APPLE'S STRATEGIC MANAGEMENT

Apple's Strategic Management

Table of content

Introduction1

Discussion2

Apple's Marketing Analysis2

Target Market2

Market segmentation2

Marketing Mix3

Analysis of Business Competition4

Strategic Management6

Product Development7

Diversification7

Competitive Strategies8

Differentiation8

Product pricing8

Capital Investment9

Performance management9

IT- and business9

Integrated Marketing Organisation9

Operational Efficiency10

Conclusion12

Apple's Strategic Management

Introduction

Apple achieved high record revenue and growing figures in all types of customers, products and services in APJ & EMEA area. The company continues to grow faster than industry in all categories (Shim and Mcglade 2004, pp. 885). New manufactory plants and sales offices are continually introduced to regions in order to save time and cost. The direct relationship model provides the powerful differentiator for the company to deliver satisfaction to customers of all sizes and types. These examples show success of Apple's customer-focused direct model that can be applied to all regions. It provides competitive advantage and opportunity for company's growth (Shim and Mcglade 2004, pp. 885).

Apple has focused most of the resources to support large commercial and institutional organisations segment to sustain its growth by delivering superior services over competitors (Shim and Mcglade 2004, pp. 885). In fact, Apple sells more computer systems to business organisations than any other company in the world.

To adapt market change, Apple extents product categories to consumer electronics for better growth opportunities (Shim and Mcglade 2004, pp. 885). The company follows both the informal and formal communication in the hierarchy level. The chain of command is separated made in such a way to give the authority and empowerment in every region so as to make the innovation and decision making strong. The only loss that Apple faced due to this chain of command is the economic loss because of lack of check and balance of the financial aspect.

Discussion

To manage its products and marketing, Apple Computer had five product divisions responsible for the development, evaluation and manufacture of computer systems, software, and peripheral devices (e.g., Macintosh). It also had four product support divisions which handled marketing, distribution and post-sale product support (e.g. North American Sales Division). In addition, there were a number of administrative departments in charge of overseeing Apple's day-to-day corporate activities (e.g., the Finance Department) (Shim and Mcglade 2004, pp. 885).

Apple's Marketing Analysis

Target Market

It is necessary to determine your target market and understand they better (their preferences, dislikes, demands etc) as then only the marketing strategy can be successful. Analyzing the consumer behavior is extremely valuable, especially when decision has to be taken on a type of promotion (David 2002, pp. 121). There are three steps involved in establishing a target market this includes market segmentation, target market selection and positioning product.

Market segmentation

Indeed, an iPhone is not tailored for the Indian market and one adapted to the Chinese market, the strategy targets communication according to market segments (David 2002, pp. 121). Apple is famous for its strength in selling products (even expensive) to adolescents, also to the strong popularity of its brand. In a Business Week article devoted to "youth marketing by Apple," the first reason that teens like Apple is the fact that Apple designs products tailored to their ...