Running head: APPLE INC. 1
APPLE INC. 5
October 3, 2017
Apple Inc. is an American company that was founded in 1976 by Steve Wozniak and Steve Jobs (Machajewski, 2017). Some of the products that Apple Inc. produces include the iPhone, iPad, Apple watch, and the MacBook just to name a few. Apple Inc. is considered one of the largest organizations in the world, with an estimated revenue of nearly 45 billion dollars in 2017. Apple Inc. has been successful in not only establishing a solid brand but also to having the competitive advantage needed to ensure that they are the dominant company in the industry of computer and mobile phone technology.
Environmental scanning is a process through which an organization gathers, analyzes, and dispenses information intended to serve a strategic purpose; entails obtaining relevant information in regards to the firm’s environment. Environmental scanning can cover both the internal and external environments of any organization. In the case of Apple Inc., the PESTEL analysis is a viable tool when it comes to the examination of its external environment. Some of the key areas the analysis covers include social, political, technological, and economic analysis (O’Grady, 2009). Technological analysis recognized that Apple Inc. was a trendsetter when it came to the consumer electronic business and had a strong philosophy of innovation. Social analysis, on the other hand, recognized how Apple Inc. acquired other firms, for example, Motorola, to fulfill customer needs.
Evaluation of the internal environment of Apple Inc. can be carried out through the use of a SWOT analysis. Strengths of Apple Inc. include a strong brand image, innovation, and a significant market share. Apple Inc.’s weaknesses include a general lack of control over the organization’s suppliers; its hardware products are only supported by their operating system, the iOS, where Android, its major competitor, for example, functions across various platforms. A change in overall philosophy of the organization since the death of Steve Job can also be considered as a weakness.
Competitive Advantage and Value Creation
Competitive advantage is identified as a condition through which an organization occupies a superior position in comparison to the competitors. Having a competitive advantage implies that the said organization has a significant market share and therefore is highly profitable compared to competitors. Some of the key reasons why Apple Inc. has a competitive advantage can be owed to the company’s hardware and software in its products, its retail strategy, and Apple’s brand and marketing strategy (Schneiders, 2011). Apple Inc. is considered as a software company, known for their Operating System (OS), that is iOS, which In addition to makes great hardware, not only in the personal computer field but In addition to in the smartphone industry with the iPhone.
When it comes to their retail strategy, Apple Inc. ensures that their retail stores are not only strategically located, but In addition to prioritizing. For example, Apple locates most of their retail stores in shopping malls, capitalizing on the consumer’s buying mood. Apple’s competitors have tried opening up their retail stores, and most have been unsuccessful. In addition to, through Apple’s iTunes, the company has been able to revolutionize and become synonymous with the lucrative music industry. At the foundation of Apple’s competitive advantage is the company’s branding strategy. Not only does Apple ensure that their products are aesthetically pleasing, but also to enhance the customer experience which in turn has enabled them to build a loyal following.
At the cornerstone of Apple’s mission is customer satisfaction. The management at Apple recognizes the importance of customer satisfaction as it equates to free marketing through word of mouth, as well increased number of return customers. Apple Inc. has successfully been able to build a loyal customer base, and this can be witnessed whenever the organization launches a new product, by the masses gathered outside waiting for their retail stores to open. In addition to, Apple is an organization that only does a few things, that is, it has placed its main focus on computers and smartphones and in turn has ensured that the products that they give their customers are of the highest quality.
Verification of Strategic Effectiveness
One of the ways through which Apple Inc. has been able to recognize the effectiveness of its strategies is through the number of return and loyal customers. Apple Inc. has been able to create a tribe of followers, an aspect that most other companies have failed to do, in turn ensuring their longevity and success, through their revolutionary products. In addition, Apple Inc. recognizes the importance of specialization, rather than diversification, and this has become a key component in their business plan. Apple ensures that even though they manufacture only a few products, for example, iPhone, iPad, Apple watch, and MacBook’s just to name a few, these products are of the highest quality with included with top-notch specifications.
Effectiveness of the Measurement Guidelines
At the heart of any organization is ensuring that their products are tailored for a specific market and that they satisfy the customer’s needs (Lüsted, 2012). Apple Inc. accomplishes this through the smartphones and personal computers that they unveil to the public. The effectiveness of this strategy cannot be undermined, as Apple chooses to focus its efforts on complete domination on the technological sphere. Even though competitors are following suite, Apple Inc. remains relevant with its innovative products that are always of the highest quality, and this is why most consumers that shift to Apple products rarely go back to other manufacturers.
Since its establishment in 1976, Apple Inc. has developed into one of the largest organizations in the world. The company focuses its efforts in the development of personal computers and smartphones, with innovation forming the foundation of the enterprise. Some of the key areas that have enabled Apple Inc. to have a competitive advantage have to be with its revolutionary hardware and software, retail strategy, and Apple’s brand. When it comes to the examination of Apple’s internal and external environment, the SWOT and PESTEL analysis respectively provides a detailed picture. Strengths of Apple Inc. include a strong brand image, innovation, and a significant market share. The future of Apple Inc. looks quite promising, as the company always fosters to release new products that challenge those produced by the competition. An investment in the company’s stock is also highly encouraged.
Lüsted, M. A. (2012). Apple: The Company and its visionary founder, Steve Jobs. Minneapolis, MN: ABDO Pub.
Machajewski, S. (2017). Steve Jobs: Founder of Apple Inc.
O’Grady, J. D. (2009). Apple Inc. Westport, Conn: Greenwood Press.
Schneiders, S. (2011). Apple’s secret of success – traditional marketing vs. cult marketing. Hamburg: Diplomica-Verl.
unning head: APPLE INC.
October 3, 2017
Running head: APPLE INC. 1
October 3, 2017