The report gives an overview of marketing strategy and plan of Apple Inc (apple.com 2018). The report commences with a description of the business, mission statement and the products of the company. The report also put forward a comprehensive situation analysis of the organization. The report further talks about the problem faced by the organization and identification of the strategic alternatives for the future through using Ansoff’s Matrix. There are also recommendations put forward along with a rationale.
Apple Inc represents a multinational technology based company headquartered in California. Steve Wozniak and Steve Jobs found the company in the year 1976 (apple.com 2018). The company sold, developed and designed computer software, computer electronics and online services.
Apple Inc believes in contributing to the world through manufacturing tools for mind that helps in the advancement of humankind (Blodget 2013). The mission statement of the company goes like Apple designs one of the best personal computers, Macs, across the world in addition to iLife, iWork, Operating System(OS) X and the professional software. Apple with its iPods and the online iTunes store is the leader in digital music revolution. Apple also rediscovered the revolutionary iPhone and its App store. Through its iPad, it defines the future of the computing devices and the mobile media.
The hardware products of the company includes iPhone, Mac personal computer, iPad tablet computer, iPod, the portable media player, Apple Smartwatch, Apple smart speaker and the digital media player (apple.com 2018). The software products of the company includes iOs and macOS operating systems, web browser, iTunes media player, iWork, iLife, productivity suites and the professional applications like Logic Pro, Final Cut Pro and Xcode.
The macro environment represents the political, economic, social, technological, environmental and legal forces that have an influence on the business.
Political: Apple is the highest revenue earner facing the highest amount of corporate tax in the United States. Therefore, any kind of political instability has a negative impact on the position of the company (Khan, Alam and Alam 2015). Moreover, Apple is dependent on China due to the lower cost of labor but the politically unsettled environment of China leads to the disruption in the manufacturing facilities of Apple. In fact, the company is influenced by the political bonds it has with Chinese government. Finding an alternative market will enhance the cost of the company thereby leading to an increase in price of its products.
Economic: Recession, inflation and change in the currency value are the three economic factors that influence the business of Apple. Most of the products offered by the company belong to the luxury product category and so with inflation, consumers begin to spend lesser on the products. However, the fluctuation of the value of US dollar has minimal effects on the business since Apple has purchased foreign currencies for itself.
Social: The products of Apple makes its presence felt in the global market. There has been an increase in the purchasing power of the public across various markets that have led to increased spending on the luxury products. People consider the possession of such items as symbol of status across different societies. This phenomenon has led to the increase in the sales of products put forward by Apple.
Technological: Technology has a shorter lifetime and hence it is necessary for Apple to upgrade its products in a frequent manner so that it is able to outdo the competitors (Spence 2017). Apple has however made huge investment in the research and development which makes its products rank at the top of the innovative product ranking.
Environmental: Apple follows a comprehensive environmental responsibility from reporting carbon footprint to finding the ways for reducing the footprint. The company also shows its commitment towards the environment through the proper disposal of the electronic equipment. Apple also ensures powering every facility with the help of renewable energy sources that includes either wind, hydro, solar and geothermal.
Legal: Apple since its inception has been part of numerous legal claims and proceedings. In the year 2009, Apple was sued by Nokia based on the infringement of the patents of Nokia related to the wireless technology. The company also has patent cases with Samsung and HTC
Suppliers: The suppliers of Apple included the component providers, manufacturers and the assemblers of the products available across the globe.
Marketing Intermediaries: Apple uses a direct marketing channel for selling its products to the consumers. The direct channel for marketing does not have an intermediary level.
Customers: The target customers of Apple are the higher income group who are keen on using a tablet, phone or personal computer (apple.com 2018).
Competitors: The products of Apple remain synonymous with sleek design, innovation and the approachability. This has earned the company a fair share of the competitors (nasdaq.com 2018). Given the fact that Apple has operations in the technology spaces that include Smartphone, laptop and desktop computers, it faces competition from Lenovo, Dell, Hewlett Packard, Microsoft, Sony and Samsung.
Publics: It includes the different businesses that use the products and services of the company. It also includes the executives, students, computer purchasers, anyone using iTunes or expressing interest in buying new phones (Newcomb and Ingram 2018). Thus, Apple constantly tries to maintain contact with the communities including the present and future consumers for better serving the environment.
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Strengths 1. It represents a market leader in terms of the products and the services 2. Possess a stronger brand image 3. Have immense financial strength 4. Have highly sophisticated and innovative supply chain 5. Have higher profit margins of the products 6. Have a loyal and large customer base |
Weakness 1. The products have competitive pricing 2. Have a narrower product range in comparison to the competitors 3. Non-compatibility of the products and services with competitor brands |
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Opportunities 1. Increasing demand for mobile technology and various gadgets of the company 2. Diversification of products 3. Further scope for manufacturing compatible products |
Threats 1. Rise in intense competition amongst the various competitors 2. Increasing cost of manufacturing |
The problems faced by Apple in recent times include:
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Existing Products |
New Products |
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Existing Market |
Product Development |
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New Market |
Market Development |
Diversification |
There are four different growth strategies put forward by the Ansoff Matrix are as follows (Morden 2016):
Apple can adopt product development in solving the problems faced since this strategy requires the company in offering attractive products for not only defining its performance but also increasing the market share. This is because Apple not only implements the intensive growth strategy by introducing innovation in the development and the research process but its vision and mission statement focus on the product development. Besides products like the iPad, iPhone and the Apple Watch, the company however brought in iPod shuffle for the existing iPod customers as a portable and handy device.
Apple Inc puts forward higher quality products with stylized packaging that ensures the buyer with a sensory experience thereby strengthening the brand. The sensory experience continues with the look and feel of the text and the images. The Mac Book and the iPhone come in a white box packaging encrusted with glittering metallic fonts.
Conclusion:
On a concluding note, one can say that the adoption of the product development strategy can help the company in resolving the problem that it currently faces. Apple has been able to satisfy the customers by bringing in innovative products. This has been possible because of the creative vision of the company and its employees who have always lived up to the expectation of dynamic leader. Today, thus Apple represents as the epicenter of digitalization. In fact, Apple has managed in sustaining the efforts of innovation through consistent and calculated increase in research and development spending along with the launches of its upgraded and newer products.
References:
Blodget, H. 2013. Apple’s New ‘Mission Statement’ Is Making People Worry That The Company Has Gone To Hell. [online] Available at: https://www.businessinsider.in/Apples-New-Mission-Statement-Is-Making-People-Worry-That-The-Company-Has-Gone-To-Hell/articleshow/21581584.cms [Accessed 4 Sep. 2018].
Gershon, R.A., 2013. Digital media innovation and the Apple iPad: Three perspectives on the future of computer tablets and news delivery. Journal of Media Business Studies, 10(1), pp.41-61.
Khan, U.A., Alam, M.N. and Alam, S., 2015. A critical analysis of internal and external environment of Apple Inc. International Journal of Economics, Commerce and Management, 3(6), pp.955-961.
Morden, T., 2016. Principles of strategic management. Routledge.
Mourdoukoutas, P. 2013. Apple’s four challenges. [online] Available at: https://www.forbes.com/sites/panosmourdoukoutas/2011/10/05/apples-four-challenges/#35807f6149e7 [Accessed 4 Sep. 2018].
nasdaq.com 2018. Competitor Industry: Computer Manufacturing. [online] Available at: https://www.nasdaq.com/symbol/aapl/competitors [Accessed 4 Sep. 2018].
Newcomb, A. and Ingram, D. 2018. Apple becomes first public U.S. company to reach reach $1 trillion valuation trillion valuation. [online] Available at: https://www.nbcnews.com/tech/tech-news/apple-becomes-first-public-u-s-company-reach-1-trillion-n896956 [Accessed 4 Sep. 2018].
Proctor, T., 2014. Strategic marketing: an introduction. Routledge.
Spence, E. 2017. Apple’s Innovative Technology Will Redefine Its Hardware. [online] Available at: https://www.forbes.com/sites/ewanspence/2017/04/06/macbook-pro-touch-bar-patent-imac-macpro/#1ddc37852212 [Accessed 4 Sep. 2018].
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