Introduction
After operating for over 30 years of successful business sustainability, Apple Incorporation still aims at improving its performance in the market and service delivery to the clients. To sustain this position, the firm should formulate strategies to be utilized for it to remain ahead of competition in the market. There are a number of strategies, which the firm should adopt to remain relevant in the market of goods and services. These strategies include Corporate, Business, international, entrepreneurial, and blue ocean strategies.
Corporate strategies
In its history, Apple is known to shun a way from strategic alliances, which most of the Chief Executives have reported that it may weaken the firm’s operations. In 1985, bill gates sent a collaboration request to the then CEO, Sculley John. Gates wanted a license from Apple Macintosh to develop it further (Campbell 1). Unfortunately, the CEO rejected the request from Gates. Two years later, he the CEO rejected an offer to collaborate with Apollo computers. Notably, the CEO knew that some of these up-coming firms might adopt new technology and develop a product that may overtake theirs. Like Microsoft acquired Nokia, Apple Inc. should identify a potential firm in the market, acquire it to enhance its operations.
Apple Inc. has thought of utilizing a diversification strategy that allows it to change product assembly firms; the firm seeks to use multi-vendors for assemblers because it noted that some of its assembly firms were doing defective work. The adoption of this strategy seeks to ensure that the quality of goods and services offered to its clients are high and that can penetrate a larger market (Campbell 1). Currently Foxconn and Pegatron are some of the apple’s product assembly firms and that they are efficient.
Business Strategy
Since its inception, Apple has been using the power of product differentiation to expand its market and sustain its business. The firm has been producing brands and upgrading them sequentially to retain its market. Since then to date, the firm has been producing iMac, iPad, iPod, iPhone, Apple TV, and currently, it is producing a series of software, which are compatible with all its brands. Unlike its competitor, Samsung, Apple Inc. releases to the market a few, and simple products built with high-end technology (Duane, Hoskisson, and Hitt 167). Steve Jobs used the strategy of combining art and technology to come up with simple, but remarkable products, which helped him to expand operations of the firm. When launching some of its brands, Apple has even targeted learning institutions, used classrooms as showrooms and by the time, it exposes its products to the potential clients, they are already lured into shifting their preference for Apple brands. To reduce advertising costs the firm has used the exclusivity technique where a given group of consumers (for instance Facebook fans) are identified a given a good deal regarding their brands, which makes them to purchase them. Alongside that, the firm does not allow its executives to use the company aircrafts on private missions or unwarranted operations; it management team are not entitled to huge allowances and salary perks as it is with other US firms. As a business strategy, Apple decided to restrict the distribution of its new brands so that it can create an artificial increase in demand. Following this move, Apple Inc. got get free publicity, sold their brands at higher prices, and avoided cases of returning sold products because they could test and verify everything before allowing the consumer to go and use it.
International strategy
Although America account for half of Apple’s Inc. sales, the firm has expanded its operations to other countries. Currently, it has opened more than 400 retail shops in 14 countries and has allowed consumers from all over the world to take part in the company’s shareholding (Rohwedder 1). This means, its market capitalization is among the top most firms as the leading publicly traded firm. The firm has also identified China to be one of the leading countries in terms of sales and it has released many iPhone 5’s and iPhone 5c’s in the Chinese market because they are the fast moving stock (Bora 1). Following this international achievements, Apple is considering to expand its line of operations to countries in Africa as a way of utilizing the international strategy
Entrepreneurial strategy
Since its inception, the co-founders have been relying on entrepreneurial strategy to ensure that they contribute to the achievement of the firm. Other CEO, who have taken leadership have also been using this strategy to improve the company’s performance profile. Currently, the firm has allowed its technical experts to tap on their advantage of talent and skill by a way of innovation, and creativity; experts are allowed to develop their new technologies in order to boost the firm’s level of technology. In terms of procurement, and alliances, the firm has allowed other firms to share with it their skills and technology for the purposes of improving the service delivery at Apple Inc.
Blue Ocean Strategy
The purpose of using this strategy is to ensure that market competition among rivals remains irrelevant despite the effort used. Apart from that, seeking and venturing in markets where none existed means that the firm anticipates to increase its profitability by several factors (Murray 1). In line with this, Apple has explored the South Eastern market of Asia (such as China) because this market had consumed low brands of smart phones; therefore, it wanted venture into new markets with a purpose of increasing its sales. Initially, Apple had effectively utilized the blue ocean strategy by producing iPhones, a brand that solved the problems of many users.
Considering that the iPhone market is currently flooded, Apple Inc. should improve on the usability of the blue ocean strategy by reducing the condition that the iPhone has to be hooked to a computer before it works effectively. It should also reduce the production of difficult-interface touch screen models, because many users find it hard to operate. Apple Inc. should create brands, which are user friendly in terms of simplicity, and that the user should be able to download items directly without the need to have a specific application. It should improve not only iPhones, but also other brands in such a way that they can support wireless internet connectivity or are compatible with other brands. As a sole producer of iTunes, Apple Inc. should keep on updating the iTunes to increase their compatibility with various media formats. It should allow users to download music freely, as this will lure many people to prefer its brands. Focusing more on the Blue ocean strategies will enable Apple Inc. to realize a good payoff because it would have made its own market, which has no competition.
It is highly recommended that in the future, the firm should review its strategies because rival firms have also adopted their techniques. Notably, many people have been made to realize that apple do not produce new brands; it only improve old ones. This strategy should be reviewed as users want new products with new technologies. Apple Inc. should ensure its operations are efficient, open up new markets, develop new set of technological brands, and set its price in a way that it will lure clients to buy its products. In its leadership, the firm should identify and use the skills and experience of a good leader to head its business for it to register high profits. Many business analysts observe that Apple Inc. does not allocate any funds for advertising. This is the time the firm should use the social networks, websites, billboards and other strategic locations to create awareness of their products to consumers as well as inform consumers more about their brands. Considering that, there is stiff competition in the market of phone technology and production, Apple should identify another fast moving electronic and venture in it. Furthermore, it should review its pricing strategies because many consumers have had a perception that Apple brands belong to people of a higher socio-economic status; it should also target the low and middle class.
Works cited
Bora, Kukil. "Is Apple's China Strategy Paying Off? Report Says Company Beat ZTE To Enter The Top 5 In Chinese Smartphone Market." International Business Times. Version 1. International Business Times Media, 6 Nov. 2013. Web. 23 Nov. 2013. <http://www.ibtimes.com/apples-china-strategy-paying-report-says-company-beat-zte-enter-top-5-chinese-smartphone-market>.
Campbell, Mickey. "Apple to diversify device assemblers in 2014, move from 'partnership' to 'transaction' model." Apple Insider. Version 1. Apple Insider Inc., 3 Sept. 2013. Web. 23 Nov. 2013. <http://appleinsider.com/articles/13/09/03/apple-to-diversify-device-assemblers-in-2014-move-from-partnership-to-transaction-model>.
Murray, Allan. "What is Blue Ocean Strategy?." Wall Street Journal. Version 1. Dow Jones & Company, 18 June 2012. Web. 23 Nov. 2013. <http://guides.wsj.com/management/strategy/what-is-blue-ocean-strategy/>.
Ireland, R. Duane, Robert E. Hoskisson, and Michael A. Hitt. Understanding business strategy: concepts plus. 3E [i.e. 3rd ed. Mason, OH.: South-Western Cengage Learning, 2012. Print.
Rohwedder, Cecilly , and Yukari Kane. "Apple strives for Global Markets." Wall Street Journal. Version 1. Dow Jones & Company, 8 June 2010. Web. 24 Nov. 2013. <http://online.wsj.com/news/articles/SB10001424052748703302604575294530119152528>.
