launched iPad as a gadget with the same functionality as a PC, but even more convenient in use. By comparison with a PC, the low prices for iPad turn out to be its crucial benefit. Apple Inc. has the intention to broaden the chain of the premium class iPads with the extended range of functions and more powerful software and hardware constituents. This will allow substituting PCs in many sectors of the industrial and business field. At the same time, the inner element of the middle-priced iPads will be constantly improved.
To create this “mystery”, Apple releases limited information about their new device. This is a good marketing strategy because it makes people wonder about what the new device will be like, which gets more people thinking and talking about Apple (Kulkarni). When people do this, they are more likely buy Apple’s products and bring recognition to the company (Morrison). Building suspense and creating a mystery about their new device, Apple is able to sell more products. Another marketing strategy of Apple is creating an experience for their customers.
From the vision statement of CEO Tim Cook, which has been listed out a few of major points, such as the emphasis on innovation, which directly relates with Apple’s rapid innovation strategy. In addition, the vision statement specifies simplicity, which is also an integral aspect of the company’s approach to product design and development. Thus, Apple well known by its user-friendly and easy-to-use products that help improve daily activities. The simplicity of the design of iPhone and iOS make it easy to communicate with other electronic application by using apps and access the Internet. Moreover, Apple’s vision statement shows careful selection of markets which reflects the firm’s use of market research to guide decision-making in product development and strategic formulation.
Apple states in their Form K-10 Report (2017, p.1) they are “committed to bringing the best user experience to its customers through innovative hardware, software and services.” In an Industry where profit margins are low, technologies are constantly evolving and competition is high it is essential that Apple continues to offer innovative and simple products that increases customer experience (Heracleous, 2013) so to maintain a competitive advantage. A variety of tools have been used to evaluate Apple’s external and internal environment, including the PESTEL (Appendix 1), Porter’s Five Forces Analysis (Appendix 2), SWOT (Appendix 3). It is envisaged that the information derived from these tools and the associated analysis will support Apple’s CEO to make strategic decisions that addresses the challenges ahead in the short term, ensuring Apple can be competitive in the long term (Rothaermal, 2017). External Environmental Analysis PESTEL: Apple has a significant presence in the Asian markets in terms of contracted suppliers and through high magnitude of sales. This leaves Apple susceptible to significant political and economic risk both internationally and within the United States.
The Apple brand personality glamourizes this idea of lifestyle, imagination, freedom, innovation, passion, hopes, dreams and ambitions, and power-to-the-people through the technology in its products and it hugely does this in its visual advertisements that sometimes even exaggerate the amazing experience of using technology and gaining a sense of happiness. The Apple brand personality is also about simplicity and the removal of complexity from people 's lives, people-driven product design, and about being a really humanistic company with a heartfelt connection with its customers. The Apple brand is not just intimate with its customers, it 's loved, and there is a real sense of community among users of its main product
SWOT Analysis: Strengths: Apple has a very unique strength which is the fact that they have created their own software and hardware, which gives them a very competitive edge in comparison to its competitors; they give their customers this feeling of exclusivity as their software is only compatible with their products, with little to none other brands being able to access their software on their devices. They are very bold when it comes to innovation, and so always mange to surprise their customers with their new products example when they removed the headphone jack. Apple has a very loyal customer base, which helps in bringing in new customers, as they have many recommendations from friends and family. Their biggest competitor is Samsung Electronics,
(Lawler, E. E. (2014) The company’s goal is to achieve a high position in the retail industry with its known vision statement “To be the best in the hearts and minds of consumers and employees”. One of the strategic objectives of Wal-Mart were to keep the cost of the product low, and spending on other areas of the business. Another strategic objective of Walmart is to attain economies of scale to support the cost-leadership. “U.S. Department of Commerce (2017).
• Second benchmark is the Apple Company. Reason is simply because it’s been one of the 21st century’s most successful companies. Especially during the recent world recession; apple was still able to push substantial merchandise into the market. Apple’s marketing strategy and Customer relation can be incorporated into Land’s End for better productivity and customer satisfaction which will in turn increase profits. • Third company I will
Microsoft vs. Apple As the great CEO of Apple, Steve Jobs quoted, “These technologies make life easier, can let us touch people we might not otherwise. You may have a child with a birth defect and be able to get in touch with other parents and support groups, get medical information, the latest experimental drugs. These thing can profoundly influence life. I’m not downplaying that.” Anyone considering the purchase of a computer may find it difficult to know what computer to buy. But, after looking through online stores, we can conclude that two popular companies are making most of these gadgets.
Moreover, stringing dollars had also source of problem for Apple product prices, transportation cost and profit margins (Apple INC, 2012). 4.0 Recommendation to Improve Management of the Macro Environment of Apple Dominating the various manufacturers that Apple serves in while at the same time getting a respectable profit for the shareholders and contributing to the improvement of the guild at large is Apple’s main aim. Referable to the nature of the industry, Apple thus needs to adopt effective recommendations that will insure long term sustainability and improve the macro environment of the organisation.