Strategic Management: Apple iPhone 4
Introduction
Apple I Phone 4 is the latest in the mobile market that is creating buzz in the international forum. It has been noticed that there was a subvert current of inquisitiveness about the latest Apple product from much before in the international market. Most of the countries were waiting for the arrival of the new Apple series. It was at last in 5th September 2011 when Apple I Phone 4 was launched in the US market. The phone was available in two versions with dual core chip and most amazing new features. It is important to note here in this regard that there was a string of strategic management that was followed for the launch and the arrival of this very new version of Apple I phones in the international market. Given the incumbent competition prevailing in the market the Apple I Phone had to come up with the exclusive strategic management process that could grant it success in the most initial phase of its product launch and ensure the reduction of the prevalent competition with the very launch of the product concerned. Therefore it can be evidently enumerated that the assignment will present a comprehensive study that will delve into analyzing the strategic management process which has been undertaken by the Apple Inc for the launch of the Apple I Phone 4 in the international market.
Aim: The aim of the assignment is summarized as under:
To present a brief outline of the key strategic issues to be addressed
- To lay down an academic foundation pertaining to the principles and the tenets of the strategic management
- To analyze the application of the analytical tool that are selected together with an appropriate explanation of the relevance of the same in the given case study.
- Evaluation of the results and the interpretation of the outcomes from the analysis.
- To give an appropriate recommendation for the same.
- 1. Strategic Management: Academic foundations
1.1.Definition:
As the very name suggests the strategic management entails defining as well as analyzing the different strategies which are undertaken by any organization. These are the specific set of functions which are taken up by the management or the manager in an organization in order to set up and define the specific strategies that will serve as a major catalyst to improve the performance of the organization in a whole. This is a particular process of appraisal of the business opportunities prevalent that are taken up by the business organizations and industries within the environment in which the same operates. This is the process where in the competitors are appraised and the business goals and objectives are carefully set.
1.2.The Process and the Four Steps:
Following are the four definite steps which are included in the strategic management process:
1.2.1. Environmental Scanning: This particular step entails scanning of the environment that also pertains to the process of collecting, supervising, scrutinizing as well as providing the information for the purpose of strategic management. This particular step entails the analysis of the internal as well as the external environment that levies an ample influence upon the functioning of the organization (Kohtler, 2009). The environment scanning process serves the organization with amp-le information and data that can efficiently enable the same to perform better.
1.2.2. Strategy Formulation: This is a particular step where in the most appropriate course of action is determined and decided that will efficiently enable or facilitate the concerned organization to achieve the particular set of objectives therefore laying a substantial stress upon the achievement of the given purpose (Parcy, 2007). This is the stage wherein the managers formulate the corporate, business as well as functional strategies.
1.2.3. Strategy Implementation: This particular step entails that the strategy or the plan of action as it was decided is implemented. It must be noted in this regard this particular stage is one of the most crucial in the strategic management process since this stage decides that whether or not the strategy chosen for the organization or the industry is appropriate. This stage includes the designing the pertinent structure for the organization, efficient distribution of the given resources, efficient development of the process related to the decision making and the efficient management of the incumbent Human Resources.
1.2.4. Strategy Evaluation: The end stage constitutes the evaluation of the results or the outcomes form the implementation of the given strategy. Here in the external as well as internal factors pertaining to the organization which are rather considered as the root to the functions related with the presentation of the given strategies, measurements of performance and taking remedial or corrective actions are carefully attended. Therefore this particular stage can be efficiently given the distinction of ensuring the implementation of the determined course of action successfully achieves the organizational objectives.
- 2. Company Background
Apple Inc was founded by Steve Jobs and Woz. It is important to note in this regard that while Steve Jobs was a confident sales person and a visionary, Woz was a technical genius and their amalgamation of undisputable talent les to the emergence of Apple Inc. It was Woz who pioneered in the development of the home based computers and Jobs who saw most lucrative opportunity in commercializing the same. Apple Inc has the distinction of the string of inventions and the innovations in the field of computing technology desktop, portables, I Pads and I Phones. The company has the distinction of path breaking innovations and inventions that are considered rather unique and pioneer in the given field. Given the assignment it must be noted here in this regard that the study material will be based upon the latest innovation by the Apple Inc. that is of Apple I Phone 4 which has been very recently launched in the international market.
- 3. Analysis of the Strategy Adapted
Following paragraphs will efficiently enumerate the strategic management process in the Apple Inc.
3.1.Corporate Culture:
It is important to note her in this regard that the corporate culture entails the specific set of the values and the norms that are followed by the people within a particular organization. The values or the ideas are regarded as the common perspective that are held by the organization as a complete unit (Kotler, 2009). Another very important aspect that must be noted in this regard is the fact that it is the top level management who decides the corporate culture for any business organization, group or the industry. Therefore it must be carefully noted that the corporate culture of Apple Inc is based on the tents of the innovation, invention and creativity, based on which Apple Inc came up with the most recent invention I Phone 4 that had dual core chip within itself.
3.2.Situational Analysis:
3.2.1. Organizational Structure: As already known Apple Inc is an America based Multinational Corporation and the course of action is dedicated to designing market consumer electronics, computer software as well as personal computers. Therefore given the organizational structure of Apple Inc. the company is headed by a CEO who is assisted in his activities by 10 Senior Vice Presidents (Salto, 2008). Apple Inc is segmented into five different segments, which is America, EMEAI, Japan, retail and the others. It is important to note here in this regard that the company of Apple Inc is rather collaborative. This particular feature of the company grants kit a unique position in the business world.
3.2.2. Concepts: It is important to note here in this regard that the concept of Apple Inc basically focuses on the tent of focus on the design of the given product. It must be noted here in this regard that it is the design and innovation in the same that the company focuses on the most. Moreover it was the prepondence of this particular ideology that the company came up with the path breaking and the very unique concept of I Phone 4 (Glynn. 2009). This particular model of I phone is one of its kind and a major development over the previous models of I Phone. This particular model serves as a body double to the computing technology with the integrated dual core chip in itself.
3.3.Internal Analysis:
It is important to note here in this regard that the internal analysis will be accomplished based on the SWOT Analysis which is as follows:
3.3.1. Strengths: The biggest strength of the Apple Inc is the innovative design that it offers in the computing industry. The industry ensures high standard of application and innovative product design (Arnhold, 2010). It must be noted in this regard that the biggest strength behind the I Phone 4 was the fact that the devise efficiently has the ability to cat like a body double to major computing devices mainly because of the fact that the product had dual core chip integrated into its system thereby giving the device the most of the facilities that any other similar type of personal device would have and it also has its own integrated operating device like any other personal computers.
3.3.2. Weaknesses: One of the major weaknesses of the product or the internal factor is the fact that the product is very high priced and almost charges up to the level of any standard personal computer (Aaker, 2004). Therefore it can be efficiently said that the pricing of the computer much different from its computers given the strategy entails high price schedules.
3.3.3. Opportunities: It is important to note here in this regard that Apple Inc has also extended its operations towards the production of the personal computer manufacturing and music (Jonathan, 2004). Moreover the unique resources and the “Differentiation Strategy” and various other features inbuilt in the products of the corporation such as the “Plug and Play” solutions have given the company increased opportunities for demand for itself in the international market.
3.3.4. Threats: It is important to note here in this regard that the most common threat that the company often has to face is the substantive competitive advantage which the increased price of the products can grant to their close competitors (Kohtler, 2006). Often it is noticed that the market is available with the substitutes of I Phone even if those are lower in comparison to the technological standard of the I Phones.
3.4.External Analysis
The External Environment Analysis revealed the following factors pertaining to Apple Inc and Apple I Phone 4:
3.4.1. Suppliers: It has been noticed that the suppliers for this highly or rather aggressively competitive industry is very powerful. It must be noted in this regard that there are only very few companies such as the INTEL or Microsoft that manufactures the microprocessors or the operating devices which are needed for the Apple I Phone 4 (Kotler, 1972). Therefore it must be noted in this regard that the market of this particular type is characterized by forward integration of the suppliers given the lesser number of suppliers available.
3.4.2. Substitutes: It has been noticed that the market is aggressively competitive mostly because all or most of the products even I Phones manufactures by Apple are easily available in the market only with lesser specification and at a rather low price.
3.4.3. Mature Market: Another very important characteristic about the external environment of the given organization is the fact that the market has already reached to its matured state and given the cut throat competition prevalent in the market innovations and inventions has become a major virtue. For instance the companies like Acer and HP which has already acquired Compaq are giving tough competition to Apple Inc (Clifton, 2009).
3.4.4. Consumers: Given the types of consumers in the market it must be noted that the market can be categorized as home, small and medium sized. Given the consumer for Apple I Phone and especially I Phone 4 it must be understood that the business people and the high end customers can be the only focused targets given the high price of the commodity. Moreover it must be noted that the “Techno-Savvy Customers” only will intend to but the I Phone (Hidings, 2006). Moreover given the high switching cost a tendency for the shift in the preference of the consumers always remains.
- 4. Strategy Evaluation and Choice
4.1.The Basis of Competition:
It must be noted in this regard that the given company and the product Apple I Phone 4 deals in a market that is characterized by heavy and aggressive competition. Therefore it must be always noted that given the high capital investment required for establishing such corporations and making it function the price of the commodities or the products are often considered humungous for the major portion of the market (Bell, 2009). Moreover it must always be noted that the I Phones are always targeted to the high end customers and those who are techno savvy, hence there is always the likelihood that only a restricted demand for the product will prevail. Given the fact that the market is flooded with similar products at lower denominations the possibility of high sensitive of cost and the customers being price sensitive always remains. Therefore the basis of competition remains the innovation and the technology of the I Phones.
4.2. Mode of Action:
The mode of Action selected by Apple Inc for Apple I Phone 4 is the sheer upheaval of technological innovation. Given the fact that together with having self operating systems (which were already present in the previous models of I Phones), the I Phone 4 comes with integrated Dual Core Chip. Therefore the management must focus on targeting the high end techno savvy customers for whom procuring phone with such high quality will be more than an investment (Lehu, 2010). Moreover the phone is very appropriate for the business man who will not have to carry a heavy laptop everywhere or face hassles in answering call through tablets. Therefore it is indeed a boon for the business people and is considered rather acceptable by the market concerned.
4.3.Suitability:
It must be noted in this regard that the mode of action selected for Apple I Phone 4 is rationale given the fact that the phone has been built keeping in mind the needs and the necessities of the business people (Lane, 2008). Therefore given the fact that the phone will be very acceptable in the international business market it can be clearly said that the product will emerge successfully in the economic scale.
4.4.Feasibility:
Given the fact that the product is made keeping in mind the demands and the necessities of the very busy business world it can be carefully said that the phone will be most appropriate to the continence of the targeted customers (Davis, 2009).
4.5.Acceptability
According to the very recent data it is clearly evident that the Apple I Phone 4 is doing well in the international markets of Europe and America although it has not yet gained its impetus in the Asian markets that will have to loosen whopping few extra dollars to procure the I Phone edition (Aperia, 2010).
- 5. Strategic Implementation and Control
5.1.Organizing:
Given the fact that the Apple Inc has chosen the strategy of innovation and technical creativity together value based pricing of the model, it must be noted that the organizational structure is rather suitable for the same (Neol, 2005). The company resorts to the strategy of Fixed Pricing throughout the globe that gives the company and the management to maintain the standard and the quality of their productions.
5.2.Resourcing:
It is important to note here in this regard that the strategy chosen by Apple Inc requires technical resources which are already provided by INTEL or Microsoft and a band of excellent commercial minds like Steve Jobs himself who can efficiently create and maintain the brand image together with ensuring increased sales proceeds with every innovation such as I Phone 4 (Keller, 2009).
5.3.Change Management:
While implementing the plan or the course of action it is significantly noticed that the corporation has a clear idea of the impending obstructions and are rather prepared with the effectual change policy that can withhold the obstruction from causing damage of any kind (Elliot, 2007).
- 6. Marketing Process
6.1.Marketing:
Firstly Apple Ins believes in the value based pricing and uniform pricing throughout the globe that efficiently maintains the standards of the produce (Parcy, 2007).
6.2.Distribution Channel:
Following are the distribution channels which are chosen by Apple Inc:
- Resellers
- Large Distributions
- Web Stores
- No system for Franchisees.
6.3.Promotional Techniques:
The promotional techniques involve big names and celebrity involvements together with promoting the guarantee and the technical standards of the product.
- 7. Recommendations
It has often been noticed that given the high price and the costs of shipping makes costs of the I Phone pretty expensive outside the boundaries of United States. As is already known that Apple Inc follows the policy of Uniform pricing throughout the globe that often makes the costs of the Apple products humungous in the Asian countries given the high level of equity and taxes the customers often has to pay for the product (Neol, 2007). It must be noted in this regard that the Asian countries serve as a major market for the Apple products therefore in order to retain the market and gain increased profitability the price concerns in these countries must be seriously addressed.
Another very important factor which must be noted in this regard is the fact that the Asian launch of the Apple I Phones are really delayed which often leads to major loss of business in these countries. Hence the launch of the Apple products in Asian countries must be made in tune with its American launch.
Conclusion
Apple Inc’s most recent piece of technological art is Apple I Phone 4 that has efficiently brought a revolution in the world of high tech cell phones. Given the technology and the investment went behind its production and promotion it is indeed true that the price of these products are humungous yet nevertheless it can never be ignored that the recent edition of I Phone is a boon to the business people.
Therefore it can be clearly said that given the strategic management of Apple Inc for Apple I Phone 4 the company has chosen or adhered to the strategy that is not really alien to itself rather has ensured the maintenance of the pre set standard of Apple for itself. It must be carefully noted in this regard that Apple Inc has been successful enough to maintain the expectation of the customers and has not disappointed them with the launch of Apple I Phone 4.
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