Apple Inc. Strategy Development and Implementation

Apple Inc. Strategy Development and Implementation

Executive Summary

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Apple incorporation is a worldwide corporation based in the US and develops, manufactures, and merchandises consumer electronics, persona computers, and computer software. Since 2015, the enterprise has witnessed a significant increase in its cumulative net return (approximately by 331%). There are to the main factor contributing to this growth. One is the corporate’s ability to seize the computing market, a step which has been achieved through persuasive innovation, which involves a gradual upgrade of the existing products and augmenting demand for the new technologies. On the other hand, the company has invested in the technological autonomy wave. As the corporation attests to relishing the US market dominance, the development is based on the invention of new and enhanced technology for both emergent and established markets. The corporation is yet to fully achieve practical global flexibility, but its iPhone 5C model records high sales in different parts of the world. The main reason for this is that the model has been designed to meet both customer demand and buying power, thus infiltrating the new markets. Apple’s forecast indicates that the iPhone line has a more significant potential for the firm’s global growth opportunity. The corporation needs to consider exploiting and competing in the world markets by expanding its software to external hardware. Such action will trigger the firm to reach greater heights as the Android has succeeded in using the same mechanism. Apple needs to alter its strategy to realize its international opportunity.The company has to attend to the demands of the lowermost and middle of the pyramid markets to counter scaling as well as market penetration hardships. For the firm to address the market demand, it needs to introduce a wide array of products ranging from low to high end as this step will guarantee competitiveness in the new markets. Apple can institute frugal innovations to penetrate the markets with negligible risk rates and lower product costs to consumers.

General Analysis of Corporate Strategy

Apple mainly employs the product differentiation business strategy. Notably, the international technology firm develops nice-looking yet straightforward design and innovative functionality, which makes its products and services stand out to be unique. The business strategy entails the following aspects:

  1. Concentrating on the design and performance of products

In regards to the differentiation business strategy, the firm has implemented cutting-edge features and proficiencies of its services and products as a foundation of its competitive advantage. The company has rolled out several innovations to improve the quality and enhance the functionality of its models. The firm also focuses on the first-mover gain as an aspect of its competitive benefit. Although this element is questionable, it looks challenging to sustain its long-term outlook. Certainly, the leadership may fall short of making sure of the extra innovative traits and aptitudes in the new models, consequently bargaining the company’s competitive advantage.


  1. Diminishing the firm’s reliance on the vending of iPhones

The corporation business strategy is shifting to ascertaining higher concentration on its services commercials and other categories rather than depending on iPhone sales. Several reshuffles in the management were recently instituted to support and realize the transition process as the company is highly focused on services as well as its other business channels. The move with connection to several other efforts significantly implies positive consequences. In particular, the firm’s services business category amassed top net income of over ten billion dollars in the first quarter of the 2019 financial year, recording a 19% upsurge.

  • Solidification of the Apple network

The business strategy is categorized as vertical integration due to the fact that the firm has superior proficiency in hardware, software, and services all at once. The vertical integration factor is one of the key elements helping the company to stand out amid stiff competition and thus evidencing substantial profits from the stratagem. Apple’s network environment, which facilitated by vertical integration, grants the company an immense competitive gain. The firm’s devices and software are compatible with each other, and the apps function on the various Apple models as they possess similar interfaces. Nevertheless, these items are incompatible with devices from other firms due to the locked ecosystem, thus fashioning switching outlays for its clients to the competition. The network facilitates the prospects to influence associations with prevailing clients to provide several other products and services.

Formulation of Corporate Strategy

Strategy formulation is a course that requires a procedural approach. Both unremitting implementation and environmental forecasting are the critical elements carried out in strategy formulation. Currently, the Apple company is effectively synchronized and, therefore, can aptly implement new marketing techniques like market segmentation. Identifying its strengths and weaknesses, the company can ascertain its market value, the enactment of market segmentation helps in noting the potential consumer targets capable of intensifying the revenues.

The company is a well-established and trendy tech-giant known for its development of efficient consumer electronics and software. The company has an obligation to pay attention to its mission statement considering its importance in the augmentation of the philosophy, self-ideas, and innovations. The mission guarantees the company to steer in the anticipated direction if employed and followed thoroughly. As the firm’s mission is focused on offering the most excellent products and services to its clients, its implementation promises the corporation to achieve its targets as consumers will feel cared for and pivotal to the organization. The continuous innovation is a stratagem initiated by the company, and so far, it is worth it. Apple products are creative and perfectly designed, and the induced quality makes them intricate to duplicate, thus implying a greater latent to thrive in the competitive markets.

For years, Apple has stood out for its unique standards, quality, values, principles, and customs that have resulted in both the workforce and organizational success. The venture is reckonable for its operations as well as its systematic procedures of carrying out its activities. The general public is aware and appreciates Apple’s unique products, services, and the value that governs the organization. Apple also partakes corporate social responsibility, which is an ethical practice as it is much cherished in society. In the contemporary world, clients want to associate with ecosystem friendly products, and fortunately, the company plays an ideal decisive social role to promote better change in society. Being a multinational company, the company has a considerable number of outlets distributed over different countries, thus creating many employment opportunities. Apple has maintained an excellent corporate image to the public, who are the potential customers, therefore, playing a part in winning tangible market share.

Implementation of Corporate Strategy

The process of instigating strategies for a corporation includes deciphering the pre-set tactics into enaction to realize the company targets. Competitive advantage is usually the core driver that forces organizations to revolutionize the approach and controls put in place. The company structure is the layout for delegating duties and responsibilities to the personnel and elaboration of how they are executed to augment efficiency, quality, and satisfying customer preferences functioning as the sustenance for competition. Apple corporation had developed strategic policies and enacted them as a factor that has made the company one of the world’s leading tech-giants.

Apple values and prioritizes its clients and therefore conducts market research to identify the trends in customer preferences and taste. The firm evaluates the traits making customers turn to either its products and services or to those of competitors. The market forecasts have disclosed that the introduction of digital content providers as a complement to its models to be a excellent marketing factor that will definitely intensify its market share. Consequently, customers find Apple devices compelling and attractive as compared to those of other companies.

Innovation is one of the topmost growth strategies the corporation has adopted and installed in place on the road to promote and boost product usage. The firm provides customers with devices that they will at no time find unpleasant, which triggers the evidence increase in market share. For instance, Apple music systems and earphones usually have perfect beats as they are custom made to entice the end user and particularly the young generation. The company is always focused on delivering a quality product with no or close to minimal unwanted features as a move to entice more customers to acquire the products. Currently, the framework of designing and manufacturing the iPhone models possess a robust thrust in the market. Alterations facing the technology field force firms to look for new solutions, thus realizing new discoveries. Apple operates in a dynamic market, and accessing technology is not a big deal. In the contemporary world, innovations are inevitable for any business venture to endure the stiff competition in the markets and became successful. The company is very keen on technology-related matters and never lags behind in implanting the latest trends in its products. Every single year the firm produces new models enriched with the newest technology sentiments, thus capitalizing on the opportunity. The most successful corporates in the field pay attention to technology and release new innovative devices in an orderly manner.

The organization has expanded its retail outlets to new territories to attain a more significant market share and avail its products to the local customers. The notion of globalization has significantly impacted world economies, and Apple is obligated to intensify its operations and augment its customer base. The introduction of new outlets grants the organization a physical presence, which is a vital advertisement and sale place. Subsequently, the stores make it possible for the organization to maintain closer control of the product as well as its image concluded over the outstanding delivery of customer services. The company enjoys a substantial market share. The firm’s branding induces more stress on the clients’ emotions to generate a brand personality. The element has developed simplicity, which curtails the worries experienced by a more significant number of people. Such sort of branding visualizes the surety of the firm on its distinctiveness, which individuals can quickly relay with.

Conclusions and Recommendations

The strategic evaluation reveals the fierce competition in the technology field and strong competitors involved. In fact, Apple has remitted vast amounts of finances to develop its brand, which has realized the nature of fame and success. As long as the corporation implements strategies to put it ahead of the stiff market competition. Several other competing firms such as Samsung, Huawei, and Nokia are similarly working hard to close the gap in the market. Apple’s evidence significantly high production outlays an element that consequently increases the ultimate cost of its products. Apple has embraced globalization, which has assisted it in the invention of new innovations. Inadvertently, Apple corporation is hindered by several encounters and complications which the need to outdo, and thus it has to induce extreme changes. The form does not require to completely be contingent on the clients but the products and instead fight for the trustworthiness.

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