Strategic Management Assignment Answer to Question
Introduction
Give a background of the chosen organisation. This should include information such as:
Company description (constituents and services offered) and brief history
Leadership
Parent company or subsidiary information
Branches/locations
Operational highlights – number of employees, goals, and accomplishments.
The ultimate goal of strategic management is the attainment of competitive advantage. With reference to your chosen organization and with adequate theoretical context, critically discuss the organizations competitive advantage.
Using specific examples analyse the general key forces driving the industry of your chosen organisation. What are the implications for your organisation?
As a follow-up to question 1.3 above analyse the competitive forces of that particular industry.
What phase of the industry life-cycle is your chosen organisation in? Critically discuss the strategies your chosen organisation should be deploying to in order to survive in the phase that it is in.
QUESTION GUIDELINE
1.1 · This background should give the marker a good sense of
the chosen organisation based on the required criteria in the question.
1.2 · A solid academic context on the concept of competitive advantage.
· Analysis and application of the theory via the chosen
entity will maximise marks.
1.3 · Demonstrate a firm understanding of the theoretical concept and apply it to the chosen organisation.
·The use of specific examples is key.
1.4 · Identification of the specific competitive forces is key.
·Examples should be specific to the particular organisation.
1.5 · Demonstrate a deep understanding of the concept of industry life cycle.
· Application is key in the discussion of the relevant
strategies.
Introduction:
The chosen organization for this assignment is Apple Inc. Apple Inc. is a multinational technology company founded in 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne. It is headquartered in Cupertino, California, and designs, develops, and sells consumer electronics, computer software, and online services. Apple’s product line includes the iPhone, iPad, Mac, Apple Watch, Apple TV, AirPods, and other accessories. The company is also known for its software, including the macOS and iOS operating systems, and its online services, including the iTunes Store, App Store, Apple Music, and iCloud.
Leadership:
Tim Cook is the current CEO of Apple, succeeding Steve Jobs after his resignation in 2011. Under his leadership, Apple has continued to innovate and expand its product line while maintaining a focus on customer experience and design. Cook has also emphasized Apple’s commitment to sustainability and social responsibility.
Parent Company or Subsidiary Information:
Apple Inc. is a standalone company and not a subsidiary of any other corporation.
Branches/Locations:
Apple Inc. has retail stores in more than 25 countries and operates in over 100 countries worldwide. The company has over 510 stores worldwide, and in 2020, it employed approximately 147,000 full-time employees.
Operational Highlights:
Apple has a long history of creating innovative products and disrupting industries. In 2020, Apple’s revenue was $274.5 billion, and its net income was $57.4 billion. Apple’s products are known for their high quality, design, and user experience. Apple is also known for its strict control over its ecosystem, which has helped it maintain a competitive advantage.
Competitive Advantage:
Apple’s competitive advantage is built on several key factors. Firstly, the company is known for its innovative products and design. Apple invests heavily in research and development and is continually creating new products and features that set it apart from its competitors. Secondly, Apple has a strong brand reputation that is associated with quality, reliability, and user experience. This has helped Apple build customer loyalty and maintain a premium price point for its products. Finally, Apple’s ecosystem is another key source of competitive advantage. Apple controls every aspect of the user experience, from the hardware to the software, and this has helped it maintain a consistent and seamless experience across its products.
Key Forces Driving the Industry:
The technology industry is driven by several key forces, including innovation, regulation, consumer demand, and competition. The pace of innovation in the technology industry is incredibly fast, and companies must continually create new products and features to stay ahead. Regulation is another significant force driving the industry, as governments around the world seek to regulate technology companies’ data practices and protect consumer privacy. Consumer demand is another critical factor, as consumers are always looking for new and better products that improve their lives. Finally, competition is a significant force driving the industry, as companies must compete to gain market share and maintain profitability.
Competitive Forces:
The technology industry is highly competitive, with many companies vying for market share. Apple faces competition from several key players, including Samsung, Google, Amazon, and Microsoft. The threat of new entrants is relatively low, given the high barriers to entry in the technology industry, such as the cost of research and development, marketing, and distribution. The bargaining power of suppliers is also relatively low, given the large number of suppliers in the industry. However, the bargaining power of buyers is high, as consumers have many options and can easily switch to a competitor’s product. Finally, the threat of substitutes is relatively high, as consumers can choose from a wide range of products that perform similar functions.
Industry Life Cycle:
The technology industry is in the growth phase of the industry life cycle. This is characterized by
