Strategic Management and Strategic Competitiveness
Strategic Management and Strategic Competitiveness
Apple Inc is a global technology company that was founded by Steve Jobs, Ronald Wayne, and Steve Wozniak in April 1976. The Company`s headquarters are in Cupertino, California. Apple Inc engages in the designing, manufacturing, and marketing of computer software, electronics, media and online services, and mobile technology. It boasts a wide array of products that include smartphones, tablets, smartwatches, media players, and computers among others (Apple, Inc, 2018). Strategic management and competitiveness play an important role in ensuring that Apple realizes its objectives and goals to achieve a competitive edge over other companies operating in the same industry.
How Globalization and Technology Changes Have Impacted Apple Inc.
The world`s economy is growing rapidly and it is the goal of every technological company to present its consumers quality products. For Apple, there is a persistent need to produce highly competitive and unique products that offer customers the highest levels of satisfaction in every part of the world. Apple has for the last two years increased the supply of its goods and services in the world market compared to the past years (Bancroft, Myrmingos, Kelnhofer, Velesky, & Kamba, 2011). Globalization has enabled Apple consumers to easily purchase different Apple products in a convenient way and that meets their needs satisfactorily. The company works hard to give outstanding experience for its consumers who have different tastes and preferences by presenting innovative products and services in terms of hardware and software products among others.
According to Bancroft et al. (2011), changes in technology like those in production means, communication, and transportation play a major role in guaranteeing that there is a distinct connection between Apple and its customers. The production costs are low and the products are presented in different markets through safe means and in good time. Technology also enables consumers to access Apple`s products online and makes it possible for them to compare with similar products offered by different competitive companies in order to help them make informed decisions. This makes the organization remain competitive and enables it to improve its products on a daily basis.
Applying the Industrial Organization Model and the Resource-Based Model to Determine How Apple Could Earn Above-Average Returns
Apple Inc can apply both the industrial organization and resource-based models to earn above-average returns. For instance, it can apply the industrial model to help in maintaining a bigger venture in a vastly segmented market (Hitt, Ireland, & Hoskisson, 2017). This enables it to maintain its large market share even with producers with similar products. It uses this strategy to eliminate the few organizations that deliver similar products as Apple’s so that it can retain its position as a major producer and supplier of electronic products in the global market. In other words, it creates entry barriers into this market and heightens competition. This means that any new entry in the market would need more than its ability to create a competitive product.
The company uses this model strategy to predict competition, which has enabled to earn above average returns. It allows Apple to use the game theory to determine the actions of its competitors. Hitt, Ireland, and Hoskisson (2017) argue that the game theory, which is also known as the interactive decision theory involves the competition and several decisions a competitor can use. By using tree diagrams and mathematical matrices, Apple can access its competitors` next move by replicating its decisions and the probable results of those decisions. According to Bancroft et al. (2011), by understanding its competitor`s next move, Apple can determine how it can interact with the competitor and realize how to pre-empt the market and make the first strategic move before its competitors.
The resource based model, on the other hand, uses an internal perspective that gives clear details of how the capabilities and internal collection of resources can be employed to represent the value addition to products and the major operations of the company. It is through this model where Apple Inc realizes that its unique capabilities and resources are the main source of its returns. It enables Apple to identify areas to invest in and to make improvements where necessary (Bancroft et al., 2011). This is vital as it helps in determining the suitability, completeness, characteristics as well as the external environment conditions in management issues.
How Apple’s Vision Statement and Mission Statement Influence Its Overall Success
The vision and mission statements of Apple are the basis of its success as one of the most profitable organizations globally. The company which began its operation in 1975 has become a representation of elegance and innovation in its design. These factors are linked to its mission and vision statement, which have over the years motivated its workers to work hard to retain its competitive edge in the market. The company`s mission statement has been changed severally including Steve Job`s original statement. The statements are adjusted over time to address the rapidly changing market and organizational condition. The vision statement has been important in enabling the company achieve its success in that it shows the direction of product development and growth. The mission statement shows the actions required to ensure that Apple follows its path to success.
The Company`s detailed vision statement reflects on its inclusive strategy of ensuring continued innovation and success. It also enables the company to carefully select the markets to run its operations. This aspect addresses its use of market research in making informed decisions in strategic formulation and the development of its products. Organizational culture is part of the vision statement whereby the companies take into consideration employees’ motivation and collaboration as major aspects of the business. Therefore, the detailed statement has helped the company succeed in all areas of business as it helps guide its leaders and employees towards achieving global success.
The mission statement is very clear in outlining what Apple does and will in the future. It gives details on specific product lines to show its current conditions, which are significant in identifying and setting the baseline for impending actions that the company will implement. The statement also shows that the Company plans to continue with its plans to focus on research and development to offer to its client unique products to satisfy their technological needs. The statement shows clearly that Apple is accurate in showing its current situation and goals. Overall, it has influenced the success of the company as it has over the years changed from a common business outlook to a specific display of what it wants to achieve when it comes to delivering goods and services.
How Each Category of Stakeholder Impacts Apple`s Overall Success
Stakeholders are parties with an interest in an organization, and can either impact or become affected by the company. The main stakeholders in a typical company are its customers, suppliers, employees, and investors. The modern theory also includes the government and the community as part of the stakeholders. All stakeholders have an opinion in the decisions of a company. Different stakeholders of the company have differing interests and requirements geared towards its growth. Even though they may differ in the way they relate, they are directed towards a common goal. For example, those active especially the employees are involved in its daily operations. They make and implement policies as well as advertisements on products offered by the company. Additionally, they ensure that Apple Inc is fully operational.
Passive stakeholders such as investors, on the other hand, offer finances to facilitate the manufacture of the products. According to Bancroft et al. (2011), the company cannot achieve its objectives without financial support.
The government also plays a role in Apple as it is the main regulatory body that formulates rules and regulations that control its operations. This includes environmental regulations whereby the government is against the production of items that pollute the environment.
Customers also play an important role as they purchase the products. They also leave review on areas that require improvement.
The relationship with the supplies is vital as Apple depends on them to remain competitive. The company also values their sustainability and believes that it is their duty to protect them. That`s the reason why it invests in training and education to offer tools and opportunities to help the suppliers and employees now and in the future.
Apple`s competitors influence them in a number of ways. They push them to offer quality products, thus enabling them to increase its profits and hold a large market share.
The community reshapes Apple`s strategy as its members force them to remain aware of government regulations and their corporate social responsibility. All these stakeholders positively impact the company.
Apple, Inc. (2018). Retrieved from https://www.apple.com/.
Bancroft, A.M., Myrmingos, R., Kelnhofer, D., Velesky, M., & Kamba, G. (2011). Apple, Inc. strategic management and the global environment: A case study for Lewis University, Romeoville, IL. Lexington, KY: Apple, Inc.
Hitt, M.A., & Ireland, D., & Hoskisson, R.E. (2017). Strategic management: Concepts and cases, competitiveness and globalization (12th ed.). Mason, OH: South-Western College Publishing.
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