Apple Inc.’s Business Strategy

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Introduction  

The mission and vision for most business organisations are to achieve a major milestone on an annual basis, which will be reflected by an increase in customer base and profitability. However, McCormick Bruce lamented that most business organisations do not achieve this level of success. Successful companies have a set of competitive advantages such as proper brand positioning and effective marketing strategies that set them apart from their competitors.[1]

An example of such a business organisation is Apple Inc. (hereafter referred to as Apple) which has waded through the fierce market competition year after year and remains at the top.[2] The discussion herein will focus on analysing Apple’s business strategy to establish how it has been able to stay on top of the competition.

Business Strategy

Apple designs and markets software, mobile and media devices, accessories, personal computers, networking solutions, and portable music players. The company most respected brands are Mac, iPad, and iPhone. From 2013 to 2015, the company has recorded a steady rise in annual revenue. In 2013, the annual company revenue was $170 billion. In 2014, it was $182 billion, and in 2015, it was $233 billion.[3]  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.[4] Through this business strategy, Apple can 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.[5]  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.[6] 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 as iPad or Mac because of ease-of-use and integration capabilities with the iPhone they currently own.

A research study on customers’ 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 a unique buying experience through its user-friendly online stores. These revered retail centres have grandiose settings and design, as well as knowledgeable sales and support staff who prove to be helpful.[7]

Apple products and services have an obvious uniqueness compared to their competitors. This uniqueness gives them a competitive advantage since they can carve a market niche with 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.

 

Conclusion

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.

Bibliography

“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.

References

1. Bruce McCormick, What’s Responsible for Business Success or Failure? : It’s– the Organization’s Culture! (Amherst, Mass: HRD Press, 2008), 152

2. Joel Mathis, “Apple vs. Google: Replacing Apple’s stock iOS apps with Google apps,” Macworld 32, no. 10 (2007): 89-92.

3. “Apple Inc.” Earnings Releases and 10-K Annual Reports, accessed September 26, 2016, http://investor.apple.com/financials.cfm

4. “Apple Inc.” Earnings Releases and 10-K Annual Reports,

5. Mathis, “Apple vs. Google: Replacing Apple’s stock iOS apps with Google apps,” 93.

6. Maria Capozzi, Ari Kellen and Sven Smith, “The perils of best practice: Should you emulate Apple?” McKinsey Quarterly, no. 4 (2012): 10

7. Sascha Schneiders, Apple’s Secret of Success – Traditional Marketing Vs. Cult Marketing. (Hamburg: Diplomica Verlag, 2011) 36-39.