Solution
Abr Writing answered on
May 24 2020
Strategic Dimensions Analysis
Running Head: Strategic Dimensions Analysis
Strategic Dimensions Analysis 16
Strategic Dimensions Analysis
Table of Contents
Introduction 1
Generic Business Strategy Analysis 2
Organizational Culture Analysis 5
Formal Organizational Structure Analysis 9
Impact of formal organizational structure on communications and decision making style 11
Conclusion 12
References 13
Appendices 17
Introduction
This paper discusses the strategic dimensions of Apple Inc. It is a famous American information technology organization that recognized for its high-quality products and services. The main motive behind the discussion about the strategic dimensions of Apple Inc. is to study its generic business strategy, organizational culture, and formal organizational structure. At last, the recommendation is also given to recommending some better strategies to the company through which it can maintain consistency in its operations and leads in the market. Apart from this, the conclusion statement also provides that represent the linkage and consistency between its discussed business dimensions. In order to evaluate the strategic dimensions of Apple Inc., we have used the secondary research sources. The reason behind the use of the secondary research sources is to use the newspapers and online published or non-published media channels to get significant information about the strategic dimensions of the organization. This paper will prove very beneficial for the target audience because it will provide them an opportunity to learn about the Apple Inc. and its business strategies.
Company Background
Apple Inc. is one of the famous and leading Australian business organizations. It is best known for its high-quality products and services that become the reason for its regular improved profitability and productivity as well. Despite a strong
and image and rapid growth in the late 1980s, it went bankrupt in 1996. After this, the Steve Jobs manage the CEO position of the company. In the ownership of Steve Jobs, the “Apple Computer” renamed as Apple Inc. to reflect the company expansion into innovative non-PC products and electronic market (Annual Report, 2016). After the management of Steve Jobs, the organization launches a wide range of products and services that become the reason for its improved competitive edge and market reputation. For example, it launches iPod, iPad, and iPhone into the market. The organization stands as a global technology powerhouse, surpassing its major competitors like Microsoft to become one of the world’s most valuable companies. On the basis of its differentiation strategy, Apple Inc. able to prove its operations as distinctive and attractive initiatives that position the company as a hip alternative to other potential
ands within the Information Technology industry of Australia. Due to its high-end strengths, Apple takes advantage of the opportunities and minimizes the impact of the inherent risks (Annual Report, 2016). Also, it is considered as a top company due to its high quality and innovative products and services. The company does a huge investment in regular research and development activities. As a result, it launches innovative products and services with high-quality features and variant. Hence, on the basis of its high-quality products and services the organization win the confidence of its target customers and market itself as one of the foremost demanding organization in major countries like UK, India, and Australia as well.
Generic Business Strategy Analysis
The company describes its annual Generic business strategies in 2015-16 annual report. The company describes that it is engaged in
inging the best user experience to its products and services through the integration of high-quality features, and innovative software, hardware, and other important peripherals (Pratap, 2017). Apples utilize its innovative leverage capacity to design and develop its own operating systems, application software, and other potential new IT products and services that will win the confidence of customers. As part of its business strategy, the organization continuously engaged in expansion of its platform for delivery and discovery of third-party applications and digital content through the iTunes stores. An individual can understand the Generic business strategy of the company through looking the figure 1 in Appendices section of the paper (Abushova, 2016). Figure 1 explains the company business strategies to attract the large size of its existing market and serve to a wide range of customers. On the basis of the given figure, it can be said that the core focus of the company is towards promoting the use of product differentiation and cost leadership strategy. According to the Porter Generic Strategies model, the below-mentioned are potential business strategies of Apple Inc. that differentiate it from the same kind of companies and its competitors:
Cost Leadership and Product Differentiation Strategy
If an individual gets a task to summarize the Apple Inc. business strategy, he or she will say "Differentiation" and "Cost Leadership." Apple Inc. put a large number of efforts to differentiate its products and services from other industry operators and potential competitors. The company does this one the basis of its regular research and development activities (Breja, 2016). The use of regular research and development activities keep its informed about the external market trends so that it can use them to enhance the efficiency of its products and services and keep its operations updated and latest in comparison to its competitors. The company differentiates its operations on the basis of the two important strategies. The first strategy is related to design and other pricing policy. The first strategy depicts that Apple Inc. design philosophy guides it in obtaining the competitive edge within the operating industry. That’s why the company is using the design philosophy based on minimalism. As per its design philosophy, the organization removes clutter both from its user interface as well as outward appearance (Wang, 2017). This gives an opportunity to the organization to lead the market on the basis of innovative and creative designs and best integration of latest philosophies within its products and services.
Apart from this, the second important differentiation strategy of the company is its pricing structure. Apple Inc. is called as one of the foremost and leading information technology leader in the operating market (Bian, 2016). It established its leadership on the basis of "high-price" of its products and services. During the launch of its products and services, Apple Inc. utilizes price skimming strategy and later launches lower-price versions with fewer features or a new version to capture the small income group people as well (Pratap, 2017). The high price cost skimming strategy allows the organization to gain high profitability and satisfy the lower and luxury class customers also. Grant (2016) said that the Apple Inc. operates small market share within the mobile phone industry. But, the organization maintains its differentiation strategy through concentrating on high pricing for having 71% share of the industry profits. An individual can get information about Apple profitability and market share in mobile phone industry through figure 2 given in the Appendices section of the paper. On the basis of the given figure 2, an individual can easily understand Apple market share in the mobile phone industry during 2012.
Apple Inc. achieved its cost leadership strategy through direct low-cost inputs to produce the cheapest high-quality product as much as possible. Apart from this, the organization attains its cost leadership aim through the development of long-standing business agreements with companies and its innovative business. The company does this to focus on the creation of new products and solutions to capture the big size of the target market. The Apple's iTunes service is a good example of its cost leadership strategy (Annual Report, 2016). On the basis of its iTunes service, the organization is satisfying its motive to distribute music digitally without the expenses of the physical production of even a Compact Disk. On the basis of figure 3,...