Apple - Global Analysis

Global Immersion 2: Global Analysis

Reflective Paper

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                                           APPLE

                                                                                                                             ANKIT SINGHVI MAHIPATRAJ                                            MSEP15G42

Apple Inc. is an American Multinational technology company that designs, develops and sells consumer electronics, computer software and online services. Its hardware products include the iPhone smartphone, the iPad tablet, the Mac personal computer, the iPod portable media player and the Apple Watch smartwatch. Apple's consumer software includes the OS X 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 App store and Mac App Store, and iCloud.

Apple was founded by Steve Jobs, Steve Wozniak and Ronald Wayne to develop and sell personal computers. Apple is the world’s largest information technology company by revenue and the world’s second largest mobile phone manufacturer. There are 453 Apple retail stores in 16 countries.  

APPLE’S DIAMOND MODEL

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Firm structure, Strategy, Rivalry

Structure

 The Apple’s most significant characteristics of Apple’s organizational structure includes Spoke-and-Wheel hierarchy, Function based grouping and Product-based grouping.

Strategy

• Apple’s generic strategy is broad differentiation. This generic strategy focuses on key features that differentiates the company and its products from competitors. Emphasis on elegant design combined user-friendliness and high-end branding effectively differentiate the company. The key features include seamless connectivity among devices and cutting-edge aesthetics in design.
• Apple uses product development as its main intensive strategy for growth. Product development requires that the company must offer attractive products to grow its market share and performance. Apple implements this intensive growth strategy through innovation in its research and development processes.
• Apple uses market penetration strategy which involves gaining a larger market share by selling more of the company’s current products.
• Apple uses market development strategy for creating new markets for new products or entering entirely new markets.

Rivalry

 Companies like Samsung, LG, Blackberry and others aggressively compete with Apple. Such aggressiveness is observable in rapid innovation, aggressive advertising and imitation.

Related and supporting Industries

Information Technology for mobile applications and software solutions, Electronics Industry, Entertainment Media and Applications, Banking Industry for payment.

Demand Conditions

1. Strong Security: Apple has always had a strong reputation in the security space. The company retains complete control over what applications and services run on its platform. This makes it far more difficult for hackers to target its users.
2. Expert IT solutions and technological infrastructure.
3. Easy integration with other Apple devices.
4. Consistent user experience keeps users happy.
5. Clear point of contact for support from Apple: Apple’s customer service and technical support is a major reason to opt for Apple products.
6. High quality peripherals.
7. Quick and easy to use.

Factor Conditions

1. Leadership skills from top-level management who have huge experiences in a wide range of fields. Apple rolls out expanded benefits to retain and attract top-notch employees.
2. Hiring the best fit employees and recruit a local team to deal with global expand issues (related to policy and regulations) and local marketing strategy.
3. The cost and availability of raw materials such as glass for the multi-touch screen, plastic for the casing and silicon for the chipset.
4. R&D in Technology for mobile application and back-end system.
5. Location based service strikes the balance between consumer benefits and privacy concerns.
6. Apple’s innovation strategy involves terrific new products and innovative business models.
7. By using external labor for manufacturing, Apple reduces its production costs.

Government Intervention

In some countries, there is some government intervention which included taxes, subsidies, laws and regulatory bodies. The government introduced a price ceiling in order to stop Apple from overcharging customers.

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