How Organizations May Improve Strategic Marketing Activities

It is quite obvious from the case that Apple is facing many obstacles. It has way more competitors today than it had two or three decades back. Part of it has to with the highly globalized environment that companies are operating in these days. Another major obstacle is the technological environment which is rapidly changing compared to the one that Apple experienced when it first emerged on the global scene. But the most important of it all seems to be a mental thing. It appears that Apple, over a period of time, developed a rigid mental model that related success of Apple with sheer innovation. This same mental model has lead to demise of many companies in the past, Xerox Corporation being the prime example of that.

All of these elements are key factors in Apple’s Strategy. Apple has also provided competitive prices compared to other companies like Android. Apple’s products started at much higher prices and are now competitively priced based on comparable products. These key elements fit together to complete Apple’s ever changing competitive strategy. Apple has clearly been successful in adapting their strategy based on internal and external changes. Apple has been able to create strong customer loyalty and maintain ambitious leadership. Buyer power, rivalry and treat of substitutes are also key elements in Apple’s strategy. Music, internet and computers are all areas for long term development.

By making their products differentiated from the competition, Apple can establish their own price. Apple believes that people will pay some more money if they know that what they are buying is better and more reliable. That is also the reason why Apple sells the same products all over the world, making no selection or differentiation depending on where the market takes place. The high costs of Apple’s products are the one of the reasons why Apple Inc. preferred to be

Apple was established as an IT company dealing in exclusively in computers. However, competition in the technology sector forced the firm to focus on other consumer products. The diversification strategy has seen Apple’s sales grow tremendously in the last decade, earning the firm the No. 1 brand position at Forbes. The Apple brand is recognized on an international scale and enjoys a strong recognition thanks to its aggressiveness when it comes to creativity and innovation (Tar, 2013). It has a large number of loyal customers who would purchase the new products regardless of the market price, which guarantees profits from the new division.

Apple wants to expand sales to clients who do not own products. Produce hassles free products for the enjoyment for customers. Become the leader in the mobile market. Strategy: Expanding the company’s distribution network to hit more consumers. Continue to invest prudently in Research and Development. Become the mobile leader.

Apple has prospered internally and it is necessary to consider both strengths and weaknesses. Apple has lots of strengths, the major of them being it’s impressive brand reputation, Apple managed to position the brand as “premium products” for “elite” people. Customers are loyal and tend to stay in Apple’s ecosystem. Apple’s self-reinforcing ecosystem, it has a diverse ecosystem which integrates various hardware and software products into one large interactive space. Status of top innovator, Apple is perceived as the leading innovator and its products are highly anticipated. Apple’s very strong financial performance, high profit margins and very high liquidity. It’s network of retail stores, high-quality customer service helps to create advanced user experience. A powerful marketing strategy, Apple’s team masterly uses various marketing techniques to create a hype for their products and to strengthen the brand.

Apple came back from near extinction to become one of the most revered technology companies in recent memory. They achieved this status by developing innovative design products and pushing the limits of their marketing prowess. Apple is known for their ability to listen to consumers and revolutionize market segments by providing modern design laden and feature rich alternatives to the target markets. They employ strategies that might contradict normal convention by keeping their prices high to build a brand image of prestige and promote their products through word of mouth. The impact on marketing is hugely noticeable by other companies following suit with store models

Issue 02: Apple is a wildly successful company that generates billions of dollars in profits every year. This is one of the strongest examples of how a company with the right strategy, great products, a strong leader and the willingness to take some risks can become vastly successful. The market in which Apple is strong has intense rivalry for market share. Apple is challenged with staying ahead of its competitors and maintaining long-term relationships with its customers. In order to stay ahead of the competition Apple is forced to keep product innovation a top priority. I would maintain a Blue Ocean Strategy to market our product and maintain our competitive advantage (McGraw-Hill Irwin, Page 152). The company has a strong and loyal customer base which will allow Apple to concentrate the focus to highlighting the features of our products. I will not focus on what our competitors can and cannot do; I will focus the attention to the benefits of having Apple products. Strategic marketing campaigns highlighting the different uses and features of the popular iPhone and iPad will headline the campaign.

“Apple uses promotional and advertising tools to capture the attention, interest, and desire of the consumer. Apple captures our attention and interest through innovating and sleek imagery of their products on Apple's official website as well as keynotes and other publication” (Villefranche, 2011). For example Apple just released the I phone 5 which was highly anticipated and the publicity that Apple had prior to the release was tremendous and also brought in many new customers. It has been said that the first weekend the I phone 5 was available they sold 5 million phones. Apple made a plan and set up objectives and goals that they desired. Through integrated marketing they have met those goals and it allows for them to set higher goals and reach them as well. Apple also knows their competitors very well and this allows them to be in this market and compete very well.

Even though Apple has encountered many setbacks, it continues to bring new and improve products to the market. Apple’s competitive strategy has been innovation. They have made an extraordinary effort developing, implementing, and executing its very unique strategy through innovation which has resulted in new product, and the enrichment of the existing ones. More specifically, Apple attempts to meet and supply the needs of a global market, by offering eager and enthusiastic consumers with innovated and high-quality products and services. Apple has employed a differentiation strategy linked to innovation with its three core products (computers, personal media player, mobile phones, tablets and other accessories). A key piece of their strategy involves meeting the needs of the converging digital electronics and computer markets. Apple has elected to implement its strategy by designing and developing proprietary operating systems and software technologies, thus allowing for strict protection of its intellectual rights.

This paper comprehensively describes the marketing plan of a charismatic organization Apple Inc. The main focus of the paper is to describe the most important marketing strategies which Apple has espoused from the date of its emergence and different challenges which it has faced from time to time. The paper begins with an introduction to the organization. Apple Inc. is an American MNC; engaged in the business of developing and marketing of IT products. Apple has expanded its business operations all over the world. Every product which Apple introduces has its own target market; it develops marketing plan and strategies for each of its products separately (Apple, 2012). Apple's strengths include strong brand image, financial strength, product and process design, and highly efficient operations management while high prices and inability of up gradation of some products are its main weaknesses. Apple has threats from its competitors, increasing costs, and economic situations but has greater opportunities in entering new markets, making strategic alliances, and bringing innovations through efficient R&D. Before entering new markets, Apple has to analyze the business environment through sensitivity analysis, and then decide a framework for the future strategies.

1. What are the chief elements of Apple’s overall competitive strategy? How well do the pieces fit together? Is the strategy evolving?

This paper aims to highlight and discuss the major challenges and opportunities which Apple Inc. faces while bringing innovation in the four primary areas of its business operations; including product innovation, process innovation, marketing innovation, and organizational innovation. The major focus of the paper is towards discussing the combination of all these processes which this organization follows and the major challenges which it faces in the course of its innovation or change strategies. The paper concludes by summarizing the importance of innovation for Apple Inc. in the light of the whole discussion.

A firm addressing the strengths and weaknesses of their company should first analyze the internal operations, focusing on aspects such as, “marketing, financial, manufacturing, and organizational competencies” (Kotler 73). They need to decide if their marketing strategies are working, and one example of how to do this is by having a “how did you hear about us” section on a survey at the restaurant or hotel. This lets the company know how customers are hearing about them and decide whether or not to continue with their current marketing strategies. The marketing goal the company may want to consider is differentiating their products to meet more customer needs. Apple does an incredible job of this because they have a wide variety of products and excel in all of them. Instead of simply selling desktop computers, they decided to make laptops, cellphones, headphones, watches, and television pairing devices.

In return, they have a strong financial backing, brand reputation, strong marketing and advertising teams. Apple plans to take these strengths and prosper off of them. Taking the amount of brand awareness they have built along with their benefit of retail stores the company can plan to use their strong marketing and advertising teams to launch a new product.