The Strategy Diamond model of Hambrick and Fredrickson of “Apple

Company”
A. ARENAS: where will we active?

1. Product categories

Apple Inc. designs, manufactures and markets smartphones, personal computers, tablets,
wearables and accessories, and sells a variety of related services. Its product categories
include iPhone, Mac, iPad, and Wearables, Home and Accessories. Its software platforms
include iOS, iPadOS, macOS, watchOS, and tvOS. Its services include advertising,
AppleCare, cloud services, digital content and payment services. It operates various
platforms, including the App Store, that allow customers to discover and download
applications and digital content, such as books, music, video, games and podcasts. It also
offers digital content through subscription-based services, including Apple Arcade, Apple
Fitness+, Apple Music, Apple News+ and Apple TV+. Its products include iPhone 15 Pro,
iPhone 15, iPhone 14, iPhone 13, MacBook Air, MacBook Pro, iMac, Mac mini, Mac Studio,
Mac Pro, and others. It also provides DarwinAI, which specializes in visual quality inspection
using its Explainable AI platform.

2. Channels

Apple’s direct distribution channel includes their physical stores and their online store. Apple
physical stores allows them to really control their brand image and customer perception of
them. All their stores worldwide have the same clean white design with a high employee to
customer ratio. This creates a really strong brand image in consumers’ minds as they are
seeing the same design everywhere they go. They also often open their stores in high traffic
locations to get as much exposure as possible. Apple also sells directly through their website.
Their website can be access from all parts of the world and offer a huge range of languages.

However, even though Apple puts a lot of effort into their physical stores, a large part of their
sales and revenue comes from indirect distribution channels. Consumers can buy Apple
products from third-party sellers and carrier providers. This includes stores like BestBuy,
Walmart, and Target as they are easily accessible and might offer discounts. Apple creates a
good brand image through their physical stores and sells their product through third-party
companies.
 3. Market segments

With Apple, Market segmentation is grouped into behavioral and psychographic variables.
Segmenting is a process of grouping the audience into smaller segments based on specific
characteristics like occupation, gender, age, and other customer preferences. These segments
or variables must be accessible, measurable, and actionable to benefit the company.

Apple's demographic market segmentation includes developing its products around the target
customers' age, lifestyle, and occupation. Apple's products are then distributed to various
areas and classified based on family size and age (Bara & Al-Refaie, 2016). An example of
this is a PC with the latest features and software for professionals and a PC containing more
games for kids. You might also notice that Apple provides several features to its other
gadgets. Those with the higher graphic resolution for the younger people and digital watches
with the capabilities to monitor one's pulse rate will be highly favored by the later
generations.

4. Geographic areas

The company's business operations span the Americas, Europe, the Middle East, Africa, and
Asia-Pacific. Apple is headquartered in Cupertino, California, the US.

5. Core technologies

Apple's core technology is based on its integrated approach to design, hardware and software,
creating a harmonious and fluid ecosystem for its users. With iconic product designs and
meticulous attention to detail, Apple delivers exceptional user experiences on its devices,
powered by stable and secure operating systems. The company also stands out for its services
and software ecosystem, supported by custom components like Apple Silicon chips. With a
focus on privacy and security, Apple is committed to providing its users with a best-in-class
technology experience while remaining at the forefront of innovation.

6. Value creation stages

Apple stands out for its continued commitment to technological innovation. From its
beginnings, the company has consistently pushed the boundaries of technology. Its
investment in research and development enables it to create innovative products and services
that meet the changing needs of consumers. One of the most remarkable features of Apple
products is the exceptional user experience they provide. From elegant product design to
seamless integration between hardware and software, every aspect is carefully crafted to
provide a smooth and intuitive experience for users. Apple has created a cohesive ecosystem
of products, software and services that complement each other. Devices like iPhone, iPad and
Mac work in harmony with services like iCloud, the App Store and Apple Music, giving
users a seamless, integrated experience across the entire product line. The Apple brand plays
a central role in its value creation. Apple's reputation for cutting-edge design, innovation and
quality allows it to maintain premium prices for its products. This strong brand image helps
retain customers and attract new ones, creating continued demand for Apple products.

B. Vehicles: How will we get there?

1. Internal development

Internal development is at the heart of Apple's strategy. From its beginnings in a garage in
California to becoming one of the most successful companies in the world, Apple has always
prioritized designing and creating its own products and technologies. This approach allows it
to maintain total control over the quality, design and functionality of its products, while
preserving its ability to constantly innovate. From designing its own chips like Apple Silicon
processors to creating operating systems like iOS and macOS to the industrial design of its
iconic devices, every aspect of development at Apple is carefully managed in-house. This
strategy has allowed Apple to stand out in the market and maintain its reputation for
excellence and innovation.

2. Joint ventures

Apple rarely uses joint ventures in its business model. However, there have been some
notable collaborations over the years. Perhaps one of the most famous is with IBM as part of
the MobileFirst initiative. This partnership aimed to develop professional applications for iOS
devices, combining IBM's enterprise expertise with Apple's ecosystem. Another notable
collaboration is with Qualcomm for 5G modems used in iPhones. These joint ventures are
often strategic, allowing Apple to complement its internal strengths with the specific skills of
its partners to create even better products and services.

3. Strategic alliances

Apple and Disney is having strategic alliance to improve the performance of Disney store –
Experience and to reduce the losses of itunes stores and Disney stores.
Apple and HP is having alliance to deliver a HP branded digital music player based on apple’s ipod
Apple and Microsoft allied to make Office for Mac and to bundle apple with Internet explorers in
their new machines.
Apple acquired 24 companies from 2000 onwards, some of the firms are Netseletor, Astarte-DVD
Authoring Software, bluebuzz, Poly9, C3 Technologies …

C. Differentiators: How will we win?

D. Staging: What will be our speed and sequence of moves

1. Speed of expansion: One of the keys to Apple's rapid expansion is its ability to
anticipate consumer needs and innovate aggressively. Iconic products like the
iPhone, iPad and MacBook have redefined industry standards and generated
unprecedented global excitement. This ability to continually reinvent its offerings
has allowed Apple to stay ahead of the curve and maintain its market leadership
position.
2. Sequence of initiatives: Apple's sequence of initiatives over the years
demonstrates a remarkable ability to anticipate market trends, innovate and adapt
to changing consumer needs. Since its inception, the company has continually
released groundbreaking products and services that have redefined technology
industry standards. Overall, Apple's sequence of initiatives reflects a consistent
commitment to innovation, quality and user experience, making it one of the
most influential and admired companies in the world.
3. Interval between events: The time between major events at Apple is often
punctuated by a flurry of anticipation, excitement and speculation in the tech
world. The company, known for its closely guarded secrecy and media launches,
creates palpable suspense between each major announcement. This interval
between events is also a time when existing and potential Apple users eagerly
anticipate the next innovations and features which could improve their user
experience. Whether it's a new iPhone, an operating system update or an
expansion of services, each announcement is scrutinized with great interest.