MGT498 Phoenix Apple Strategy Implementation Evaluation and Control Paper Purpose of Assignment Weeks 3, 4 and 5 Individual Assignments are integrated to

MGT498 Phoenix Apple Strategy Implementation Evaluation and Control Paper Purpose of Assignment

Weeks 3, 4 and 5 Individual Assignments are integrated to generate a Strategic Management Plan. This is part three of the three part Strategic Management Plan addressing strategy implementation, evaluation and control. The purpose of the Week 5 individual assignment is to allow the student to discuss and explain how the strategies discussed in prior weeks are converted into implementation activities both domestically and internationally, in alignment with legal, social and ethical considerations. Furthermore, the student has an opportunity to explain and discuss how the strategic plan and implementation activities will be monitored.

Weeks 3, 4, and 5 Individual Assignments are integrated to generate a Strategic Management Plan. This is Part 3 of the three part Strategic Management Plan.

Assignment Steps

Write a 1,050-word report on the company you selected in Week 3, following up on the Individual Assignment of Week 3 (Environmental Scanning), and address the following:

Strategy Implementation
Discuss International Strategy.
Discuss Strategic Implementation.
Explain the influence of Governance and Ethics.
Discuss the Company Social Value.
Discuss Innovation and Diversification.
Discuss Legal limitations.
Evaluation and Control
Explain Strategic Metrics.
Discuss Key Financial Ratios.

Cite at least 3 scholarly references.

Format your paper consistent with APA guidelines. Running head: STRATEGY FORMULATION
Strategy Formulation
Student Name
University
Course Title
Date
1
STRATEGY FORMULATION
2
Introduction
Apple Inc. is one of the most profitable companies in the world. This company is
specialized in designing and manufacturing premium electronic devices among which
smartphones and computers. Apple’s most known products are the iPhone and Macintosh.
This paper analyses Apple’s long-term goals and objectives along with some key points of the
firm’s business management strategy.
Long-Term Goals and Objectives
Strategy Formulation
Apple Inc. strategy is to strengthen its leadership position in the smartphone market by
designing and commercializing premium and reliable smartphone. Apple Inc. aims to become
the world leading smartphone brand in the long run (Toupin, 2014). The company relies on a
well-elaborated expansion strategy to conquer new markets and expand the power of the
brand. When it comes to the field of computers, Apple Inc. is engaged in an open battle with
Microsoft and wants to win new market shares with its model MacBook (Toupin, 2014). To
achieve this target, Apple Inc.’s strategy is based on innovation.
Future Markets
Apple Inc. strategy rests on the conquest of new markets. The future markets that the
Cupertino giant wants to conquer are the emerging markets, especially, China and India.
China and India represent the two largest emerging economies of the World (Easton &
Sommers, 2018). These countries hundreds millions of smartphone users and this number are
going to increase according to experts. For instance, currently, India encompasses 456 million
smartphone users and this number is going to reach 600 million by 2021. According to Tim
Cook who is Apple Inc. Chief Executive Officer, Apple has a bright future in India but will
base its strategy on a long term view (Toupin, 2014).
Value that the Apple Will Offer
In these new markets, Apple does not intend to offer a new range of products neither
develop specific products. To strengthen its position in these emerging markets and conquer
new market shares, Apple Inc. relies on the features of its latest models along with its image
of premium smartphone manufacturer (Hooley et al., 2017). The aim of Apple Inc. is
proposing high-quality smartphones with the latest and most reliable features to the growing
middle-classes of these countries. Indeed, in China and India, personal wealth is an indicator
that experienced steady growth during the last decade.
Resources and Capabilities Needed
Consolidating Apple position within these markets and winning new market shares is
not an easy endeavor. Indeed, China and India are highly competitive markets which are
dominated by OPPO, Huawei, and Xiaomi in the field of smartphones (Hooley et al., 2017).
To conquer these emerging markets, Apple Inc. needs the collaboration of the Chinese and
Indian independent retailers since the Cupertino giant does not have a strong physical
presence in both countries (Toupin, 2014). In terms of capabilities, Apple Inc. must be able to
reinforce its ability to provide maintenance services to its growing clientele in both countries.
Strategy to Sustain the Competitive Advantage over Time
To sustain its competitive advantage, Apple Inc. can use product differentiation,
innovation, and pricing. Since their creation, Apple’s products have always been considered
as premium products dedicated to people who think out of the box. Over time, Apple refined
its art of producing premium products which became associated with wealth. This strategy
will help Apple sustain its competitive advantage in former and new markets (Hooley et al.,
2017). Innovation is another factor that will help the company in this endeavor, especially as
regards design. Apple Inc. is well known to propose high-quality designs and very unique
features. When it comes to pricing, the Cupertino giant can adopt two approaches. Apple can
STRATEGY FORMULATION
3
maintain its premium pricing strategy in former markets such as the United States, and reduce
its prices as regards emerging markets such as China and India.
Business Management Strategy
Cost and Differentiation Advantages
In terms of differentiation, Apple Inc. evolves in the segment of premium smartphone
and computers. This reduces the number of competitors that Apple’s products face even
though this number is still important. In fact, the segment of premium smartphones is
henceforth highly competitive since manufacturers such as Huawei and Samsung now
propose high-quality products (Hooley et al., 2017). The second differentiation advantage that
Apple enjoys in that the general opinion associates its products with wealth and richness. In
terms of costs, Apple’s premium pricing strategy is a real advantage. Apple prices are
generally above those of competitors (Toupin, 2014).
Corporate Strategy
Apple Inc. Corporate strategy is to rely to promote uniqueness and innovation by
relying on creative and highly qualified human resources. Apple puts the final user at the
center of all product development and directs all researches towards greater customer
experience. The company promotes excellence and discipline while encouraging employees to
be creative by providing them with a very unique working environment.
Vertical Integration
In 2008, Apple acquired PA Semi, a company dealing in processors design. The aim
of this acquisition was differentiating Apple’s products in terms of quality of processors
(Easton & Sommers, 2018). With such an acquisition, Apple developed new in-house
processors with better performances. Besides this acquisition, Apple has completed a series of
mergers and acquisitions with the aim of mastering production costs, strengthening its leading
positions and weakening competitors. For instance, to enhance the graphical performance of
its Macintosh, Apple purchased companies such as Bluefish Labs, Spurce Technologies and
Raycer Graphics (Easton & Sommers, 2018).
Strategic Alliances
In terms of strategic alliance, Apple already has some partnership and trading
contracts with suppliers of electronics and other types of services. However, the next level of
strategic alliance regards the emerging markets that the company wants to conquer. Partnering
with retailers in India and China will help the firm develop its markets share in these areas.
Company Competitive Advantage
Apple’s competitive advantage rests in its ability to create valuable, unique, and
innovative products with highly qualified human resources. Through innovation, the company
has significantly improved its market shares and succeeded to gain customer loyalty. The
other competitive advantage of Apple is that the company is able to efficient in terms of
operating costs to increase its profitability.
Organizational Chart
STRATEGY FORMULATION
4
Conclusion
In conclusion, Apple Inc. is interested in strengthening its leading position in
emerging markets such as China and India. These markets are highly competitive and require
strategies such as lowering prices in China and partnering with retailers in these two markets.
Luckily, Apple Inc. can rely on its competitive advantage to win customers loyalty and
develop sales. Acquiring local companies can also be part of this expansion strategy.
STRATEGY FORMULATION
5
References
Easton, M., & Sommers, Z. (2018). Financial Statement Analysis & Valuation, 5e.
Hooley, G., Piercy, N., Nicoulaud, B., & Rudd, J. M. (2017). Marketing strategy &
competitive positioning. Harlow, England: Pearson. (Hooley et al., 2017)
Toupin, R., (2014). Offshore Profit Shifting and U.S. Tax Code Weaknesses : Analyses and
the Apple Inc. Case Study. New York: Nova Science Publishers, Inc. Retrieved from
http://search.ebscohost.com/login.aspx?direct=true&db=nlebk&AN=611416&site=eh
ost-live

Purchase answer to see full
attachment