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Like any other successful company, Apple Inc. experiences extremely stiff competition from other computer manufactures as well as consumer electronics companies. Some of these large corporations which have established their markets internationally include International Business Machine Corporation, commonly referred to as IBM, Compaq, Intel Corporation, Lenovo, Dell, Hewlett-Packard, Silicon Graphics, Samsung and Microsoft among others. In technology market, creativity and innovation enable any company to compete the competitors. This is one area that Apple Inc. enjoys comparative advantage over competitors. The company’s biggest share of business originates from personal computers and iPod market. Apple has displayed keen concentration on the two products hence making them the best in the market. This kind of specialization helps manufactures to acquire diverse knowledge and skills which enable them to produce the best quality at the minimum cost possible. This implies that the company uses both the cost and differentiation strategies to compete in the global market.
It is imperative to note that public relations help to create a reputable company image in the eyes of the customers. Apple has invested tremendously in this area, which explains why so many people would love anything simply because it is from Apple Inc. When a buyer buys from Apple, he or she knows that the company is not only after making the sale, but also ensuring that he gets satisfied since he got even more than what he expected (Frederic, Agnes & John 2009). This is not a quality that may be found in every company.
This company enjoys the strength of understanding their customers better than competitors. This coupled with innovation helps Apple Inc. to manufacture products that enhance their customers’ digital lifestyles. When most technology companies try to copy what their competitors have developed, Apple stays ahead by developing products that come with unique features that fit better in the customer day to day lifestyles. Apple has also embraced diversification as a competitive strategy against its competitors. This means that failure in one line of products could be subsidized with revenues from succeeding lines and hence making the company better prepared for economic depressions (Benjamin 2007).
The technology market is a highly competitive environment where the actions of the rivals can easily outdo a business from the market. Looking at Apple Inc. company market share statistics, it is clear that the corporation has led several markets for long and competition is something it thrives in at all times for them. It sees competition as a challenge and embraces it with only one objective of coming out the best.
Major Resources and Competences
Organizations should exclusively identify all their strengths and weaknesses and try to invest more on their strengths since they have a tactical advantage on them over their competitors. Apple Inc. is known for its understanding of the customer base. This helps them to maintain a strong brand loyalty with its customers especially in the iPod business and the Mac operating system marketing (Leander 2004). It is customer satisfaction which makes customers come back and even become loyal to a particular product. Apple achieves this by doing extensive researches on the requirements of their customers before offering anything to them. Customer knowledge plays a vital role in making products more satisfying and even surprising to the customer as they surpass their expectations.
Apple Inc. has also employed product diversification and differentiation. It was evident in 2007 when Apple Inc. went from being Apple Computer Inc. to Apple Inc. that they were venturing in other areas. This company manufactures so many different products ranging from hardware to software. The company can be said to have more influence in the digital world than other companies. This helps the company to ensure overall success at all times no matter the economic changes (Hans 2007).
The other core resource that the company utilizes is the skilled and qualified work force. This company employs the best people available in the job market putting them in a better position to manufacture the best technologies ever seen. Beginning with the founder and Chief Executive Officer, The Late Steve Jobs, down to the software and hardware engineers and other staff, it is evident that the organization has possessed some of the world’s best talent. This workforce has been so creative and innovative always putting the organization ahead of its competitors.
Apple’s Inc. Strategic Choices
One of Apple’s strategy choices has been broadening its product base. This got started by initiating the manufacture of i pods, i phones, in addition to the personal computers. This is one of the most fruitful strategies adopted by Apple. Through diversification, the company has been able to transform itself from being almost bankrupt to the most profitable technology company in the entire world. The organization could further venture into new areas and even become the best in them. The company has an unlimited room for diversification into areas like consumer electronics given that they have the capability of gathering all the resources required (Jason & O’Grady 2008).
In addition, Apple has also employed strategic innovation. The company has engaged in the creation of growth aimed strategies that improve the business and ensure more satisfaction for customers. These strategies advocate for leadership that allows easy communication of new ideas and their implementation. Apple has even collaborated with other companies to help in coming up with the most suitable technologies for their customers. For example, the company entered into several contacts with Microsoft which is the largest software company to help to enhance applications and software of their products (Owen 2004).
The company also encourages innovation and originality in its products. This helps the company in manufacturing unique products that satisfy the consumers in their unique needs and preferences. This strategic advantage over the competitors has enabled the organization to employ reasonable pricing techniques without the fear of losing its customers. This makes the company enjoy some level of monopoly in the market due to the uniqueness of its products. However, consumers are willing to pay because they know that they will get the value of money.
Additionally, Apple has also shown some level of specialization which has made it the best in the iPod and digital music gadgets. Though this strategy may not be risk cautious, it helps a company to build an excellent reputation for a particular area due to its exceptional diverse knowledge and competency for it.
In my opinion, the best strategy that Apple Inc. should use is product diversification and differentiation. This is one of the most superior marketing strategies aimed at growth. Diversification may call for either new product or new markets (Ian 2011). It also includes acquisition of a firm, licensing of new technologies or distributing products from another company. Additionally, it would be easier for apple Inc. to adopt concentric diversification, which means maintaining the same technology, but altering a few marketing strategies may be by deciding to open distribution stores. The company may also look for new products in the market that have marketing or technological synergies with the company’s products such that together both products could tap new markets that were not tapped before. However, there will not be enough diversification, and the company should also consider horizontal diversification and introduce a new product in the market through creativity and innovation. In addition to enlarging the markets served, this also helps to spread the risk of making loses (Wendy 2011).
On the other hand, the company should also employ product differentiation. Product differentiation is a strategy that tries to distinguish products in a way that satisfies the target customer best. This technique will help to improve customer satisfaction as different customers will have the products that satisfy their needs and preferences. Differentiation has been the company’s source of competitive advantage, but there is still more room for improvement. Products could even be tailored to meet individual needs, which would certainly help in promoting the organization’s quality of sense of value (Andrew 2011). This way the company will not even be competing with its current rivals who would only differentiate their products through packaging and other minor aspects like color yet giving their customers the same products.
Finally, Apple Inc. has been so successful, and this can only be attributed to strong leadership and wise selection of appropriate strategies to drive the organization. So many praises have been said about the company and its leaders. Steve Jobs transformed what was extremely small company with less than hundred thousand dollar capital base to what we see today as the largest technology corporation worldwide in terms of capitalization.