Apple Computer A Industry Strategy and Organization Case Solution

The Harvard Business Review published a case study that primarily focuses on Apple Computer A Industry Strategy and Organization. The following case solution has been designed to give the reader an overview about the business world along with a clear understanding of its growth dynamics. Recently, Apple Computer A Industry Strategy and Organization has been subjected to strategic as well as managerial problems that require immediate attention so that they can be resolved to allow future growth, expansion, and competitive edge within the marketplace. This case study solution is being written to provide a strategic solution to Apple Computer A Industry Strategy and Organization using various appropriate tools and frameworks. Harvard Business Review’s case studies involve a central problem that is faced by a particular company. The problem identified involves strategic and managerial implications for the company. Therefore, it is important for readers to critically identify the problem Apple Computer A Industry Strategy and Organization faces. Moreover, it is also essential to highlight the key stakeholders that are impacted and influenced by the problem identified.

External Environmental Analysis

The external environment holds significant importance for Apple Computer A Industry Strategy and Organization to ensure that the company is able to respond to all the changes in the macro-environment. This is because Apple Computer A Industry Strategy and Organization cannot control the factors and thus can directly influence the company's operations (Indris & Primiana, 2015). The external environment of Apple Computer A Industry Strategy and Organization will be assessed using PESTLE Analysis.

Political

• A stable political environment provides a favorable market growth trend for Apple Computer A Industry Strategy and Organization.

• It is important for Apple Computer A Industry Strategy and Organization to analyze the pressure groups, and social environment activists. The company can make close collaborations with these groups to achieve company goals (Wang, Wang, & Shi, 2022).

• High restrictions on trade and high levels of taxes can contribute to the complex business environment for Apple Computer A Industry Strategy and Organization by impacting imports and exports.

Economic

• Apple Computer A Industry Strategy and Organization can benefit from wide-range opportunities in business growth by operating in developing economies (Munro, 2017).

• High GDP can determine the long-term growth strategies of Apple Computer A Industry Strategy and Organization, signaling the ability of consumers to spend on more products.

• Higher rates of interests can provide Apple Computer A Industry Strategy and Organization with more investment opportunities.

• The flexibility in the labor market allows Apple Computer A Industry Strategy and Organization to take advantage of higher workforce productivity.

Social

• The selection of appropriate demographic segments has allowed Apple Computer A Industry Strategy and Organization to select the right segments of the market that have high growth potential.

• The research on gender roles has helped Apple Computer A Industry Strategy and Organization to develop and align communication as well as marketing strategies accordingly.

• Apple Computer A Industry Strategy and Organization has been successful in understanding the norms and cultures of different countries by developing local teams and partnerships (Hueske, Endrikat, & Guenther, 2015).

Technological

• The adoption of innovative marketing techniques that involves communication technologies has allowed Apple Computer A Industry Strategy and Organization to collaborate successfully with consumers.

• The company has stayed ahead in the market, and can significantly increase its market share by placing its major focus on emerging technologies (Akpoviroro & Owotutu, 2018).

• Apple Computer A Industry Strategy and Organization should maximize its profits by investing in disruptive technologies.

Environmental

• It is crucial for Apple Computer A Industry Strategy and Organization to adopt effective waste management practices to reduce environmental pollution (J. K, W. J, & D., 2016).

• Apple Computer A Industry Strategy and Organization should adopt eco-friendly products to establish better relationships with the stakeholders.

• Apple Computer A Industry Strategy and Organization can take advantage of subsidies offered in renewable technologies to achieve the long-term goal of sustainability.

Legal

• Apple Computer A Industry Strategy and Organization should follow proper laws concerning employee health and safety, and anti-discrimination laws to effectively develop HRM.

• Consumer protection laws are also important for Apple Computer A Industry Strategy and Organization as it involves the consumer protection from fraudulent marketing (S. Samusenko, S. Plaskova, & A. Prodanova, 2020).

• Apple Computer A Industry Strategy and Organization can gain a competitive advantage, and can position itself strongly in the market by protecting intellectual property laws.

Porter’s Five Forces Analysis

Threat of New Entrants

• It is difficult to achieve economies of scale in Apple Computer A Industry Strategy and Organization’s industry, making it a weaker force for new entrants.

• There are high capital requirements in the industry. This makes it difficult for new businesses to set up their companies, and compete against Apple Computer A Industry Strategy and Organization.

• The industry has a strong product differentiation, and heavy investment is needed for customer acquisition. Thus, Apple Computer A Industry Strategy and Organization can focus on innovation to differentiate itself from its competitors (H. Th. Bruijl, 2018).

• There are strict legal requirements to join the industry in which Apple Computer A Industry Strategy and Organization operates, making it difficult for new entrants to enter the market.

Bargaining Power of Suppliers

• The bargaining power of suppliers in the industry is weak.

• Apple Computer A Industry Strategy and Organization operates in an industry with a higher number of suppliers. This means that suppliers do not have much control over their prices.

• Standardized products that have low switching costs are provided by suppliers allowing buyers like Apple Computer A Industry Strategy and Organization to easily switch their suppliers (Fabbri & F.Klapper, 2016).

• Raw materials can be purchased at lower prices by Apple Computer A Industry Strategy and Organization. The company can also switch suppliers for more reasonable pricing.

• Apple Computer A Industry Strategy and Organization can benefit from a variety of suppliers as it can have multiple suppliers for its various geographical areas (Cho, Ke, & Han, 2019).

Bargaining Power of Buyers

• The bargaining power of buyers in the Apple Computer A Industry Strategy and Organization industry is weak.

• There is a high product differentiation in the industry, making it difficult for buyers to switch to alternative firms.

• Apple Computer A Industry Strategy and Organization can come with differentiated and innovative products to attract more buyers of the industry (Zhao, Zuo, & Wu, 2016).

• Buyers of this industry has low incomes. This means they prefer to purchase items at lower prices, making them more price sensitive. Organizations like Apple Computer A Industry Strategy and Organization can offer lower prices to attract customers.

Threat of Substitute Products or Services

• There are few substitute products available in the industry in which Apple Computer A Industry Strategy and Organization operates.

• Expensive substitutes are available in the industry of Apple Computer A Industry Strategy and Organization, making it difficult for buyers to switch to those substitutes (Aithal, 2016).

Rivalry Among Existing Firms

• The rivalry among existing firms is moderate to weak.

• There are few competitors in the industry in which Apple Computer A Industry Strategy and Organization operates.

• A large market share is enjoyed by fewer firms in the industry. This means that more competitive actions will be made to become leaders in the market (Seema, 2016).

• The industry in which Apple Computer A Industry Strategy and Organization operates has highly differentiated products, making it difficult for companies to win each other customers.

• Apple Computer A Industry Strategy and Organization can focus on making more differentiated products to gain a strong competitive edge in the market (Zhao, Zuo, & Wu, 2016).

Internal Environmental Analysis

Apple Computer A Industry Strategy and Organization can use internal environmental analysis to identify and evaluate the competitive positioning of a company in the business environment. This involves conducting a SWOT Analysis that can help Apple Computer A Industry Strategy and Organization to identify the company’s internal strengths, weaknesses, opportunities, and threats (Halmaghi, Iancue, & Băcilă, 2017).

SWOT Analysis

Strengths

• Apple Computer A Industry Strategy and Organization has a strong distribution network that has allowed it to make its products available to large customers within the given timeframe.

• A strong presence on social media platforms has allowed Apple Computer A Industry Strategy and Organization to have a high level of customer engagement (Rizaldi, 2015).

• Apple Computer A Industry Strategy and Organization has been successful in building a large product portfolio, so unique and distinctive products can be offered to consumers.

• Apple Computer A Industry Strategy and Organization has a strong brand image in the market.

• A low-cost structure of Apple Computer A Industry Strategy and Organization has allowed it to manufacture products at lower costs, so they become affordable for consumers to purchase.

• The financial position of Apple Computer A Industry Strategy and Organization is strong as the company has generated higher profits over the past years (Phadermrod, M.Crowder, & B.Wills, 2019).

• Apple Computer A Industry Strategy and Organization has invested in the training and development of its employees to keep them motivates, leading to higher efficiency and productivity.

Weaknesses

• The expenditure of Apple Computer A Industry Strategy and Organization on its research and development is comparatively less to other competitors of the market.

• Apple Computer A Industry Strategy and Organization uses a centralized decision-making process that takes time and reduces operational efficiency (Ahmadi, Dileepan, & K. Wheatley, 2016).

• There are high rental costs because Apple Computer A Industry Strategy and Organization operates on more of the rental properties rather than purchasing them.

• There is no workforce diversification in Apple Computer A Industry Strategy and Organization. This makes it difficult for the employees to adjust with the different workers who belong to different backgrounds.

Opportunities

• Since the online shopping has increased significantly, Apple Computer A Industry Strategy and Organization can take it as an opportunity to expand its online presence.

• Apple Computer A Industry Strategy and Organization can make use of social media platforms to market its products, with more customers interactions.

• Due to more technological developments, Apple Computer A Industry Strategy and Organization can make its operations more automated so that overall company costs can be reduced (Ahmadi, Dileepan, & K. Wheatley, 2016).

• Globalization provides an opportunity to Apple Computer A Industry Strategy and Organization to expand its operations in multiple countries.

• Apple Computer A Industry Strategy and Organization can enter in a niche market and sell distinctive products to gain a competitive advantage.

• The increase in the demand of environmentally friendly goods, Apple Computer A Industry Strategy and Organization, can place its major focus on making such products (E.Quezada, A.Reinao, & I.Palominos, 2019).

Threats

• In recent times, there has been an increase in the bargaining power of suppliers, making it difficult for Apple Computer A Industry Strategy and Organization to buy raw materials at lower costs.

• Numerous players are entering the industry, posing a major threat to Apple Computer A Industry Strategy and Organization.

• There has been constant pressure on Apple Computer A Industry Strategy and Organization to conduct frequent research to understand the changing customer tastes and preferences (Kolbina, 2015).

• Technological advancements require workforce training. This adds to the costs of Apple Computer A Industry Strategy and Organization.

VRIO Analysis

Apple Computer A Industry Strategy and Organization uses VRIO Analysis to assess and evaluate the company resources to determine the competitiveness, and strategic advantage.

Valuable

• Apple Computer A Industry Strategy and Organization has a strong brand image and engages in corporate social responsibility.

• Apple Computer A Industry Strategy and Organization has a high brand recognition because of the quality of products it offers to its customers (Ariyani & Daryanto, 2018).

• The distribution system of Apple Computer A Industry Strategy and Organization is valued all round the world. The company has been able to successfully establish strong relationships with its suppliers.

• Apple Computer A Industry Strategy and Organization focuses on continuous innovation in its business. The company has expanded this innovation in its multiple functional areas.

• There are potential growth opportunities in the market, and Apple Computer A Industry Strategy and Organization has been able to penetrate the market through its ability to raise large funds.

Rare

• Apple Computer A Industry Strategy and Organization operates globally. This global presence has allowed the company to increase its customer base (Miethlich & G. Oldenburg, 2019).

• Apple Computer A Industry Strategy and Organization has an organizational culture that promotes more teamwork, innovation, and creativity among its employees, that leads to a competitive advantage.

• Since Apple Computer A Industry Strategy and Organization has a global presence, it allows the company to easily adapt to different cultures, norms and values.

• The risk-taking ability of Apple Computer A Industry Strategy and Organization is strong. This provides more opportunities to the company to penetrate different markets.

Inimitable

• The inimitable resource for Apple Computer A Industry Strategy and Organization is its high-quality products. These products have allowed consumers to make repeat purchases.

• Apple Computer A Industry Strategy and Organization operates through multiple locations of stores in different companies, allowing easy access to products.

• Strong marketing communications have been used by Apple Computer A Industry Strategy and Organization to attract more customers.

• Apple Computer A Industry Strategy and Organization has been using integrated technology that has allowed it to offer competitive pricing to its customers (Ariwibowo, Saputro, & Haryanto, 2021).

• Apple Computer A Industry Strategy and Organization maintains an excellent customer service that has enabled it to have a high brand engagement.

Organization

• Strong financial position has allowed Apple Computer A Industry Strategy and Organization to explore more product development opportunities.

• Apple Computer A Industry Strategy and Organization is successfully maintaining the efficiency and effectiveness of its business operations with the help of more integrated and advanced technology.

• Employees are given both in-house and off-the-job training opportunities by Apple Computer A Industry Strategy and Organization that allow more skills development (Adnan, Abdulhamid, & Sohail, 2018).

• The strong value chain and distribution network has enabled Apple Computer A Industry Strategy and Organization to increase its revenue through the sale of its products.

Marketing Mix

Marketing Mix is needed by Apple Computer A Industry Strategy and Organization to formulate effective strategies to achieve the company objectives.

Product

• Apple Computer A Industry Strategy and Organization has five product categories. Each of these categories has a product line that involves more variety of products (Išoraitė, 2016).

• Highly differentiated products are offered by Apple Computer A Industry Strategy and Organization to its customers. These distinctive products are not easily available at competitors.

• The products of Apple Computer A Industry Strategy and Organization are of higher quality, and thus, customers pay more prices for these products.

• Apple Computer A Industry Strategy and Organization designs products with traditional designs giving customers more product variety.

• Apple Computer A Industry Strategy and Organization offers multiple sizes for its every product to make it easy for its customers to select the right product.

• Warranty and same-day delivery option if also provided by Apple Computer A Industry Strategy and Organization to its customers.

Price

• Apple Computer A Industry Strategy and Organization follows a competitive pricing strategy.

• To attract more customers, bundle pricing has also been used by the company.

• Little higher prices are charged for products that are sold online because of the delivery costs (Thabit & Raewf, 2018).

• Optional product pricing strategy is also adopted by Apple Computer A Industry Strategy and Organization for some of its products, such as a base product is offered for a certain price, and there are separate prices for its accessories.

• Regular promotional prices are also offered by Apple Computer A Industry Strategy and Organization to its customers.

Place

• Apple Computer A Industry Strategy and Organization uses two channels for its product distribution. This includes online selling and through own stores.

• There are more than multiple stores owned by Apple Computer A Industry Strategy and Organization globally. This ensures easy product availability to customers (Pogorelova, Yakhneeva, & Agafonova, 2016).

• Apple Computer A Industry Strategy and Organization has partnered with delivery service companies to distribute its products effectively to consumers.

• Apple Computer A Industry Strategy and Organization has also adopted an omni-channel distribution system.

Promotion

• Apple Computer A Industry Strategy and Organization uses a traditional promotional strategy that involves TV advertisements (Fan, Y.K.Lau, & Zhao, 2015).

• Social media advertisements are also adopted by Apple Computer A Industry Strategy and Organization to increase brand awareness.

• Apple Computer A Industry Strategy and Organization takes part in various events and exhibitions as a way of promoting its products.

• Large sales force is used to provide the customers with a more personal experience.

• Apple Computer A Industry Strategy and Organization also makes use of influencer marketing to increase the demand for its products.

• Regular content and deals are posted on the social media pages of Apple Computer A Industry Strategy and Organization to attract and retain customers.

Value Chain Analysis

Apple Computer A Industry Strategy and Organization can use Value Chain Analysis to identify and assess inter-relationships as well as interdependencies.

Primary Activities

• Apple Computer A Industry Strategy and Organization’s primary activities involves the production and selling of products to the final consumers (Mintz, J.Gilbride, & Lenk, 2021).

• Apple Computer A Industry Strategy and Organization has a strong relationship with the suppliers. This ensures that the product is received, stored, and distributed in a timely manner.

• Operational activities of Apple Computer A Industry Strategy and Organization are effectively aligned.

• For inbound logistics, after the arrival of raw material, the company processes it to manufacture the final product (Hasan, Nekmahmud, & Yajuan, 2019).

• In terms of outbound logistics, Apple Computer A Industry Strategy and Organization has been able to set up optimal costs as well as efficient delivery processes to deliver the product on time.

• Apple Computer A Industry Strategy and Organization invests in its sales and marketing activities to build relationships with customers.

• Marketing funnel approach is used by Apple Computer A Industry Strategy and Organization to effectively devise and build sales and marketing activities.

• Apple Computer A Industry Strategy and Organization offers both pre-sale and post-sales services to its customers.

Secondary Activities

• Apple Computer A Industry Strategy and Organization has an effective infrastructure that has allowed the company to successfully optimize its value chain.

• The competitive pressure in terms of employee skill development, motivation, and commitment is reduced as Apple Computer A Industry Strategy and Organization has developed a strong HRM (Linkov, Carluccio, Pritchard, & Bhreasail, 2020).

• Apple Computer A Industry Strategy and Organization uses a cost minimization approach to reduce its costs by analyzing the costs associated with training and hiring the employees.

• Apple Computer A Industry Strategy and Organization has been using integrated technology in its value chain activities. This includes technological customer support, research and data analytics concerning product design, and automated software.

• The procurement activities of Apple Computer A Industry Strategy and Organization are effectively optimized with its inbound, outbound, and operational activities (Maheswari, Yudoko, & Adhiutama, 2019).

Market Penetration Strategies

• Apple Computer A Industry Strategy and Organization can increase the capacity of its production so it can reach more of the customers in its existing market.

• Apple Computer A Industry Strategy and Organization can focus on controlling the overhead costs so that it can offer competitive pricing that can attract customers of the market (Dawes, 2018).

• Investments can be made by Apple Computer A Industry Strategy and Organization in marketing and sales activities to increase the chances of successful market penetration.

• Apple Computer A Industry Strategy and Organization can design and develop a content that increases customer engagement within a particular marketplace.

• Apple Computer A Industry Strategy and Organization can assess and identify more enhanced distribution networks (Radpour, Mondal, & Kumar, 2017).

• Improved distribution systems and supply chains can improve the product accessibility for the customers, making it easier for Apple Computer A Industry Strategy and Organization to penetrate the market.

• Apple Computer A Industry Strategy and Organization can adopt price cuts in its products to compete in the market. This will give a company a competitive edge over its competitors.

• Apple Computer A Industry Strategy and Organization can plan strategies where it can focus on acquiring the leading players of the market. Such acquisitions will give the company an opportunity to reach more customer segments.

• Strategic partnerships and joint ventures agreements can be signed by Apple Computer A Industry Strategy and Organization to mitigate the risk factors, and to gain customer groups of the market.

• Apple Computer A Industry Strategy and Organization can come up with new and innovative features in its already existing product for the market (Daouda, Barth, & T. M. Ingenbleek, 2019).

Market Development Strategies

• It is important for Apple Computer A Industry Strategy and Organization to invest in the research and development department so potential markets can be identified (Hilman, Bohari, & Abdullah, 2018).

• Regional expansion strategy can be used by Apple Computer A Industry Strategy and Organization for growth purposes. This will also take into consideration the cultural differences.

• Apple Computer A Industry Strategy and Organization should also consider to expand its business operations in the international market. This will allow access to a larger customer base.

• New customer groups and segments should be explored by Apple Computer A Industry Strategy and Organization.

• Apple Computer A Industry Strategy and Organization should also invest in brand-building activities as it will give an opportunity to reach more potential customers (C. Koks & M. Kilika, 2016).

• Apple Computer A Industry Strategy and Organization should consider the market education in terms of its product. The company can significantly increase its sales by giving product awareness to new segments.

Product Development Strategies

• Apple Computer A Industry Strategy and Organization can come up with new improvements and modifications in the existing products to attract the market.

• Apple Computer A Industry Strategy and Organization should undergo the NPD process, so the company is able to assess and identify new points for its customers.

• Regular investments in the research and development will help Apple Computer A Industry Strategy and Organization to develop something new and innovative that can give a competitive advantage (Kalogiannidis & Mavratzas, 2020).

• Apple Computer A Industry Strategy and Organization can develop new products by getting into more strategic partnerships.

Diversification Strategies

• Apple Computer A Industry Strategy and Organization can adopt vertical diversification to develop business. This can be done by adding more products to the existing portfolio (Kalogiannidis & Mavratzas, 2020).

• Horizontal integration can also be adopted by Apple Computer A Industry Strategy and Organization, where the company can enter into a completely new product development phase that does not exist in the current product line.

• Apple Computer A Industry Strategy and Organization can also consider to conglomerate by starting a different business.

Conclusion

Based on all the models and frameworks discussed above, it is concluded that Apple Computer A Industry Strategy and Organization should focus on widening the existing product portfolio. Moreover, the psychological pricing strategy can be adopted. Apple Computer A Industry Strategy and Organization should also maintain close relationships with its suppliers to benefit from lower prices. Similarly, Apple Computer A Industry Strategy and Organization should develop more integrated outbound logistics for its perishable items. It is also important to continue producing quality and innovative products, so Apple Computer A Industry Strategy and Organization is less affected by the new emerging competition in the industry.

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