Apple Inc.’s Business Strategy
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The mission and vision for most business organizations is to achieve a major milestone on an annual basis, which will be reflected by an increase in customer base as well as profitability. However, McCormick Bruce lamented that majority of business organizations do not achieve this level of success and those that are successful have a set of competitive advantages such as proper brand positioning and effective marketing strategies that sets them apart from their competitors.
An example of such a business organization is Apple Inc. (henceforth referred to as Apple) which has waded through the fierce market competition year-after-year and it still remains at the top. The discussion herein will focus on analyzing Apple’s business strategy to establish how it has been able to stay on top of the competition.
Apple deals in the designing, production and marketing of software, mobile and media devices, accessories, personal computers, networking solutions, and portable music players. The company most revered brands are Mac, iPad, and iPhone. As from 2013 to 2015, the company has recorded a steady rise in annual revenue. In 2013, the company annual revenue was $170 billion, in 2014, it was $182 billion, and in 2015, it was $233 billion. From the annual revenues, one can extrapolate the effectiveness of Apple’s business strategy and tenacity on profit making.
One of Apple’s business strategies that accord it a unique value proposition is the fact that it designs and develops its application, software, hardware, operating system, and services thereby enabling seamless integration among its products and services, which also makes it easy for customers to use their related products. Through this business strategy, Apple is able to stay ahead of its competitors such as Samsung, Huawei, LG, and HTC, among others that rely on third-party software and an operating system such as Android. A previous research study focusing on business model innovation noted that Apple’s unique value proposition is credited to research and development, which enables it to offer products and services that are designed and developed in-house. Ergo, there is seamless integration among Apple products, which can encourage iPhone users (as an example) to buy new versions and other related products such iPad or Mac because of ease-of-use and integration capabilities with the iPhone they currently own.
Research study on customer’s propensity to stay loyal to a particular brand showed that it is pegged on the quality of service that they receive. On this front, Apple already has a competitive advantage because it accords its customers with unique buying experience through its user-friendly online stores, revered retail centers that have grandiose setting and design as well as knowledgeable sales and support staff who prove to be helpful.
Apple products and services have an obvious uniqueness compared to their competitors. This uniqueness gives them a competitive advantage since they are able to carve a market niche where there is low competition. For example, Apple only caters for customers who are comfortable using the iOS operating system, which means it does not have to engage in fierce competition as witnessed between phone brands that operate on the Android platform.
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Conclusively, Apple’s design and development, as well as the quality of experience during the buying process and after-sale service increase its popularity, which is reflected by the steady rise in annual revenue.
“Apple Inc.” Earnings Releases and 10-K Annual Reports. Accessed September 26, 2016. http://investor.apple.com/financials.cfm
Capozzi, Maria. Kellen, Ari. and Smith, Sven. “The perils of best practice: Should you emulate Apple?” McKinsey Quarterly, no. 4 (2012): 8-11
Mathis, Joel. “Apple vs. Google: Replacing Apple’s stock iOS apps with Google apps,” Macworld 32, no. 10 (2015): 88-94.
McCormick, Bruce. What’s Responsible for Business Success or Failure? : It’s– the Organization’s Culture!. Amherst, Mass: HRD Press, 2008.
Schneiders, Sascha. Apple’s Secret Of Success – Traditional Marketing Vs. Cult Marketing. Hamburg: Diplomica Verlag, 2011.
- Bruce McCormick, What’s Responsible for Business Success or Failure? : It’s– the Organization’s Culture! (Amherst, Mass: HRD Press, 2008), 152
- Joel Mathis, “Apple vs. Google: Replacing Apple’s stock iOS apps with Google apps,” Macworld 32, no. 10 (2007): 89-92.
- “Apple Inc.” Earnings Releases and 10-K Annual Reports, accessed September 26, 2016, http://investor.apple.com/financials.cfm
- Maria Capozzi, Ari Kellen and Sven Smith, “The perils of best practice: Should you emulate Apple?” McKinsey Quarterly, no. 4 (2012): 10
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