Major Long Term Objectives Of Apple : (Source : https://www.coursehero.

com)
The major long term objectives that Apple has identified are :
 Environmental Responsibilities : It is a part of Apple’s vision statement to be a company
that focuses on innovating. Therefore, the company wants to focus on utilization of renewable
energy in its offices and stores. Although renewable energy is utilized in 94% of the corporate
offices, the challenge Apple faces is that renewable energy is not readily available for all their
in-store locations. A way Apple is attempting to achieve environmental responsibility is
through eliminating toxic substances from their production process and products.
 Leveraging Ability To Design And Develop : Another long-term objective of the company
is leveraging their ability to design and develop. This objective is an ongoing one because for
the company to maintain a competitive advantage they must offer superior innovation and
integration through all products. Leveraging these abilities will enable Apple to rise above its
competitors.
 Enhancing And Expanding : The next long-term objective is enhancing and expanding. To
enhance and expand continuously, Apple invests heavily in Research and Development
(R&D). It believes in a high-quality buying experience. Therefore, the company strategy also
includes expanding its retail and online stores to provide high quality sales and post sales.
 Supporting The Community : The company supports the community for the development of
third-party software and hardware products. One of the program that has helped communities
is called the Apple Global Volunteer Program. The Apple Matching Gifts Program has been
an astounding success in which the proceeds were donated to charities and non-profits around
the world. The Apple Global Volunteer Program empowers employees to become Volunteer
Champions and receive training and tools to help organize and publicize volunteer events in
their communities. It also makes it easy for employees to find activities where they can
volunteer their time and qualify for Matching Gifts.
 Continue To Create Ground Breaking Products : Apple has made a name for itself
becoming a trend setter in the market with every one of their products introducing something
new and exciting to the world. It offers premium products at premium prices while still
maintaining large market share and high profit margins.
 Innovate And Dictate The Movement For Future Technology : Technology is forever
changing. To continue success of having the best products, Apple must study the market to
understand what consumers want next while improving their current products from listening
to customer feedback.
 Build Hype And Anticipation For New Upcoming Products : The company should use
annual conference and events to announce release and information on each new product
before it hits the market. This allows the consumer to build a demand for the product before it
ever hits the shelf.
 Sustain And Expand On Strongly Branded Name : Apple is the biggest name in the tech
world. The company has changed the way people look at phones and tablets. It is a trend
setter who believes in entering new product markets before competition, and deliver current
products at an unreachable standard of quality. If they continue to set trends, enter new
product lines and take their share of the market they will not only build their brand they will
dominate the competition.
Key Resources And Capabilities Of Apple : (Source : https://www.coursehero.com and
http://panmore.com)
Steve Jobs was a precious resource for Apple. His unique thought patterns and approach to business
established Apple as an industry leader the world’s most valuable company.
Resources and capabilities are the primary source of profitability. The various resources employed by
Apple in pursuit of profitability include financial, physical, human, technological and reputational.
The firm has the core competence that is fundamental to its strategy and performance. The distinctive
competence displayed by Apple has consistently helped it to maintain an advantage over its
competitors. Apple’s designers, programmers, and engineers leverage their unique ability to design
and develop its own operating system, hardware, and application software, which are the key
capabilities for Apple.
The firm’s innovative design teams functioned of extraordinary industrial design capability. This
combination makes Apple outstanding among competitors and hard to imitate. Its most important
capability is the unique software which runs on their owned developed hardware. A combination of
the design teams, software development teams, and hardware engineers employed by Apple determine
this capability.
There are two main types of competitive advantage. Cost advantage and differentiation advantage.
Apple pursues a differentiation advantage strategy. Apple has always been a very innovative
computer manufacturer. Its total control of software and hardware, marketing, digital asset
management, retail strategy and product differentiation consist its competitive advantages. Apple is
organised as one company and manages products, not categories. It has one R&D base that is
common across most products. All Apple products and accessories are compatible with each other,
which bring consumers a brand new experience.
Apple has built a truly sustainable competitive advantage and is definitely worth the current valuation
premium. Its R&D achievements in apps, OS and devices, are hard to beat. Apple has a very strong
defence force in the field of product, services and experiences integrated supporting, which is difficult
to break.
Apple’s sustainable competitive advantage is built on the basis of the horizontal & vertical integration
strategy, horizontal integration strategy across devices and channels, while vertical integration
strategy Including software and hardware retail.
Porter’s Generic Strategies Of Apple : (Source : http://panmore.com)
Apple’s generic strategies are aligned to support the company’s leadership in various consumer
electronics and information technology service markets worldwide. It is directly related to the
company’s strategies in pricing, marketing, and other areas of the business. As one of the most
valuable companies in the world, Apple shows that its generic strategy is a major determinant of
competitive advantage against other firms.
Apple’s generic strategy is Broad Differentiation. This generic strategy focuses on key features that
differentiate the company and its information technology products from competitors. Through the
broad differentiation generic strategy, Apple stands out in the market. For example, elegant design
and user-friendliness of products, combined with high-end branding, effectively differentiate the
technology business. This generic strategy means that Apple always aims to set itself apart from
competitors not by price but by competitive advantages based on product design that attracts
customers. Such design includes seamless connectivity among devices and cutting-edge aesthetics.
Even though this generic strategy makes Apple different, the company still broadly reaches various
segments of the market. The firm’s products are designed for everyone, thereby supporting a broad
market reach. For example, Apple targets individuals and business organizations through the
MacBook product line. In this way, the generic strategy of broad differentiation supports the company
in maintaining its competitive advantage, leadership, and position as a high-end and high-value
technology business.
The broad differentiation generic strategy has significant implications on Apple’s strategic objectives.
For example, to apply this strategy, the company must continue emphasizing innovation through
research and development. Apple must keep developing innovative products so that the business
maintains its competitive advantage. Competitors eventually catch up with new technologies and new
products, so the broad differentiation generic strategy compels the company to continuously innovate
to keep itself always ahead of the competition. Thus, continuous innovation is one of Apple’s strategic
objectives based on the broad differentiation generic competitive strategy. In addition, to maintain
business growth, the company must keep growing its market reach, such as in the global consumer
electronics market. In its generic strategy for competitive advantage, Apple does not focus on any
specific market segment. Instead, the company competes by selling various goods and services that
suit the various segments of the consumer electronics and information technology services industries.
Thus, another of Apple’s strategic objectives based on its generic strategy is to penetrate markets to
ensure a broad reach. Such expansion and business growth are achieved through intensive strategies
for growth.