Question #1: Last week we took a brief, broad-brush, look at the Apple case, and you were asked to identify the key issues and

Question #1:

Apple has been able to out pace its competitors by applying different unique approaches to its products as well as the market. For every product that Apple creates, they must first want it themselves. This is a different approach which many of its competitors do not use. Most technology companies put technology first then followed by whether people wants it or not and that is why Jobs when he was alive, used to be the first user of new Apple product. According to this example, Jobs represented the real customer and engineers in the firm make Apple products for themselves first then customers later.

Another factor that contributes to Apple success in the current technology market is that they make their products easy to use by keeping things simple form day 1 of design. Their products are easy to understand and learn while their competitors some have complex gadgets. They also have the habit of making products that Apple can do it better. Apple reinvents products that are already in the market by marking them better.

Question #2:

How the following concepts can be incorporated to bring the best performance in an organization.

Intellectual Property Rights

These are rights given to a person over the creations of his or her mind and give the creator exclusive right over the use of the creation for a certain specific time. Organizations can use intellectual property rights to protect their distinctive signs which are mostly trademarks, which usually distinguish what the firm offer from those of other competitors. This protection aims that ensuring fair competition and protection of the consumer.

Value chain

It is important for organization to carry out activities that add value to whatever they are involved in as well as provision of after sales services which make a customer to come back for more or recommend to a friend.

Transaction Cost Economics

This theory explains why firms do some transactions within itself rather than in the market especially when the basic assumptions for the market to be efficient fail to hold. For an organization to be in a good shape to be competitive in the market, it should hold some transactions within the organization.

Vertical Integration

Organizations should apply this strategy when expanding its business operations within the same production path. In this scenario, the supply chain is owned by the same organization and members of the supply chain produce different products which combine to satisfy a common need.

Environmental Determinism

The environment in which an organization is set is important when analyzing the success of the firm. The location should be easy to access as this determine how products produced can reach the market as well as sourcing of raw materials.

Business-level Strategies and Generic Strategies.

Organizations should apply business level strategies and generic strategies that tend to exploit the full potential of the determined market. Organizations should strategies well in order for them to top of the game in the market and out pace their competitors.

Question #3:

When it comes to internal analysis of an organization, I do feel Resource Based View (RBV) is the best way in determining the firm’s strategic positioning and potential. The top management of organizations should look inside the firm to find sources of potential competitive advantage instead of the competitive environment.

When an organization applies Resource Based View (RBV), it will be much more feasible to exploit external opportunities by using existing resources in a rather new way than when try to acquire new skills for each different opportunity. In this particular model, resources are given a major role in helping organizations to achieve higher performance.

Question #4:

Business level strategies through generic strategies

Generic strategy is way of positioning an organization within an industry and this strategy allows executives to focus on the core elements of the company’s business level strategies. For instance, you can find several local based eateries in the same location and each and every one of them competes using a business model and it should be at least unique. When executives of these restaurants are analyzing their company, they should avoid being distracted by the other firm business level in order for them to not to loss focus on the big picture.

According to Porter, there are two competitive dimensions when it comes to business level strategy. Thee first being the source of competitive advantage, which involves whether a firm tries to gain an edge on its competitors by keeping costs low or providing unique products. The second dimension is the firm scope of operations and it involves whether the firm target general customers or just a segment of the customers.

The four generic business level strategies emerges form these decisions and they are: cost leadership, differentiation, focused cost leadership and focused differentiation. In most cases it is rear to offer both low prices and unique feature at the same time and if this happens, the firm is probability using best cost strategy and those firms that are unable to offer low prices as well as unique features, they are referred to as “stuck in the middle.”

I do prefer a firm that focuses on cost leadership as they sent limited efforts when it comes to sales and marketing. This is because they can keep the costs low by not spending much on advertising.

Question #5:

Michael Porter on Competitive Strategy

I find this video simple to understand and comprehend in that it explain clearly on what buyers are happy with when buying. Buyers are happier when they pay less for more whereas suppliers want to get paid more while delivering less.

The video also give an insight on how it is easy for new forms to enter a market and the corresponding costs involved. After watching this video, I was able to learn more on industry growth, brand identity, product differences, and barriers to exit as well as diversity of competitors in the market. After viewing this video, I learn that it is very important for organizations to up their game when it comes to competitive strategy since if you are left behind, you will loss the market share to your competitors.

Question #6:

I do agree that the five questions in the book “Playing to win” capture the essence of strategy and I do also believe that Apple has in one way or another answered and implement these five questions appropriately. Apple has been able to fulfill its winning aspiration by creating what they can do best. Their products are design in such a way that they are easy to use and simple to learn on how to use them. Apple has strategized on where to play and ways to win in the technology sector. They have put in place for them to have a competitive advantage over their rival by viewing their new designs in terms of what they need themselves then think later about the customer. This has made it possible for Apple to design new unique products which will later put them a head of their competitors, especially those doing designs according to the current technological trends.

References

http://techland.time.com/2012/05/07/six-reasons-why-apple-is-successful/

https://www.strategicmanagementinsight.com/topics/resource-based-view.html

https://saylordotorg.github.io/text_mastering-strategic-management/s09-selecting-business-level-strat.html