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Organization Behavior

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Introduction
The current global and virtual business environment shapes the business strategy for the aim of competing by knowledge and expertise to win the market share in the long run. Apple Inc. is one of the major leading hardware manufacturers, originates from the United States and is popular among the world. Its long-term direction could be strengthening the research, design, development and manufacturing phases. The success of this company relies its competitive strategy, which integrates its core resources, company structure and business process and stimulates targeted customers effectively as well as attracts more customers. In the meanwhile, the success of Apple Inc. is due to the support from strategic marketing.

This report for Apple Inc. will analyze strategically about Apple in terms of its business description first with company profile, financial description and future direction in it. Furthermore, the sustainable business strategies that Apple adopts will be described in detail and the effectiveness of them will also be proposed one by one. The author also makes use of one of the classic tools, SWOT analysis, to give all-around insight of its competiveness strategies in terms of advantages and disadvantages. Some suggestions will appear in the end of this report as well.

Business Description
Company Profile
The business description comes from its financial report: “The Company designs, manufactures, and markets mobile communication and media devices, personal computers, and portable digital music players, and sells a variety of related software, services, peripherals, networking solutions, and third-party digital content and applications. The Company’s products and services include iPhone®, iPad®, Mac®, iPod®, Apple TV®, a portfolio of consumer and professional software applications, the iOS and OS X® operating systems, iCloud®, and a variety of accessory, service and support offerings. The Company also sells and delivers digital content and applications through the iTunes Store®, App Store™, iBooks Store™, and Mac App Store” (Alfuraih 2011). The customers of Apple are widely distributed among small or middle-sized business, as well as “education, enterprise and government customers” (Alfuraih 2011).

Financial situation
It is reported that over the last five years, the company sold approximately 365 million digital devices revenue is $45.6 billion in 2014 (Kahn 2014). Furthermore, its gross margin is among 37% and 38% while operating expenses is around $4.5 billion with the tax rate of 26.1% (Kahn 2014). These achievements are because it taking advantage of leading trends emerging in the new digital economy.

Future Direction
Apple will continue to “retain a strategic option to license its technology to clone makers such as Dell” (Deepti et al. 2007). Furthermore, it is developing the market for the digital living room such as “boom box” in iPod and corporates with movie companies in its equipment. Overall, Apple will shoot the digital market and make more contributions in the future by publishing various products and services within different areas around the world.

Business Strategy
The Company is committed to creating “the best personal computing, portable digital music and mobile communication experience to consumers, students, educators, businesses, and government agencies through its innovative hardware, software, peripherals, services, and internet offerings” (Ashcroft 2012). The Company’s business strategy is aimed at providing creative products and advanced solutions for customers via continual investment on those “innovative products and technologies” (Ashcroft 2012). The following section will talk about seven core strategies adopted by Apple.

Brand Strategy
Nowadays, Apple's core competence stays in “delivering exceptional experience through superb user interfaces” (Marketing Minds n.d.). The company's product strategy is based on iPhone iPad, Mac, iCloud, iTunes, and the Apps Store necessarily. Firstly, the idea and company culture are something about lifestyle, innovation, aspirations, imagination, passion and so on. These are focusing on emotions of customers and generate more resonance with them, which creates really humanistic company with a heartfelt connection with its customers (Marketing Minds n.d.). Secondly, Apply declares its brand equity and Apple’s customer franchise, and hence, it hints the brand preference. For example, Apple Care Protection Plan is the special program that Apple provides with call-center technology support from professionals with different products or services, as well as Apple’s extra hardware warranty service. It is because that Apple manufactures hardware, operations and numerous applications, its products are a real integrated system. Only Apple Care is professional at dealing with problems from the system. Thirdly, the company sustains a “monolithic” brand identity, which means Apple invests its products with Apple name in all. Fourthly, in detail, it only manufactures only one type of iPhone with fully capable touch screens and its innovation is on continuously changing in its applications and operation systems. Moreover, as the attractive features, easy operation, temperature sense, gravity sense and advanced operation system are its long-term promotions. Fifthly, its various business in terms of iTune for downloading music and music softwares, AppStore for applications, iBookStore for online e-book are getting its role to market ahead of the competition. It commits to do the best and changes the industry from the nature completely (Li 2012).

Marketing Strategy
Take iPod as example, since it is released in 2001, it was targeted in music and putting a thousand sons in the pocket. It is connected with the computer with easily transferring songs to the iPod. It can be seen that Apple focuses on one thing and makes effort to make it greater every time (Stafford 2013). Furthermore, they produce green products that are eco-friendly and sustainable, which will encourage some green organizations to promote Apple’s products and make advertisements for them for free on the purpose of supporting green products. Moreover, Apple is well in redefining the market and makes right choices to “break well-won product convention” (Ashcroft 2012). Compare with competing with other brand, Apple pays more attention on its own products and makes innovations, which makes its products out of ordinary.

Talent Development Strategy
Apple was formed by gifted talents— Steve Wozniak and Steve Jobs, who are separately skilled in electronic product creation and marketing separately. Steve Jobs always consulted with those experienced people for advice, namely Mike Markkula for enlarging Apple into a global enterprise. The current CEO, Tim Cook, decided to secure Angela Ahrendts, CEO of high-fashion brand Burberry, and appointed him to run Apple’s online and offline retailing (Stafford 2013). Tim does not pay attention to traits concerns about hardware, software and services (Yarow 2013). On the contrast, he takes risk to fire important employees responsible for “ the most influential mobile software on the planet” for the purpose of collaboration.

It is common in Apple to invest sufficient resources for the purpose of retaining, recruiting, training and developing staff inside the organization to attract those talents who are professional in IT products and services or management measures. It is not limited with high salaries, advanced equipment and suitable working environment, but also some overseas training opportunities to enhance the quality of employees and generating overseas skills in terms of professional skills, communication skills, corporation skills and so on (Stafford 2013). This strategy attracts talents from all over the world and promotes its brand population at the same time. And put the right person at right place is critical for cultivating the talents, especially those at the top of the organization and permeating the large companies like Apple. Timely communication with HR department and adopting suitable human resource management stimulate the rapid growth of this company.

Competitive Strategy
Apple’s competitive strategy is actually production differentiation at the present (Francis 2010). It emphasizes on design, service and branding via dedicated advertising and high quality controlling, which is a viable strategy. To be more specific, it is connected with business reputation, features, product mix, and collaboration with external organizations (Francis 2010). Its easy-to-use products are designed for consumers of all ages and cover a widely segments. The economic value brought by product differentiation, especially when comes to monopolistic competition, is about decreasing environmental threats and the threat from new entrants.

Communication Strategy
Unlike other advertisements or communication skills, Apple advocates intriguing, clear and clever communication with its own style. The call center provides services for customers, which solves problems of products and improves annual sales as well as brand value. There are numerous supporters in the retail stores, for instructing and tutoring.

Technology Development Strategy
Apple invests a lot on product from time to time for keeping its products competitive among other competitors, namely IBM, Samsung, Microsoft and so on. Its clients are familiar with its products and functions, even the refreshed product line when they are going to update in memory, speed, design, and realizing more features.

Segmentation strategy
According to Signal (2010), market segmentation “defines and sub-dividing the aggregate, homogeneous market into addressable, targeted needs and aspirations buckets”. Apple innovates products on the basis of customer experience and makes efforts for its strategic iterations of its popular products. For different customers, Apple produces various products, for instance, manufactures high-end Macbook for businessmen in terms of portable Macbook Air and professional Macbook Pro.

SWOT Analysis
Strength
Brand awareness and reputation
Its well-known brand is famous around the world and Apple begins a revolution in the computer and smartphone industry. Its brand loyalty contributes to stable sales in the market and maintains the financial vitality (Deepti 2007).

Marketing and Advertising Abilities
Its advertisement is easy but understanding, innovative and impressive to the customers. Almost everyone knows Apple and would like to use it even children and elders.

Technology Savvy
The product lines of Apple products are simple but stable, which utilized the elements that user-friendly design styles. It even integrates Microsoft products lines as well as processors from Intel supported by experts for the purpose of boosting customer satisfaction.

Weakness
Steve Jobs
The innovative visions were apparently absent since his departure, which results in great loss to customer and stakeholder (Fadaie 2013). Tim Cook nowadays takes great responsibility to innovate and create a new era.

High Cost
The advanced technology inside the hardware and software makes Apple’s products and services into costly merchandise. Many people cannot afford it to a great extent (Fadaie 2013).

Opportunities
Consumer electronics * After entering the customer electronics market, expanding of iPod, iTunes for downloading mobile phone applications and music is a great opportunity to enhance customer loyalty and satisfaction. Furthermore, it attracts alliances with the feature of profitable strategy and generates more profits.

Threat
Competition
* It occurs primarily from two aspects: “PC hardware/software and consumer electronics” (Deepti 2007). When it comes to the electronics arena, it cannot be denied that Apple is facing the competition from many IT giants and it is difficult for the company to be creative and attractive under the great pressure.

Dependence on specific suppliers
Actually, Apple highly depends on third party suppliers that providing with various electronic components for products. For instance, “DRAM, NAND flash-memory, and TFT-LCD flat-panel displays” (Apple 2014). The reliance is a threat to Apple in terms of cost and delivery time.

Conclusion
This report mainly states the features of Apple Inc. and proposes its long-term directions. Moreover, the seven key business strategies are generated to explain its competitive functions for the great success of Apple. In addition, a SWOT analysis is given to further analyze Apple’s advantages and disadvantages.

Reference
Alfuraih, K 2011, Sell Report for Apple Inc.

Apple 2010, Company profile, Datamonitor. Ascrofy, J 2012, ‘Apple from the iPod to the iPad—A Case Study in Corporate Strategy’, PhD thesis, 2nd edition.

Deepti, AN et al. 2007, ‘A strategic analysis of Apple corporation’, Personal thesis, The Indian Institute of Planning and Management Hyderabad.

Fadaie, R 2013, Apple Marketing Analysis Report: Apple iPhone Case Study, viewed 29 June 2014,
<http://www.academia.edu/4103079/Apple_Marketing_Analysis_Report_Apple_iPhone_Case_Study>.

Francis, A 2010, Case study on Apple’s business strategies, viewed 30 June 2014,
<http://www.mbaknol.com/management-case-studies/case-study-on-apples-business-strategies/>.

Kahn, J 2014, Apple reports $45.6 billion revenue for Q2 2014: 43.7m iPhones, 16.3m iPads, 4.1m Macs, 2.7m iPods, viewed 27 June 2014,
<http://9to5mac.com/2014/04/23/apple-reports-45-6-billion-revenue-for-q2-2014-43-7m-iphones-16-3m-ipads-4-1m-macs-2-7m-ipods/>.

Li, YF 2012, ‘Comparative analysis and choice of brand strategy’, Goods and Quality, vol.5, pp.30-31.

Marketing Minds n.d., ‘Apple’s branding strategy’, Marketing Minds, viewed 29 June 2014,
< http://www.marketingminds.com.au/apple_branding_strategy.html>.

* Signal, M 2010, Apple's segmentation strategy, and the folly of conventional wisdom, Radar, viewed 28 June 2014, * <http://radar.oreilly.com/2010/09/apple-segmentation-strategy-an.html>.

* Stafford, T 2013, Talent Strategy: Why Apple’s Approach is Increasingly Common, blog, viewed 27 June 2014, * <http://www.executiveboard.com/blogs/talent-strategy-why-apples-approach-is-increasingly-common/> *
Yarow, J 2013, In One Of His Most Revealing Quotes, Tim Cook Explains His Strategy For Running Apple, viewed 28 June 2014,
<http://www.businessinsider.com/tim-cook-explains-his-strategy-for-running-apple-2013-6>.

* *

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