Student Name: Satisfactory Pass
Student Number: 12032013
Module: Global Corporate Strategy
Module Code: PGBM16
2. Question One - Core Competences and Dynamic Capabilities1 2.1 Core Competences and Dynamic Capabilities1
2.2 Apple’s Competences and Dynamic Capabilities2
2.3 Dell’s Core Competences and Dynamic Capabilities3
3. Question Two - Strategic Alliance and Merger and Acquisitions3 3.1 Strategic Alliance3
3.2 Merger and Acquisitions4
3.3 How these strategic options can help Apple maximize its shareholders value?5 4. Question Three - Strategic Leadership and Innovation6
4.1 Apple’s Diffusion of innovation Across Value Chain6 4.2 Apple’s Breakthrough Innovation in electronics and entertainment.7 5. Conclusion9
Three people, Steve Jobs, Steve Wozniak and Ronald Wayne together created the Apple Company. So far, the Apple Company has become one of the most successful companies which produced a wide range of products, including the iPod, iPhone, the Macintosh computer, and iTune as well as the computer of software products of Apple Store. In computer industry, the Apple Company has become one of the most successful innovators and the leader (Bilton, 2007).
This essay mainly talks about Apple’s global corporate strategy in IT industry. Firstly, the essay discusses the concepts of core competences and dynamic capabilities. Then the essay talks about what are the core competences as well as dynamic capabilities for both Apple and Dell Companies. The second part of the essay will discuss how Apple Company uses merger and acquisitions as a global corporate strategy to maximize its shareholder profits. Last, the essay points out that the advanced leadership and innovation bring out competitive advantages for Apple Company (Cooper & Edgett, 2009).
2. Question One - Core Competences and Dynamic Capabilities
2.1 Core Competences and Dynamic Capabilities
There is no doubt that the Core Competence has been always important for both practical and academic aspects in management since Hamel and Prahalad first mentioned in their article. Based on their definition, the Core Competences are the collective learning of a company, such as the learning of coordination of production skills, the integration of multiple streams (Abraham, 2012).
According to Hafeez’s work, the Core Competences are capable to sustain the competitive advantage of a company. In terms of short time competitiveness of company, it is contingent upon current price or performance ratios and products. However, the long-term competitiveness depends on the ability of a company to generate products that are unimaginable by customers under current situation. As a result, the capacity of company’s management to create upon competencies becomes the real sources of a company’s competitive advantages and empowers the company to adapt the constant changing business environment (Moon, 2010).
In order to beat rivals and win customers’ product offering, the definition of the company’s Core Competences can be regarded as an issue to competitive advantage. In order to sustain a company’s competitive advantages, it is necessary to test its core competence. The first step to test a company’s Core Competences is to provide potential access to a wider market. The second step is to test whether the company’s products can make a great contribution to the customers. Also, the Core Competences need to test whether the company’s products have difficulties for its competitors to imitate as well as have the source of dynamic synergy.
The capability of a company means its potential to carry out the activities for value adding, as well as the quality of coordinating and combining skills of a company, such as the abilities to achieve its competitive advantages (Abraham, 2012).