Apple Inc. Business Strategy 1
Apple Inc has been a landmark computer manufacture for about 30 years. The company has emerged as one of the well established and highly recognized corporations in computer industry and other IT related solutions (Mcgirt, 2011). The giant multinational company is mostly known for its famous iPhones, iPods as well as other products such as laptops and desktop computers. For a long time, Apple Inc. has been relentlessly attempting to maintain its sizeable market share notwithstanding myriad of both internal and external setbacks which have continually affected its overall performance. For instance, stiff competition from other players like Dell and Microsoft has been a great business challenge for the company. In addition, the company has not eluded the aftermath of recent global recession which has been felt by the majority of business organizations dealing in both goods and services.
Apple Inc. operates in a very dynamic business environment where technology is rapidly changing forcing all players in this industry to devise very effective strategies for survival. Indeed, there is no single company in manufacture of computers that has control over new technology. Therefore, they should adapt themselves quickly as the technology changes so the company remains relevant in the market. It is unfavorable that many companies in this industry are in state of dilemma on whether to invest in traditional models such as basic computers or fully engage in newer products such as iPhones and iPods. This paper, therefore, analyzes the strategies that have been put in place by Apple Inc. to survive tough economic times. The study also proposes some of the latent yet potential strategies that can be employed by the company to improve its future economic outlook and performance.
From the financial statements of Apple company, it is evident that it has a healthy financial growth and performance since its profitability has been improving on each successive year (Finkle & Mallin, 2010). For instance, the annual financial statement ending September 2010 shows that the profitability of the company has risen from $ 42.9 billion reported in 2009 to $65.2 billion in 2010. Besides, sales revenue of the company has also been growing steadily in the past few years. This positive financial growth of the company can be attributed to assortment strategies deployed by its management as part of boosting its financial performance in spite of unstable economic conditions experienced worldwide. The following are some of the strategies that Apple Inc. has applied in the last thirty years of its existence.
Building a large customer base
The Company has millions of customers who are loyal to its products distributed in most parts of the world. Moreover, it has maintained a...