What Are the Chief Elements of Apple’s Strategy?

Apple Incorporation is one of the largest organizations dealing into Information Technology. Apple has a host of products ranging from Laptops, Desktops, Mobile Phones and Multimedia Devices. The company has been extremely innovative in the field of multimedia and it owes it success to one of the greatest innovators, Steve Jobs. The company has always believed in innovation and that is the major reason why it has been so successful in the mobile phone segment. In recent years Apple is second only to Samsung in the Global Mobile Phone industry. However the operations have been largely based in the United States and in times of recession any organization needs to focus on economies of scale and thus focus on growth

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.

Apple Inc, best known as Apple is an American based global company that designs and sells electronics, PCs and computer software. The company was established in 1976 by Steve Jobs and Steve Wozniak and was incorporated in 1977. Some of the Apple’s best-known products are the Macintosh range of personal computers, iPod, iPhone, and iPad. By 2012, Apple reported to have more than 300 retail stores located in more than 10 countries in the world and more than 60, 000 employees on permanent employment, and about 2,800 on temporal employment. Despite the success the company, Apple has faced hard competition from other electronics manufacturing companies. The objective of this paper is to develop a strategic plan that will enable Apple improve its position in the personal computer industry. The paper will use Michael Porter’s forces; key success factors, SWOT analysis and the competitive strength to point out specific, workable recommendations that will allow Apple stay afloat and improve its position in the personal computer industry (Gamble & Marino 2012).

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.

Since 1976 Apple’s innovation has helped the company become a market leader in computer and mobile electronics. Through this time the company has faced a number of challenges either it be an internal power struggles or criticism from the media for certain aspects of their business model. This report covers five different issues that the company is facing or may face in the future.

The first steps in the mobile phone market let us understand once more what the key points in Apple strategy are. Innovation and Exclusivity go together, a higher-than-the-average price place the new device as a cult and trend object, something everybody want to have, a real status symbol. In few words Apple probably believes that a key concept in Innovation is the creation of a need. Along with the innovation in design, Apple is a pioneer and a leader as well in Environmental issues, another innovative approach that is granting more and more importance among customers of any product and people in general, due to very sensitive issue like Global Warming and home safety.

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.

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.

Once again Apple has been the first to the market when it comes to new features such as the touch screen, which has helped to keep its competition at arms length. Like all other Apple products, the smartphone is seen by many consumers in the industry as fashionable and a must have. Also Apple’s online music store support has also been a huge lift to its smartphones, as consumers can download music and thousands of applications.

Apple prides itself on offering innovative technology to a society that has become dependent on it. In markets inundated with companies offering similar products and services, Apple has had to rise above and distinguish itself from the masses. While their products have a cultivated a devoted-customer following (our family is one of them), their organization and the values it espouses are what will help them to remain a relevant and successful company in the tech world.

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,

Introduction The intention of presenting this report is to give a full strategic appraisal and evaluation of Apple Inc. In 1976, the company was founded in a garage in Santa Clara, California. The American multinational corporation mainly involves in designing and marketing consumer electronics, computer software and as well as personal computers. Differentiation is the current strategy position of Apple Inc. There are five main firms in the PC industry and among them; the world’s leading brand is Dell. Apple’s major target is to sustain their present strategic position and to take over the market position as a leader. The key stakeholders include Steve Jobs, employees, lenders and the government.

It is beyond all doubt that Apple Inc is one of the most successful and well-known companied all over the world nowadays. What’s more, the company is considered to be the leader of the industry The Apple products are of high quality and in high demand on all the markets. Apple services and stores are the gold standards for all the followers and niche players of the industry. Moreover, the majority of Apple customers are extremely loyal to the brands. Once they started using its high-technical products they keep doing it. At the same time the market share of the company is increasing constantly. Probably all the competitors are questioning what is the key to Apple Company’s success. It is important to note that the whole strategy determines the success of the business and the strategic analysis of the company can help to identify the main criteria. Thus, the object of the research paper is to develop a strategic analysis of Apple Inc, including its internal and external environment.

This paper presents a case study of Apple Inc. Apple Inc. is a technology based corporation with emphasis on computer software and hardware (MAC and Apps), tablets (IPad), smart phones (IPhone), and mp3 plays, (ITouch). Apple Inc. has grown tremendously over the years and ever since 2001 has expanded its brand and retail stores to over 375 stores/outlets globally. The business has seventy two thousand eight hundred employees in thirty eight countries. Apple Inc. has truly become one of the most efficacious corporations within its field behind or competing with Microsoft and Google Inc.

Apple Inc. is the most revered corporation of the USA, both in terms of brand equity and market capitalization. The company’s international competitive strategy is focused on the innovative product development, which Apple controls through its eight business segments: Portables, Desktops, iPads, iPhones, Music related products and services, peripherals and hardware (Lam et al. 2005).