Apple Strategic Management and Competitiveness

Apple Strategic Management and Competitiveness

Introduction

Strategic management provides general direction by creating plans and policies to achieve goals and then allocating resources to accomplish the aforementioned plans. In the end, businesses use strategic management to obtain a competitive advantage over their competitors. On the other hand, strategic competitiveness is a form of strategy that an organization can employ to achieve its objectives despite numerous competitors (Hitt, Ireland, & Hoskisson, 2016). Strategic competitiveness may be achieved when a firm effectively fosters a unique concept that enables the organization to generate money after its execution.

Apple Inc. is among the multinational corporations with high profit margins and operational efficiency. The global presence of the company and the massive incorporation of technology in its functions have placed the company at the top of every consumer’s wish list. The strategic course of Apple Inc. has given the firm a competitive advantage amidst other technology industries, specifically in the smartphone and digital devices sector (Aljafari, 2016). The article below focuses on three features of Apple Inc. in terms of strategic management and competitiveness. They include the impacts of globalization and technology on the firm, using industrial organization and resource-based models to highlight how the company can employ them to achieve above-average returns, and evaluating how the various categories of Apple’s stakeholders impact its success.

Globalization

Globalization has transformed the global competitive landscape of the economy, particularly in technology, leading to two chief drivers of hypercompetitive settings and the modern competitive landscape’s architecture that obscures industry borders. Consequently, globalization has extensively impacted how Apple Inc. produces and supplies its products. Apple Inc. is among the topmost profitable businesses globally, with up to online sales to 39 nations and beyond 450 Apple retail locations internationally. By being the highest in the information technology and communications industry, Apple Inc. has established a premium brand that serves high-end customers (Aljafari, 2016). Globalization strategy enables Apple to focus on the global market, allowing it to outsource components for its goods. For example, microchip production occurs in Taiwan since Indian software engineers are cheaper compared to their US counterparts.

In addition, the globalization strategy enables the company to employ subcontracting services within the company’s nations (Nyamekye & Tul, 2020). For instance, Foxconn produces metal parts in Taiwan. On the other hand, plastic parts are manufactured in Singapore, which has developed from a low-cost production base into a significant value-added production hub. Additionally, through globalization, Apple assembles its goods in Shanghai, China, for transit into its global stores. Thus, the globalization strategy is beneficial to Apple Inc. since it helps cut down creation and development costs for its goods subcontracting services with host countries, among several other benefits.

Technology

The world economy is becoming more interconnected due to technological advancements that have flattened the power balance and made it possible for all people to participate on a level footing in global trade. Services, commodities, skills, ideas, and people flow freely across national borders. Apple Inc. changed individual technology with the inception of the Macintosh computer (Nyamekye & Tul, 2020). Currently, Apple tops the globe’s innovation with products such as iPhone, Mac, iPad, Apple TV, and Apple Watch. Besides, Apple Inc. offers software platforms such as IOS, OSX, and tvOS. All the software mentioned above delivers constant expertise across all Apple devices and enables users with excellent services such as Apple Music, App Store, iCloud, and Apple Pay.

Another factor behind the firm’s growth is technological advancements in areas such as the internet and communication. Improved communication channels and networks render connection and communication more convenient. Communications via social media platforms give the company information regarding market trends and the required products. In addition, technology has further influenced clients to order products from the chain store, hence impacting the firm’s revenue and bottom line.

Apple Inc. could achieve business success by discovering a technique to make their products more attractive through the use of information, information technology, and people. Apple uses data to determine what product will sell, who will benefit from their product, and whether the profits exceed the costs. For instance, some of Apple’s products, such as the iPad, are loved by consumers since they are small-sized and convenient to carry. They can watch movies, play games, take pictures using the touch screen, and write notes (Nyamekye & Tul, 2020). In addition, information technology can make managers more proficient in their roles and departments to grow more successfully. Further, information technology controls computers and computer software.

Industrial Organization Model

The above-average returns industrial organization model shows how the external environment significantly influences a firm’s strategic decisions. The approach entails assessing the general industry and competitive environment that affects an organization’s strategic operations and decisions. The significant implications of the I/O model for the majority of organizations are to function in business environments that provide the best competitiveness opportunities and profits (Hitt, Ireland, & Hoskisson, 2016). Apple Inc. serves under a perfect competition structure to maximize profits through elevated sales. Through the system mentioned above, Apple produces new goods that are extensively differentiated to sustain performance in the satisfaction of customer needs.

The evaluation of socio-cultural, demographic, economic, legal, and political aspects, which would be significant in offering Apple Inc. information regarding potential changes that may create opportunities and dangers for its operations, would be included in the general environment analysis. Apple will increase its knowledge of alternative products, the level of rivalry, new entrants, buyer bargaining power, and supplier negotiating power by analyzing the company’s environment. In the study of competition, Apple will consider companies such as Samsung, Dell, IBM, and other crucial rivals’ goals, capabilities, strategies, and assumptions. The study will provide details concerning opportunities and threats, which will assist in making and developing informed decisions and strategies (Hitt, Ireland, & Hoskisson, 2016). Consequently, the I/O model will offer an effective avenue for Apple to obtain opportunities and limit risks effectively compared to competitors, possibly making it incur above-average returns.

Resource-Based Model

The resource-based model describes an organization’s internal environment and assists the workers in comprehending their resources and skills. Furthermore, a resource-based model helps an organization identify and utilize available resources for competition in the market to generate profits. Using the above model, Apple Inc. will identify its strengths and weaknesses. The above information will help Apple in formulating a technique that will enhance the company’s strengths while mitigating its weaknesses. Besides, the technique development strategy will further offer a reasonable starting point to determine a competitive advantage that may assist the company in generating above-average returns (Hitt, Ireland, & Hoskisson, 2016). Additionally, the model will expound on how Apple could dynamically capitalize on strengths and resources while making above-average profits in the computing device market.

In the manner mentioned above, mixing the R/B and I/O models will help Apple identify its strengths, weaknesses, opportunities, and threats and establish informed techniques that may assist the firm in achieving a high return with little work.

Vision

Apple Inc.’s corporate objective is to produce the most effective products on the globe and to leave the world better than it found it. The vision statement of Apple impacts the strategic management choices made by the firm executives to achieve future leadership in the various departments of the organization. The statement “best products” suggests that the technology firm’s corporate objective is to be an international leader in goods design and development. The yearning to produce the best products motivates Apple to continue pursuing new product creation innovations. Vertical integration assists the organization in attaining a cohesive business position for leadership in the computer technology, online services, and software sectors.

Mission

The corporate mission of Apple Inc. focuses on products, product creation, prolonged economic viability, and industry leadership. The company elevates its products’ value via technology, enhancing the clients’ experience. Apple has achieved the most preferred products, such as iPhone iPad, among other products. Subsequently, the company’s product and software OS offer the most preferred performance. Further, the company’s human resource department is wholly focused on providing products that give users the best services worldwide.

Stakeholders

The success of the company can be attributed to the ability of the firm to meet its stakeholders’ needs. The groups of stakeholders foist demands on the organization, hence influencing the company’s performance (Hitt, Ireland, & Hoskisson, 2016). For the company’s success, there is a need to minimize the adverse effects associated with the satisfaction of the stakeholder’s interests. Some of the groups of stakeholders are discussed below.

Customers

The consumers of Apple products demand functional and efficient products from the company. As a result, Apple Inc. constantly strives and endeavors to produce and present the best products. In addition, Apple employs environmental programs to meet the interests of its consumers, hence helping in the conservation of the environment.

Employees

The employees form part of the most vital part of the firm’s management decision-making process. Besides, the employees are competent and proficient in designing, developing, and presenting quality and innovative products (Hitt, Ireland, & Hoskisson, 2016). Furthermore, the employees innovate Apple’s products to assist the company to retain its position at the top of the industry amidst the company encountering competition.

Investors

The company’s investors boast of the top priority among all groups of stakeholders despite the fact that their only interest in the firm is profit. Investors expect Apple to incur as many profits as possible to ensure they earn more dividends. Consequently, Apple Inc. strives relentlessly to remain profitable and without debt. The firm sustains high profit margins, hence growing its concrete financial position and liquidity. Conversely, the firm puts effort into meeting its CSR conditions to compel more investors.

Suppliers

The above group of investors may be the least prioritized. However, the group is responsible for distributing the company’s products. The suppliers sell Apple’s goods at a fair profit, encouraging other similar stores to stock Apple’s products. The above incurs gains for Apple Inc. and additionally sees to it that the firm remains in business (Hitt, Ireland, & Hoskisson, 2016). On the other hand, Apple strives hard to sustain good supplier relationships via job security, chain ethics, and reasonable compensation. Further, the company involves training programs with the supply chain workers to enable high-quality product outsourcing for final-quality products.

Sources

Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2016). Strategic management: Concepts and cases: Competitiveness and globalization. Cengage Learning. Journal of Scientific & Engineering Research, 7(3), 406-441.

Nyamekye, R., & Tul, S. I. (2020). The Positive and Negative Influence of Globalization on the Activities of International Business (Based on Apple Inc.).

Aljafari, A. (2016). Apple Inc. industry analysis business policy and strategy. International

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Apple Strategic Management and Competitiveness

Overview
Choose a public corporation with which you are familiar from one of the following industries:
Travel.
Technology.
Food.
Research the company on its own website, public filings on the Securities and Exchange Commission’s Filings & Forms page, Strayer University’s online databases, Strayer University’s Lexis Advance database, and any other sources you can find. The annual report will often provide insights that can help address some of these questions. Use the Strategic Management and Strategic Competitiveness Template [DOCX] to ensure that your assignment meets the requirements.
Requirements
Write a 4-6 page paper in which you address the following:
Assess how globalization and technology changes have impacted the corporation you researched.
Apply the industrial organization model and the resource-based model to determine how your corporation could earn above-average returns.
Assess how the vision statement and mission statement of the corporation influence its overall success.
Evaluate how each category of stakeholder impacts the overall success of this corporation.
Use the Strayer University Online Library or the Internet to locate and include at least three quality references. Note: Wikipedia and similar websites do not qualify as academic resources.
This course requires the use of Strayer Writing Standards. For assistance and information, please refer to the Strayer Writing Standards link in the left-hand menu of your course. Check with your professor for any additional instructions.
The specific course learning outcome associated with this assignment is the following:
Determine the impact of globalization and technology changes, strategic models, vision and mission statements, and stakeholders on a corporation’s success.