Discuss the importance of having Vision, Mission Statement, Goals and Objectives for Apple Inc. Expert Answer Knowing the mission and vision driving an organization is the first step to truly understand how this business is working towards its short- and long-term goals. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with iPad. If that really is Apple’s “mission statement,” it is indeed pretty lame. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with iPad. STRATEGIC OBJECTIVES: Apple has a particular status; it doesn’t have a listed set of objectives. All through our research, our group acknowledges that Apple always struggle to launch a new product in the market. Based on the executive overview of Apple’s report 2010 we can come out with a strategic objectives for their product named I pad.
- Length: 11 pages
- Sources: 10
- Subject: Business
- Type: Essay
- Paper: #16098676
- Related Topics: Iphone, Steve Jobs, Publicly Traded Company, Logistics
Excerpt from Essay :
Apple Inc. that was previously known as Apple Computer, Inc. is an American multi-national corporation that deals in consumer electronics, personal computers and computer software and was founded in 1976. Steve Jobs was the co-founder of Apple. During his stay as CEO, company launched series of revolutionary technologies. He died on October 5, 2011. Currently, Tim Cook is the CEO of Apple. Before being on this position, Cook was Apple's Chief Operating Officer. He was responsible for managing the company's sales and operations including supply chain, support services, and sales activities all over the world.As according to the September 2011 stats, Apple operates more than 300 retail stores in 11 countries. In addition to the retail stores, there is an online store that deals with individuals and corporate customers in hardware and software products.
The company had computer in its name but removed it on January 9, 2007 when it achieved a big name in other electronic devices as well apart from computers. Till 2000, company faced hard time but it made a successful turn afterwards when it started operating in other devices.
Currently, Apple is the biggest publicly traded company in all over the world in terms of market capitalization and considered as the largest technology company in terms of revenue and profit. Apple focuses more on designing and manages distinctive advertising campaigns. The company leads in its innovative capabilities and always do its best to bring all new products for its customers.
Apple's innovations and designs has built loyal family of customers and made a unique reputation. As according to Fortune Magazine, Apple was named as the most admired company all over the world in 2008, 2009, 2010 and 2011.
Apple leads the market majorly due to its low cost, sleek designing, differentiation of products, integrated products and high quality offerings. The company has number of competitive advantages over other companies so it has a bright future. (Khan, 2011)
Mission Vision And Objectives Of Apple Inc
Apple's Mission
Apple's investors' website states its mission as:
'Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork, and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple reinvented the mobile phone with its revolutionary iPhone and App Store, and has recently introduced its magical iPad which is defining the future of mobile media and computing devices.'
Apple's commercial mission statement is as follows:
'Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and internet offerings.'
Apple's Vision
'To make contribution to the world by making tools for the mind that advance humankind.'Apple fulfils its vision via the technologies it develops for organizations and individuals. It tries to make its customers the master of machinery they have purchased. It simplifies the operations for customers so that they may benefit from the technology as much as it is possible. Apple not only claims but implements it practically, forwards the vision towards its employees, clarifies objectives and provides them with all facilities to achieve the targets.
Apple's Goals and Objectives
Apple strives to:
Create and sell computers and other electronic devices that are easier to operate.
Expand business in an international market by opening more number of stores to increase profits.
Continuous innovations in all aspects of business
Apple highly focuses on improving innovative capabilities. The company believes in continual investments at different sectors like research and development, advertising and marketing so that to always bring fresh experience for the customers.
Apple's Competitive Advantage
The hardest thing for any company is to create a competitive advantage and even more than that is to sustain Competitive Advantage. For this purpose, it is important for a company to master in at least one thing what others cannot imitate. This may include the products' cost structure, distribution network, product offerings or customer support. (Robbins, 2003)
Apple is one such company that has been able to create and maintain its competitive advantage. Its superb product designing, low cost manufacturing, direct sales channels and other aspects build a competitive advantage for the company.
In past years, Apple had only an image that its products are easy to use and elegant but has limited market share. The market price was much higher and therefore Parts of this Document are Hidden
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Now due to innovation capabilities, development and company's trendsetting techniques in electronics, Apple has left other competitors far behind. The popularity of Apple can be well assessed with the number of likes it gets on Google, Amazon, Real Networks and other pages.Since, the company has now large supply chain so it enjoys some procurement benefits as well. Being a large company it makes huge orders that outclass rest of the companies. Recently Samsung lost market value of $10 billion when Apple made huge order of flash memory with Elpida. It secured more than half of the company's supply.
How Apple's Competitive Advantage can be Sustained Over Time
Apple identified its area of competitive advantage and standardized its components for multiple products manufacturing. Since, Apple's Laptop, Tablet and Smartphone almost uses the same kind of technology and even the designing is much similar but just the size varies so the components used in products are mostly same. Apple has made a strategy to cut costs and limit supply for the competitors. It has signed long-term agreements with manufacturers and so supply for the company is guaranteed.
Apple's deep integration between Operating System, apps and other devices has made customers bound to be a loyal customer. Once customer gets experience; it is hard to come out of the Apple's product circle since linked products enhances their use. Apple's brand loyalty has been able to sustain its competitive advantage over its competitors.
Apple's innovative strategies always bring an exciting experience for the customers that sets high standards for the market like iPhone is leader in touch screen smartphones.
The company also employs exciting marketing strategies that take benefit from people's frustrations by means of new and integrated products and services.
Recently, Apple has also integrated iTunes for iPad and iPhone after iPod. This strategy of building sustainable competitive advantage by Apple has already threaten the digital music companies since iTunes and its integration with Apple products is offering great experience to clients. (Magee, 2011)
Apple is now focusing on launching the retail outlets as well as online stores in different areas so that to improve sales since, customers are offered to try and purchase the genuine Apple products from nearer retail outlet. This already has increased the company's revenue since the company offers exceptional customer service. (Brownlee, 2012)
The company's hybrid lean/agile supply chain management is considered as the world's best strategy. Apple has a high profit margin and still offers the lowest customer prices which make a big competitive advantage for the company. There is only limited number of warehouses that cuts down costs; however supply is ensured since there is an agreement with selected suppliers. The company makes continual progress in information technology, large upfront payment to lock suppliers, improves distribution capabilities and has outsourced manufacturing to cheaper foreign suppliers; that's the reason of its being best in SCM.
Apple valuation has increased rapidly due to its classic business strategies. The horizontal integration strategy across channels and devices, vertical integration strategy from chip designing to software development and retailing strategies are truly building sustainable competitive advantages.
Currently, the company is dominating due to its sustainable competitive advantages but nothing is permanent and so Apple must make continual efforts to maintain its position in the market. (Mootee, 2011)
Mission And Objectivesapple Inc. Full
Apple Stores
Apple is capable of delivering its products to millions of customers all around the world with in short time. The company manufactures millions of units of products in prior that are about to be launched in the world market. Moreover, the orders are monitored in retail stores with a gap of hours and necessary changes are made accordingly. As according to the 2011 report, Apple stated that it shipped about 37 million iPhones and 15.4 million iPads per day. Due to timely delivery and never been out of stock, Apple is considered to have the world's best supply chain management.
Currently, Apple is focusing on maximizing the number of retail stores but the company has also well-established website interface to deal with the customers. There are different offers made all over the world. Free shipping is offered on all orders above $50 and product is delivered right at your door or customers can also purchase online and pick their product from the nearer store. There are different stores maintained by the company in order to facilitate all customers. There is a separate education store, business store, international store and government and military store. Students, Businesses and institutes can purchase the…
Apple Inc.’s generic strategy and intensive growth strategies directly relate to the company’s strategies in pricing, marketing, and other areas of the business. Michael E. Porter’s model for generic strategies defines strategic options that the company can use to develop its competitive advantages in the consumer electronics and information technology and services industries. As one of the most valuable companies in the world, Apple shows that its generic strategy is a major determinant of competitive advantage against other firms like Samsung, Google, Amazon, Microsoft, Dell, HP, Lenovo, Sony, IBM, BlackBerry, Huawei, LG, and even Walmart with its content distribution service, Vudu. On the other hand, Igor Ansoff’s Matrix of growth strategies presents ways for the technology business to intensively grow in current or new markets and industries. In this case, Apple’s intensive growth strategies support the ability to maintain a strong position in the global market. With a high rate of innovation and emphasis on excellence in product design, the enterprise succeeds even with its relatively high selling prices. This successful positioning indicates Apple’s effectiveness in using its generic strategy for competitive advantage, and intensive strategies for business growth.
Apple’s generic strategy aligns with the company’s intensive growth strategies, especially in maximizing the use of the organization’s competitive advantages. In particular, the intensive growth strategy of product development is key to fulfilling this generic strategy and supporting the long-term growth and success of the company’s technological goods and services. This alignment between the generic competitive strategy and the intensive growth strategies provide support for fulfilling Apple Inc.’s corporate mission and vision statements.
Apple’s Generic Strategy (Porter’s Model) & Objectives
AppleInc.’s generic strategyis broad differentiation. Mutant football league gameplay. This generic strategy focuses on key features that differentiate thecompany and its information technology products from competitors. Through thebroad differentiation genericstrategy, Applestands out in the market. For example, elegant design and user-friendliness ofproducts, combined with high-end branding, effectively differentiate the technologybusiness. This generic strategymeans that Apple alwaysaims to set itself apart from competitors not by price but by competitive advantagesbased on product design that attracts customers. Such design includes seamlessconnectivity among devices and cutting-edge aesthetics. Even though this generic strategy makes Apple different, the company stillbroadly reaches various segments of the market. The firm’s products aredesigned for everyone, thereby supporting a broad market reach. For example, Apple targets individuals andbusiness organizations through the MacBook product line. In this way, the generic strategy of broaddifferentiation supports the company in maintaining its competitive advantage, leadership, andposition as a high-end and high-value technology business.
Thebroad differentiation genericstrategy has significant implications on Apple’s strategic objectives. For example, to applythis strategy, thecompany must continue emphasizing innovation through research and development. Apple must keep developinginnovative products so that the business maintains its competitive advantage. Competitors eventuallycatch up with new technologies and new products, so the broad differentiation generic strategy compels thecompany to continuously innovate to keep itself always ahead of the competition.Thus, continuous innovation is one of Apple’s strategic objectives based on the broad differentiation genericcompetitive strategy. In addition, to maintain business growth, the companymust keep growing its market reach, such as in the global consumer electronicsmarket. In its generic strategyfor competitive advantage,Apple does not focus onany specific market segment. Instead, the company competes by selling variousgoods and services that suit the various segments of the consumer electronicsand information technology services industries. Thus, another of Apple’s strategic objectivesbased on its generic strategyis to penetrate markets to ensure a broad reach. Such expansion and businessgrowth are achieved through intensivestrategies for growth.
Apple’s Intensive Growth Strategies (Ansoff Matrix)
Product Development. Apple uses product development as its main intensive strategy for growth. Product development requires that the company develop attractive and profitable technology products to grow its market share and business performance. Apple implements this intensive growth strategy through innovation in its research and development processes. Through product development, the company uses innovation as a critical success factor and competitive advantage. For example, the business continues to innovate products like the iPhone, iPad, and Apple Watch. In this intensive growth strategy, the company grows because new products allow the business to generate more revenues, such as through the sale of new iPhone models. The company’s generic strategy agrees with this intensive growth strategy by focusing on technological innovation to increase competitive advantage and profits. Apple Inc.’s organizational structure supports this growth strategy. The structure’s product-based divisions enable strategic management specific to product development. Also, Apple Inc.’s organizational culture emphasizes innovation that supports product development.
Market Penetration. Apple Inc. uses market penetration as its second most significant intensive strategy for growth. Market penetration involves gaining a larger share of the current market by selling more of the company’s current products. For example, Apple applies this growth strategy by selling more iPhones and iPads to its current markets in North America. Also, the company achieves more sales by adding more authorized sellers to boost competitive advantages in its current markets. This approach penetrates markets where Apple has not yet achieved a significant position. In relation, under the market penetration intensive growth strategy, the company uses promotion through various websites and media outlets. Advertisements encourage more people to buy Apple products. This intensive growth strategy agrees with the company’s broad differentiation generic strategy by addressing the need to broadly capture the market through the sale of more technological products to more customers. Apple Inc.’s marketing mix or 4P influences the effectiveness of the organization’s competitive advantage and this intensive growth strategy.
Market Development. Apple uses market development as a low-priority intensive strategy for growth. Using the company’s competitive advantages, market development involves selling existing products in new markets. For example, Apple Inc. applies this intensive growth strategy by authorizing new sellers in markets where the company does not have any presence yet. This growth strategy agrees with the generic strategy of broad differentiation by expanding the company’s market reach, such as by introducing its current consumer electronics to new overseas markets. This generic strategy for competitive advantage also requires offering products to different market segments, which Apple satisfies via market development. Through its various product models of consumer electronics and other goods and services, the company fulfills this strategic requirement. In relation, the business strengths discussed in the SWOT analysis of Apple Inc. facilitate the implementation of market development.
Strategic Analysis and Recommendations for Apple Inc.
Apple’sgeneric strategy ofbroad differentiation adds competitive advantage by making the business standout. Differentiation in product function and design supports the firm’s goal ofleading the market through technological innovation. Innovation is at the heartof Apple Inc.’sbusiness. However, to improve its application of this generic strategy for competitive advantage, the company mustaggressively penetrate markets. This recommendation is especially applicable indeveloping countries where the corporation has limited market reach for itsinformation technology goods and services.
Apple Inc.’s main intensive growth strategy is product development. Market penetration and market development have lower priority in this technology enterprise. These intensive growth strategies agree with and support Apple’s generic strategy. The company is strong in product development through innovation. However, to improve performance, Apple needs to emphasize more on market penetration and market development. These two intensive growth strategies can improve the company’s resilience against aggressive competitors like Samsung. Also, Apple Inc.’s operations management can optimize the effectiveness of these growth strategies and the broad differentiation generic strategy for competitive advantage.
References
- Akan, O., Allen, R. S., Helms, M. M., & Spralls III, S. A. (2006). Critical tactics for implementing Porter’s generic strategies. Journal of Business Strategy, 27(1), 43-53.
- Allen, R. S., & Helms, M. M. (2006). Linking strategic practices and organizational performance to Porter’s generic strategies. Business Process Management Journal, 12(4), 433-454.
- Apple Inc. – Form 10-K.
- Apple Inc.’s Website.
- Bajarin, T. (2014, July 14). Understanding Apple’s ‘Continuity’ Strategy. Time.
- Parnell, J. A. (2006). Generic strategies after two decades: A reconceptualization of competitive strategy. Management Decision, 44(8), 1139-1154.
- Pretorius, M. (2008). When Porter’s generic strategies are not enough: Complementary strategies for turnaround situations. Journal of Business Strategy, 29(6), 19-28.
- U.S. Department of Commerce – International Trade Administration – The Media and Entertainment Industry in the United States.
- U.S. Department of Commerce – International Trade Administration – The Semiconductors Industry in the United States.
- U.S. Department of Commerce – International Trade Administration – The Software and Information Technology Services Industry in the United States.