Operations Strategy
Company Name: Apple Inc.
Strategy used for competitive advantage: R&D Strategies
Apple
Apple Inc. is an American multinational technology company headquartered in
Cupertino, California. It was founded in 1976 by Steve Jobs, Steve Wozniak, and Ronald
Wayne. Apple designs, develops, and sells consumer electronics, computer software,
and online services. The company is known for its innovative products, such as the
iPhone, iPad, Mac, Apple Watch, and Apple TV.
Apple's success has been driven by its ability to create products that are easy to use and
visually appealing, as well as its focus on innovation and design. The company's product
ecosystem is highly integrated, with hardware, software, and services all designed to
work seamlessly together.
In addition to its consumer products, Apple also offers a range of services, including the
App Store, Apple Music, Apple TV+, iCloud, and Apple Pay. These services have become
an increasingly important part of the company's business, with revenue from services
accounting for a growing percentage of Apple's overall revenue.
As of 2021, Apple is the world's most valuable company, with a market capitalization of
over $2 trillion. The company has a strong brand identity and a loyal customer base, and
it continues to innovate and develop new products and technologies.
Research and Development at Apple
Apple is one of the world's most progressive business organisations in the world, and
research and development (R&D) is essential to its success. By inventing groundbreaking products and technology, Apple's R&D methods have allowed the business to
stay ahead of its competition. Below are the Research and Development strategies
greatly used by Apple.
User-Centric Design
Apple's user-centric design strategy include collecting substantial user feedback and
doing extensive user research to comprehend its target audience's demands,
1|Page
preferences, and behaviour. This data is then utilised in development of products and
services that fit the demands and preferences of the target market.
For example, before building the first iPhone, Apple's design team did considerable user
research. They watched individuals using their smartphones and discovered pain spots
and frustrations with existing devices, such as complicated interfaces and tiny displays.
With this data, the design team created a touch-based interface that was simple and
easy to use, as well as a bigger screen that facilitated navigation.
Apple has been able to differentiate its products from those of competitors and obtain a
competitive edge by emphasising user-centric design. Also, this strategy has resulted in
significant consumer loyalty and recurring business, since Apple's products are
appreciated for their use and functionality.
Custom-Designed Chips
Custom-made chips, often known as "system-on-a-chip" (SoC), are microchips tailored
for a particular application or device. Apple has gained a competitive advantage by
utilising custom-designed chips in its devices for numerous years.
By creating its own CPUs, Apple is able to improve the overall performance and battery
life of its products. This also enables the organisation to better integrate hardware and
software, resulting in a more smooth and responsive user experience.
For instance, Apple's A-series CPUs, which are utilised in its iPhone and iPad products,
are specifically developed to satisfy the requirements of these devices. The A-series
CPUs are geared for performance and energy economy, enabling Apple to provide a
quick and responsive user experience while prolonging battery life.
Advanced Camera Technology
Apple has invested considerably in camera technology research and development to
obtain a competitive advantage. In recent years, the corporation has made considerable
advances in camera technology, notably in its iPhone handsets.
Apple's emphasis on camera technology has helped differentiate its products from those
of its competitors and produced extremely attractive consumer gadgets. The company's
camera technology has also contributed to the expansion of its devices' capabilities,
letting customers to shoot high-quality images and videos, and enabling new features
like as augmented reality.
2|Page
Apple's emphasis on camera technology has also contributed to the expansion of its
devices' capabilities beyond traditional photography. The corporation has, for instance,
offered sophisticated features like as Portrait mode, Night mode, Cinematic mode,
Action mode, Apple ProRAW, etc. In addition, they have included strong image
processing with Machine Learning for excellent photographs.
Acquisitions
Apple's R&D strategy relies heavily on acquisitions to achieve a competitive edge in a
variety of ways. The company has a history of acquiring smaller companies that
specialise in technology or services that enhance or complement its existing products
and services.
By acquiring these firms, Apple is able to use their knowledge and incorporate their
innovations into its own products and services, so gaining a competitive advantage.
Apple's 2014 acquisition of Beats Electronics, enabled the corporation to join the music
streaming industry with the introduction of Apple Music.
Apple's acquisition of AuthenTec, a firm specialising in fingerprint identification
technology, is another example of its use of acquisitions to get a competitive edge. Apple
incorporated AuthenTec's technology into its products, including the iPhone and iPad,
allowing customers to unlock their devices and make transactions using their
fingerprints. This feature helped distinguish Apple's devices from those of its
competitors and enhanced the brand's reputation for security and privacy.
Apple has also made significant purchases, such as the 2019 purchase of the
smartphone modem business from Intel. This acquisition enabled Apple to develop its
own modem technology, which has the potential to enhance the performance and
power efficiency of its devices and lessen its reliance on third-party vendors.
Focus on Sustainability
Apple's R&D strategy places a significant emphasis on sustainability, which has helped
the corporation achieve a competitive edge by appealing to consumers who are more
concerned about the environmental impact of their purchase decisions.
Apple has integrated sustainability into its R&D efforts in part by producing more
environmentally friendly products. For instance, the business has pledged to use 100%
recycled rare earth metals in their gadgets, therefore reducing the need for mining and
3|Page
conserving natural resources. Apple has also created innovative production methods
that utilise renewable energy sources and decrease waste.
Apple's commitment to sustainability has also helped the company differentiate its
goods from those of its rivals. For instance, the MacBook Air is manufactured from
100% recyclable aluminium, giving it a distinct appearance and feel compared to other
laptops on the market. In addition, Apple's emphasis on sustainability has enhanced its
reputation for social responsibility and increased its attractiveness to consumers who
emphasise sustainability in their purchase decisions.
Apple's R&D strategy also incorporates sustainability by investing in renewable energy
sources. The corporation has pledged to use 100% renewable energy in all of its
activities, including data centres and manufacturing sites. This reduces the company's
dependence on non-renewable energy sources, which are susceptible to price volatility
and supply chain hazards.
Voice Recognition
Apple's usage of speech recognition technology is a key component of its R&D strategy
and has helped the business acquire a competitive edge by providing users with
appealing, distinctive features and capabilities.
Siri, the company's virtual assistant, is an instance of Apple's usage of speech
recognition technology. Siri is built into Apple's products, such as the iPhone, iPad, and
Mac, and enables users to communicate with their gadgets using natural language
instructions. Siri's ability to execute a variety of functions, like setting reminders,
sending messages, and answering inquiries, enhances the user experience and
distinguishes Apple's products from those of competitors.
Apple has incorporated speech recognition technology into other goods and services.
For instance, the company's HomePod speaker integrates Siri, allowing customers to
operate smart home gadgets via voice commands. In addition, Apple's CarPlay
technology enables customers to operate their car's radio and navigation system using
voice commands, which improves safety and reduces driver distractions.
Augmented Reality
The incorporation of augmented reality (AR) technology into Apple's R&D strategy has
helped the business achieve a competitive edge by providing customers with novel and
inventive experiences.
4|Page
Apple's usage of augmented reality technology is shown by ARKit, a software
development kit that enables iOS developers to create AR experiences. With ARKit,
developers may create immersive experiences that combine digital and real-world
material, such as interactive games, instructional tools, and product visualisation.
Moreover, Apple has incorporated AR technology into its products and services. For
instance, the AR features of the iPhone and iPad allow users to interact with digital
information in the actual environment. The Measure app utilises augmented reality to
enable users to measure items and areas using their device's camera, whilst the Clips
app adds augmented reality effects that enable users to add animated stickers and other
visual components to films.
Machine Learning
Apple's R&D strategy relies heavily on machine learning (ML) technology, which has
helped the corporation acquire a competitive edge by enhancing the performance of its
products and services.
Face ID on the iPhone utilises Apple's face recognition technology, which is an example
of its usage of ML technology. This technique creates a unique 3D model of a user's face
using machine learning algorithms and can recognise them swiftly and securely. This
technology not only improves the user experience but also increases the device's
security by making it more difficult for unauthorised users to gain access.
Moreover, Apple has used ML technology into various goods and services. The
company's Pictures app, for instance, utilises ML algorithms to automatically categorise
and tag photos, making it easier for users to search and manage their images. In
addition, the company's Siri virtual assistant employs ML technology to comprehend
and interpret natural language instructions, therefore enhancing the precision of its
replies and the overall user experience.
Advanced Health Monitoring
Apple's usage of advanced health monitoring technology is an integral aspect of its R&D
strategy and has helped the business achieve a competitive edge by providing healthconscious consumers with unique features and capabilities.
The Apple Watch, which contains capabilities such as heart rate monitoring,
electrocardiogram (ECG) readings, and fall detection, is an example of Apple's usage of
sophisticated health monitoring technologies. These capabilities let users to monitor
5|Page
their health and fitness metrics, receive notifications for unexpected readings, and even
contact emergency services if necessary.
Apple has also incorporated technology for health monitoring into its other products
and services. The company's Health app, for instance, enables users to monitor their
health data from many sources, including third-party applications and gadgets. In
addition, the company's ResearchKit platform enables academics to conduct studies
utilising data acquired from Apple products, therefore advancing medical research and
improving healthcare outcomes.
Intellectual Property
Apple's use of intellectual property (IP) is a crucial component of its R&D strategy and
has helped the business acquire a competitive edge by safeguarding its innovations,
designs, and brand.
Apple's design patents for the iPhone and iPad are one example of the company's usage
of intellectual property. These patents protect the distinctive and original design
characteristics of these gadgets, such as their form, colour, and texture. This prevents
rivals from manufacturing items with too similar a style and look, which might confuse
or mislead consumers.
Moreover, Apple has created its own unique technology, such as the A-series CPUs used
in its gadgets. Patents and trade secrets restrict rivals from duplicating or utilising these
innovations without authorization. This helps Apple keep its technical edge and
safeguard its R&D investment.
Apple has also been embroiled in a number of high-profile IP conflicts, such as its legal
battles with Samsung over alleged patent infringements. These fights have shown the
significance of IP protection in the technology sector and showed Apple's dedication to
safeguarding its intellectual property rights.
6|Page