23(2), pp.151-190.
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