Apple Corporate Strategy: What You Need To Know?

Apple has a strong corporate strategy. Their business began in the computer industry, but they have developed themselves to become much more than that specific industry. Now, they offer a variety of different products, including computers and phones. 

Apple provides innovative products for its customers by designing and developing everything in-house. The ability of Apple to create operating systems, hardware, software, and services gives them an edge over their competitors.

Apple’s strategy is to build products that have their own individual characteristics. There are multiple innovations Apple has developed. The iPad is a device you can use to store thousands of songs that you can shuffle through. 

Another innovation they’ve made is the development of the Macintosh computer. Apple was the first computer company to launch a graphical operating system. They were able to produce innovative designs and create a huge competitive advantage. Their ability to take the risks that come with developing new technology is one of the reasons they are so successful. 

When Apple created the original iPhone, they took cues from already existing products and added new features to what was already a good design. For example, they removed a few unpopular qualities and added unique features in order to stay ahead of competitors.

Apple takes related diversification, a strategy in which the firm’s business units share resources across different operations. This maximizes the effectiveness of all business units while maximizing efficiency. Apple has a wide variety of businesses, one being computers. They use the ability to develop hardware and software to create innovative and useful products.

All of Apple’s creations include Mac computers, iPad accessories, iPhones, and iPods. The operating system they’re based on is the same as it is for their other business ventures in Macs, iPods, iPhones, and Apple TVs. The goal is to create economies of scope. One way this would work is if every company focused on a single related platform with no irrelevant products. This creates savings across all companies in the group, such that each company doesn’t need to invest as much in unrelated technologies.

Current research provides insight into what Apple’s future strategy may be like. By offering products with similar offerings to current ones but adding new features or locations, Apple can increase its profits, cash flow, and borrowing power. 

Pursuing a diversifying strategy boosts the corporation’s overall financial health and enhances the corporate culture itself. Apple is the world’s largest IT company by revenue, number of employees, and total assets. 

The company generated USD36.4 billion in net sales in 2018, up 16% from USD31.7 billion in 2017 (Dudovskiy, 2019). Whether you measure growth by one dimension or another, a diversified approach can help you hit your goals.

Designing cutting-edge products and differentiating its products are two of Apple’s major business strategies. Apple differentiates itself by offering simple, yet attractive products with advanced functionality.

Focusing On The Product’s Functionalities & Design:

Apple has been at the forefront of innovation. In 2000, the company’s strategy centered on a focus on expanding its markets through new and advanced features and abilities for its products and offerings. In addition to the iPad, Apple also introduced the Macintosh, the first computer with a graphical interface that was able to store thousands of songs and shuffle them easily. The iMac was introduced in 1998, replacing beige boxes with translucent ones painted ‘Bondi Blue’, hinting at Apple’s aesthetic appeal.

Apple is a leader in the tech industry, and they have lots of first-mover advantages. But it can be difficult to keep first-mover advantages for long-term success. In the end, you’ll find that Apple doesn’t always innovate with new updates, which can put its competitive advantage at risk.

Enhancing The Customer Experience:

Customers at Apple are provided with an exceptional customer experience. Many Apple fans post videos of themselves unwrapping their new iPads on YouTube since the company’s success goes beyond selling products.

Apple stores, for example, are extremely user-friendly. Customers merely open the box and plug it in to use the product, without installing anything first. With more than 500 stores worldwide, where people can try the product before they buy, there is no need to worry about questions. Plus, these facilities are designed so that customers’ experience is just as easy and simple as their products themselves!

The Ecosystem Of Apple And Its Enhancement:

Apple’s fundamental integration of hardware and software expertise sets it apart from its competitors. This is why its business strategy is fundamentally integrated. With such a strong focus on integration, Apple’s competitive advantage comes from its ecosystem facilitated by such integration.

Users can switch between devices easily and have the same content on all of their devices because Apple’s products and software work well together. By doing so, Apple does not need to maintain different ecosystems like its competitors. They can instead offer additional products or services based on the relationships they already have with their customers.

Not Entirely Focusing The Sales To Run The Company:

The recent changes that took place within the timeframe of fewer than three months are evidence that Apple is prioritizing its services business and other divisions. There has been a promotion to machine learning and artificial intelligence for John Giannandrea, the departure of Angela Ahrendts as retail chief, and the removal of Siri’s head, Bill Stasior. These high-profile changes are clear indications of Apple’s move from iPhone sales to service revenue. According to Apple, its business division achieved high revenues in 2020, up 16% compared to the previous year.