Strategic Choice and Evaluation

Topics: Apple Inc., IPhone, IPod Pages: 5 (1419 words) Published: October 19, 2011
Strategic Choice and Evaluation

STR 581
University of Phoenix

Identifying a organizations alternatives is a concern for most major companies. The starting point is in strategic analysis, this is process that managers use to evaluate and select their competitive advantages which will help separate them from their competition in the market. Leading organizations shoulc “choose among alternative grand strategies to guide a the firms activities, particularly when they are tyining to decide about broadening the scope of the firms activities beyond its core business (Pearce and Robinson, 2011). Apple is company that is known for their innovation and brand recognition. You can easily identify their products in the stores and they make sure that their products work together. In this market, Apple must focus on how to maintain their status as the next generation technology leaders. There are similar products and new products entering into the market that is challenging Apple to further expand their vision. As Apple continues to grow in this downward market, they will need to make sure they grow at a pace that will not endanger their brand identity or their potential revenue growth. In this paper Team C will evaluate the strategic choices and evaluation that Apple will need to consider to realize growth.

Generic Strategy

Apple is known for its deep thought and innovation. The company is able to sustain market leadership by leveraging generic strategy. Apple leveraged the generic strategy in all the three areas, which includes

1. Low-cost Leadership - Apple has the benefit of leveraging its big and established supply chain to produce the products at cheaper price. Being the mass producer of products like iPhone and iPod, the company can strike an efficient deal with the suppliers. This enables the company to offer an excellent quality product at cheaper prices compared to the competitors. For example, any smart phone similar to the quality of iPhone will be expensive and other manufacturers make very less profit if they sell it at a price that is equal to iPhone. 2. Differentiation - The products introduced by the company like iPhone, iPod, and iPad revolutionized the market in those categories. iPod is the first major initiative by Apple that took over the market share from Sony famous for its walkman. This revolution is brought by using the digital technology that differentiated the iPod for rest of the products available in the market. 3. Focus - Apple was able to focus on its product and introduce the iPod targeting the entire set of different audience. Even though the product is expensive, the smaller size and the ability to load more songs created a sensation among the youth and almost every one. The company was able to focus on its product line like iPhone and iPad and penetrate into the market. With the revolutionary iPhone, the company focused on the tech savvy customers that wanted to make most out of their phones. This ended up being a popular device that is the top seller in the category. Identify the best value discipline

One of the major focuses of Apple is that their customers buy value and the company uses that to create success. Apple knew that was important to customers and applied it so all their products and designs. Apple knew that some customers saw value with cost, conveniences and commodities. In doing so, Apple has related to the Value Discipline by being the top total cost provider. They were successful by providing customers with low cost and made it convenient to make purchases. Steve Jobs was the leading member to follow the Value Discipline and keeping their customers and increasing their market shares. On the other hand customers see Value Discipline as the best technology or...

References: Pearce, J. A., II, Robinson, R. B. (2011). Strategic management: Formulation, implementation, and control (12th ed.). Boston, MA: McGraw-Hill/Irwin.
CRM Editors. 2011. Retrieved from
Pearce, J. A., & Robinson, R. B. (n.d.). Strategic Management. Formulation, Implementation,
and Control (12th ed.). New York, NY: McGraw-Hill
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