 Current Strategy

Apple Inc. is focused on conveying the best client experience to their customers
through their creative equipment, programming and benefits (Apple Inc., 2015).
The organization incorporates growing its own retail and online stores and its
related circulation system to viably obtain more clients and offer extensive deals
and post-sales support experience (Apple Inc., 2014).

It has accomplished its remarkable performance through viably actualizing an

unusual system: differentiation through innovation with concurrent serious degrees
of efficiency, resulting in the most reduced expenses in its industry. Yet, when
companies endeavor to utilize both of these strategies, in the long-term, they get
“stuck in the middle”, as, it is not feasible to differentiate a product at low cost.
Nonetheless, this combination, called quantum strategy, is the key to success of
the firm since producing innovative products enabled them to charge premium
prices. Furthermore, by reducing the cost of production and outsourcing a low-cost
strategy is attainable.

Different Realization Low-cost Realization

Focus and investment in innovation Strategic focus in product markets

People strategy- employing the most Distributed organizational design- high

qualified professionals value added functions in California and
manufacturing outsourced to inexpensive
sites.

Branding- image of non-conformist and Synergies-diversification in terms of

investing in Apple stores in prominent industries as well as products.
areas

Historically Steve Job’s leadership- Intense focus on supply chain efficiency

demanding, perfectionist and visionary (less warehouses, reduction of supplier
numbers)
  Past Strategies and Implications
In 2001 inertia had ensued in Apple Inc., a loss of, approximately 6% of turnover
was reported and the sales had decreased. In order to capsize the situation a
number of options was discussed, eventually though, music was chosen, since it was
evident that it was beneficial by two basic strategy analysis tools, market growth
rate and market share, best identified by employing BCG Matrix. The iPod was
launched within an industry where no key competitor existed and, moreover, the
trend for storing music within digital devices was in full swing. Its distribution was
achieved by multiple mediums, such as the online and retail Apple stores but also
through retailers around the world leading to full customer experience (Apple Inc.,
2015).

Once, the company entered the music industry by forming alliances with the major
record companies their market segmentation started to change dramatically,
roughly, 74% of sales in 2000 were to businesses and professional markets but by
2011, approximately, 75% of sales were transferred in the personal user and
education markets.

In 2007, the company introduced the iPhone, just one year later they launched the
upgraded iPhone 3G and each year after that a new, high quality gadget was
unveiled including the iPad line. This incessant product development caused the
“cannibalization” of the previous editions, however, kept them a step ahead from
their competition.