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Strategic Management and Strategic Competitiveness Essay
Strategic, Management, Strategic, Competitiveness, Essay
How Globalization and Technology Have Impacted Apple Inc.
Apple is ranked as the most profitable company in the United States and as one of the most profitable in the world. The company is ranked third on the Fortune 500 list with a profit change of approximately 23% and over 130,000 employees across the world (“Apple,” 2019). The company has had several impacts as a result of globalization effects as well as the incorporation of modern technology into the production process.
The United States is the largest consumer of Apple products. However, the production and assembling process of Apple products takes place in China where the raw materials needed for production are cheaper as well as there is a huge presence of cheap and easily available labour. Due to globalization, the company has made several reliable partnerships across the world, such as the deal with FedEx that allows FedEx to quickly move Apple products from one location to another.
This way, the supply chain of the organization has been greatly improved. Apple has been able to control a significant share of the American, Asian and European markets because globalization and use of improved technology have made it possible for the organization to apply a unique product differentiation strategy which allows Apple products to remain unique in the market (“AAPL – Apple Inc company profile – CNNMoney.com,” n.d.).
Globalization has enabled the Fortune 500 Company to efficiently produce at optimum levels while at the same time increasing the number of staff. New production methods and technology is being tested to determine whether Apple products will satisfy the needs of the average customer.
The adoption of new technology makes the production process to be faster, more efficient and environmentally friendly. Through technological changes and globalization effects, the quality of products and services being offered has increased. The company has to improve the quality of products and services as a way of attracting new customers while at the same time maintaining the already existing ones.
Customers often go for products that will satisfy their needs and more often than not, high-quality products and services usually meet the customer’s needs. By using technology, the production process has been made more efficient, and as a result, there is less wastage of any resources.
The company is, therefore, able to save more on the production process and charge highly for the final products. This translates into high revenue streams for the various different products being sold in the market.
The Industrial Organization Model and The Resource-Based Model
Both the resource-based model and the industrial model can help Apple Inc. to increases its revenue margins annually. Under the economic theory of the industrial model, Apple will be able to successfully conduct its operations and earn profits that are above average.
The management of the company has a clear understanding of the general industry, the competitive environment, as well as the assets and skills of the organization. It is also vital that the management of the company to have excellent strategy implementation skills that will ensure that the company grows financially by minimizing costs and maximizing output revenue streams.
On the other hand, the resource-based model analyzes organizational resources and the critical role that they play in facilitating the success of a company. The resource-based model looks at how the resources available to a company, case in point Apple, can be used to give the company a competitive advantage that is sustainable in the future.
Through continued innovative research, the company has been able to maintain its brand as well as enjoy continued brand loyalty from its customer base. By having a unique product in the market as well as having a competitive advantage over its competitors, Apple has continued to enjoy above-normal profits over the past five years with a profit change margin of approximately 23% (Marketing, 2019).
The Vision and Mission Statements of the Company
The mission and vision statements of any business organization are crucial elements that have the ability to influence the overall success of the business organization. Apple’s mission statement has been changed several over the years as a way of adapting to the business environment of the company.
Also, changes in the market structure, as well as the technological industry influence, have influenced how the company’s mission statement has evolved. Apple’s mission statement motivates and encourages to uphold and to make meaningful contributions to the goals of the company.
The vision statement, on the other hand, influences the strategic management during the decision making process in an effort to attain an envisioned future. The company mission and vision statement help in the formulation of the company’s objectives and goals.
Apple Inc. has always updated its mission and vision statements as a way of adapting to the changes in the market. The company has therefore been able to enjoy a good public image because the vision and mission statements communicate to the consumers what the company wants to achieve.
Apple Stakeholder Groups
Apple Inc. has various stakeholder groups that play a significant role in ensuring that the organization succeeds. The stakeholder groups include customers, company employees, suppliers and distributors, investors and the entertainment industry.
iii. Investors- Investors always look for a place where they can get returns for their input. At Apple, the investors finance research programs as well as opening new outlets in new markets. This is why Apple has remained to be one of the most profitable business entity’s in the world because it has a large financial base with cautious investors (“Site map,” n.d.).
Increased demand for better technology in Apple products will lead to the production of innovating gadgets that will give the company the competitive edge it needs to stay ahead of its competitors. The firm’s strategic management and competitiveness are crucial in determining the organization’s future. By following the vision and mission statements, the company is assured of success.
AAPL – Apple Inc company profile – CNNMoney.com. (n.d.). Business News – Latest Headlines on CNN Business – CNN. https://money.cnn.com/quote/profile/profile.html?symb=AAPL
Apple. (2019, May 15). Fortune. https://fortune.com/fortune500/2019/apple/
Marketing, T. (2019, September 29). Have you ever read about Apple’s core values? Think Marketing. https://thinkmarketingmagazine.com/apple-core-values/
Site map. (n.d.). Apple. https://www.apple.com/sitemap/
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