development such as internet connectivity rising middle class population

Development such as internet connectivity rising

This preview shows page 8 - 10 out of 15 pages.

development such as internet connectivity, rising middle-class population, growing economies among other factors (Dudovskiy, 2018). Economic Logic The success of the Apple strategy is also attributable to economic logic that the company focused on. Firstly, the company holds a low level of inventory, a strategy that significantly reduces the overall operational cost of the company ("Business - Partners", 2019). Lean operations are an important aspect of enhancing a firm’s profitability. High levels of inventory holding results to high costs and thus, Apple leverages on holding a low level of stock through third parties. Besides, obsolescence is a common phenomenon in the tech industry attributable to rapid technological development. Summary of Five Elements The five elements of a strategy are present in Apple strategy. The analysis of the company’s strategy shows where the company is active, how the company has gotten where it is today, how has the company won, the sequence and speed of change initiatives made by Apple, and economic logic of backing a strategy. The integration of the five elements in a strategy enhances the degree of achieving the objectives of Apple’s strategies in lean operations, differentiation, premium pricing, and being the market leader in aligning the products an services according to the changes in the business macro environment (Khan, Alam & Alam, 2015).
Image of page 8
STRATEGY ANALYSIS AND EVALUATION - APPLE INC. CASE STUDY 9 Strategy Evaluation Apple ensures that the strategy adopted is in line with the macro-environment which includes Political, Economic, Social-cultural, Technological and Legal environment. Apple Inc. experiences several political issues as most of its suppliers are distributed around the world. Political pressures resulting from the suicide of workers is also an issue. For instance, in 2010, Apple experienced an explosion in its supplier facility which led to the death of two workers. Apple ensures it aligns its strategy in a manner that evades political inconveniences. When it comes to legal matters, Apple also faces some challenges (Aljafari, 2016). For instance, at one point, the US government had banned some parts used in making the iPhone. Tough environmental and labor laws by the American government makes it difficult to be part of the extremely competitive environment. Despite all these, Apple`s strategy adheres with the set laws of the land to avoid unnecessary inconveniences. Economic analysis shows that Apple has had its own share of problems. The growth of the global economy was slow for too long. Fiscal problems in the US, Euro crisis and stringing dollars are a problem to products offered by Apple in terms of cost of transportation, profit margins and prices of products. The social analysis shows how Apple makes products that satisfy customer needs through acquisitions and alliances. This has improved the sale of its products in countries like India hence the success of Apple`s rationale growth strategy ("Business - Partners", 2019).
Image of page 9
Image of page 10

You've reached the end of your free preview.

Want to read all 15 pages?

  • Fall '18
  • Apple INC. Case Study

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture