Evaluation of Apple's Organization Strategy (Essay Sample)

Evaluation of Apple’s Organization Strategy
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Apples Critical Evaluation of Its Strategy
Apple is an American company that is famous all over the world. The company produces computer software, personal computers, mobile phones as well as consumer electronics goods. The most demanded products consist of iPod, the iPhone, the Macintosh of computers as well as the iPad. Apple has more than 300 retail stores distributed over ten countries all over the globe. The software of this company includes the Mac OS X operating system, final cut studio, iWork suite of productivity software, logic studio a music production tool’s suit, the iTunes media browser, AirPrint among others. Apple Company was co-founded back in the year 1976 by Steve Jobs and his counterpart Steve Wozniak in Cupertino, California (O'GRADY, 2009, pg.36).
Apple is the leading digital asset management organization and worldwide smartphone provider. The company is the only one to generate and run both hardware and software. The company permits customers to share applications, movies as well as music through Apple devices like Mac, iPod and iPhone by an exclusive selling media platform called iTunes. In 2012, apples chief executive officer, Tim Cook, was excited due to the fact that the company had made overwhelming sales of iPhones to the tune of thirty-five million and at the same time a sale of just about 12 million ipads in March quarter. He also said that the innovative iPad is off to an immense starting with fresh innovation that can only be found in Apple (LUÌ€STED, 2012, pg.62). Furthermore, the sales of iPad, iPhone and Mac have swelled up by 188% and 7% respectively. At the same time, an iPod sale was down by 15%.
Using PEST analysis would be a good way to understand how Apple conducts its business and know the situation of future market. There are many problems that are uncontrollable as far as the company is concerned. These problems consist of geopolitical reservations, authority to work, war against the threat of terrorism, as well as health issues that can sway the sale of the apple product globally. So as to moderate operation costs, Apple has outsourced from different nations, for example, China, Czech Republic, and cork. Unfortunately, if these countries experience challenges like political instability, it can result in the delay in manufacturing operations which affects the overall business negatively (LINZMAYER & LINZMAYER, 2004, pg.27).
A great extent dictates the peoples purchasing capability by the world’s economic conditions. Lately, the economy has continued to go down leading to a lot of unemployment in many nations all over the world. Consequently, this has led to a decrease in the sale of Apple products. In addition, an increase in oil prices, that fuels inflation in the global economy, has reduced individuals purchasing capacity thereby affecting the sales of Apple products due to its high price. Although in the recent past, the global economic conditions are stabilizing, and Apple has purchased foreign currencies, therefore, resulting in an increase in its revenue in the international market.
Throughout history, two dynamics has always been at the forefront of apple product. These aspects consist of the design and quality (CRUIKSHANK, 2006, pg.54). The capability of people to buy luxury products have skyrocketed in the recent past, attributing to the inevitability that their power, to buy, has expanded in various parts of the planet. Individuals nowadays tend to iPhones, iPods, and fresh technology iPad. The music industry is fast growing, and that fact that Apple has iTunes that are the most famous music store; in addition to having the biggest social influence is a plus to the company. As a result of this, Apple has gained a lot of money from social features primarily because it is defining people’s modern lifestyles.
The apple company has always taken advantage of its innovative as well as its technologies products. Large chunks of money are pumped into research activities and development field. This is largely the reason Apple comes on top the fresh groundbreaking products that are of high quality and meets the needs of the consumers of all ages (CAMERON, 2010,pg.92).
It's common knowledge that Apple is a giant industry running so many products. That notwithstanding, apple has many competitors and the major ones mainly in the mobile phone industry and other products include, Google, Samsung, HTC as well as nokia.
Competition in any given industry is defined by the Michael porter’s five competitive forces. This model assists to examine the impact on Apple and its capability to compete in the world market. The first effect of five forces of Michael porter’s model is intensity on competitiveness in the business. The apple organization has performed exemplary by offering technical support, producing products, as well as forming customer loyalty. The company sustains its productivity without marking down a product by making superior products ranging from excellent tablets, Android smartphones and eReaders attaining market share at inferior prices.
The bargaining influence of suppliers can take the profits of the company down by quoting high prices for supplies. Hence, the company is looking for new supplies since Apple is still growing. The organization permits the new suppliers to lower the bargaining powers of dealers by registering online on the apple’s website. If this is done effectively Apple Company, can reduce the bargaining power through extensive competition among a large number of suppliers hence increasing the overall profits.
The apple company should meet the anticipations of their clienteles in order to accomplish the majority shares of the market by different sections that come from educational level, age as well as income. An important thing, to note, is that consumers are price sensitive and the moment their product is not differentiated they can instantly switch to another retailer. Google affords competition in both smartphone and tablet market. Apple Company holds 75% of earnings in the business and the chances of the apple’s customers moving to another brand are very slim if any because of its high brand loyalty. Nonetheless, competition is very high presently, and other competing companies are trying everything within their reach to attract new customers.
Entering more organizations in the market only means decreasing the market share of Apple. Organizations can preserve the market share and create profit through differentiation of brand and product as well as making robust marketing approach, for example, competitive advantage. As a fresh business, it is very difficult to contend with a company like Apple simply because it has an established strong brand image, invention, professed value as well as excellent customer services (APPLE, 2012, pg.13).
If the desires of the consumers are the same, then the product can be substituted. Hence, the threat of substitute might have two factors consisting of price and performance. This offers the buyer an opportunity to switch the merchandise as well as readiness of the customers to change. The threat of substitute can be decreased as long as the consumers are loyal to the product offered. Individuals buy iPhones for standards, applications and other apple company products because of their upgradeability and stability which offers buyers the capability to transfer knowledge and applications among others (COX, 2012, pg.5).
The industry, within which Apple Company operates, is fast changing as major players are constantly introducing fresh products that incorporate new technology and designs. It’s important to note that the tablet and smartphone industry has customers who are sensitive to prices and experienced a significant level of impersonations in design, as well as the function ability of the tablets and the smartphones. This can be long-established by the standard counter allegation against Apple and Samsung. The major players in the industry are based all over the world; therefore it proves very difficult to monitor their every move.
The primary objective of apple is to dominate the different industries that it serves while at the same time making considerable earnings for the shareholders, as well as funding to the upward mobility of the society in general. Some of the strategic plans that Apple uses to guarantee that it settles at the top of the food chain include; it has increased the number of retail outlets especially in the countries that are developing thereby tapping the emerging market. Apple sells its products in discount rates largely in areas where people buy on a wholesale basis.
In order for the apple company to continue enjoying the excellent performance, it has to put more stress on the development modern products that are in line with technological development. The company ought to continue developing high-end devices as well as increase its presence in other foreign markets. Furthermore, the organization should make use of the sturdy brand image that it has created and unveil a new product ranges to the already prevailing product range.
Grounded on the industry analysis, Apple should create a differential strategy. The product personal computer market offers continuous pressure on prices, which grind down the company’s profitability. Developing a trademark image that splits the organization from the competitive rat race, so to speak, will decrease the consequence of destructive competition as well as pad margins (HOOLEY, PIERCY & NICOULAUD, 2012, pg.64).
Because there are fewer suppliers of major components desired in personal computer manufacturing, establishing close re...