Apple - Function and Form - Book Report/Review Example

? Apple- Function and Form Table of Contents Executive Summary 3 Introduction 3 Brief Overview 3 Objective and Tasks 4 Business Level Strategy 4 Brief Discussion 4 Competitive Advantage 5 Definition 5 Porter’s Generic Strategy 6 Main Findings 7 Identification of Strategies 7 Measures to Achieve Strategy (VRIN Model) 7 Critical Evaluation of Strategies 9 Conclusions 10 Recommendations 10 References 12 Executive Summary Global business environment is becoming highly competitive as several leading organizations within a similar industry are trying to implement unique business operation strategies to grab the market share of each other. Apple Inc. is one of the leading organizations within the global consumer electronic goods industry. The report will investigate the competitive strategies that are adopted by the firm in order to gain potential competitive advantages. Several academic models and theories have been applied in this report in order to determine and evaluate the adopted competitive strategy by Apple Inc. several academic sources, such as text books have been used as the major sources of the information that are provided in this report. It is quite difficult to analyze each and every factor that has been incorporated by Apple Inc. in strategy development process. However, the report will critically analyze the adopted competitive strategy by Apple Inc with the help of theoretical framework. After in-detailed analysis and discussion it has been found out that the implemented differentiation business level strategy is helping the organization to create valuable demand for the products among the target customers around the global places. Introduction Apple Inc. is one of the leading US based multinational organization headquartered in California. Apple Inc. is one of the leading multinational organizations in terms of product portfolio and business profitability. The organization used to design, develop, process and sell computer software, personal computer and consumer electronic goods. Brief Overview The organization adopted and implemented several unique strategies in the business operation processes in order to gain potential competitive advantages. iPhone, iPad, iPod and Mac-Book are the popular products developed by the organization. In addition to this, the organization develops several unique applications, such as iCloud, iTunes and iOS. The organization is quite popular among the global people due to continuous introduction of unique electronic products and software application (Hill and Jones, 2012, p.177). Objective and Tasks Major objective of the report is to identify the competitive strategy that has been adopted and implemented by Apple Inc. in addition to this, the report will evaluate the competitive strategy that have been utilized by the organization in order to attain significant growth rate and potential competitive advantages. Lastly, the report will provide some recommendation plans in order to address the current issues. The report will implement porter’s generic strategy in order to determine its competitive advantages and will apply VRIN model to evaluate the competency of the strategies that have been implemented by Apple Inc. Business Level Strategy The organization always tries to develop and implement unique business level strategy in order to gain potential competitive advantages. Brief Discussion The organization used to offer a large product portfolio for the target customers. The product line of the organization includes iPhone, iPad, iPod and Mac-Book. In addition to this, the organization used to develop and offer application and software like iCloud, iOS (Macintosh) and iTunes (Frynas and Mellahi, 2011, p.227). The developed products and applications are considered as the most high quality products within the similar product segment. On the other hand, strong and efficient internet communication device helps the organization to increase its brand value (Daft, 2013, p.253). The strong research and development team always ensures high quality control aspect. In addition to this, the organization always upgrades the features of a particular product. Strong product differentiation and high quality of these products help the organization to develop a potential global client base (Barrow, 2011, p.11). Competitive Advantage It is true that global consumer electronics, and computer software and hardware industry is becoming highly competitive as several leading and potential organizations are operating within this industry. Therefore, it is quite important for a leading organization to implement unique business level strategy to gain potential competitive advantages. Apple Inc. used to offer strong and large product portfolio with high quality. In addition to this, the management of the organization always tries to develop and offer differentiated products to the target customers comparing to other competitors (Wit and Meyer, 2010, p.681). These unique strategies and strong R&D team helps the organization to create a benchmark within the industry. Day-by-day, the global market share of the organization is significantly increasing along with the popularity of the different product lines. Implementation of unique differentiated business operation strategy helps the organization to achieve potential competitive advantages. Definition Competitive advantage can be defined as the superiority achieved by an organization when the organization can provide or offer unique service or high quality products at a reasonable price level. Potential competitive advantage can help an organization to maximize its business profit. In addition to this, high competitive advantage can help an organization to develop a strong and loyal customer base. Porter’s Generic Strategy Porter’s generic strategy has been applied by the researchers in order to determine the core competencies and competitive advantages of an organization. Porter’s generic strategy consists of three different business level strategies, such as cost leadership strategy, differentiation strategy and focus strategy (Daft, 2010, p.72). On the other hand, Porter’s generic strategy can be divided into two parts, such as cost focus and focus differentiation strategy. Apple Inc. has adopted and implemented differentiation strategy as the organization provides high quality products (Schneiders, 2010, p.42). On the other hand, the organization has adopted and implemented cost based pricing strategy in order to gain potential competitive edge. Introduction of several differentiated products and application without compromising with the quality can be considered as successful implementation of differentiation strategy (Dinitzen, 2010, p.185). In addition to this, continuous up gradation in particular product increased the popularity and image of the brand among the target customers around the globe (Kelly and Booth, 2004, p.46). The organization has able to maintain its leading position in global market place due to successful adoption and implementation of high quality product differentiation strategy (Evans, 2013, p.43). Main Findings It is clear from above discussion that Apple Inc. adopted unique product differentiation strategy in the business operation process to gain potential competitive advantages. Identification of Strategies First of all, Apple Inc. always ensures high quality of the products. The organization highly relies on the skills, innovation and competence of its research and development tem. Constant innovation and up-gradation in different product lines increased the brand image of the organization (Cennamo, 2012, p.161). Number of loyal customers is increasing slowly and gradually due to unique up-gradation in products. In addition to this, organization always aims on creating a benchmark within the industry (Lusted, 2012, p.53). Apple Inc. sells its products, software applications and several accessories through the retailers, wholesalers and value added resellers. These unique business operation strategies are the major strengths of Apple Inc. Measures to Achieve Strategy (VRIN Model) Apple Inc. always tries to source effective business resources. This is the major reason behind the high brand value of the organization. Following VRIN model will help to determine and major the resources that have been utilized by organization to achieve the strategy. Resource Valuable Rare Costly to Imitate Non Substitutable Implications Manufacturing Capability Yes No Yes No Sustained Competitive Advantages. Economy of Scale and Cost Leadership No Yes No No Temporary Competitive Advantage. Expertise in Broadband and Network Technologies Yes No Yes Yes Sustained Competitive Advantage. Differentiation and Global Brand Value Yes No Yes Yes Sustained Competitive Advantage. Global Efficient Distribution Network Yes No No Yes Sustained Competitive Advantage. Research and Development Yes No Yes Yes Sustained Competitive advantages. Relationships with Leading Career around the globe Yes No No No Temporary Competitive Advantages. Global Market Dominance Yes No Yes Yes Sustained Competitive Advantages. Quality control Yes No No Yes Sustained Competitive Advantages. Effective Engineering Competence Yes No Yes Yes Sustained Competitive Advantages. Capital Management in Effective Profitable Manner Yes No Yes Yes Sustained Competitive Advantages. Critical Evaluation of Strategies It is clear from above discussion that Apple Inc. implemented differentiation strategy in the business operation processes. In addition to this, the organization always tries to upgrade its product lines by ensuring high quality control and integration of advanced technology in the business operation process (Burgemeister, 2003, p.127). Advantages and disadvantages of differentiation strategy will be provided below in order to evaluate the adopted business operation strategy of Apple Inc (Burrow, 2011, p.18). Advantages The adopted differentiation strategy helped Apple Inc. to create a unique benchmark within the industry. The products and services that are provided by Apple Inc. are considered as highly value added among the people around the globe (Walpole and McKenna, 2011 p.93). In addition to this, the demand for advanced technological and innovative electronic goods is increasing among the global customers at a rapid pace (Gitman and McDaniel, 2008, p.15). The unique and differentiated product lines have helped the organization to gain potential competitive advantages. High competitive advantages and demand for products can be recognized through the growing market share of Apple Inc. in global market place (Linzmayer, 2004, p.67). Disadvantages Recent financial crisis and global economic recession affected the global economic environment (Cheverton, 2006, p.112). People are trying to consume cost effective electronic goods in order to back their reduced purchasing power (Cameron, 2001, p.285). The premium pricing strategy adopted by Apple Inc. is stopping the organization to grab the market share of its potential competitors. On the other hand, several small electronic firms in this world are trying to copy the strategies of Apple Inc and offering similar but low quality products at a low price (Brown, 2009, p.22). This is becoming major threat for Apple Inc. in this critical economic environment. Conclusions It is clear from above discussion and findings that Apple Inc. has managed to become one of the leading consumer goods developing and distributing organizations in this world due to its adopted and implemented differentiation strategy. The organization never tries to compromise with product and service quality. Large and innovative product portfolio is the major strength of Apple Inc. Constant innovation helped the organization to develop a high brand image around the globe. It is true that several organizations are trying to implement aggressive business operation strategies in order to become the leader of the industry. However, recent economic downturn affected the business performance of several organizations. In addition to this, several small electronic goods manufacturing firms are trying to copy the products of Apple. Inc. it is quite important for the organization to address the issues as early as possible. Recommendations It is clear from the findings that Apple Inc. adopted differentiation strategy by offering quality differentiated products in premium price. It is true that several organizations are implementing competitive pricing strategy as the demand for cost effective products is significantly increasing among the target customers due to economic slowdown and reduced purchasing power of people (Aaker, 2004, p.62). It is important for Apple Inc. to consider cost leadership strategy by reducing the overall business operation cost. This strategy will help the organization to provide differentiated products in competitive price level in the developing economies (Plunkett, 2006, p.19). Apple Inc. should centralize its entire supply chain management process. in addition to this, the organization should develop manufacturing unites and warehouse in the BRICK countries as the demand for quality products in low price level is significantly increasing among the target customers of these countries (Aaker and Joachimsthaler, 2000, p.89). Centralized manufacturing and distribution process can help Apple Inc. to reduce its business operation cost (Kalb, 2007, p.38). It will help the organization to increase profitability and offer products according the market demand and customer needs. Last but not the least; it is important for Apple Inc. to copyright all the products and software applications as copying and piracy is affecting the business performance of the products and image of the brand (Harman and Koohang, 2007, p.81). References Aaker, D. A., 2004. Brand Portfolio Strategy. New York: Free Press. Aaker, D., and Joachimsthaler, E., 2000. Brand Leadership. New York: Free Press. Barrow, C., 2011. Starting a Business for Dummies. New Jersey: John Wiley & Sons. Brown, L., 2009. Marketing and Distribution Research. New York: Ronald Press Company. Burgemeister, S., 2003. Market analysis. Munich: GRIN Verlag. Burrow, J., 2011. Marketing. Stamford: Cengage Learning. Cameron, K., 2001. Call and the Challenge of Change. London: Intellect Books. Cennamo, K., 2012. Technology Integration of Meaningful Classroom Use. Stamford: Ceangage Learning. Cheverton, P., 2006. Understanding Brand. London: Kogan Page. Daft, R., 2010. Organization Theory and Design. Stamford: Cengage Learning. Daft, R., 2013. Management. Stamford: Cengage Learning. Dinitzen, H., 2010. Organizational Theory. London: Hans Reitzels Forlag. Evans, V., 2013. Key Strategy Tools. London: Pearson UK. Frynas, J., and Mellahi, K., 2011. Global Strategic Management. London: Oxford University Press. Gitman, L., and Mcdaniel, C., 2008. The Future of Business. Stamford: Cengage Learning. Harman, K., and Koohang, A., 2007. Learning Objects. New York: Informing Science. Hill, C., and Jones, G., 2012. Strategic Management. Stamford: Cengage Learning. Kalb, R., 2007. Multiple Sclerosis. London: Routledge. Kelly, L., and Booth, C., 2004. Dictionary of Strategy. London: Sage. Linzmayer, O., 2004. Apple Confidential 2.0. London: No Starch Press. Lusted, M., 2012. Apple. New York: ABDO. Plunkett, J., 2006. Plunkett’s Entertainment & Media Industry Almanac 2006. London: Plunkett Research Ltd. Schneiders, S., 2010. Apple’s Secret of Success. Munich: GRIN Verlag. Walpole, S., and McKenna, M., 2011. How to plan Differentiated Reading Instruction. London: Guilford Press. Wit, B., and Meyer, R., 2010. Strategy: Process, Content, Context. Stamford: Cengage Learning. Read More