Grand strategy matrix
Another tool for formulating alternative strategies is the Grand Strategy Selection Matrix. This
matrix shows how the where ones company can be positioned. The matrix is like that of the
company lies in the first quadrant then it has an excellent strategic position. And if the company
lies in the second quadrant then the firm has to evaluate its present approach to the market place
seriously. This also indicates that even the industry is growing they need to formulate a effective
strategy to strive in the market place. Quadrant Three shows that the firm has weak competitive
position. The firms must make drastic strategy to avoid the decline in states. Quadrant four
shows that they have a strong competitive position but are in a slow growth industry. They have
the capability to launch variety of products.
Appple Inc lie in first quadrant:
Reasons:
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High acceptance among competitors
Strong competitive position
Flourishing with rapid market growth
Strategy of related diversification
Excellent strategic position
Concentration on current product Apple Inc adopt the strategy of product development.
High reputation among customers due to high quality image of the company.
Strategy Implementation of Apple Inc
Apple Inc. Is arguably one of the most successful companies in the world, enjoying one
of the most visible brand names in the world. Its launch of new products is usually
waited with heightened anticipation by consumers around the world, and its financial
performance has been exemplary. This success can be attributed to two main factors;
the visionary leadership offered by its immediate former chief executive Steve Job and
the strategic goal of emphasizing on design and the willingness to develop new
products by taking risk of developing new products for the market.
The strategic goal of developing new products, while at the same time emphasizing on
design, has been successful because it has utilized the components of strategic
implementation. The allocation of resources by the company in the developing of new
products has been substantial, and more often in well thought and planned processes.
The financial resources focused on the development of new products with new and
superior designs can be said to follow Sun Tzu’s strategic principles of knowing oneself
and knowing the enemy, who in this case would be the competitors. Apple Inc., by
utilizing the superior capabilities in its possession, has been able to develop products
superior to those developed by its competitors and thus acquiring a valuable market
segment.
The institution of best practices for continuous development has seen Apple Inc.
Develop some of the best practices in design in the industry. The quality standards in
Apple are some of the best, and the design teams in the company are reputed to put in
some extreme efforts to ensure that the products developed are of the best standard
possible.
Tying rewards to the achievement of key strategic goals can also be said to be a factor
in the success of the design strategy of the company. The remuneration process of
offering bonuses at the good performance of the company can be said to be a
motivation to the employees of the company to develop better performing products.
Since Steve Jobs joined the company in 1998, the company has been growing in leaps
and bounds simply because of the building of a capable organization by focusing on the
areas of improvement. The company has been able to make a focus on the
development of new products of superior design to those of competitors, and has
improved continuously on these products. Steve Jobs can be compared to the military
genius with all the traits developed by Clausewitz; intellect, courage to develop new
products for the market, ability to adapt to changes and strength of character. These
traits of the chief can be said to have contributed to the strategic success of the
company.
The support systems employed in Apple Inc are some of the best, and the company
being in the electronics and telecommunications business has seen to it that their
implementation is well carried out. The company has numerous operation centers
spread across the globe and despite this the working towards the development and
production of new products seems seamless because of this excellent support system
utilized by the company’s employees. Communication between the layers of operations
of the company is seamless, and no time and resources are wasted on the process of
communicating decisions and feedback between the hierarchical levels of the company.
This can be likened to Sun Tzu’s advocacy for speed in battle; good support systems
offer an opportunity for fast and efficient decision making which ultimately leads to
corporate success.
The policies of the company that have been established in the recent past indicate their
supportiveness to the strategy of developing new products superior in design, one of the
eight components of implementing strategy. The outsourcing of production of apple
products to China can be used as an example of this, with the goal of reducing
production costs while maintaining the high quality of the products.
Evaluation and Conclusion
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Apple Inc. uses a range of business strategies such as differentiation,
diversification, broadening consumer base, creating ecosystem products,
innovation and retail. Apple is now the world’s the most valuable technology
company. Apple’s growth and to keep its lead depend on innovation and its
future business strategy.
Even though apple has done a good job, the analysis testified that many
problems are sill existing. They are Limited distribution channels, Entry into
markets in developing countries, Narrow customer group, Hard to maintain
leadership in high information technology electronic industry, Continuous
improvement in product accessories to match with other products. Among these
questions, narrow customer group and continuous improvement in product
accessories to match with other products should be solved immediately. Because
expanding the customer groups can increase the sales and get more profit, but
lot of Apple products are in the high price level, so there still have many people
can’ t afford to them, it’ s important for Apple to set up a new price strategy in
order to expand its customer group. Additionally, a good business should
concerned more about customers’ benefit, but lost of Apple products are hardly
compatible with other products, it is not convenient for users, so improving the
compatibility of its products is also very important for Apple currently.