Essay Sample on Apple Inc. Strategy Implementation

Strategy Implementation Objectives

To maximize the production of affordable devices that will increase the market share of the organization by allowing the organization to access market segments that is did not access in the past.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Save 25%

To change the status of the products within the low growth market that also have a low share of the market by product innovation that will change the features of the commodities and increase their acceptance within the market.

To increase the marketing strategies into the average and low-income markets by promoting the commodities that meet the needs of the market in addition to being affordable to the market segment.

To increase the prospects towards online marketing and sales which is the new strategy for the future of the most organizations as the market moves away from the physical retail shops to the online shopping outlets such as Amazon that offer convenience to the buyers.

Organizational Chart

(Sofia, 2016)

The changes in the plan and strategy for the operations in the organization will not affect the organizational chart. At present, the organizational chart, as seen in the diagram is efficient in carrying out the functions of the organization. Therefore, the changes will only affect the strategies within the organization. The strategy that the implementation process will impact include the marketing strategy in addition to the branding and product positioning strategies within the organization (Pretorius, 2008). The teams that carry out the functions for the strategies which are represented in the organizational chart will remain the same. The team will continue to operate under the leadership of Timothy Cook, the current CEO who took over the reins of the organization from the founder and CEO, Steve Jobs after his death. The ideals of Timothy Cook may be different from those of the founders, but they still maintain the motto of the organization which is to think differently in the production processes. Therefore, the team will revolutionize the ideas and change them for the future under the same organizational structure for the organization.

Product Positioning Map

(Violante, 2010)

Apple has a range of products that are all useful to the consumers in the tech industry. The products all include the combination of hardware and software components that meet the needs of the consumers. The product positioning map shows the relationship of the different products within the market according to the targeting, segmentation in the market in addition to product positioning. Therefore, the product positioning map is a tool to show the relationship between the products and their performance within the market. Through the product positioning map, the organization can plan for future marketing strategies that will allow them to reach additional segments for the products within the market. The positioning map in the diagram creates the comparison of the inclusivity of the product, in addition to its portability. The aspects in the measures represent the needs of the consumers in the tech market. Consumers prefer products that are highly portable and versatile. It is for this reason that the Laptop and i-pod touch rank high in the product positioning map, because of it their portability along with the inclusivity of the commodities among the users in different segments of the market.

Projected Income and Balance Statements for Next Three Years

(MarketScreener, 2019)

The income statements at Apple Inc. represent the cash flow within the organization. The measures include the net income for the organization, in addition to the profits. The profits under consideration include the operating earnings along with the Pre-tax profit which show the progression of the organization. Other measures in the income statements for the organization are the P/E ratio, the dividend per share along with the yield for the organization. The generation of the figures for the future strategy derives from the trends in the past operations of the organization. Therefore, tracking the business strategy and the operations of the organization from 2016, to 2017 and 2018, reveals the expectations for the coming three years in the organization. The three fiscal years in which the strategy implementation will be under observation include 2019, 2020 and 2021 (MarketScreener, 2019). The analysis of the figures in the three years shows that the organization will continue in the trend of increasing the percentage yield from the figure of 1,92% in 2016 to the future expectation of 2,21% in 2021 (MarketScreener, 2019).

Company Valuation

In the present economy, Apple Inc. is considered to be the most valuable corporation on the globe. The company has a stock value of $201.59 with a market capitalization of $973.66 (MarketScreener, 2019). The figures which are from 2018 reveal that the value of the organization is impressive. The organization has over the years seen an increase in the stocks as well as in the general market capitalization with a positive impact on the profits.

The strategy implementation will work towards minimizing the risks and threats that the organization is facing in its marketing processes. Therefore, after the implementation of the strategy, the expectation is an increase in the value of the organization. The organization through the production of affordable commodities will have the potential to tap into the low-income market segmentation that was previously unexplored (MarketScreener, 2019). The increase in the market share for the organization is set to have a similar effect on the value of the organization in the tech industry.

References

Akan, O., Allen, R. S., Helms, M. M., & Spralls III, S. A. (2006). Critical tactics for implementing Porter's generic strategies. Journal of Business Strategy,27(1), 43-53.

Allen, R. S., & Helms, M. M. (2006). Linking strategic practices and organizational performance to Porter's generic strategies. Business Process Management Journal, 12(4), 433-454.

Brunette, Z. (1992). Balanced Scorecard development of a strategic business unit. Potchefstroom campus of the North-West University

Domke-Damonte, D. J. Keels, K. & Black, J. A. (2012). Taking A Bite Out Of Strategic Understanding: The Apple Analysis In A Strategic Management Classroom. Coastal Carolina University, Conway

Jurevicius, O. (2018). BCG growth-share matrix. SM Insight, Retrieved from https://www.strategicmanagementinsight.com/tools/bcg-matrix-growth-share.html

MarketScreener. (2019). Apple (APPL); Income Statement Evolution. Retrieved from https://www.marketscreener.com/APPLE-4849/financials/

Parnell, J. A. (2006). Generic strategies after two decades: a reconceptualization of competitive strategy. Management decision, 44(8), 1139-1154.

Pretorius, M. (2008). When Porter's generic strategies are not enough: complementary strategies for turnaround situations. Journal of Business Strategy, 29(6), 19-28.

Sofia, D. Z. (2016). Case Study - Apple Inc. Retrieved from https://www.slideshare.net/SofiaDZ/case-study-apple-inc-61103768

Violante, M. (2010). Product Positioning/Positioning Map. Retrieved from http://uwmktg301.blogspot.com/2010/01/product-positioningpositioning-map.html