Strategic management assignment discussing the strategic issues of Apple Inc. in the current competitive conditions

Question

Task: Recommend competitive strategies (e.g., broad low-cost strategy, focused low-cost strategy, broad differentiation strategy, focused differentiation strategy, best cost strategy) for the current competitive conditions for an organisation. Identify complementary strategic actions to maximise the overall strategy. Examine the role of ethics, culture, sustainability, or leadership in relation to your recommended competitive strategy and strategic actions for the strategic management assignment.

Answer

Introduction
This strategic management assignmentwill discuss the strategic issues of Apple Inc. in the current competitive conditions. The first assessment will identify the key issues that the organization should prioritize and why. It will then recommend and justify competitive strategies to address the prioritized strategic issues. Additionally, complementary strategic actions will be identified and evaluated in the strategic management assignmentto strengthen the organization’s competitive position and overall strategy. And, two areas that the organization should consider in the implementation of the recommended strategy and complementary strategic actions will be selected and discussed. This strategic management assignmentwill provide a comprehensive analysis of Apple Inc.’s strategic issues in the current competitive conditions and provide recommendations for addressing these issues. This analysis will provide Apple Inc. with the information necessary to develop a successful and sustainable competitive strategy.

Organizational and industry context discussed in the strategic management assignment
Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services (Rajput 2021). As per the strategic management assignment analysis it is considered one of the Big Four technology companies, along with Amazon, Google, and Microsoft. Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976. Since then, the company has grown rapidly and become one of the most valuable and recognizable brands in the world. Apple’s products and services include the iPhone, iPad, Mac, Apple TV, Apple Watch, AirPods, HomePod, iPod, Apple Music, Apple Pay, iCloud, Apple Arcade, and various other accessories. The company also sells digital content and applications through the iTunes Store, App Store, and Mac App Store.

Apple’s main competitors in the technology industry include Microsoft, Google, Amazon, and Samsung. It is found in the strategic management assignment that the company has a strong focus on innovation and design and has been recognized by many organizations for its commitment to sustainability and environmental responsibility. Apple is also known for its strong privacy policies and its commitment to user security. Apple’s success has been driven by its ability to consistently develop innovative products and services, as well as its strong marketing and branding strategy. The company has also been able to capitalize on its strong customer loyalty, which has resulted in an unprecedented level of customer satisfaction and loyalty. As per the strategic management assignment data Apple’s products and services are available in more than 150 countries and its market capitalization crossed the $1 trillion mark in 2018.

The strategic issues discussed in the strategic management assignment
The strategic issues of Apple in the Australian market can be mainly divided into two categories: internal competitiveness and external business environment.
Internally as per the strategic management assignment, Apple is facing a growing threat from its android-based competitors such as Samsung and Oppo, who are gradually catching up to Apple’s market share. This is mainly due to Apple’s lack of aggressive marketing strategies, digital or otherwise, to counter its main business rivals. To address this, Apple needs to set up an iAd advertising program like that in the US and Europe to attract new potential customers.

Externally as per the strategic management assignment, Apple needs to address the growing demand for cloud-based services that go hand-in-hand with mobile devices. Here, Apple is facing strong competition from companies such as Amazon and Google, who are leading the front when it comes to cloud services (Krishnamurthy 2022). To remain competitive, it is found in the strategic management assignment that Apple needs to ramp up its iCloud services in the Australian market to remain competitive and attract more customers.
Apart from these two strategic issues mentioned in the strategic management assignment, Apple needs to focus on creating a seamless customer experience across all its products and services. This includes ensuring that customers can easily download and access apps and services, regardless of the device they are using. Apple also needs to focus on improving customer service and support, as this is an important factor that customers consider when choosing a device.

Key issues the apple inc. should prioritize:
1. Product Innovation: Apple Inc. should prioritize product innovation as a key focus going forward (Schoemaker, Heaton and Teece 2018). As per the strategic management assignment this is because, in today’s competitive market, companies need to be constantly innovating to stay ahead of their competition.

2. Customer Satisfaction: Apple Inc. should prioritize customer satisfaction as it is crucial for the company’s success. Customers are the lifeblood of any business and Apple should ensure that they are providing the best customer service possible. As per the strategic management assignment this includes providing excellent customer support, offering easy return policies, and providing timely updates and repairs. By doing this, Apple can build customer loyalty and trust.
3. Strategic Partnerships: Apple Inc. should prioritize strategic partnerships to stay competitive in the market. By partnering with other companies, Apple can take advantage of its resources and knowledge to create new products and services.
4. Security and Privacy: Apple Inc. should prioritize security and privacy for its customers (Redmileset al. 2020). As technology becomes more advanced and data more easily shared, Apple must provide its customers with the best security measures possible. As per the strategic management assignment this should include encrypting data, implementing two-factor authentication, and ensuring that its products are secure from online threats.
5. Financial Performance: Apple Inc. should prioritize financial performance as this is essential for the company’s long-term success. As per the strategic management assignment this includes creating a sound financial plan and ensuring that the company is profitable.
By prioritizing these five key issues, Apple Inc. can ensure that it is competitive in the market and well-positioned for long-term success.

Recommendations and justifications
1. Product Innovation: Competitive strategies that Apple Inc. can employ to address product innovation include investing in research and development, creating a culture of innovation, and launching new products (Paiva, Ribeiro and Coutinho 2020). As per the strategic management assignment by investing in research and development, Apple can ensure that its products are consistently at the cutting edge of technology. This includes exploring new technologies and finding new ways to improve existing products. Moreover, Apple should create a culture of innovation by encouraging employees to come up with new ideas and rewarding them for successful projects. Finally, Apple should focus on launching new products to stay ahead of the competition. As per the strategic management assignment this includes creating unique products that stand out from the competition, as well as staying on top of trends to ensure their products remain relevant.

2. Customer Satisfaction: Competitive strategies that Apple Inc. can employ to address customer satisfaction include providing excellent customer service, offering easy return policies, and providing timely updates and repairs. It is found in the strategic management assignment that Apple should ensure that its customer service is top-notch by hiring knowledgeable and friendly representatives, providing easy-to-follow instructions, and offering fast response times. Additionally, Apple should implement an easy return policy to ensure that their customers are satisfied with their purchases. Finally, Apple should provide timely updates and repairs to their products to keep their customers happy.
3. Strategic Partnerships: Competitive strategies that Apple Inc. can employ to address strategic partnerships include forming strategic alliances, leveraging existing partners, and finding new partners (Gatobu and Maende 2019). Apple should form strategic alliances with other companies to gain access to their resources and knowledge. As per the strategic management assignment this could include collaborating on joint research projects or sharing marketing resources. Additionally, Apple should leverage existing partners to make its products more competitive. This could include leveraging the production capabilities of existing partners or taking advantage of their distribution networks. Finally, Apple should focus on finding new partners to expand into new markets and reach a wider audience.

4. Security and Privacy: Competitive strategies that Apple Inc. can employ to address security and privacy include encrypting data, implementing two-factor authentication, and ensuring that their products are secure from online threats. Apple should encrypt user data to ensure that it is protected from unauthorized access. Moreover, Apple should implement two-factor authentication to ensure that only authorized users are accessing their products. Lastly, it is analysed in the strategic management assignment that Apple should ensure that its products are secure from online threats by employing the latest security measures and regularly updating its products.

5. Financial Performance: Competitive strategies that Apple Inc. can employ to address financial performance include developing a sound financial plan, optimizing its supply chain, and focusing on cost-cutting measures (Mittal and Sridhar 2020). Apple should develop a sound financial plan to ensure that the company is profitable. As per the strategic management assignment this includes creating a budget and tracking expenses, as well as developing strategies to increase revenue. Moreover, Apple should optimize its supply chain to reduce costs and maximize profits. This could include sourcing cheaper materials or finding more efficient methods of production and distribution. Lastly, it is recommended in the strategic management assignment that Apple should focus on cost-cutting measures to reduce expenses and increase profits. This could include implementing cost-saving initiatives such as reducing waste and streamlining processes.

Complementary strategic actionsdiscussed in the strategic management assignment
Apple Inc. is one of the world’s leading technology companies. Throughout its history, Apple has been known for its innovation and disruption of the traditional technology industry (Sharon 2021). Yet, in recent years, it is found in the strategic management assignment that competition from many high-profile firms such as Samsung, Google, and Microsoft have put pressure on the firm’s growth and profitability. As such, Apple needs to consider a range of strategic actions to strengthen its competitive position and overall strategy.

1. Offensive Strategy: An offensive strategy involves taking proactive steps to gain a competitive edge over the competition. Apple Inc. could undertake several offensive strategies to strengthen its competitive position and overall strategy. As per the strategic management assignment one such strategy would be to focus on product innovation and design. Apple has always been known for its innovative and sleek designs, and this could be a major point of differentiation for them in the market. Apple could focus on research and development to create new products that are both innovative and aesthetically pleasing. This would help them stay ahead of the competition and give them an edge in the market. Another offensive strategy that Apple could pursue would be to expand into new markets. It is found in the strategic management assignment that Apple currently has a presence in many markets, but it could look to expand into emerging markets where there is growth potential. This could help them tap into new customer bases and increase their revenue.

2. Defensive Strategy: A defensive strategy involves taking steps to protect and defend the company’s current market position. Apple could undertake several defensive strategies to strengthen its competitive position and overall strategy. One such strategy recommended in the strategic management assignmentwould be to focus on customer service and satisfaction. Apple could look to provide the best customer service possible to retain current customers and attract new ones. This could involve providing quick and efficient customer support, as well as making sure all customer issues are addressed on time. Another defensive strategy recommended in the strategic management assignmentthat Apple could pursue would be to focus on cost-cutting measures. Apple could look to reduce costs wherever possible to maintain itscurrent market position and profitability. This could involve streamlining processes, investing in automation, or outsourcing certain tasks.
3. First Mover Strategy: A first mover strategy involves taking steps to be the first company to enter a new market or develop a new product. It is recommended in the strategic management assignment that Apple could use this strategy to strengthen its competitive position and overall strategy. One such strategy would be to focus on research and development. Apple could look to invest in new technologies and products that are not yet available in the market. This could give them an edge over their competition, as they would be the first to have access to new technologies and products. Another first-mover strategy that Apple could pursue would be to focus on partnerships and alliances. As per the strategic management assignmentApple could look to form strategic partnerships and alliances with other companies to gain access to new markets or technologies. This could help Apple gain a competitive edge over its competition.
4. Blue-Ocean Strategy: A blue-ocean strategy involves taking steps to create uncontested market space to gain a competitive edge. Apple could use this strategy to strengthen its competitive position and overall strategy. One such strategy recommended in the strategic management assignmentwould be to focus on creating unique products and services. Apple could look to create products and services that are not available in the market or are substantially different from those of its competitors. This could help them gain a competitive edge, as they would be the first to offer such products and services. Another blue-ocean strategy recommended in the strategic management assignmentthat Apple could pursue would be to focus on customer experience. Apple could look to provide a unique and immersive customer experience that is not available from their competitors. This could involve creating a customized shopping experience, providing personalized customer support, or offering unique incentives.

5. Merger and Acquisition: A merger, or acquisition, involves combining forces with another company to gain a competitive edge. Apple could use this strategy to strengthen its competitive position and overall strategy. One such strategy recommended in the strategic management assignmentwould be to focus on mergers and acquisitions. Apple could look to acquire other companies to gain access to new technologies or markets. This could help them gain a competitive edge, as they would be able to leverage their acquired assets to their advantage.
6. Strategic Alliance: Apple Inc. could also consider forming strategic alliances with other companies to strengthen its competitive position and overall strategy. This strategy mentioned in the strategic management assignmentinvolves Apple Inc. engaging in activities that will increase its market reach and allow it to access new markets and customer segments. By engaging in such activities, Apple Inc. will be able to gain a competitive advantage over its competitors and gain a larger market share.

Thus, Apple has pursued a range of strategic actions to strengthen its competitive position and overall strategy like the ones mentioned in the strategic management assignment. These include offensive strategies such as product innovation and expansion into new markets, defensive strategies such as cost reduction and legal protection, first-mover strategies such as product development and expansion into new markets, blue ocean strategies such as innovation and brand positioning, and merger, acquisition or strategic alliance strategies such as mergers and acquisitions and strategic alliances. By pursuing these strategies, Apple can remain competitive in the technology market and continue to grow and succeed.

Implementations
Organizational culture and leadership are two areas that Apple Inc. should consider in the implementation of the recommended strategy and complementary strategic actions. Organizational culture is an important aspect of any organization’s strategy and operations, as it sets the tone for how employees interact and behave within the organization, and how they relate to customers, clients, and partners (Srisathan, Ketkaew and Naruetharadhol 2020). As per the strategic management assignment leadership is also essential for implementing a successful strategy, as it provides guidance, direction, and motivation to employees to achieve the organization’s objectives.

Apple Inc. can leverage the two aspects of organizational culture and leadership to support its strategy and complementary strategic actions.

Organizational culture:
Organizational culture is the shared values, beliefs, norms, and assumptions held by members of an organization. As per the strategic management assignment it is the personality of an organization, and it is shaped by the company’s vision, mission, values, and objectives. Apple Inc. has a strong organizational culture that is based on innovation, creativity, and customer satisfaction. This culture mentioned in the strategic management assignmentis reflected in their products and services, which are designed to be user-friendly and to meet the needs of their customers. Apple Inc.’s culture has helped them to become one of the most successful companies in the world. An effective organizational culture helps to motivate employees, foster a sense of ownership, and create an environment that encourages innovation. As per the strategic management assignment it also helps to ensure that employees understand the organization’s goals and objectives and are committed to meeting them.

To support its strategy and complementary strategic actions, Apple Inc. should ensure that its organizational culture reflects its vision, mission, and values. They should also strive to create a culture that is based on collaboration, creativity, and customer satisfaction. As per the strategic management assignment this culture should be supported by encouraging a culture of feedback and openness, where employees feel comfortable sharing their ideas, opinions, and concerns. This will help to ensure that the organization can respond quickly to changes in the market and customer needs. Apple Inc. should ensure that their employees are empowered to make decisions and take initiative, as this will help to create an environment of innovation and creativity.

Leadership:
Apple Inc's leadership is based on the principle of “Think Different” and its leaders are expected to be creative, innovative, and inspiring. To successfully implement its strategy and complementary strategic actions, it is recommended in the strategic management assignment that Apple Inc must ensure that its organizational culture and leadership are in line with its strategic objectives. Leadership is essential for implementing a successful strategy, as it provides the direction, motivation, and resources required to achieve the organization’s objectives. The company also has many experienced executives and directors, who are responsible for various aspects of the business. For Apple Inc. to implement its strategy and complementary strategic actions successfully, it is important that its leaders can provide clear direction and motivate their teams. Also, leaders should ensure that their teams are empowered to make decisions and take initiative, as this will help to create an environment of innovation and creativity. As per the strategic management assignmentApple Inc. should also ensure that its leaders can effectively communicate their vision, mission, and objectives to employees. This will help to ensure that employees understand the organization’s goals, and are motivated to work towards them. Also, leaders should be able to create a culture of feedback and openness, where employees feel comfortable sharing their ideas, opinions, and concerns. As per the strategic management assignment this will help to ensure that the organization can respond quickly to changes in the market and customer needs. In summary, organizational culture and leadership are two areas that Apple Inc. should consider in the implementation of its strategy and complementary strategic actions.

Apple Inc. should strive to create a culture that is based on innovation, creativity, and customer satisfaction. As per the strategic management assignment findings, in addition, they should ensure that their leaders can provide clear direction and motivate their teams and that employees are empowered to take initiative and make decisions. Finally, leaders should ensure that their teams can effectively communicate their vision, mission, and objectives to employees, and create an environment of feedback and openness.

Thus, organizational culture and leadership are two areas Apple Inc should consider in the implementation of the recommended strategy and complementary strategic actions.An effective organizational culture and inspiring leadership are essential for the successful implementation of any strategy, and Apple Inc must ensure that its organizational culture and leadership are in line with its strategic objectives. As per the strategic management assignment by taking steps to ensure that its organizational culture and leadership are aligned with its strategic objectives, Apple Inc can ensure that its strategy and complementary strategic actions are successfully implemented.

Conclusion
In conclusion it can be said in the strategic management assignment, Apple Inc. needs to consider strategies and complementary strategic actions to maintain its competitive position in the current competitive conditions. The strategic issues identified from the strategic management assignmentanalysis of the first assessment are the need to focus on Product Innovation, Customer Satisfaction, Strategic Partnerships, Security and Privacy, and Financial Performance. These issues mentioned in the strategic management assignmentshould be prioritized as they are critical for Apple Inc. to stay competitive in the market. Competitive strategies should be adopted to address the strategic issues. Also, the organization should consider complementary strategic actions such as offensive strategies, defensive strategies, and first-mover strategies to strengthen its competitive position and overall strategy. Moreover, two areas that should be considered in the implementation of the recommended strategies and complementary strategic actions mentioned in the strategic management assignmentare ethics, organizational culture, leadership, and sustainability. To ensure successful implementation, Apple Inc. should ensure that all stakeholders are aware of the strategies and that they are fully aligned with organizational values. Furthermore, the organization should have systems in place to ensure that the strategies and actions are implemented successfully. By considering all of these factors mentioned in the strategic management assignment, Apple Inc. can ensure that its competitive position and overall strategy remain strong and successful.

References
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