Organising for Success

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Business level strategies

Discuss the possible business level strategies/ advantages and disadvantages of apple :

By following generic strategies of cost leadership, differentiation and focus we can see what strategy fits best for a particular company- in this case apple. Whichever the overall strategy,; it is applied to a value chain in the hope for achieving long term competitive advantage.

These include lowering costs as well as differentiating products which will be discussed in greater detail. This is so that there is a strategic fit with the company’s objectives. I.e. if Apple want their products to be more market driven as opposed to resource driven, they may want to think about lowering the price of some of their products. Samsung use a software called Android which is quiet commonly used by other companies thus making the cost of the product lower and thus more market driven.

To begin with most companies will break their organization down into different strategic business units (SBUs). This allows the organization to break down the target markets into different channels. For example Apple’s SBUs may be broken down into different categories which address different markets; media players, smartphones, laptops and computers, software and peripherals. They can then address the market demand according to their SBUs and possibly compare it to similar SBUs of their competitor. E.g. Samsung’s Smartphone SBU or Microsoft computers.

In a business level strategy the company Apple may want to create a competitive advantage which cannot be imitated by competitors. In a business level strategy the firm utilises itself based on its strengths whether this is cost leadership or differentiation. Some companies may have both strategies. For example Samsung follow a low cost with their galaxy phones but a differentiation focus with their s3 range.

As seen so far apple have differentiated themselves throughout by creating an image which promotes...
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