Apple Inc. Company


Apple Inc. Company is extremely popular American corporation that manufactures and sells the latest gadgets, implements computer electronics, personal computers, software and portable devices. Such variety of products and services prove that the company has a proper business strategy that benefits the organizational growth. Steve Jobs, Ronald Wayne and Steve Wozniak are the founders of this incorporation. Consequently, a strong leadership is another peculiarity of this company that differs it from its competitors. This paper intends to study the peculiarities of the business strategy of Apple Inc., its background, competitive environment, and specific strategies. Moreover, this essay gives the recommendations for further improvements.

Company Name, Website, and Industry

Apple Inc. is a large company that has 393 retail stores in 14 countries. Apple has become a brand name. Consequently, there is nothing strange that customers chose Apple for its brand awareness rather than its quality. As Steve Jobs followed a fruitarian diet and visited an apple farm, he had chosen this fruit to name his company. The website of Apple Inc. is devoted to its latest devices. Moreover, this website provides customers with the necessary information that has the educational and advertising meanings. The highest peak of Apples success was after 2007 with launching of an iPod, iPhone and iPad. However, its desire to implement such innovations as iCar, iWatch or iTV proves that Apple has many ideas for the realization.

Background and History

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Apple Inc. was founded in 1976 by Steve Wozniak and Steve Jobs. It is evident that the company has a long history and rich experience in the market. The primary business was creating computers. However, in the present time, Apple Inc. is a manufacturer and seller of the most diverse devices and gadgets. It is evident that Steve Wozniak and Steve Jobs were not key players but the legendary names that had created a strong brand. Tim Cook is Apples current CEO who is not less talented and creative than the founders. The total sales of Apple Inc. include $13.9 billion. The profits of the company are $37.4 billion. The losses of Apple Inc. are $125. 22 dollars (About Apple Inc., 2015). Selling and manufacturing are the key operations of Apple Inc. The peculiarity of Apples products is that they are free from BFRs and harmful chemicals. Moreover, they do not use elemental bromine and chlorine for their products production. Apple products are highly recyclable aluminum enclosure (Ashcroft, 2012).

The organization has many key moments in its history that prove its growth and development. iPhone 6 is the latest and innovative brand product of Apple Inc. iPhone 6 is characterized by innovative hardware, easy-to-use software and sleep product design. Their products are unique (iWatch, iCar and iTV). The highest peak of success was after 2007 with launching of the iPod, iPhone and iPad. It is evident that innovations brought success and revolution in technology. However, at the present, Apple remains the most prestigious and fashionable brand (Ashcroft, 2012).

Today, there are 393 retail stores in 14 countries, occupying the third place after Samsung and Nokia in production of phones; it proves the development of global strategy of Apple Inc. For example, in 2014, with profit $622 billion, Apple got the status of the most valuable company. 26.9 million iPhones were sold in 2014. Apple sold 14.0 million iPads. New products like All-new iMac, iPad 4, iPhone 5 and iPad mini show future perspectives of this company. Increasing of profits in 24% proves financial ups (About Apple Inc., 2015). These figures reinforce the enormous opportunities of Apple Inc. in future. Moreover, they prove the companys high performance and productivity.

High-quality services and a knowledgeable sales staff of Apple Inc. are the indicators of good human resource management that reinforces the quality of services. The innovative products and technologies are the results of good performance and knowledge management. Own operation systems, hardware, application software and services prove Apples originality.

Porters Five Forces Model

According to Porters Five Forces Model, it is possible to analyze Apples activity taking into consideration competitive rivalry, the power of buyers, supplier power, threat of substitutes, and threat of new entry.

Competitive Rivalry

One should mention that competitive rivalry is too high even for such a reputable company as Apple Inc. In order to achieve the competitive rivalry, this company should differentiate product offerings and to make its brand stronger. It is evident that the number of competitors is constantly increasing; consequently, Apple Inc. implements the diverse strategy to get the competitive advantage. The rivalry is also intense because new companies, specializing in computer business, are emerging.

The Power of Buyers

Customers can also become the driving forces as well as competitive pressure for Apple Inc. Consumers are crucial for this company; therefore, they take care about their personal needs and interests. Customers are highly sensitive in case of the price changes; therefore, increase in prices for Apples gadgets provoked many negative feedbacks.

Supplier Power

Apple Inc. has many suppliers and different channels of distribution as well as access to the necessary products. Asia manufactures hardware products for Apple Inc. Consequently, Asia is the primary outsourcing partner of Apple Inc. OEM partners delegate the raw materials. Apple Inc. also implements automated receiving systems. A variety of direct and indirect distribution channels are used by Apple. These are retail stores, direct sales force, cellular network carriers, wholesalers, retailers, resellers. Apple continues to develop its outbound logistics.

Threat of Substitutes

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Nowadays, there are many companies specializing in similar services and products. However, this threat of substitutes is low. The problem is that buyer demand is low due to the financial crisis.

Threat of New Entry

The number of the new entrants is high since the market is developing provoking barriers and obstacles for the further growth. Moreover, a buyer demand is also high. However, new entrants cannot become immediately successful because they should first advertise their brands. The world of the innovative technologies is very changeable. Consequently, to avoid the threat of new entry, Apple Inc. should be very sensitive and fast in its decisions.

Porter's Five Forces Model


Apples Strategy

The key aspects of Apples corporate strategy can be listed as follows: strategic management, creating of shareholder value, realizations of potentials of the company and individuals and strategy of diversification. Apples corporate strategy includes diversification of business, making computer business dominant one and constraint diversification. Marketing goals and objective of Apple Inc. refer to the widening of the marketing map that includes the USA and China. The marketing strategy of Apple Inc. presupposes needs-based segmentation dividing it into: demographic (age, gender), socio-cultural (ethnic peculiarities), psychographic (quality and price sensitivity) and geographic (orientation to the national peculiarities of consumers). For example, the company should offer gadgets taking into consideration its customers age as elder people can afford something more expensive (Dess, Lumpkin, & Eisner, 2012). Women are more demanding and sophisticated to devices; therefore, their desires should be taken into consideration. The components of Apple marketing strategy are creating brand loyalty, great design and graphic performance, as well as innovation and high quality

Apple Inc. has created and sustained a competitive advantage with the help of the exceptional approach to marketing and strong brand awareness. Moreover, this company is aimed to fulfill their organizational objectives, compete with other brands and promote their image through the innovation process. Their exceptional approach to their marketing is evident in their development of electronics and computer industry. Moreover, Apple Inc. develops their gadgets adapting them to the international market. One can say that they achieve continuity, consistency and coherence in their marketing policy.

It is evident that not all companies can use this strategy of becoming more successful. Not all organizations can use strategic management immediately like Apple Inc. Moreover, development of strong brand name is not an easy process. One can say that Apples experience is difficult for repeating.

Specific Strategies


The history of Apple Inc. shows that the company has never dealt with the improper leadership. As a result, democratic and exemplary leadership is one of the secrets of the companys success. The main dilemma is following the exemplary leadership in future to save the reputation, brand, and image of the company.

Achieving Competitive Advantage

In the present time, Apple Inc. has a competitive advantage. However, the emergence of new companies manufacturing gadgets and innovations encourages Apple Inc. to the implementation of the future development plans. First of all, the prices of Apple are high. Consequently, their products are not available to everybody. One recommends the regulation and control of price strategy to attract more customers.

Ensuring Coherence in Strategic Direction

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Apple Inc. moves in the strategic direction. However, it does not mean that all operations and processes in the company are smooth and coherent. As a result, ensuring coherence can be provided with the help of the strategic planning.

Value Chain Analysis

Value chain analysis includes activity analysis, value analysis and evaluation of changes. The company realizes this point efficiently due to its efficient business strategy. A value proposition of this company is to develop not only at the national level but also at the international one. Providing credit ratings, analysis for securities and financial research should be more accurate as the accurate analysis is the way to avoiding loss and crisis (Dess et al., 2012).

Resource View of Firm

Apple Inc. is characterized by such tangible resources as retail locations, well-fortified and global supply chain, tailored hardware and software system and massive technical patents.

Entry Model

The entry model of Apple Inc. is to provide such services that will satisfy customer needs. Rapid changes in the global market have an impact on the company. It is suggested that the development of strategic management, international marketing, and successful leadership will help Apple Inc. to move forward.

Recommendations and Opinion

For substantive growth, Apple Inc. should use such alternative strategies as horizontal and vertical integration, related and unrelated diversification. Horizontal integration can be used for new markets. Vertical integration can be applied in the domestic market. For the future growth, Apple Inc. should implement future development plans based on strategic management and processes of innovation. Apple Inc. should use such strategies as service development, market penetration, and market development. It has been suggested that marketing strategy should be based upon getting new customers (individual and corporate), attracting the community (advertisement, public relations), and winning all worldwide markets. The use of economic growth for motivation, geographical diversity, finding new markets for raising the profits, and globalization are the ways for finding new customers and target market enhancement.

This case study can be used as an exemplary one as it reveals the key secrets of the brand company. This research is a good lesson for those who want to deal with strategic management, exemplary leadership, and exceptional marketing.

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