In this assignment, you are to use the same corporation you selected and focused on for Assignments 1, 2, and 3. Consider the corporation you have selected to use in your first three assignments. Iden

Running head: BUSINESS-LEVEL STRATEGIES 1

Week 8 Assignment 3

Phabian Smith

University of Phoenix

BUS 499: Business Administration Capstone

Dr. Keller

Dr. Gardner

August 25, 2019

Business-Level Strategies 2

Week 8 Assignment 3

Often companies will achieve effective corporate and business planning depending on the environment they operate. Such decisions are vital since they dictate the success level and failure rate for an entity. Therefore, where the achieved strategy remains unresponsive several businesses will often hire professionals to help identify, revise and sharpen the enterprise strategic wits (Hitt et al., 2013). A better strategy is that which pitches its goal (mission and vision) and position it above competitors. For businesses operating in any given industry the need to stiffen competition determine the chances of success and business would engage in various strategies that suite the competitiveness in a different situation. Therefore, this assignment will focus on Apple Inc., to determine its various business level and corporate level strategies for competition in its environment of operation.

The Apple Company Business-Level Strategy

According to Hitt and colleagues (2013), the implementing a business level strategy is crucial for enterprises to compete in the market and mainly involve strategies of how to achieve value on portfolio offered to customers/ market. Therefore, for Apple Company it has continued to differentiate itself in the tech market by exploiting its competencies in serving an innovative brand of tech products and services to the expectation of consumers in the tech market. Essentially, Apple Company business-level strategy stems from its differentiated/ incomparable competence to innovate OS, as well as other application software, hardware, and tech services (Moimaere, 2019). Apple Inc. also has revolutionized consumer experience by developing gadgets and software’s that are user-friendly and with superior quality. The firm also has other initiatives such as AppleCare services offered to its consumers to ensure quick delivery of tech solutions and assure seamless integration for its different version of Apple devices. Towards achieving such milestone, the firm heavily invests in its R&D

Business-Level Strategies 3

department, as well as in marketing activities to come up with innovative solutions that are acceptable for the tech market. Apple also promotes third-party content in its iTunes Store; a strategy that is enabling it to enlarge its platform (Moimaere, 2019).

Justification

Using differentiation as a part of Apple business strategy it continues to communicate to the market about the quality and value in its offering. The strategy is suitable for retaining loyal customers and attracting new consumers, thus achieving a significant ranking above its competition (Hitt et al., 2013).

The Apple Inc., Corporate-Level Strategy

Rendering from studies by Hitt and fellow authors (2013), the corporate level strategy involves organization-wide planning achieved by the upper level of management and implemented by the other lower-level manager. For Apple Company, a corporate-level strategy is critical for building up to the competition with other firms for the available tech market. An important corporate strategy for Apple in the case has always been on including similar designs methods for its branded products. Having achieved similar (consistent) designs for its iPad, Apple TV, and even iPhones its different product features render them compatible and need not be formatted (Gil, 2016). Such qualities render their products more visible and successful over other brands. Apple is also meticulous and precise in the manufacturing criteria that enable it to produce a simple and powerful design of tech gadgets; again, elevating its reputation in the vast market. Apple corporate advantage again lies in the fact that it comprises of the few computer and technology companies with an established retail chain to sell its brand and bring its services nearer to the global markets (Moimaere, 2019). Meaning, it has an established online and offline presence to serve consumers at an advanced level to assure comfortability and convenience for their clients.

Justification

Relying on corporate strategy is critical for Apple management to link up their varied business processes and closely observe sales performance, as well as account for logistics achieved by the firm in moving/ retailing of its products. Implementing corporate strategies guarantees long-term success for the firm. For example, the prospect of achieving worldwide retail outlets is a corporate strategy that will ensure the firm use of its economies of scale to penetrate the local markets and tailor its product to meet the varied needs of its customers in Europe, Asia, and Africa. This enables the firm to achieve targeted marketing criteria responsive for portfolio and market share growth (Moimaere, 2019; Gil, 2016).

The Competitive Environment

Apple Company operates in a very dynamic marketplace. The dynamism is fuelled by potential entrants into the sector, as well as genius product innovations rapid for the technology markets. Continuous innovation and quick obsolescence of technology remain a primary threat to competition in the sector (Gil, 2016). For Apple companies, its closest market challenger is Samsung, with other small competitors consisting of Nokia, Sony, and Microsoft. Samsung as the primary market challenger for Apple controls a notable portion of the technology markets worldwide. Samsung venture in a similar industry, markets, and with a similar product as Apple and is increasingly gaining popularity in extensive markets. The basis of competition has overtime been proliferated within the smartphone industry (Moimaere, 2019). Nonetheless, Samsung has been performing remarkably in major developing markets in Asia and Africa owing to its affordability. As for Apple, most of its market is concentrated in Europe and America and is widely associated with high-end consumers. As such, sale of Apple products still lags behind/ perform poorly in developing economies as they remain unaffordable and unsustainable for the need of mostly

impoverished population (Gil, 2016). Therefore, in overcoming competition by Samsung it is prerequisite that Apple diversifies its manufacturing tactics to solicit consumer responsiveness to their affordable portfolios. Such initiatives by the company will privilege its lower cost of operations especially in developed nations, as well as remain competitive through continuous innovation and penetration of new markets (Hitt et al., 2013).

Strategy comparison between Apple and Samsung

The enduring battle between Samsung and Apple remain indecisive especially considering that they are still the leading smartphone producers in the world (Gil, 2016). For Samsung, it deploys a low-cost differentiated strategy within its business process where it aims to better its product line quality for a similar product produced by its other lower-level competitors. Relatively, Samsung engages in extensive market research practice as a corporate strategy for competing in the global market. Essentially, Samsung already has a breakthrough for better performance into the future compared to its counterpart Apple. This is further supported by acts that Samsung products are increasingly becoming more reliable and affordable and with further added capability for every version being introduced to the market (Gil, 2016).

The Market Cycle Associable with Apple Company

Acknowledging from studies by Hitt and co-proponents (2013), the fast-paced/ cycle markets are those whose competitiveness arises from their imitable characteristic and are cheaply priced for fast-moving portfolios/ items. Conversely, the slow-paced/ cycled markets are those whose competitiveness arises from their inimitable characteristic and are highly priced for quality and high-end patented commodities. The variations between the two cycles are primarily pegged on the possibility of imitation and patent right status (Hitt et al., 2013). These cycles form the basis for the differences in ranking of the two firms with Samsung

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ranking within the fast-cycle markets and Apple within the slow-cycle markets. The two tech giants have for a long time been engaged in patent fights and the aftermath of the jury decision July 2018 Apple won the patent battle against Samsung, where it was awarded over $339 million in infringement benefits. The outcome of the case further did not only confirmation of the market cycles both firms participates, but also intensified the rivalry for both firms to serve the smartphone markets with patented innovations (Gil, 2016). Nonetheless, Apple has the potential to grow in the fast-cycle markets only if it diversifies its portfolio and focus on the consumer side of its market to achieve affordability for its items. While focusing on quality and innovative features to offer to the market, the company should also focus on affordability and adaptableness for its product (Moimaere, 2019).

Conclusion

Apple Technology Company is a dominant player within the telecommunication market and has particularly been the focus of the assignment owing to its noteworthy contribution within the industry (Moimaere, 2019). The firm majorly deploys a differentiated business strategy to offer unique products against its competition, and in extensive pursued growth within its corporate strategy to expand its operations in several markets worldwide. Samsung also emerges as a close challenger for the firm with the prospect of even doing better and exceeding Apple growth potential to become the market leader. However, for Apple to retain its positioning in the tech market it should consider diversifying its portfolio and serving developing markets with affordable alternatives (Hitt et al., 2013; Gil, 2016).

References

Gil, E. M. (2016). Samsung v. Apple: Taking a bite out of the design patent article of manufacture controversy. U. Miami Bus. L. Rev., 25, 67.

Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2013). Strategic management: Concepts and cases: Competitiveness and globalization (10th ed.). Mason, OH: South-Western Cengage Learning.

Moimaere, H. (2019, May 29). What is Apple's strategy? Retrieved August 23, 2019, from https://medium.com/swlh/what-is-apples-strategy-8e9d822732f6