Strategic Management .docx

Strategic Management
7
Week 3 Assignment 1
Phabian Smith
Strayer University
BUS 499: Business Administration Capstone
Dr. Keller
Dr. Gardner
July 21, 2019
Week 3 Assignment 1
Apple Inc. is one of the companies whose history and
development are well documented. Apple is known for
designing, developing, and selling of computer and computer
software, consumer electronics, and provides various online
services. The company has developed into one of the major
computer manufacturers in the world. This is because of the
regular reliability on the development of new innovative
technologies and globalization that has expanded its customer
base. Technology and globalization have played a key role in
the functioning of the organization since its formation 1976.
The company’s global expansion and their focus on
technological innovation in their business activities and
products have made them a unique competitive advantage.
Globalization
Globalization can be considered as the integration of the

interchange of ideas, culture, views, and products in the world.
Globalization has enabled communication and interaction
between individuals from various spheres resulting to free flow
of products from one place to another without geographical
barrier. In fact, globalization has made the world a global
village. For Apple Inc. the increased integration of
globalization has enabled it to become one of the biggest
companies in the world. It has affected the business strategy of
the company. With the extended market and the increasing
demand for Apple products, the company has implemented the
differentiation strategy which has prompted it to produce
software, phones, and electronics with unique features. This has
been facilitated by research and development to enhance
technological innovation which is the cornerstone of its
competitive advantage. At the same time, globalization as
impacted on the operational and employment practices of the
company. Today, Apple has the ability to access every part of
the market and outsource production plants in different parts of
the world. It has therefore been successful in the manufacture
and launch of products in new markets. It is also important to
note that globalization has enabled Apple to attract and employ
talented, committed, experienced and innovative candidates.
Most importantly, globalization has had significant impact on
the resources and profit maximization of the company because
going global has enabled it to increase its market share.
Technology
The effective application of technology in various aspects of the
company has benefited it beyond expectations. Technology
change has been a key factor in the success of the company. It
has played a major role in the change to a mobile computing
society by developing personalized technology devices that
would serve the different needs of the people. Having expanded
its operations into various countries across the globe, the
company is today considered as the largest computer
organization across the globe. It has managed to take up the

market leadership because of its unique innovative products that
serves the need of the people. It is its creation of new ideas and
ways if conducting different processes that has attracted a huge
market base. Through technological advancement, Apple creates
new and improved products, services, materials, and processes.
It has manufactured software and hardware products that suit
the needs of customers and further differentiating its products.
Industrial Organization Model
Using the industrial organization model, Apple Inc. can earn
above-average returns in the operations of the company. This
would build on the vision and mission of the organization by
examining the structure of the business and the market
parameters (Pepall, Richards & Norman, 2008). This model
tends to complicate a perfectly competitive market by
introducing complications in the market like increased costs of
products, entry barrier, and information limits. Apple’s products
are often known for their value and quality. As a result, the
company has set a relatively higher price to show to the
customers that the products are of a given class in terms of
quality and value. The company can use the industrial
organizational model in a descriptive approach where it
provides an overview of the company before suggesting how
production can be improved to achieve above-average returns
(Carlton & Perloff, 2004). Additionally, this model can be used
by Apple to explain organization of the internal activities and
improve marketing strategies aimed at profit maximization.
Resource-based Model
This can also be used by Apple Inc. to achieve above-level
returns. The company can use it to improve its competitive edge
over its rivals in the market. It can be used by the company to
design strategies that can enhance long term profits rather than
short term advantages. However, this may require a lot of
resources but in the long run, the company would be operating
on above-levels (Barney, 2001). The model depends on the
resources available to develop performance improvement

strategies for competitive performance of the company. With
right strategic plans in place, Apple would further improve its
position in the market and expand its market base to achieve
above-level returns.
Vision
Apple Inc.’s vision statement states “Man is the creator of
change in this world. Therefore, he should be above structures
and systems and not subordinate to them” (Apple Inc., 2019). In
accordance to this vision, the company ensures that they
develop various innovative technologies to meet the demand of
the consumers across the globe. The company is focused on
satisfying the different needs of customers by customizing
products based on their taste and preferences. Apple has
developed a platform to enhance efficient and smooth customer
interaction and customer experience. As a way of meeting the
needs of the market, the company has developed the right
objectives to continuously develop quality products and
improve the experience of customers.
Mission
Apple’s mission statement is “It designs Macs, one of the best
personal computers globally, together with OS X, iWork, iLife
and professional software. The company leads the digital music
revolution with the iPods and iTunes online store. Apple has
also reinvented the mobile phone with its revolutionary App
store and iPhone along with the magical iPad that gives a clear
definition of the future of computer devices and mobile media”
(Apple Inc., 2019). The company’s mission statement has
ensured that they remain focused and presents them with a sense
of purpose in all the strategies they develop. This has since
enhanced their competitive advantage in the market because
they wake up every day with an aim of achieving a common
goal of bettering the lives of the people with their innovative
products.
Stakeholders
Stakeholders play a key role in the success of the company and
influence its strategic decisions. One of the key stakeholders is

investors. In any organization, investors put a lot of resources
in the organization expecting profit in return. They are mostly
interested in achieving returns from their investments. Their
major interest is for Apple to generate as much profit as
possible to earn higher dividends. They expect the company to
make decisions that would improve profit generation in the end.
Another group of stakeholders are the customers. They are
mostly interested in the getting high quality products and
services from the company and get value for their money. Apple
therefore must ensure that they manufacture high quality
products and services that meet the needs of the consumers
(Jansen, 2000). They are the most important stakeholders in the
company because without customers, Apple Inc. would not
exist. Employees are also important segment of stakeholders
because they enable the company to serve its customers with
quality products and services. They also take part in the
decision making of the company. Employees also need to be
treated well by the company and make them feel comfortable
and wanted. They expect good wages and security of their jobs.
They also require the company to provide career growth and
development opportunities. Employees will provide high quality
services and productive when they are motivated (Jansen, 2000).
There are also suppliers who get the merchandise to the
company. Even though least prioritized, they are an important
part of the stakeholders because they provide the raw materials
used by the company to manufacture their high-quality
innovative products.
References
Apple Inc. (2019) Company Profile
https://www.reuters.com/finance/stocks/company-
profile/AAPL.O
Barney, J. B. (2001). Is the Resource-based Theory a Useful
Perspective for Management Research? Yes. Academy of
Management Review, 26(1), 41-56.

Carlton, D. W., & Perloff, J. M. (2004). Modern Industrial
Organization, Overview. Handbook of Industrial Organization,
pp. 259-327.
Jansen, M. C. (2000). Value Maximization and Stakeholder
theory. Harvard Business School.
Pepall, L., Richards, D. J., & Norman, G. (2005). Industrial
Organization: Contemporary theory and practise. Thomson/
South Western.
Running Head: INDUSTRY AND ENVIRONMENT: APPLE
INC.
Industry and environment: Apple Inc.
7
Week 6 Assignment 2
Phabian Smith
Strayer University
Dr. Keller
Dr. Gardner
August 7, 2019
Week 6 Assignment 2
This paper focuses on the industry in which Apple operates. It

pays attention to both the external as well as the internal
environment of the company. The paper goes ahead to narrow
down to various factors in both environments that have an
impact on the operation of the company. Among the items
focused on by the paper are the strengths, weaknesses,
opportunities and threats of Apple. It also talks about how the
company uses different tactics and strategies to capitalize on its
strengths and to minimize the impact of its weaknesses.
Businesses need to learn how to survive in the industry as well
as their internal environment.
General Environment
The six segments of the general environment are demographic,
sociocultural, political/ legal, technological, economic and
global (Craig & Campbell, 2012). All these segments affect
businesses in different ways. In the case of Apple, the true that
rank highest in terms of influencing the corporation are the
technological segment and the economic segment.
i. Technological segment
Apple operates in the technology industry and this makes the
technological segment one of the most influential segments of
the general environment. Technology changes quickly and
frequently and companies in the industry must keep up with the
changes to remain relevant. This has a direct impact on the
operation of Apple because the company must always keep up
with the technological trends in the industry.
ii. Economic segment
The economic segment is also highly ranked in terms of
influencing Apple's operations because the company must pay
attention to the financial sector of all its processes. This
segment affects the general environment and the industry
because businesses must always be keen on maximizing profits
and minimizing expenses (Craig & Campbell, 2012). Their

operations are guided by the economic conditions of the
industry.
Five Forces of Competition
Businesses operate in a competitive environment that is affected
by various forces. The way a company such as Apple addresses
the forces has a direct impact on its competitiveness in the
industry. The five forces of competition are; competitive
rivalry, bargaining power of suppliers, bargaining power of
customers, threat of new entrants, threat of substitute products.
These forces of competition affect Apple significantly, but the
following are the two most significant ones (Fernando, 2011).
i. Competitive Rivalry
Competitive rivalry refers to the competition that exists
between companies that are already in the industry. In the case
of Apple, one of the greatest competitors is Samsung. The two
companies operate in the same industry and the also target the
same customers. They also offer identical products and services
such as smartphones and personal computers. Apple deals with
this force by focusing on customer satisfaction to create strong
relationships with these customers to attract and retain more of
them. The strategy has enabled the company to remain
competitive if the industry.
ii. Threat of Substitutes
Substitute products and services are also significant in terms of
affecting Apple’s competition because they give customers
alternative options that they can select from (Fernando, 2011).
The substitutes are usually low-quality and unreliable and
Apple juice with this course by focusing on the high quality of
its products and services. This makes them incomparable and
almost impossible for customers to consider the substitutes.

Evaluation
Apple has effectively dealt with the force of competitive rivalry
as well as the threat of substitute products and services. With
respect to competitive rivalry, Apple has understood that the
best way to complete is to attract and retain customers. The
company focused on customer relationship management and this
inability to attract and retain many customers. It is unlikely for
Apple to lose customers to its competitors. This indicates that
the concept of competitive rivalry has been effectively
addressed. As far as the threat of substitute products is
concerned, Apple address to this by maintaining the quality of
its products and services so that they are superior in the market
(Fernando, 2011). Given the fact that most consumers in the
market are more concerned about the quality then the price of a
product, Apple has managed to address this force by ensuring
that substitute products do not really threaten the company's
competitiveness.
Future Improvements
In future, should improve its ability to address the force of
competitive rivalry and the threat of substitutes by focusing on
the quality of its products and services. This will enable the
company to maintain competitiveness amid stiff competition
and substitutes.
External Threats and Opportunities
One of the external threats faced by Apple is economic
downturn (Apple, 2019). The economy is generally worsening
making it difficult for businesses to operate. This has a negative
impact on profitability due to the high costs. The company is
also threatened by product piracy. This threatens its economic
power because the products are being used if the company is not
paying for the same. One of the opportunities that Apple has

used to diversify its products and services. This will enable it to
meet the needs of more customers and satisfy them. The
company also has the opportunity of entering new markets and
increasing its reach.
Threats and Opportunities Strategies
Apple should deal with the threat of economic downturn by
engaging in processes that minimize costs for the interest of
maximizing profits and boosting the company's economic
condition. The opportunity of diversifying its products and
services should be handled by studying the market to understand
what is really required and engaging in that product area. This
would significantly boost the company's market share.
Strengths and Weaknesses
The greatest strength of Apple is the high quality of its
products. The company's products stand out in the market due to
the incomparable quality. The company also enjoys a strong
brand equity. Anything associated with Apple is believed to be
the best. The name alone is competitive. One of the weaknesses
suffered by Apple is the small product range (Apple, 2019).
This greatly limits the company's market penetration. Apple
also faces the weakness of high prices for its products in
relation to competitors. This puts the products out of reach of
many potential customers.
Strategy
Apple needs to maintain or even increase the quality of its
products and services to take full advantage of its strengths.
This strategy will also help the company in strengthening its
brand equity (Apple, 2019). Apple can address its weaknesses
by diversifying its product Range and reducing the prices to
make them affordable. Such a strategy enables a company to
offer many products and services at a price that is affordable to
many. It increases market penetration as well as boosting the
customer share.
Resources, capabilities and core competencies

Apple has relevant human as well as material resources that
enable it to meet its objectives. It has a competitive workforce
made up of creative and highly motivated professionals that are
specialized in different fields. The company also has sufficient
financial resources as well as tools and equipment that are
necessary for its processes and operations. Apple is capable of
in investing in any project it pleases due to its financial muscle.
In 2018, the company realized more than $100 billion in gross
profit. This financial condition indicates that it can engage in
any activity for the interest of boosting its competitiveness in
the market. One of Apple's core competencies is strong
customer service (Apple, 2019). The company understands it
was established to serve customers and it does whatever it takes
to make them satisfied. Focusing on customer satisfaction is all
of them best strategies a business can use to stay relevant in the
market.
Sources
Apple Inc. (2019). Company
Profilehttps://www.reuters.com/finance/stocks/company-
profile/AAPL.O
Craig, T. & Campbell, D. (2012). Organizations and the
Business Environment. London: Routledge.
Fernando, A. (2011). Business Environment. Delhi: Pearson.
Running head: BUSINESS-LEVEL STRATEGIES
1
Week 8 Assignment 3
Phabian Smith
University of Phoenix

Dr. Keller
Dr. Gardner
August 25, 2019
Business-Level Strategies
2
Week 8 Assignment 3
Often companies will achieve effective corporate and business
planning depending on the environment they operate. Such
decisions are vital since they dictate the success level and
failure rate for an entity. Therefore, where the achieved strategy
remains unresponsive several businesses will often hire
professionals to help identify, revise and sharpen the enterprise
strategic wits (Hitt et al., 2013). A better strategy is that which
pitches its goal (mission and vision) and position it above
competitors. For businesses operating in any given industry the
need to stiffen competition determine the chances of success
and business would engage in various strategies that suite the
competitiveness in a different situation. Therefore, this
assignment will focus on Apple Inc., to determine its various
business level and corporate level strategies for competition in
its environment of operation.
The Apple Company Business-Level Strategy
According to Hitt and colleagues (2013), the implementing a
business level strategy is crucial for enterprises to compete in
the market and mainly involve strategies of how to achieve
value on portfolio offered to customers/ market. Therefore, for
Apple Company it has continued to differentiate itself in the
tech market by exploiting its competencies in serving an
innovative brand of tech products and services to the
expectation of consumers in the tech market. Essentially, Apple
Company business-level strategy stems from its differentiated/
incomparable competence to innovate OS, as well as other

application software, hardware, and tech services (Moimaere,
2019). Apple Inc. also has revolutionized consumer experience
by developing gadgets and software’s that are user-friendly and
with superior quality. The firm also has other initiatives such as
AppleCare services offered to its consumers to ensure quick
delivery of tech solutions and assure seamless integration for its
different version of Apple devices. Towards achieving such
milestone, the firm heavily invests in its R&D
3
department, as well as in marketing activities to come up with
innovative solutions that are acceptable for the tech market.
Apple also promotes third-party content in its iTunes Store; a
strategy that is enabling it to enlarge its platform (Moimaere,
2019).
Justification
Using differentiation as a part of Apple business strategy it
continues to communicate to the market about the quality and
value in its offering. The strategy is suitable for retaining loyal
customers and attracting new consumers, thus achieving a
significant ranking above its competition (Hitt et al., 2013).
The Apple Inc., Corporate-Level Strategy
Rendering from studies by Hitt and fellow authors (2013), the
corporate level strategy involves organization-wide planning
achieved by the upper level of management and implemented by
the other lower-level manager. For Apple Company, a
corporate-level strategy is critical for building up to the
competition with other firms for the available tech market. An
important corporate strategy for Apple in the case has always
been on including similar designs methods for its branded

products. Having achieved similar (consistent) designs for its
iPad, Apple TV, and even iPhones its different product features
render them compatible and need not be formatted (Gil, 2016).
Such qualities render their products more visible and successful
over other brands. Apple is also meticulous and precise in the
manufacturing criteria that enable it to produce a simple and
powerful design of tech gadgets; again, elevating its reputation
in the vast market. Apple corporate advantage again lies in the
fact that it comprises of the few computer and technology
companies with an established retail chain to sell its brand and
bring its services nearer to the global markets (Moimaere,
2019). Meaning, it has an established online and offline
presence to serve consumers at an advanced level to assure
comfortability and convenience for their clients.
4
Justification
Relying on corporate strategy is critical for Apple management
to link up their varied business processes and closely observe
sales performance, as well as account for logistics achieved by
the firm in moving/ retailing of its products. Implementing
corporate strategies guarantees long-term success for the firm.
For example, the prospect of achieving worldwide retail outlets
is a corporate strategy that will ensure the firm use of its
economies of scale to penetrate the local markets and tailor its
product to meet the varied needs of its customers in Europe,
Asia, and Africa. This enables the firm to achieve targeted
marketing criteria responsive for portfolio and market share
growth (Moimaere, 2019; Gil, 2016).
The Competitive Environment
Apple Company operates in a very dynamic marketplace. The
dynamism is fuelled by potential entrants into the sector, as

well as genius product innovations rapid for the technology
markets. Continuous innovation and quick obsolescence of
technology remain a primary threat to competition in the sector
(Gil, 2016). For Apple companies, its closest market challenger
is Samsung, with other small competitors consisting of Nokia,
Sony, and Microsoft. Samsung as the primary market challenger
for Apple controls a notable portion of the technology markets
worldwide. Samsung venture in a similar industry, markets, and
with a similar product as Apple and is increasingly gaining
popularity in extensive markets. The basis of competition has
overtime been proliferated within the smartphone industry
(Moimaere, 2019). Nonetheless, Samsung has been performing
remarkably in major developing markets in Asia and Africa
owing to its affordability. As for Apple, most of its market is
concentrated in Europe and America and is widely associated
with high-end consumers. As such, sale of Apple products still
lags behind/ perform poorly in developing economies as they
remain unaffordable and unsustainable for the need of mostly
5
impoverished population (Gil, 2016). Therefore, in overcoming
competition by Samsung it is prerequisite that Apple diversifies
its manufacturing tactics to solicit consumer responsiveness to
their affordable portfolios. Such initiatives by the company will
privilege its lower cost of operations especially in developed
nations, as well as remain competitive through continuous
innovation and penetration of new markets (Hitt et al., 2013).
Strategy comparison between Apple and Samsung
The enduring battle between Samsung and Apple remain
indecisive especially considering that they are still the leading
smartphone producers in the world (Gil, 2016). For Samsung, it
deploys a low-cost differentiated strategy within its business
process where it aims to better its product line quality for a

similar product produced by its other lower-level competitors.
Relatively, Samsung engages in extensive market research
practice as a corporate strategy for competing in the global
market. Essentially, Samsung already has a breakthrough for
better performance into the future compared to its counterpart
Apple. This is further supported by acts that Samsung products
are increasingly becoming more reliable and affordable and with
further added capability for every version being introduced to
the market (Gil, 2016).
The Market Cycle Associable with Apple Company
Acknowledging from studies by Hitt and co-proponents (2013),
the fast-paced/ cycle markets are those whose competitiveness
arises from their imitable characteristic and are cheaply priced
for fast-moving portfolios/ items. Conversely, the slow-paced/
cycled markets are those whose competitiveness arises from
their inimitable characteristic and are highly priced for quality
and high-end patented commodities. The variations between the
two cycles are primarily pegged on the possibility of imitation
and patent right status (Hitt et al., 2013). These cycles form the
basis for the differences in ranking of the two firms with
Samsung
6
ranking within the fast-cycle markets and Apple within the
slow-cycle markets. The two tech giants have for a long time
been engaged in patent fights and the aftermath of the jury
decision July 2018 Apple won the patent battle against
Samsung, where it was awarded over $339 million in
infringement benefits. The outcome of the case further did not
only confirmation of the market cycles both firms participates,
but also intensified the rivalry for both firms to serve the
smartphone markets with patented innovations (Gil, 2016).

Nonetheless, Apple has the potential to grow in the fast-cycle
markets only if it diversifies its portfolio and focus on the
consumer side of its market to achieve affordability for its
items. While focusing on quality and innovative features to
offer to the market, the company should also focus on
affordability and adaptableness for its product (Moimaere,
2019).
Conclusion
Apple Technology Company is a dominant player within the
telecommunication market and has particularly been the focus
of the assignment owing to its noteworthy contribution within
the industry (Moimaere, 2019). The firm majorly deploys a
differentiated business strategy to offer unique products against
its competition, and in extensive pursued growth within its
corporate strategy to expand its operations in several markets
worldwide. Samsung also emerges as a close challenger for the
firm with the prospect of even doing better and exceeding Apple
growth potential to become the market leader. However, for
Apple to retain its positioning in the tech market it should
consider diversifying its portfolio and serving developing
markets with affordable alternatives (Hitt et al., 2013; Gil,
2016).
7
References
Gil, E. M. (2016). Samsung v. Apple: Taking a bite out of the
design patent article of manufacture controversy. U. Miami Bus.
L. Rev., 25, 67.
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2013). Strategic
management: Concepts and cases: Competitiveness and
globalization (10th ed.). Mason, OH: South-Western Cengage

Learning.
Moimaere, H. (2019, May 29). What is Apple's strategy?
Retrieved August 23, 2019, from
https://medium.com/swlh/what-is-apples-strategy-8e9d822732f6

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