Apple Inc. Strategic Direction and Core Competencies

Apple Inc. Strategic Direction
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Apple Inc. Strategic Direction
Apple Inc. is one of the technology companies with a significant share in the market. The company manufactures multiple products such as smartphones, tablets and computers and sells other related services and products, including iPhones, iPad, and accessories. The corporation’s main line of smartphones is iPhones, based on a unique iOS operating system. Its main line of personal computers is mac based on the macOS operating system. On the other side, IPads are the company’s multi-purpose tablets and wearable accessories. The company’s customers are mainly education, government, small and medium enterprises, and consumer markets (Reuters, 2019). Apple is working towards improving its products to maintain its command in the digital market due to the current changes in consumer preferences. The paper denotes the internal and external analysis, core competencies, dynamic capabilities and strategic intent of Apple Inc.
Internal analysis
The company’s internal factors are determined by the strengths and weaknesses present in the organization. The company introduces new profitable merchandise in the market, such as mobile devices, under their brands since it is among the most valuable and most robust brands globally. The company’s marketing mix entails a marketing strategy that ensures high-profit margins for products, maximizing profits even on limited sales volumes. Also, the company’s competitive system facilitates continuous innovation that keeps the enterprise in line with emerging technologies to remain competitive in the market (Smithson, 2019). Based on the company’s SWOT analysis, other technology companies cannot compete with the enterprise, thus making it strive in the global market.
On the flip side, Apple Company has multiple weaknesses, such as a minimum distribution network due to its exclusivity policy. For instance, the enterprise selectively selects its dealers for products like Macs and iPhones. The exclusivity policy reduced the market reach and made the products unavailable in multiple regions (Smithson, 2019). Also, the company has high selling prices that only attract individuals in the middle and high-income brackets while excluding people with low income.
External Analysis
The external analysis of the company is examined by the threats and opportunities present in the company. The company has a chance to expand its distribution network to reach the additional consumer market. Also, the company can explore new product lines in addition to the existing product lines. For instance, it can venture into online services. The threats faced by the company include competition from other firms such as Samsung and Microsoft, which also applies rapid innovation in their products (Smithson, 2019). The increasing labor cost associated with contract manufacturers also poses a significant threat to the company since it reduces its profit margin or pushes the selling price of products higher.
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