History of the Company
Apple is one of the well known and recognized companies that have been making technology that is edge cutting and also an innovation that every individual wants have in their possession. Apple has highly enhanced technology worldwide thus making it easier for people especially in business and communication to carry out their work easily and effectively from any part of the world any time. The company introduced its first computer in 1976 which was known as Apple 1. Steve Jobs and Steve Wozniak were the first leaders of Apple who saw to its growth and its good famous brand worldwide. The two young men dropped out of college and started Apple Company in a basement of a garage rather than in an expensive business location as many people would have expected. This became one of the key reasons why so many people were intrigued by this brand and why it came to be the most successful globally. These two individuals were people who new what they were doing and they passed it on to the whole world since it turned out that whatever they wanted was what the rest of the world was waiting for. The Company produced some of the best computers up to the nineties and their products included the Apple brand, Power Mac Computers and Macintosh. The company however saw a downfall in the sales of their products and services in the early twentieth century mostly due to the emerging stiff completion in the market. The competition highly increased from such companies as Samsung, Dell, LG and others thus becoming a critical threat to the Apple Company and therefore they had to develop and implement new strategies to keep the company running.
General Environment Analysis
Demographic Forces: The environment of technology has thus become very extensive and competitive lately and it is widespread to different target markets. Apple Company has targeted their market in terms of age, income, lifestyles and others
Economic Forces: Apple Company has been thriving well in the market thus enabling technology to be received at a higher level in the globe. The general environment is doing very well with companies emerging everyday with new innovations and developments thus enabling every one to purchase a device that best suits their pockets. The company has achieved billions and billions in the international market and has thus been able to defeat any problems arising from economic forces.
Social/Cultural Factors: The environment has been in great need for technological devices for carrying out businesses, for communication purposes, entertainment and the rest. Social forces have enabled the Company to achieve greater sales in the market especially due to the youths who have a great taste of devices which tend to provide music and communication options.
Technological Forces: Technology changes everyday. This has been a great challenge to Apple and also the companies that deal with the technology. It is very important to keep posted and updated with current technology and also to be innovative enough in order to develop new technologies to meet the customer demands
Competitive Forces: Competition in the technology and entertainment industry is very severe and fierce. In order to survive in the industry it is important for companies to develop effective strategies to win the market. Apple Company has been successful in this sector since developing new strategies after the fall in the late nineties. The company has thus used strategies such as market Research and low pricing in order to combat the fierce competition in the international markets.
Industry Environment Analysis
Rivalry among competing firms: There is a high level of rivalry between Apple Company and its competitors. A good example is Samsung which has also produced high quality products and thus has been able to be more flexible in the market thus portraying a high level of diversity. Samsung has established an effective brand name and this has become a serious threat for Apple Company. Both companies are now known as the worlds most recognized in technology and entertainment devices Potential entry of new competitors: Entry into technology market is not an easy step for any company to take. It is a strategy that I expensive and requires a high qualified personnel. There is therefore a very low probability of new entrants into this market and thus there is no threat paused to Apple by new entrants.
Potential development of substitute products: Creation and development of substitute products in the technology industry is moderate. It is difficult to produce some of these devices and therefore this act as a competitive edge towards the company.
Bargaining power of suppliers: The bargaining power of suppliers of Apple products is low. This has been an advantage for the company and it has also read to widespread of their products and a low cost thus acting as an advantage to their competitorsBargaining power of customers: The bargaining power of customers for Apple products is very high. This has contributed to the lowering of prices for their products because if not done, customers might opt for the competitor’s products.
Internal Competence
Strengths: The quality of the products is very high and this has seen Apple become a brand that is automatically known by the people all over the world. The company is thoroughly known for its innovative technology that is in most cases the first of its kind in the market and something that most of the people in the globe would like to own in order to make their life easier with the advancements that come with the devices. The company also has a well established brand name internationally which acts as a competitive edge. The employees, shareholders and other internal parties in the Company have enhanced the internal strengths thus working so hard on the internal weaknesses in order to remain the world’s number one.
Weaknesses: Apple navigates more markets and manages a broader range of products and thus sometimes finds it challenging in maintaining its core competences which includes, Innovation, Relationship building, Marketing and Brand Management. This makes their customers to become more diverse and new competitors come up with wider variety of strategies and strengths. The products of Apple Company are always introduced at very high prices and this limits most of the middle class and lower class level individuals to purchase.
Opportunities: The industry of entertainment and technology is changing rapidly and therefore Apple Company also has to keep updated well on this idea. This will enable the company to sustain its brand reputation for releasing breakthroughs in technology, innovation design and launching of new products and services which will hit the market. Currently, it has been discovered that the base of products developed by the company now depends on the ability to secure content of media and not on the internally developed hardware. Media content contain its own dimensions of entertainment value, competitive forces and proprietary issues. The company therefore has an opportunity to acquire a large market share especially if it introduces products in the market which are matching the price of competitors or which have prices slightly less than those of competitors.
Threats: Competition is very high for the company especially from its rival Samsung. The competitors introduce more flexible products at a lower price compared to those of Apple and this has enabled them to acquire a large market share compared to Apple. Lack of diversity for the Company which most companies have is proving to be a serious threat.
New Strategies
There are several new strategies that Apple Company must adapt in order to maintain its reputation in the international market and also acquire a large market share. Due to the high competition, apple faces a big threat of losing its competitive edge and therefore new and creative ideas should be developed. Below are three strategies the company should use:
Business Level Strategy: Apple Company has always been introducing their products into different parts of the world. Their entry in China and other developing countries saw their sales go up with a very higher percentage. The major focus in China is iphone which is sold through China Unicom. The Apple products do not even compare to those of China Mobile which has 616 million subscribers. A machine that is innovated by Apple is generally meant for the developed world and therefore incremental improvements on producsts are a business strategy that will feed the emerging economies. This combined with other strategies such as pricing strategies and creative cost will lead to greater sales in the business market. With fast growing middle classes, one may reflect on market contact more significant in the developing planet than ground-breaking innovation.
Apple Company has been known to produce high quality products since its innovation. However, the company has also been associated with high prices for its products thus drawing a line to a specific target market. Apple products have been most expensive compared to most of the competitor’s products and this is a strategy that they should change and introduce their products with a lower price that can reach a larger target market. In most cases the products are purchased by business individuals and their families since they can easily afford them. The company should therefore cut prices for their products and this will enable them to reach a wider geographical coverage and increase the market share. A good example is their competitor Samsung. Samsung has distributed their products very effectively in the current market thus diversifying into lower markets and giving its clients variety. The Company has become a major competitor to Apple due to its diversity and flexibility into the market. Greater sales have been registered by Samsung lately due to its products high demand all over the world. Apple should therefore lower the prices on its iphones, iPods and MacBook Air in order to meet and beat the prices which most of its rivals offer.
Corporate Level Strategy: Constrained diversification is one corporate strategy that Apple uses in the market. This is a strategy that has seen the growth of the company into so many geographical areas including in developing markets. The business of the company utilizes the company’s competence in developing software and hardware. Apple is able to share resources between businesses due to development of devices such as the ipod, iphone, ipad and Macintosh and all other computers. This helps the company in creating economies of scope which enhance creativity of cost savings for the company since there is sharing of resources among multiple businesses. However, instead of having related businesses, each business is focused platform without types of products or extraneous products. A good example is the Macintosh which consists of two types known as the notebook and the desktop. The product lines are separate and they complement each other thus share resources. The MacBook Pro and iMac are both principally constructed from glass and aluminum they resemble each other and also share similar materials thus creating unity among lines of products and this reduces cost.
Apple has also been introducing products which are said to complex especially to ordinary clients. The company should introduce products which are flexible and not complicated to use. Carrying out thorough market research will enable the company to understand the needs of its market clearly and also the needs of the new markets. Different customers have different needs and wants and for a company to understand this is very essential. Not everyone who would like to buy the product is literate and therefore the company should have a clear understanding that their customers have different needs and tastes. Therefore, with this understanding, the company will be able to develop different types of products which meet their customers needs and which will enable them acquire a larger market share.
International Strategy: Apple Company should enhance their existing products in all areas starting from consumer electronic products, systems software, mobile communication devices, computer hardware, applications software, internet solutions and also communications and networking software and solutions. This strategy will enable the company maximize the life and value of their products. The strategy will also help Apple to understand when to engage in planned adolescence in order to take good advantage of their status as the market leader. Due to the high competition in the international market, the new strategies will enable the company to acquire a large market share and penetrate deeper into the market thus reducing the completion. Technology changes everyday and therefore the company should ensure that all their products are updated and that new products are introduced into the market before competitors or ensure they introduce like those of competitors but with improved features.
Conclusion
In conclusion, Apple Company is highly recognized worldwide in provision of newest technology. The company has lasted in the market since 1976 founded by Steve Jobs and his colleague Steve Wozniak. The company has so far brought the world into a fascinating entertainment environment and a fast business environment. The company has introduced one technology after the other thus leading its industry into one of the largest that makes billions and billions every year. Rise of Apple made other companies realize that they can also offer better technology in the market at a cheaper price than their rivals. This saw to many emerging companies which turned out as fierce competitors for the Apple Company. The competitors almost lead to the fall of Apple in late nineteen’s and this was seen as the wake up point for the company since it had to create and develop new strategies to combat the competition. Since then Apple Company is still well known worldwide with its new endeavors in technology and this has seen to the sales registering higher and higher as the company moves to larger markets and acquires a larger market share internationally. The company has utilized business strategy, international strategy and corporate strategies in order to create a better environment for their employees and their customers.
Work Cited
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