Discuss about the Apple Capability and Core Competencies.
For a long period of time Apple has been the best worldwide in the manufacture of electronic devices. The production of quality products like iPhones, iMac, and iPod has always been the bottom line of the success (Meyer, 2006). In 2008, the company clinched position 24 in the word-wide rank of the best companies with the best brand (Basu and Wright, 2008).
The success of Apple company is as a result of its uniqueness and competency to understand the customer needs, change in taste and adjust accordingly keeping in mind to listen to clients and do as the clients request. These core competencies facilitated a great campaign for Apple hence making it gain a competitive edge in the global market. According to Sliber and Kearny (2009) core competencies are the driving force that make the company unique and most importantly gaining a larger market share than its competitors.
One of the key competencies of Apple company is its ability to design software and electronic gadgets that are of top value. For instance, since Steve Jobs took the job at Apple as the Chief Executive Officer, apple started integrating robust technology in the design of Apple Product hence it started attracting customers who had initially stopped purchasing their products because then, innovation was minimal. For the past decade, Apple has released quite a batch of products that include, iPhones, iPod, iWatch, Apple television, iTunes, movies among other products. The products are built with n top notch features and colors that make customers to purchase their products (Lehman, & Haslam, 2013, p.12).
Evaluation of the company`s record reveals Apple is a financially stable company. According to the research of De Wit and Meyer (2010), since 2003 to 2008 the company has tripled its profit from $24 million to $3.5 billion. Therefore, with the suitable financial base Apple is able to pays its worker and research team reasonable wages and salaries for the great job they do to ensure the gadgets developed are of high quality.
Another competency is that Apple has a strong and dynamic capability. Apple is always willing to adjust and be ahead of its market rivals. Especially the changes brought in by competitors Apple is the best company to outdo its rivals. For example, when the market rivals launch a new product, Apple immediately launches an advanced gadget within no time. Remember, when Dell launched its tablet in the market Apple launched its iPad 2. In another scenario, Samsung company launched Samsung S3 phone immediately Apple unleashed a powerful iPhone 5 just to prove to the competitors and the rest of the market that they are always the best innovators.
Maybe another key competency that is overlooked is the range of products that Apple offers to its customers. The innovativeness in Apple is incredible and I think no other company can compete with apple in terms of products. Take an example of Nokia company, their android phones require the user to create their own backup but for the case of Apple`s iPhones the iCloud is their backup. These are some of the comparisons that justify Apple as a competent company and is likely to maintain in performance because its naturally responsive and sensitive to the dynamics existing in the industry.
Apple has robustness in ensuring their business secret is not concealed to their competitors. In this case, Apple has deployed a closed proprietary system that ensures the techniques and secrets of their innovations are withheld by the company only. As a result, this makes other rival in the market to be unable to make duplicates or counterfeit gadgets to cause confusion in the market. On the other end of the spectrum, Apple is a company that has consistency in their product portfolio development. Usually, Apple releases one product at a time so that they avoid losing. Those companies that tend to diversify too much in their line of production there are high chances of losing their competitive edge.
Notably, the organization structure of this company is vibrant. The organization structure is contributing immensely to innovation and easy distribution of roles. A firm`s organizational structure creates room for other opportunities hence business growth is realized. In Apple`s case, as much as their organizational structure adopts the old hierarchy, the structure is much flexible and gives support to other levels of leadership. Th success of Apple can be realized the results and the performance of Apple and its ability to suit the market and meet the customer demands.
Cross-examination and analysis of the company portfolio, goals, and objectives reveals that Apple is incorporating other aspects other than technology to develop its competency. More especially, it is noted that the management thrives to combine technical forces and customer orientation to keep their reputation at the top level. The company CEO initiated a differentiated approach to manufacture their products hence, the volume of production went high so does the profitability.
Above all, due to the company`s competency, customers have developed a habitual purchase behavior of their products. The customers have developed the notion in their mind that the products of Apple are of good quality hence they have created a unique taste that no other competitor can produce a product of the same kind. That is the reason why, even if the products of Apple are so expensive, consumers still dig deeper in their pocket to purchase the product. Just because they feel there is value out of what they purchase, the customers don`t mind engaging with the company again and again.
To a great extent, Apple does not face tough competition from the market rival because it is always informed in terms of technology and innovation, However, the little competition that comes from companies like Dell, in the line of computer manufacture, Nokia and Samsung in the line of phone manufacturing have always behind Apple in terms of innovation. Therefore, it is difficult for them to take the huddle from Apple.
Apple has always differentiated itself from the market rivals. In the production process of Apple, Apple manufactures differentiated products that allows them to create premium products that attract premium prices for people of social class over the globe. Apple enjoys high profits than competitors that means although their products are sold at a premium price, hence, the customer perceives the value of the products as the most important.
Apple understands its audience by producing iPhones with feature that suite the Social class individuals. Studies have shown that social class people are extravagant such that they go for products that are expensive and can only be afforded by few people. Thus, the marketers of Apple company target such an audience. For example, people use Apple iPhones because they have high security features and they have large memory and RAM. Apple company has done a one-to-one relationship with their target audience and they use their customers to brand the name by offering incredible and high value iPhones.
Effective marketing incorporates micro and macro environmental factors. The concepts are relevant to marketing when applied in the right manner and can contribute positively to the performance of the business. Therefore, even other small companies should learn to keep into considerations to keep the performance at the top. For the case, of Apple there are quite a number of external forces that we can say have contributed to its performance and those others that are restraining the company. External factors are known to affect the business from the outside environment such that the business has little control over them.
There are a couple of factors in external environment that influence decision of not only Apple but also other companies. The factors include demographic change, government regulation, trade barriers and other tribunals. Therefore, in all the decisions made by Apple management these factors have to be put into consideration.
Political factors are the prevailing conditions that exist in the United States for the case of Apple. The political atmosphere should be friendly for apple to carry out its marketing mix segmentation and peacefully do advertisements without fear or lose of property (Giroux et.al. 2016). Of which the United States government as prostrated a stable political stand that encourages economic growth and development by combating wars, crimes, and ethnicity to create a conducive business environment for all the companies. Nonetheless, the government has also adjusted on political stability, deliberations on employment policies, taxation, and other regulations. Notably, US has trade agreement with many countries and trade unions which enable free trade between the countries and the border countries.
Economic factors are the prevailing conditions that determine the value of money in the economy. Such economic factors can be exchange rates, taxation policies, the rate of inflation, the standards of living, and per capita income among other factors. The factors are important because Apple manufactures and targets middle class and high class individuals. For the company to experience high returns, the conditions should be favorable to motivate the customers to purchase the Apple`s products.
Also, the exchange rates and value of currency play a major in the economy. A wide range of customers for Apple products come from international market (Communication strategies. n.d.) As a result, the trade regulations that have been implemented must be favorable to ensure the company continues to serve their clients with minimal or no interference and stringent restrictions.
Social-cultural factors have influenced the performance of Apple. Factors like advancement in technology, change in lifestyle, living standards, and demographic factors have boosted the performance and their sales (Marengo & Pasquali, 2012). Most people are interested to move at the same pace technology is changing. Therefore, the young educated people, business men are the first targets of Apple. The target market is expected to develop demand for the gadgets manufactures by Apple. Hence, those countries within a population structure that has more youths is likely to be a suitable hub for Apple to invest.
Besides environmental factors can circumvent the operation of Apple is they are not properly addressed. Every country has its own rules are regulations of conserving the environment. As pointed earlier on, Apple operates on an international market therefore, they have to adhere to the underpinned environments rules as specified by the particular country Apple is willing or already it has penetrated. If Apple is able to operate in any standards then it would be easy for them to operate in any region as long as there is a trade agreement with the trade union or respective country.
As we know Apple is very responsive to changes in technology and a s a result they should continue to be unique and probably the company should keep on improving the value of the product by introducing an element of change to convince the client the company is innovative and is offering improvised products every time.
In those countries that have legislations that allow compulsory recycling of products, Apple should ensure in such target markets produce recyclable products that are environmental friendly. Another example is that Legal factors requires Apple to operate under special rules and regulations just like consumers, health and safety laws which safeguard the well-being of individuals. As well, Apple should be observant of intellectual property and patent laws as pertains the requirements of a particular country.
References
Basu, R., & Wright, J. N. (2008). Supply chain in emerging markets. Total Supply Chain Management, 164-180. doi:10.1016/b978-0-7506-8426-2.50015-0
Communication strategies. (n.d.). Marketing Communication Policies, 117-131. doi:10.1007/978-3-540-37323-0_7
DAMANPOUR, F. (1988). Innovation Type, Radicalness, and the Adoption Process. Communication Research, 15(5), 545-567. doi:10.1177/009365088015005003
De Wit. (2010). Law and Visual Arts. Law and policy review. doi:10.5349/lpr7
Dedication. (2006). Search Marketing Strategies, vi. doi:10.1016/b978-0-7506-6618-3.50002-8
Giroux, M., Pons, F., & Maltese, L. (2016). Sustainability Marketing Strategies: How Self-Efficacy and Controllability Can Stimulate Pro-environmental Behaviors for Individuals. Celebrating America’s Pastimes: Baseball, Hot Dogs, Apple Pie and Marketing?, 731-732. doi:10.1007/978-3-319-26647-3_152
Giroux, M., Pons, F., & Maltese, L. (2016). Sustainability Marketing Strategies: How Self-Efficacy and Controllability Can Stimulate Pro-environmental Behaviors for Individuals. Celebrating America’s Pastimes: Baseball, Hot Dogs, Apple Pie and Marketing?, 731-732. doi:10.1007/978-3-319-26647-3_152
Lehman, G., & Haslam, C. (2013). Accounting for the Apple Inc business model: Corporate value capture and dysfunctional economic and social consequences. Accounting Forum, 37(4), 245-248. doi:10.1016/j.accfor.2013.08.001
Marengo, L., & Pasquali, C. (2012). How to Get What You Want When You Do Not Know What You Want: A Model of Incentives, Organizational Structure, and Learning. Organization Science, 23(5), 1298-1310. doi:10.1287/orsc.1110.0705
Meyer, H. S. (2006). Apple Lounge. JAMA, 295(11), 1313. doi:10.1001/jama.295.11.1313-a
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