Introduction
Technological advancements have presented many organizations with business opportunities. Multinational corporations have taken advantage of the demand for technological products and services by producing computers and mobile devices. Apple Inc. is one of the biggest global corporations that has dominated the tech industry. The organization deals in various product categories including mobile devices, computers, and cloud storage, among others. With its headquarters in California, Apple Inc. has adopted a market mix strategy of product promotion, leading to success across the world. Apple Inc.’s focus on value products with a long-lasting impact on its target clients has enabled it to gain a competitive advantage over its competitors in the tech industry.
About Apple Inc.
Apple Inc. is an American multinational industry that has dominated the tech business around the world. The company has its headquarters in U.S., California, and processing and manufacturing plants in countries such as China and Vietnam. The organizational choice to establish manufacturing plants outside the U.S. has helped it save on operational costs and heavy taxes in the U.S. In 2022, the firm was considered the largest firm in two categories, making it gain dominance in the market (Li, 2022). The corporation was the largest firm by market capitalization with the highest total dollar market of its outstanding shares (Li, 2022). Additionally, Apple Inc. was considered the biggest organization by revenue (Abdullah et al., 2022). Therefore, the organization is one of the highest-valued companies in the world.
Products and Services
The company deals in various products and services that are crucial in the modern technological world. The firm’s product category includes mobile phones, desktop computers, iPads, and iPods. iPhone is a popular product associated with Apple Inc. and remains the world’s bestselling mobile phone (Abdullah et al., 2022). Mac Apple Inc.’s computer comes as a desktop and laptop depending on the user’s needs. The organization has also invested in the provision of entertainment and marketing services. Apple TV+ and Apple Store promote entertainment and selling of computer software and mobile applications respectively (Abdullah et al., 2022). The broad product categories have increased the company’s value to as high as $2 trillion in 2021 (Li, 2022). Apple Inc. has increased its total revenues by selling different products that are of high quality.
Apple Inc.’s History and Background
The history and background of Apple Inc. date to the late 20th century when computers were invented. Steve Jobs, Steve Wozniak, and Ronald Wayne founded Apple Inc. on 1st April 1976 (Li, 2022). The firm was established with the sole purpose of selling the first computer designed by Steve Wozniak (Lu, 2022). On 3rd January 1977, Steve Jobs and Steve Wozniak incorporated the company Apple Computer with its headquarters in Cupertino, California (Li, 2022). The company was predominantly a designer, manufacturer, and seller of personal computers such as the Apple II, Macintosh, and Power Mac. Steve Jobs was ousted from the company in 1985, and was reinstated in 1997 to help the organization counter the rocky marketing conditions (Lu, 2022). The return of Steve Jobs provided Apple Computers with an opportunity to bounce back in the market.
In the early 2000s, Apple Inc. launched a series of products that would later boost its sales and reputation in the market. In 2001, the iPod music player was successfully introduced in the market, attracting a considerable portion of clients (Li, 2022). Two years later, the firm introduced the iTunes Music Store, which would later revolutionize the e-commerce sector (Lu, 2022). With a need to distinguish itself in the rapidly evolving world of technology, the company dropped its “Computer” name and was simply renamed Apple Inc. The firm made a hallmark in 2007 when it introduced Apple iPhones in the market (Li, 2022). The devices recorded an increasing number of sales, and have made Apple Inc. the top tech company in the world.
Situation Analysis
The tech industry is rapidly changing with new entrants and new products being invented regularly. Therefore, Apple Inc. needs to adopt effective organizational strategies to keep it afloat in the market for a long. A situation analysis involves exploring the various factors that provide an organization with a competitive and sustainable advantage in the sector of operation. Unlike many tech companies Apple Inc. has mobilized sufficient resources that promote its growth and survival in the highly competitive business environment. Moreover, Apple Inc.’s adopted market structure enables it to maximize its profitability and domination despite natural disasters such as COVID-19. Therefore, Apple Inc.’s situation analysis reveals its competitive edge over organizations such as Samsung and Hewlett-Packard (HP).
Company Resources
Production, promotion, and distribution of tech products require a wide variety of resources that can be costly to an organization. As a tech giant, Apple Inc. needs even more resources to retain its reputation in the sector and clients. The company has partnered with various suppliers who provide it with computer hardware components and chips (Lu et al., 2022). The firm has continuously maintained a friendly relationship with its suppliers. For internal operations, the organization has acquired skillful and proactive human resources. Software engineers and marketing personnel, among others, are highly qualified. Manufacturing facilities and retail stores are located in areas that maximize their usefulness to Apple Inc. Furthermore, the company has partnered with reputable companies such as Amazon and Microsoft Azure for web storage services (Lu et al., 2022). The availability of sufficient resources boots Apple Inc.’s internal and external operations.
Competitive Environment
Rapid technological developments and the entrance of new players have made the tech industry highly competitive. Consequently, there is a need for technology companies to remain innovative for the maintenance of their consumer base. Apple Inc. has remained innovative through the production of improved products every year (Lu, 2022). The changing market dynamics such as the use of e-commerce for selling and buying activities have influenced competition in the sector. In response to that, the firm has hugely invested in its e-commerce platform to allow clients from different parts of the world to access its products and services (Abdullah et al., 202). The changing consumer preferences such as the need for mobile phones with quality cameras and super graphics have led to intense competition between Apple Inc. and Samsung Electronics. Although there is increased competition in the tech industry, Apple Inc. has maintained an excellent brand reputation that favors it in the market.
General Economic Condition
The global economy is subject to externalities and conditions that interfere with smooth organizational operations. Consequently, companies need sufficient funds to stay afloat in the business during tough economic times. Apple Inc. has a favorable economic condition due to its broad range of product categories with increasing sales every financial year (Li, 2022). In the fiscal year 2020, Apple Inc. generated $274.5 billion worth of revenues (Cao et al., 2022). The revenues increased in 2022 when it recorded a total of $394.3 billion (Li, 2022). Moreover, the company majorly operates in the U.S. which has a good gross domestic product (GDP) and high rate of employment. Consequently, the majority of Apple Inc.’s clients can afford its products. The favorable economic conditions associated with high U.S. GDP have boosted Apple Inc.’s operations.
Market Structure
Multinational organizations have adopted different market structures that are favorable to their internal and external operations. Apple Inc. has adopted an oligopoly marketing structure to maximize its profitability. The structure allows a small number of large sellers in a given market. The majority of Apple Inc.’s products are produced by big corporations that dominate the tech industry (Aziz et al., 2023). Some of the renowned players in the mobile and computer market are Samsung, HP, and Lenovo. In the entertainment industry, the key players are Netflix and Apple TV+. The adopted market structure has provided Apple Inc. with a large potential consumer base with increased profitability (Aziz et al., 2023). Therefore, Apple Inc.’s oligopolistic market structure is beneficial for its financial and operational performance.
Major Competitors
Although Apple Inc. has a good competitive edge in the global tech industry, other organizations are stretching their efforts. Apple Inc.’s major competitors in the mobile development and production sector are Samsung, Huawei, and Nokia. The competitors have maintained a loyal consumer base as Apple Inc. (Wang, 2022). For entertainment services, Apple Inc. competes with companies such as Netflix and Show Max (Chen et al., 2023). Unlike Apple TV+ and Show Max, Netflix controls a larger segment of the entertainment industry, requiring effective marketing and content production strategies (Chen et al., 2023). HP and Lenovo are the firm’s competitors in the computer production industry. Apple Macs have a reputation for being of higher quality and class than other computers. Consequently, Apple Inc.’s laptops and desktop computers are of higher prices than HP’s and Lenovo’s. Focus on quality products has allowed Apple Inc. to remain competitive in the tech industry.
Current Marketing Strategy
Strategic marketing is central to effective product promotion and increased sales. Technological advancements have revolutionized marketing activities through the use of print and digital media. Apple Inc. is one of the many organizations that have taken advantage of technology to promote their products (Li, 2022). The company’s marketing activities are centered on its overall purpose in the industry. The definitive and achievable marketing goals and objectives have allowed the company to attract a broader consumer base than its competitors in the technology sector.
Organization Objectives
Mission
A company’s mission statement is significant for internal and external operations activities, including marketing strategies. A mission statement defines a company’s reason for being in business and plans on how to achieve the stated purpose (Apple, 2022). Apple Inc.’s mission is to bring the best user experiences to its clients through innovation (Apple, 2022). Consequently, the company produces innovative and creative products. For the Apple iPhone, the firm has been improving its features with every new product model (Apple, 2022). The mission statement has been integrated into Apple Inc.’s marketing activities where innovation is always the central theme.
Vision
A vision statement can be used to determine a company’s overall objective. The statement presents the future position of an organization which must be determined by internal and external operations. Apple Inc. visions itself as a maker of great products without changing (Apple, 2022). Therefore, continuous product innovation is the central Apple Inc.’s objective for the endless period. The vision statement manifests Apple Inc.’s partners’ excellence and market specialization (Kasperek et al., 2022). Apple Inc.’s marketing strategies adopted are in line with its mission and vision statements (Kasperek et al., 2022). Therefore, product promotion of the company keeps on promising and delivering quality and innovative products.
Market Mix Strategy
Market mix strategy is central in aligning organizational promotional activities with the prevailing economic and social conditions. The strategy involves 4Ps: product, price, place, and promotion. The organization has a wide range of products and services that it markets to potential consumers. iPhones, Macs, iPads, and Apple TV+ are some of Apple Inc.’s product mix (Li, 2022). For the prices, the company has adopted premium and freemium strategies to allow its clients to feel and experience the value of their expenditure (Li, 2022). The company has authorized dealers, retailers, and an e-commerce platform for its distribution activities. Technological developments in social media and the internet have allowed Apple Inc. to promote its products and services to a broad potential consumer base.
Segmentation Strategy
Market segmentation involves dividing the potential market into various categories based on their demographic, financial, and other characteristics. Segmenting the market is crucial for effective product promotion strategies. Apple Inc. has segmented its target market based on demographics, geographic, behavioral, and psychographic characteristics (Woldemariam, 2022). For the demographics, the market has been categorized based on age and gender. The company produces innovative products that favor younger generations in educational institutions. The firm has additionally segmented its market based on geographical locations. The U.S. and European countries are the biggest customer segment. Furthermore, psychographic categories have allowed the company to identify its loyal customers and those who can afford Apple Inc.’s products.
Target Market Strategy
Having a specific target market allows companies to adopt effective strategies that maximize profitability. Unlike its competitors, Apple Inc. sells its products at more expensive prices (Li, 2022). Consequently, the major target market for Apple Inc. is the middle- and upper-class people who can afford the products. Additionally, the firm targets clients who are loyal to the brand, and are always ready to upgrade to new products. The U.S. Asian and European countries are the geographical targets for Apple Inc. Furthermore, the firm is interested in Gen X and millennials who are frequent computer and mobile phone users. Apple’s target market strategy has led to increased sales and consequent profits.
Conclusion and Apple Inc.’s Future
Apple Inc. is one of the most reputable tech companies in the world with a loyal consumer base. The organization was founded in 1976 and incorporated in 1977. Apple Inc. deals in mobile phones, computers, cloud storage services, and entertainment services. The company has sufficient resources that have promoted effective and productive marketing strategies. Although the technology sector is highly competitive, the firm has adopted competitive strategies that make it unique in the industry. The production of quality and innovative products boosts the brand’s reputation in the market. With increased profitability, effective marketing strategies, and sufficient resources, Apple Inc. is likely to continue dominating the market in the future. Therefore, Apple Inc.’s financial performance and brand reputation are likely to improve in the future.
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