In fact, the online marketing model does not only enable the firm to sell directly to the respective consumer, but also enables the firm to identify the unique needs of the consumers. The direct link between the consumers and the company is critical to continuous growth of the company. Apple Inc. strives to limit the time between ordering for the goods and receipt of the same. Normally, long distribution channels do not only influence the pricing of the products, but also the time when the consumers receive the product. Apple Inc. commands a great power in the market because it has differentiated
Matt Asay describes how Apple’s ability to reach its target market goes against traditional methods because it “does not target markets, but rather it targets people”, letting them decide how and where they’ll use its products (Asay, 2010). This ideology revolves around focusing on individuals and building exceptional products for them. Apple has redefined the market for technological devices by designing attractive, multi-functional, easy-to-use products. As a result, it is clear that its strategy to appeal to its target market revolves around creating an interesting product and define your market as "those who are interested in it" (Ton, 2015). Apple is all about the customer experience, be it in their stores or else creating products that their customers will love, and isn’t too concerned with concentrating on those who don’t.
Apple Inc. uses both quantitative and qualitative measures to measure performance spending patterns. Apple Inc. monitors the sales data and the revenue data to reach meaningful conclusions. The company also uses the inputs from its top management and stakeholders to derive at conclusions about the success and failure of its strategic effectiveness. According to "Apple’s Retail Strategy " (2016), " Devices that aren’t upgradeable or modular are not useful, Apple Inc. is taking commerce out of the store experience as much as possible and yet as a reward it’s winning more customer dollars. You can measure innovation strategies in terms of a revolutionary new smartphone, or a dramatically different PC design, or you can measure it in the aggregate effect of a sustained effort to change an age-old practice.
• Lenovo has the advantage of coordinating PC market and smartphone market and make two businesses achieve synergies. By integrating the R&D resources and the deals with the same vendors and material suppliers, this can lead to the result of lowering cost and time and more manufacturing efficiency. • With the advantages of producing PCs and smartphones, developing an ecosystem in the future that improved cross-product usability can bring a potential competitive advantage. Weaknesses • The acquisitions and the quick merging need to be well managed, or it will easily become a backfire for the company to cause a momentary profit and a constant loss after. • Lenovo did not accurately understand consumer's need and made Moto Z with the modularizing design that the consumers did not desire.
N. & Belihu, 2010). In the present dynamic business environment of globalization and free trade, SCM that is cost effective is considered as the matter of survival for obtaining the services and goods, which accounts to around 80% of total revenue of sales. Relying on this, the significance of effective Supply Chain Management must be viewed as competitive advantage, as it’s the heart of corporate strategy of the company (Trung, H. N. & Belihu, 2010). Along with this, the consumer’s external pressure also needs the companies to focus over lower prices, good quality, high cost efficiency, and shorter lead times. Therefore, there is an increasing demand to follow the Supply Chain Management as the holistic view for securing the profitable results for every party involved in the supply chain (Thakkar, J., Kanda, A.
Interactions amongst Apple employees are face to face as opposed to teleconferencing, social media or instant messaging in order to promote creativity, diversity of opinion and effectiveness. Creating an innovative culture gives Apple the ability to develop and market ideas before their competitors. Apple has strategies in place to achieve their organizational objectives; these strategies create a clear path to their goals and allows them to figure out the right cost structures for profitability. Apple CEO, Tim Cook explained in an interview with Fast Company that, “Stock price is a result, not an achievement by itself. For me, it’s about products and people.” Their business model greatly supports innovation management and the effectiveness of
SWOT Analysis a) Strengths: • Strong R&D: Product innovation will continue to flourish and add to the success of the technology sector. Apple builds it up and accomplish this mainly through increased R&D. In addition to this, Apple has a lot of capital and exposure to international markets, so they can invest heavily in R&D and cope their expenses. • Customer loyalty: Customer loyalty is a reflection of the high quality customer service Apple offers. Apple needs to maintain this to maintain their customer loyalty.
1. What we know about profit pools is that: ‘Profits don’t necessarily follow revenues’ and that ‘Today’s deep revenue pool may become tomorrow’s dry hole’. In this article we are focusing on Apple and the way how it managed to recognize the variability of profit, and along with it, could find out the best way of realizing it. Apple has three main businesses as top priority: Macintosh, iPod-iTunes and iPhone. These are the pioneers of superior improvement in PC, music and smartphone industries.
Forward Buying Hedging is a way for a company to minimize or eliminate foreign exchange risk, as well as the risk of commodity price increase, at a cost Supplier Segmentation The idea is to segment suppliers by total financial impact on the firm. Lean/Six Sigma When firms apply the principles of Lean and Six Sigma to their global supply chain, along with value stream mapping, they find a multitude of ways to reduce cycle time and variation by eliminating wasteful activities in the process. Competent Partners Some companies develop a second domestic source that can be quickly ramped up. They insist on dealing with strong, competent world-class suppliers, ideally with a “first world” parent. Expedited Shipping Proactively assume a percentage of the shipments will be expedited or airfreighted when they initially plan for a global source.
Launch of new products and services: The launch of new products also lead to appreciation in stock prices. This happens as there are hopes that the product will break into new markets and earns more revenues for the company. 4. New orders and contracts: When a company wins new contracts or orders there are expectations that they will add more revenues to the companies and the earnings will see appreciation. This leads to a sharp increase in stock prices.