Amy-Jay Lawson

Student ID: 300607959

Apple is a multinational American company and is the worlds largest technology company. It
is one of the most highly reputed brands in the world, especially in terms of market
capitalization and brand value. Apple designs and sells advanced technology and
professional software and has been at the forefront of evolving technology, computer
hardware and smartphones. Under the leadership of Steve Jobs and Tim Cook, the
company has introduced dozens of new products and continue to trample over the market.
Apple’s products include their iPhone, Mac laptops, iPad, wearable, home accessories,
digital streaming solutions, and several other products.

Q1. Describe your case organisation’s strategy. In your answer, draw on

Implementation Strategy
“Strategy implementation is the activities within a workplace or organisation designed to
manage the activities associated with the delivery of a strategic plan” ("Strategy
implementation - Wikipedia", 2022). Apple has used this strategy successfully by utilizing
components of this strategy to develop new products and emphasize designs. Apple has
been able to acquire a valuable market share just by focusing on areas of improvement and
development. This is proven and showen through their latest products which are always at a
high-standard, are good quality, well-designed and that are overall superior to its
competitors.

Porters Generic Strategies

Porters 4 generic strategies show how a company can work in order to achieve a
competitive advantage in the market. Out of these four categories in the Porters generic
stratergies framework, I have identified that Apple’s generic strategy is broad differentiation.
Apple has utilized this broad differentiation strategy by creating new and unique products
with value for which customers will pay premium prices for. Through the broad differentiation
generic strategy, Apple stands out in the market. For example, “elegant design and
user-friendliness of products, combined with high-end branding, effectively differentiate the
technology business” ("Apple Inc.’s Generic Strategy & Intensive Growth Strategies - Panmore
Institute", 2022). Apple has used product differentiation to separate its products from
competitors. Apple uses this strategy to target a broad market and send a powerful message
that its products stand out from the crowd. Because Apple’s products are made for
everyone, the business continues to reach out to a wide range of customers, allowing for a
wide market range.
Because Apple is so broad, they ensure that the demand for its products continuously
increases. They do this by creating new products and software services and continuously
launching new models of its brands. This usually creates anticipation among the consumers,
keeping them exited and looking forward to their annual launch.
Apple is one of the largest technology companies, therefore they have many factories and
supply chains in order to deal with high demand and keep their customers satisfied.

Q2. Why do you think your case organisation chose this strategy? Think about both
internal and external factors that make this strategy appropriate or attractive for the
organisation.
Explain your reasoning, drawing on concepts/theories/frameworks from any of the
following topics: Strategy and Operations, Entrepreneurship, Managing in a
Globalised World, Managing in Aotearoa, The 21st Century Workplace.

Apple uses the broad differentiation strategy as it best supports the company in maintaining
its competitive advantage, leadership, and position as a high-end and high-value technology
business. Because they cater to so many customers and have so many factories they are
able to easily supply worldwide and export cost are alot cheaper compared to competitors.
The broad differentiation strategy encourages Apple to continuously innovate and create
new products, to keep them ahead of competition.

SWOT analysis
This SWOT analysis provides a clear picture of the internal strengths and weaknesses of
Apple and what threats it has to face. Meanwhile, it also tells us about the present
opportunities for Apple to avail today for a better tomorrow.
Strengths: Weaknesses:
INNOVATION - Apple creates new products LIMITED DISTRIBUTION SERVICES -
and emphasizes designs while focusing on Apple doesnt have many stores, resulting in
improving their products. Therefore, have more people buying their products online so
been able to stay on top of the technology less market reach.
market. PRICE POINT - Because Apple products
INTRODUCING NEW SERVICES - Apple are set at a high price. This has resulted in
has many services and continues to bring many consumers going to buy technology
out new services, such as, iTunes, Apple ID from other brands that are cheaper like
and Apple Tv. This has retained and Samsung.
attracted more customers.
ORGINIZATIONAL CULTURE - Imposing
the mindset of Innovation, change and
creativity has helped them uncover brilliant
ideas and develop a strong internal brand
culture.
TECHNOLOGICAL EXCELLENCE - Apple
has improved their technology by
simplifying their products. Making their
products more user-friendly, attracting
customers of all ages.

Opportunities: Threats:
BRAND LOYALTY - Apple has created a COMPETITION - If Apple doesn’t commit to
premium image in the mind of the its strategy of innovation, competitors could
customers associated with style, status, and take over and potentially overtake Apple in
customization boosting its sales. By the technology market.
innovating new products they have been CORONA VIRUS PANDEMIC - Due to the
able to keep their most loyal customers pandemic, Apple’s supply chain was
happy. affected and the company struggled to keep
PARTNERSHIP AND AQUSITIONS - Apple up with high demands due to shipping
has the opportunity to acquire other shortages and shipping cost being
services to incorporate other technology increased.
services into their products to enhance its
quality and better their brand.
ADDITION TO PRODUCT LINE - They can
add more product services like ‘Apple Pay’
to compete against othe technology
businesses and stay ahead of competitives.

Porters 5 Forces
This Five Forces analysis gives insights about the external factors influencing the Apple
company’s success.

Supplier Power - weak force Because of the large Global size of Apple’s
supply chain, it allows Apple access to
many suppliers around the world. Meaning,
Apple does not struggle in this department.

Customer Power - strong force Since Apple is one of the leading companys
in the technology market. Consumers dont
have as much bargaining power as there
are not many comparable alternatives. This
makes Apple very favourable for consumers
as they are also very widely accessible.

Competition/Rivalry - strong force Apple has always been at the top of the
technology market due to there continuous
innovation of high-end products, which keep
them ahead of the competition.

Threat of New Entrants - moderate force Since Apple is already on top of the
technology market, they don’t need to be
too concerned about other technology
companies as to compete against
businesses like Apple, high capitalization is
required. But for Apple too maintain its
competitive advantage they must continue
to innovate and for its marketing to remain
strong against new entrants’ .

Threat of Substitutes - weak force Apple does have some substitutes but not
many. For example, instead of using an
iPhone, customers could use a digital
camera to take pictures or a landline to
make calls. However, these substitutes
have low performance due to limited
features. Because Apple has combined
these substitutes into one product, it is not
likely for customers to buy these
substitutes.

Q3. What do YOU think the organisation needs to do (or might need to have happen)
for the strategy to be successful over the next 5-10 years?
Explain your reasoning, drawing on concepts/theories/frameworks from any of the
following topics: Human Resource Management, Leadership, Teams,
Entrepreneurship, Managing in a Globalised World, Managing in Aotearoa, The 21st
Century Workplace.
Apple is one of the most popular technology brands and is a leading producer and marketer
of innovative products. The main reason Apple has been such a success is because of
Steve Jobs leadership skills. Therefore, Apple’s success depends greatly on the strategies
employed by its leaders and managers. “...the key to sustainable success over time is to
balance incremental innovation that leverages existing products with investing in
revolutionary innovations, which periodically disrupt the market. In the process, a firm needs
to keep adapting and transforming itself…”("How Can Apple Remain on Top?", 2022).

In order to stay profitable in the next 5-10 years, Apple could adopt the generic strategy of
cost leadership. Cost Leadership is a strategy to reduce the cost of operation and produce
the lowest priced products or services, to out-do the closest competitors and gain market
share. Apple can take advantage of this strategy in order to create the finest products at a
lower price. Because Apple is so popular if they use this strategy, it could also attract more
customers and people around the world who are price sensitive but still want high quality
products and services. This would expand their market reach further.

Apple could also expand when it comes to promoting its products. By having the best
adverts that support Apple’s brand. More potential customers around the world could be
attracted, resulting in an increase its sales. By maximizing the way they promote their
products and by exploring different ways of retail, this could also lower the risk of growing
markets.

Apple could improve its application on broad differentiation strategy for competitive
advantage, by aggressively penetrating markets. They can do this by opening new stores in
other countries, especially developing countries where the corporation has limited market
reach for its information technology, goods and services.

Apple should maintain its strong and skillful research and development department that
helps Apple to determine the new trends, demand wants of people according to the
technology and make Apple bring in new innovative products for its loyal customers (Yami,
Castaldo, Dagnino, & Roy, 2010).

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