Strategic Choice and Evaluation STR 581
University of Phoenix
Abstract
Identifying a organizations alternatives is a concern for most major companies. The starting point is in strategic analysis, this is process that managers use to evaluate and select their competitive advantages which will help separate them from their competition in the market. Leading organizations shoulc “choose among alternative grand strategies to guide a the firms activities, particularly when they are tyining to decide about broadening the scope of the firms activities
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On the other hand some customers look for products that meet their overall needs, customer service and no contacts. Companies that focus on this Value Discipline will outperform their competitions. To be successful it takes more than Value Discipline understanding and determination to listen to each other. Apple Inc. Grand Strategy The success of Apple Inc. can be credited to the strategic plans implemented to create the culture and products being developed today. The grand strategy of Apple Inc. provides basic direction for major actions directed toward achieving long term business objectives (Pearce, 2011, p. 188). The best grand strategy for Apple Inc. to implement is product development and innovation. Product development involves the substantial modification of existing products that can be marketed to current customers (Pearce, 2011, p. 193). Apple Inc. has established loyal customers based on their quality of product and brand names. It is a trusted brand that thrives in product development. The iPad, iPhone, and iPod are only some of their top selling products that continue to be improved. The overall goal of this strategy is to extend the products life cycle. Innovation is another grand strategy used throughout Apple Inc. Similar to product development, but it differs in the sense that it seeks to create a new product life cycle as opposed to extending one (Pearce, 2011, p. 194). A recent
Apple Computer uses focused differentiation to help sell its computers to a narrow target market of graphic designers and educators rather than the general population of computer users. Apple’s innovation on the ITunes store together with the widespread use of the IPod. The corporate strategy is focused on being a market disrupter, and in turn a market maker, by focusing relentlessly on the customer experience.
Apple’s goal is mainly on generating creative ideas that focus on products that are different and those that will lead to sales and customer brand loyalty.
One key element of Apple’s strategy in computers, personal media players, tablet computers, and smart phones is product innovation, diversification and development. Over the years Apple has been very successful in integrating software and hardware in new developing products. Despite the struggling economy in recent years, Apple has been able to grow their market share and stay ahead of the game.
Distinguishing one 's firm from the alternatives is a major concern for any business. Strategic analysis provides the starting point in the strategic management process organizations use to evaluate and choose the competitive advantages that distinguish them from other organizations within the market. Dominating businesses should also "choose among alternative grand strategies to guide the firm 's activities, particularly when they are trying to decide about broadening the scope of the firm 's activities beyond its core business (Robinson & Pearce, 2009)."
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.
Technology change has naturally been a major factor in Apple's success. The company played a major role in the shift to a mobile computing society, by developing the personal technology devices that would
What is innovation at Apple? What is the (a) role of the product, and (b) role of their leadership in their success?
Apple Inc. has been dedicated to innovation ever since the company was first formed. Apple's recent breakthroughs were a result of a new technologies convergence upon the "digital hub" strategy (Mortensen, 2010). This strategy has served Apple well; especially during the last few years. The iPad, iPod, and iPhone were all born from this strategy. Furthermore, producing these innovative, user friendly, and design oriented products has earned them a considerable amount of customer loyalty.
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.
The strategic management process is sometimes improperly perceived as a unidirectional flow of objectives, strategies and decision parameters from management to the employees. In fact, the process should be highly interactive since it is designed to stimulate input from creative, skilled and knowledgeable people working at every level of the business.
Apple Inc. has prided itself on product innovation since the company was first founded. Apple's recent breakthroughs were a result of a new technologies convergence upon the "digital hub" strategy that has been in play for many years now (Mortensen, 2010). This strategy represents the core of Apple's success over the last several years. In fact, it was this strategy that ultimately led to the development such as the iPad, iPod, and iPhone. Furthermore, Apple has also carved out a unique market niche by creating products with innovative and user friendly designs. The combinations of these factors have created some of the most loyal customers in the entire business world.
Apple has done an excellent job of developing a very distinct strategy through industry leading innovation. This strategy has allowed them to be the frontrunners in new product introductions and the improvement of existing products. Apple has employed a differentiation strategy in an attempt to meet the needs of a global market by offering customers innovative new products and improved existing products. An important part of their strategy involves meeting the needs of the evolving digital electronics and computer markets. Apple has chosen to implement its strategy by designing and developing its
Nowadays, Apple has positioned itself to be an innovator in the personal computer industry and Apple has developed by offering modern products compared to its competitors. According to Apple’s mission statement last year, “Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App store, and is defining the future of mobile media and computing devices with iPad.” (Business Management,
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.
The product research and development field is a basic yet crucial requirement to survive in the consumer electronic industry. This is also mainly the reason that propels Apple Inc. to invest in the particular field, allowing Apple products to be at the top of new innovative products. Technology has been making huge leaps in improvement and the market has grown in size which leads to even more competitors, thus involving technical changes and reducing the product life cycle significantly. This enables Apple Inc. to constantly present newer products and therefore lead the market.