Apple Inc. - An Analysis of Company Strategy

Apple Inc - A Strategic Analysis

Introduction

It can be stated that Apple Inc. is one of the top five technology companies of the world. While initial product positioning was based on niche publishing and design markets, Apple has since then revolutionized the consumer electronics market in a huge way. The introduction of the iPod back in 2000 changed the whole game for handheld computer markets and forced competitors to revisit their strategy.

In addition, the company has built its financial strength to the point that it is not just one of the best corporations of the world; it is also one of the most cash rich companies with $__________ in its coffers as of its 3QFY13. It also has one of the highest brand values, and is the leader in smart-phone sales by market share.

This report seeks to analyze and narrate the overall strategic outlook of the company with a focus on global, corporate-level, product, and research and development strategies.

Company Overview

The company started with humble beginnings in 1976 out of Cupertino, California, and now employs a workforce of over 63,000 people. Its first product was the Macintosh and since then, after a turbulent teething period, the company has become the second most valuable brand in the world boasting a worth of US$87.1 billion. The company's product line includes high performance personal computers, laptops and over the years increased its portfolio to include MP3 players, music software, smartphones and tablet computers, being a pioneer within the handheld electronics industry.

The company has integrated its product line in a manner which allows it to charge a premium over its hardware sales. The integration of its software; iOS6, OSx, iTunes etc, and its computing devices; such as the iPod, the iPad, and its iMac and Macbook systems, had enabled the company to lead in this growing sector and had been unrivalled in terms of product offerings and sales in its league.

However, despite Apple's strong sales and brand reputation, there are now many major competitors in its target market. The competition began with the introduction of the Android operating system which leads to competition in the smartphone and tablet computer markets. Samsung is one of Apples leading competitors in both markets. Competition with Samsung, the company that manufactures android-based Galaxy smartphones and tablets, has gotten intense where the former has has made attacks on Apple's products in advertisements and online videos. In addition, Apple has taken the company to court in the US and abroad with regards to imitation of apples features.

That being said, the company still leads in its target markets in terms of market share, however with diminishing values. The latest market share figures reveal that Apples market share stood at approximately 48 per cent of the total tablet market while Android's share grew to 43 per cent, a gain of 9 per cent over last year.

The leader at the helm of the company's strategy, Steve Jobs, passed away in October, ...