Apple Inc.

Corporate Level Strategy and Strategic

Alternatives and Recommend Strategy
Apple Inc.’s Corporate Level Strategies

 Growth
Apple Inc. is now using Product Development, Market Penetration and Market Development
for intensive growth strategies of the company. The company uses strategy product
development for innovation as a critical success factor and competitive advantage and to
bring profits. Since new products enable the company to produce more sales, such as
through the selling of new iPhone models, the company grows. Market penetration as Apple
gains larger share of today’s market through selling more of their products. The company
also improve competitive advantages in its current markets, the company adds more
approved sellers to increase revenue. While in market development, Apple continues to sell
their existing product in the market and Apple Inc. employs this aggressive expansion policy
by approving new vendors in countries where it does not yet have a presence.
 Stability
As of March 13, 2020, Apple release an article regarding the issue that they close retail
stores worldwide, except greater china. To reduce the risk of coronavirus transmission, Apple
Inc announced that all of its retail stores, with the exception of those in Greater China, would
be closed for the next two weeks until March 27 2020. All of the Apple's offices were moving
to a flexible work arrangement worldwide outside the greater china which means that the
team members must work remotely if their job allows.

 Retrenchment
Apple is ruthless in its cost-cutting efforts. As the growth of iPhone sales slows, Apple's profit
margins will become increasingly reliant on lower production costs. Tony Blevins, Apple's
Vice President made some threats and holding back to their suppliers in order to lessen
some cost. According to the article this is not personal, it's just business. This cost cutting
strategy of Blevins’ saved apple hundreds of millions of dollars.
 Strategic Alternatives
 Growth
1. Since there is an increasing competition in the markets that Apples competes in like
Windows, Samsung and Blackberry, Apple must differentiate its product itself apart from
competitors by releasing new products that its rivals have yet to produce.
 Advantages
 This will make Apple more ahead to their competitors
 The company will remain competitive in the market
 Disadvantages
 This will add cost for research and development
 The product would also be much more pricy
2. Apple should make an alliance with other
successful firm in the market that are quite
related to them in order to eliminate the
unhealthy activities and price wars.
 driving car that may appeal to the customer.
Advantages
 This will make a great
relationship with other large
companies
 As stated, it will eliminate the
unhealthy activities and price
wars.
 large revenue stream.
Disadvantages
 Owing to the involvement of a
local partner, there is a fear of
consumer insulation.
 Alliance company will always be
involved at some matters
3. Apple is known in its advance and innovative
technology. Having that kind of competitive
advantage, Apple can continue their alleged
plan to proposed new product which is self-
 Advantages
 Apple will be known not only in
terms of innovative gadgets but
also to an automated vehicle
 This will make an opportunity to
the organization to create another
 Disadvantages
 This kind of product must
prioritize safety and reliability
 This will be a greater challenge for
the company
 Stability
1. Apple is expert on producing and innovating gadgets. Continuing the proposed plan for a
self-driving car is quite risky as it requires strict safety strategy. Apple must focus on
creating and innovating their product line.

 Advantages
 Apple can empower their expertise job
 Apple can focus on developing more gadgets
 Disadvantages
 They had no chance to explore new products
 They will never know what the result will be, either successful or not
2. In today’s Covid-pre-era, gadgets were
highly in demand but we can't deny that
people are being practical because of
short of money brought by this pandemic.
This is where cheap prices appeal more in
customer. Apple should reduce their
product's price in order for customer to
afford their products.
 Advantages
 This might increase their sales
 More appealing to the market
 
Disadvantages
 Might affect their production
cost
 Might affect the brand itself
3. Due to the rising number of COVID-19
patients, Apple can do the same thing they did
last year 2020 which is closing stores at the time
being in order to minimize risk of the virus'
transmission as they prioritize their people.
 Advantages
 This will minimize risk of the virus
transmission
 Apple will get customers appeal as
they show concern to their
employees
Disadvantages
 This might miss sales opportunities
 This may disgruntle customers
 Retrenchment
1. Due to the COVID-pre-era, there is a possibility that Apple sales may reduce. In order to
survive, Apple may use cost-cutting through temporary layoffs
 Advantages
 Reduction in cost
 Assist a financially distressed in Apple in gaining greater control over its finances
 Disadvantages
 Employee may start seeking employment elsewhere
 Lowers the morale of an employee
2. Due to the COVID-pre-era, there is a
possibility that Apple sales may reduce. In
order to survive, Apple may use cost
cutting in their production where they
build their gadgets.
 Advantages
 This will attract more profit
 This will lead to productivity
 Disadvantages
 Can cause negative vibes to
the employees
 This might affect the quality of
the product
3. Apple can develop a parenting strategy. Apple
let the other units to operate a some works
apart from the top management's work.
 Advantages
 Employees/teams will be more
focused on their works
 Avoid destructions from others
 Disadvantages
 Top management can’t interfere
other units
 Each unit has its own rules
 Recommended Strategy
 In terms of Growth Strategies, the best strategic option among the presented
alternatives is alternative number 1. Since Apple is ahead to its competitors
and has a good reputation in innovation and creating products, they can
release new products that its rivals have yet invented. On the other hand, for
stability strategies, the best strategic option among the presented
alternatives is alternative number 1. Instead of risking the company’s money
on producing the planned self-driving car, they should focus on their former
works. While in retrenchment the best strategic option among the presented
alternatives is alternative number 1. Due to the pandemic that might affect
the company’s net sales, Apple can use the cost cutting through temporary
layoffs that will help them save profit margin.