Apple Strategic Management

1.         Apple uses strategic management effectively. The leaders of the company deal with many challenges and even worse a great deal of pressure.  Apple’s past shows how it was able to continually refine changes to their strategies and enter new markets by externally scanning in multiple situations whether with Intel or windows. Apple seeked put opportunity to combine their efforts with others. Apple was able to find opportunity beyond the confines of their own jobs by entering many markets instead of being just a PC company. However, Apple’s objective was also to say no 1000 times so they don’t go on the wrong track. Apple’s vision is known for being driven by passion. Steve Jobs said their main goal was not necessarily being the biggest or richest but to deliver the world’s best products. However, his mission was also to make profit in order for him to deliver the great product. Apple’s values are clearly shown with the Foxcom situation, they proved their commitment to social responsibility by bringing some of the production to the U.S instead of Asia.  

         Apple also needs to focus on the external environment. Apple’s demographic shifted from baby boomers to younger generation. For the sociocultural aspect, Apple’s customers were exposed to products all around the world and have a better understanding of what they wanted to buy. With the Internet, the technological aspect, allowed competitors to improve their products. And as for political, Apple has to be careful with copyrights and intellectual property disputes such as with Samsung.   

2.         Apple has a sustainable competitive advantage due to many reasons. Apple is able to achieve differentiation with its products. Their products are valued to the point where the customer will pay a premium price.  In addition, Apple has a focused niche strategy appealing to certain type of consumer, such as early adopters. Apple also implemented diversification when they worked with NeXT, Intel, Microsoft, etc. Job’s strategy was to cooperate with third parties especially when entering a new market and create synergy. Also, Apple obtained valuable resources that can help the organization through acquisition for example, Apple bought out NeXT because of its technology contributions.