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Apple Strategy Case Study

Essay by   •  November 21, 2012  •  Case Study  •  911 Words (4 Pages)  •  1,966 Views

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1. Current strategy

Apple is currently operating its differentiation strategy.Differentiation strategy (Hanson et al 2011) refers to "an integrated set of actions taken to produce goods or services (at an acceptable cost) that customers perceive as being different in ways that are important to them". Differentiators always target who regard that value is created for them because of the firm's products differ from those produced and marketed by competitors. Things below are exactly what Apple always does. Apple established iTunes which was the first software that connects Mp3 players with related software, and contains many items such as music downloading and podcast using. Some of its competitors like Sony also developed this type of programme, while that had no influence on Apple's differentiation strategy. Moreover, Apple is famous for its innovation and R&D-oriented strategies. Like Siri, the first application work by mobile phones, providing intelligent personal assistant and helpful navigator. That is a typical example of the company when implementing its differentiation strategy.

In the term of corporate strategy, according to the case, Apple conducts the related constrained diversification strategy. There are similarities among its main products in several parts in its product design, materials, suppliers and sales channels. For example, all its mobile products are installed with the same system, names iOS and the company corporate with Sharp for its mobile devices' screen production. There are both advantage and disadvantages of this related constrained diversification strategy. Due to this strategy, it is evitable for Apple to create value and exploit economies of scope with the contribution of its capabilities and resources. Besides, it is extremely convenient that customers are access to all they need by entering iTunes, whatever the type of product they occupy. While it is negative to see that the similarity of the products may reduce the customers second purchasing desire if they have already owned one product. What is more, if they can not fit for the operation of one product, the other kinds of products may suffer a loss.

When it comes to the international strategy, it is apparently to identify it is now conducting its global strategy as the case explained. Global strategy is defined as an international strategy by which the company provides standardized product across the global market, with its competitive strategy pronounced by the home office. According to the case, Apple sets its global headquarter in California, US, along with distributing products throughout the global market and providing its iTunes and app stores accessible to customers globally.

But for its cooperative strategy, it is reported that Apple implements its non-equity strategic alliances. This strategy refers to the alliance among two or more firms, which takes the purpose developing contactual relationship in order to share their



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