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Strategic Management and Strategic Competitiveness

Author: Janet Peter
by Janet Peter
Posted: Mar 28, 2019
market share

Apple Corporation is the American multinational high-tech corporation that engages in researching, designing as well as producing electronic based products. In the year 2007 the company modified its name from Apple Computer to Apple Inc. with its headquarters in California. The company has its popularity mainly due to its mind-boggling rate of development as well as and innovation. The company boasts of developing more than 850,000 types of unique Apple software, the simple operating system, as well as the two practical online shops. Globalization encompasses a number of processes that are normally interrelated which encompass the internationalization of trade and finance. As a result of the globalization development, the company has increased its profits. The early years of the economy in America were controlled by the car being the key to the economy of the country. Currently, the new economic structure emerged which was mainly due to the part played by the former CEO of the apple inc, leading us market to the top (Reder, 2009). In the global world arena, the exceptional success of Apple is due to the utilization of advanced strategies, making use of frequent foreign outsourcing, exporting as well as importing.

By the year 2013, the Apple Company had managed to develop 417 retail stores in 13 different countries, as well as online stores being available in 38 countries. The company boasted of $16 billion global sales in its merchandise in the year 2011. Globalization has enabled realize that being a multinational corporation, it is of significant importance that they spread all over the world. The company’s revenue growth in its first quarters of the 2013 fiscal year had grown by 14.73% reaching $98.115 billion. The percentage of the revenue that is recognized via the contribution of the six apple’s revenue segments in the initial six months of its current fiscal year was widespread. Off the company’s total revenue, only 35% of the recognized company’s revenue came from the American market (Walsh & Sifferlin, 2014). In addition, globalization has enabled the company to seize opportunities in the greater global market. For instance China and Apple, mobile are been undertaking the distribution of the iPhone for over six years.

The cooperation between Apple and the china mobile carrier will facilitate the fast growth of the corporations’ revenue, making the company benefit more from the global market. Apple Inc. Been instrumental in the implementing of the technological changes which have transformed conducting of business is normally conducted in the world. The products that are produced by the company make up 88% of the application that the Fortune 100 are testing as well as deploying the iPhone applications.

The model of industrial organization is normally in relation to the behavior of the firm, antitrust policy, regulatory policy as well as the marketing competition. Apple Inc can apply this model in order to increase the average revenues via creating as well as penetrating the defense for the end products. Additionally the company should ensure that they increase the services that go the products they are selling to their customers (Linden & Dedrick, 2009).Ensuring that the company operates on the turnkey principle will guarantee that apple increases the number of customers who want finished products. Additionally the Corporation will reduce the transaction costs, end up building huge external economies of scale and consequently downscale the risk associated with network actors. The overall advantage in the increasing of the market share, as well as the cutting of the operational costs, will increase the company’s returns above the average. Additionally by the company abiding the policies that are instituted by the government, they will be able to maintain their good reputation and avoid hefty fines which could eat into their profits (Reder, 2009).

The resource-based model on the other hand posits that organizations need to have a look at their company with the intention of locating the resources that can enhance their competitive advantage. The main view in this respect is that the organization should not look for the competitive advantage at the competitive environment. In regard to this model, Apple Corporation should utilize its resources which include the tablets, smartphones, iPhones, as well as its online shops. The corporations’ awesome reputation is the other factor that it should use in order to increase its average revenues (Friedman, 2013). The company should thus raise the prices of their products since they enjoy the consumer loyalty which will enable them to increase their returns above those of the competition. The resources that the company can use in the process of increasing the revenues include the Foxconn manufacturing plant located on the chin which can be used to increase their customer penetration and thus greater market share. The company possessed a high skilled and experienced as well as creating a workforce which can enhance their research and thus increasing the number of customers loyal to them due to the customization of their products.

The corporation’s vision and mission statement prove fundamental to the success it has achieved to this end. The vision and mission statement of the corporation ensures that they both address the key segments of the customer. As a result, the company is able to strategies of the development of the products that the particular segment desires thus increasing the loyalty and market share. It additionally includes the market that the company targets in its penetration plans making sure that the entry is successful and thus growing the returns (Linden & Dedrick, 2009.)The revelation of the purpose of the corporation guarantees that all the stakeholders are brought on board in their effort to attain the core purpose. The indication of the fact that the corporation is customer oriented in its designing and production as well as the corporate social responsibility guarantees the company has won the largest market share.

The stakeholders in this respect can be divided into three main categories entailing:

The capital market encompasses the shareholders as well as other main suppliers such as creditors, banks proving funds to Apple to support the new business ventures expecting positive returns. The fact that the corporation makes profits as well as offering adequate returns to the stakeholders motivates them to provide the investment money. As a result, Apple is able to attain adequate funds to fund the new venture. The product market stakeholder encompasses the core customers, host societies, suppliers as well as unions which impact Apple performance in an effective manner. Via an efficient chain management, apple satisfies the stakeholder group expectations which aids in the attainment of the global success. The apple’s consumers demand reliable product and at prices that are reasonable. The organizational stakeholders, on the other hand, include the employees as well as the management which make it possible for Apple to enhance is supply chain through their contributions. The enhancement is via improving the efficiency as well as the effectiveness in order to help the corporation offer quality products cheaply and attain their global development (Friedman, 2013).

References

Friedman, L. (2013). Apple Unveils iOS 7: The 'Biggest Change to iOS' Since the iPhone's Debut. Macworld, 30(8), 26-27.

Linden, G., Kraemer, K. L., & Dedrick, J. (2009). Who Captures Value in a Global Innovation Network? The Case of Apple's iPod. Communications of the ACM, 52(3), 140-144.

Reder, M. E. (2009). Case Study of Apple, Inc. for Business Law Students: How Apple's Business Model Controls Digital Content Through Legal and Technological Means. Journal Of Legal Studies Education, 26(1), 185-209. doi:10.1111/j.1744-1722.2009.00064.x

Walsh, B., & Sifferlin, A. (2014). Data Mine. Time, 184(20), 34-38.

Carolyn Morgan is the author of this paper. A senior editor at Melda Research in 24 hour custom essay. if you need a similar paper you can place your order for a custom research paper from already written essay.

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