Introduction to Management Strategic Management Plan for Apple

Introduction to
Management 

Strategic
Management Plan for Apple 

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

Introduction

Apple incorporated company is an American multinational technology
company that designs, develops, and sells consumer electronics, computer
software, personal computers and online services. Apple is famous for its
innovation and superior quality in high-tech enterprises. Its main products are
the iPhone smartphone, the iPad tablet computer, the Mac personal
computer, the iPod portable media player, the Apple watch, the Apple TV digital media player, and the Home Pod smart speaker.
Apple’s consumer software includes the mac OS and iOS operating systems,
the iTunes media player, the Safari web browser, and the iLife and iWork creativity and productivity suites. Its online services
include the iTunes Store, the iOS apple store and Mac App Store, Apple Music, and iCloud. Apple beat out competitors including Google, Samsung, amazon,
which won the Harris Interactive’s “Brand of the Year” award in three
categories which are iPad, iPhone and MacBook computers for the second year in
a row( Graziano, 2013). And The iPhone maker
received a Tech Emmy Award at CES 2013 from the National Academy of Television
Arts(Smith, 2013). 

The company’s mission involves designing best personal computers
in the world, along with its variety of products that conform to social
trends(pratap, n.d.) It aims to achieve high quality products, and make apple a
trend. The core values of company are think different  and make the best
products in the market and focus on selected products so that they can develop
and innovate. 

 

Apple was founded by Steve jobs, Steve wozniak ,Ron Wayne and
others on April 1, 1976, and named the United States Apple Computer Inc. On
January 9, 2007, changed its name to Apple, headquarters in Cupertino,
California. The company’s organizational structure takes on a matrix approach.
Apple has over 500 retail stores in operation across 19 countries ,also Apple
has aggressively expanded its retail
footprint in Greater China with over 46 stores and employed more than 12000 people in
its 22 Chinese offices, also responsible for creating and supporting 4.8 million
jobs in China which are 2.5 times comparing the creating and supporting jobs in
United States. Also they will invest more than $500 million to fund research
and development centers in Shanghai and Suzhou, China (Ausick, 2017).

 

 

 

Pestle
analysis 

 

Political 

Apple now heavily dependent on manufacturing in China, where
social and policy instability could disrupt manufacturing or increasing cost of
manufacturing in there. 

More important is China has been restricted imports in the
United States. Apple could be a target of nationalism and anti-Americanism in
China, which would reduce its market share.

Apple’s close relationship with China could lead to some
political problems like in United States and japan if they treat China as a
threat(contributor, 2015)

 

Economic 

 

China is the second largest country in the world economy. It is
also one of the biggest sellers of apple products. However, there is the rising
of labor cost in China. China government decides the minimum wages from region
to region, like northern Hebei province increased by 22% last year and
increment of 5%-17% in southern Guangdong city in wage. Therefore, Apple
products will be directed affect by the increasing labor cost and could take
away the cost advantage of their products. Moreover, if the company looks for
any alternative, it will be expensive for the company(Nave, n.d).

 

Social 

Due to some ethical problems of Apple in China such as under-age
workers and pollution, these would limit its products’ appeal among socially-
conscious consumers cause of ethnic concerns. Some people have a bad view of
apple because some media use Chinese folk patriotism to protect local products
such as Xiaomi and Huawei by deliberately to smear apple. Apple personal
computers sells lost its market share to brands like Lenovo and HP which have
better brand image in China market.  However,
Demographic and urbanization trends in China can prove favorable for the bran(
Pratap, 2017). 

 

Technological 

In 2013, Apple unveiled a deal with China Mobile to bring iPhone
to customers in a market dominated by low-cost android smartphones. The deal
gave this company a bigger entry to the Chinese market and China Mobile’s 760
subscribers. Under the agreement Apple products iPhone 5, iPhone 5S are
available at China Mobile and Apple retail stores in China(Nave, n.d). Samsung
as one of apple’s biggest mobile. Samsung designed a big screen android phone
and achieved success. In order to get more customers, apple have also launched
big screen mobile phone in the last few years. In order to compete with
Microsoft in the computer market, apple introduces a new personal computer
every few years with better standby time, lighter weight and more convenient
operation. Due to the increasing number of cyber-crimes, Apple launched
Fingerprint identification system in iPhone 5s and new face identification
system in iPhone X. Such innovations have greatly increased apple’s market
share in China.

 

Legal 

 

Apple has always being involved in legal proceedings and claims
ever since it has started operating. Chinese local developers have accused the
iPhone maker of charging exorbitant fees and removing apps from its local store
without proper clarification. The complaint is now being reviewed by China’s
State Administration for Industry and Commerce (SAIC)(Equity, 2017). Due to
Apple is suspected of reducing the speed of cell phone batteries with the aging
batteries, also they are using software updates to slow down the device force
customers to buy a new phone. Therefore, Chinese consumer authority and
Shanghai Consumer Council approached Apple, looking for answers about the
slowdown(Smith, 2018).

 

Environmental 

China is concerned for environmental issues such as climates
change, facilities haze and wastage resources. The manufacturing facilities in
China are a growing concern for the company because of the pollution and
environmental side effects. To minimize the environmental issues in the
facilities, the company has to shell out more money in the future that could
lead the company to huge expenses(Nave, n.d).

 

Porter 5 forces

Competitive
rivalry(high)

The level of competition among the major companies that compete
directly with Apple in the technology sector is high. The main contenders for
apple’s smartphones are Google, Samsung, Huawei, and some Chinese tech
companies, apple’s tablets and personal computers must compete with amazon and
Microsoft. According. According to Q1 2016 Statistics by Statista.com, Apple only held 15.3% market share in smartphone space(Statista.com), Samsung as the first rank held 24.5%. such that companies
like Xiaomi, Vivo and Huawei which have themselves been responsible for little
innovation within the technology space (Schmid, 2016), have managed to grab
almost a 20% collective share of the smartphone market in recent years. The
threat of market competition is an important consideration for apple, which
mainly increases and strengthens its market share by constantly developing new
and unique products.

 

Bargaining Power of
Buyers(high)

For apple, personal bargaining power is a weak force, because
the loss of any one customer is negligible for revenue. Apple has been very
successful in this area of competition, establishing a large customer base
that, basically, would not consider abandoning its iPhones in favor of another
smartphone competitor.

 

Bargaining Power of
Suppliers(low)

The bargaining power of suppliers is a relatively weak force
within the marketplace for Apple’s products. Apple is the main customer for
most of its parts suppliers, so its suppliers are very reluctant to risk
losing. This strengthens apple’s position in negotiations with suppliers, which
in turn weakens their position. The bargaining power of component suppliers is
not the main consideration for apple or its main competitors. However, as the
business environment is becoming more and more competitive and work closely
with suppliers is vital, not to put pressure on suppliers (through the use of
electronic consumer products like apple company provide higher bargaining power).
This is because collaboration is critical to the effectiveness, efficiency and
flexibility of the supply chain(Sodhi, 2005; Helo, 2004).

 

Threat of New
Entrants to the Marketplace(low) 

The threat of a new entry into the market could seriously
threaten apple’s market share, but the relatively low threat. This is largely
due to two factors: the high cost of building a company in the industry and the
extra cost of building brand name recognition. Any into a personal computer or
smartphone market of new entrants will need to invest a lot of money, to before
the development and production of their product mix, they need promote their
products to market first. Such competitors are facing stiff competition between
apple and its main rivals, big, established companies. The second challenge is
to build brand awareness in an industry already owned by several companies,
such as apple, Google and amazon, which have very high brand recognition.

 

Threat of Buyers Opting for
Substitute Products(moderate).

This treat has kept growing for Apple. That’s because several
brands in the smartphone market have launched lower-priced handsets. While
apple’s customers have high brand loyalty, some of the Samsung and Google
models are a potential threat because of their efficiency and design.

The pixels from Google and Samsung are the iPhone’s main
competitors. The threat is growing outside the us, where apple’s brand loyalty
is relatively low. It is almost impossible for apple to take any steps to
mitigate this threat, in addition to producing more powerful products. Overall,
the threat from apple substitutes is moderate.

 

SWOT analysis

Strengths

Weaknesses

Highly strong brand
images.
l  A company with
strong financial resources.
l  Innovative and
very advanced supply chain
l  High profit
margins products 
l  Focus on
research and development 
l  Good customer
service 
 

l  High prices
products 
l  Products
range narrow 
l  Patents
infringement.
l  Fewer
innovations with latest products 
 

Opportunities

Threats

l  The Chinese
market
l  Apple TV and
HomeKit 
l  Apple Watch
apps
l  New iOS
system in the car
 

l  Android OS
growth
l  Rapid
technology change
l  Online music
market
l  Intense rise
in competition
 

 

Transformational
Leadership

Adopt transformational leadership style to revitalize the
company and instill the ability to challenge the standard operating model.
There must be two-way communication. This allows the company to catch up with
strong competitors in terms of innovation and creativity, productivity and
goals.

 

Centralization and
intraprenurship

 

Apple products are less diversified and all products have the
same properties, which encourages centralization. In the end, apple has a lot
of experience in international business, because it is the most highly regarded
technology company in the world. This also encourages concentration. 

Reinforcement theory 

 launch the Intrapreneurship program, positive
reinforcement must be applied. Software engineers should be rewarded for their
contribution of new ideas. Performance reviews should be implemented to find
out which employees work harder and reward them. As with any planned change,
Lewin’s three-step model: unfreeze , change and refreeze should be applied, and
the change will become permanent.

 

Promote Culture of Technical Innovation and Creative Excellence

Employees should be creative and encourage them to venture into
new markets beyond the iPhone. Senior management must support the company
culture and guide employees to achieve the company’s strategic objectives. They
must also establish strong management staff relations to ensure employees’
loyalty.

 

Conclusion 

Large companies such as Samsung have developed in other smart
technologies, such as the construction of robotic systems. There are a lot of
research and development of mobile phone companies are in competition with
apple, such as Huawei, Xiaomi, and so on, the choice of their products conform
to the low-income people, and a lot of step by step in the improvement and
development on the function, and apple’s main income is from the iPhone, if
apple wants to rule the market further and move into other areas like science
and technology, there must be more innovative, more recruit and more software
talents, tight with global market demand.

 

x

Hi!
I'm Harold!

Would you like to get a custom essay? How about receiving a customized one?

Check it out