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Strategies Management Of Apple Incorporation

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Question:

Choose and Analyse an Organisation and their Strategic Approach to Marketing and Answer the related Marketing Areas.
 
 

Answer:

Company Background- Apple

Apple incorporation is the company established in California and it is founded by the Steve Paul in 1977. Apple is very popular company and as we know that the company offers the computer software, mobile phones and laptops.  All the electronic devices are introduced by the company. The wide range of the products of the Apple involves the iPhone, iPad and Mac book. The Apple Company operates its business in 50 countries and all the markets of USA, Canada, Japan, France and UK are included in this. The numbers of employees working in this company are large in number like approximately 14000 people are working in this company all over the world. The company is huge in size so the employees working in this company are also large in number around 14000 people are working across the world. However, the Apple is the brand famous for its quality and different range of electronic devices.(Apple Inc., 2017).

SWOT Analysis

The SWOT analysis of the company depicts the Strengths, weaknesses, opportunities and threats to the company.

Strength: - The brand image and the customer loyalty for the Apple Company is the strength of the company. The company is known for the innovation and the strong brand image is the plus point of the company(Erika, 2014).

Weaknesses: - The high level of selling prices of the mobile phones is the weaknesses of company. The people from the middle class group would not be able to buy the products because of the high cost. The distribution network channels of Apple Company are limited also.

Opportunities: - The expansion of the distribution network will lead to the generation of revenues and the increasing demand of the Smartphones and the tablets is the beneficial for the growth of the Apple(Hellman, 2014).

Threats: -The aggressive competition is the threat for the company as there is lot of companies offering the variety of mobile phones Samsung, Sony, Android etc.

Product life Cycle

Product life cycle is the concept used to analyze the industry and  there are two situations for the industry of Apple one is International and other one is Domestic. 

International - Growth Stage of Apple

As we all know that the Apple is growing very fast and Apple’s market is in the growth stage of International market. The company believes in the growth and expansion by entering into the emerging markets..

Domestic Market- Mature Stage

Talking about the Domestic market, the market of Apple is in the stage of low growth because of the existence of the high level of competition. The competitors available in the Market like Samsung, Sony, HTC etc slow down the growth of the Apple’s market (Gosnar, 2012).

Marketing Strategy

  1. Market Development strategy- The development of the market is very important to gain the market share and Apple need to look for the new market to become the successful brand of the electronic devices
  2. Market penetration: This strategy is applicable only in the case of the market that has the ability and potential to grow. As we know that the Apple is already a well established company and there is great scope for this company to shift or penetrate to already built market (Kissmetrics, 2017).
  3. Product development: Another strategy that the Apple company can adopted is to introduce the new features in the smart phones and laptops. The development of the products will help the company to compete in the market to gain the competitive advantage (Nagaraj, et al., 2013). 
  4. Differentiation- The prices of the iPhones is no doubt high and it is very difficult to purchase these products by the middle class people. The high cost of the products shows the differentiation because of the product innovation and product quality.

Current issues with Apple

  1. The high cost of the products: The high price of the Apple mobile phones is very high and it is a key issue that cost is to high for the middle class people. The people of low financial background can not afford these mobile phones because of its high prices. The problem exists when the other companies like sony, HTC, Samsung offers the mobile phones at the minimum price.
  2. Strategic positioning: The choices of the consumers changes with time and all the decisions of the company depends upon the customer choices. Apple is focusing to attract more customers and retaining the old customers to maintain it’s the same position in the market. (Blue Ocean Strategy Institute, 2012).
  3. Less investment in Computers:  One more issue observed in this company is that the company is not interested in investing its money on the desktop computers. The reason of the less investment is that the previously the company did not get any good results. The companies like Dell and Lenevo are best in investing in the computers. (Jackson, 2013).

Marketing Strategies

To solve the issues and to gain the competitive advantage in the market, the marketing mix needs to be followed as strategies. The marketing mix involves the 4P’s (price, product, place and people).

Product:- As we know, Apple is offering huge varieties of products like iphones, ipods, tablets, Macbook and all these products are the top products of the Apple. The strategy of Apple in terms of promoting its mobile phones should focus on the needs of the stakeholders of the organization.

 


Price:- The pricing strategy involves higher prices for high quality products. Thus, it should offer high prices because Apple is already best known for its quality work. The price of the Mobile phones should be set higher to attain the same position in the market and to gain the maximum market share(Khan & Alam, 2015).

Place:- This is the strategy beneficial for the distribution of the products across the world. The company can distribute its services and products with the help of market penetration through strong campaigns.  

Promotion:- The promotional strategy of the company should involve the advertising and promotions against the target audience and that advertising can be done through print media in the form of newspaper, magazines, etc. Moreover, Digital advertisement such as the use of TV advertisements etc.can also be used to promote the mobile phones of the Apple(S Alam, 2015).

Recommendations

 As we have studied in the report the Apple is a very famous brand of the mobile phones and other electronic products. This company is popular because of its innovation and quality of work. There are many issues faced by the company like high cost of the products and less investment in desktop computers. The recommendations to solve these kind of issues are given in this report. Firstly, it is recommended the company need to expand their business by opening more stores in the every part of the world.  The market share of the company can be increased by doing this

Secondly, it is also recommended that apple should start investing in the desktop computers to gain the competitive advantage. There should be proper strategic planning is to be followed.  Furthermore, the company can do well if proper strategic planning is done. For example, the cost of the iPhone 6 should be minimized with the introduction of the new version of the mobile phone iPhone 7.  Lastly, it is recommended that the Apple should do the proper utilization of the strategic management tools.

 

References

Apple Inc., 2017. Apple official website. [Online]
Available at: https://www.apple.com/in/

Blue Ocean Strategy Institute, 2012. How Apple’s Corporate Strategy Drives High Growth, Available at: https://www.blueoceanstrategy.com/wp-content/uploads/assets/videos/AppleSlides.pdf

Erika, 2014. Apple Inc.: Introduction, Available at: https://www.erikaw.com/assets/docs/ErikaWhiteAppleCase.pdf

Gosnar, A., 2012. The classification of inovations: The case of Apple Inc., Available at: https://www.cek.ef.uni-lj.si/magister/gosnar795-B.pdf

Hellman, J., 2014. Apple Inc.: A Short SWOT Analysis, Available at: https://www.valueline.com/Stocks/Highlights/Apple_Inc___A_Short_SWOT_Analysis.aspx#.WPW-llK6bIU

Jackson, E., 2013. The big five problems facing Apple: None of which is too much cash, Available at: https://www.forbes.com/sites/ericjackson/2013/02/26/the-5-big-problems-facing-apple-none-of-which-is-too-much-cash/#35c2888754b3

Khan, U. & Alam, M., 2015. A critical analysis of internal and external environment of apple inc. International Journal of Economics, Commerce and Management, June, 3(6), pp. 1-13.

Kissmetrics, 2017. 7 Key Strategies That You Must Learn From Apple’s Marketing, Available at: https://blog.kissmetrics.com/7-strategies-apple-marketing/

Nagaraj, S., Patterson, L., Schildhorn, B. & Thacher, J., 2013. Global strategy: Apple Inc., Available at: https://community.mis.temple.edu/shashanknagaraj/files/2014/04/Apple-Strategy-Paper-Group-4.pdf

S Alam, 2015. A critical analysis of internal and external environment of apple inc.: Researchgate.

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