Apple is a legendary company, which managed to win the market due to its innovational products. Today, the company performs in a highly competitive environment. It means that there is a need to pay attention to the company’s organizational strategy and its improvement in terms of competition and market penetration. Otherwise, the company will lose its competitive advantages and opportunities to the primary leader in the market. The following discussion reveals the essence of recommendations, which the company should pay attention to in order to reduce its weaknesses and increase its strengths. In particular, the paper examines the company’s performance, recommendations, and the efficiency of recommendations.
Information Related to the Organizational Strategy
In order to understand the company’s environment of performance, it is necessary to conduct a SWOT analysis. The following table reflects the main features of every category, which define the performance of Apple.
Table 1 SWOT Analysis
Outstanding financial sustainability
Effective innovational performance
Focus on high-end market
Limited network of distribution
Expansion of the distribution network
New product lines
Rising demand on products
Rising labor costs
Inflexibility of the organizational structure
A SWOT analysis proved that the company has three major problems, which include high prices, competition, and limited network of distribution. In this way, it is possible to claim that the company performs in tough conditions, which can lead to unpredictable results in the future because of the company’s inactivity. In this way, it is necessary to take appropriate steps towards the improvement of the organizational strategy in order to promote strategic success of Apple.
In terms of the fittest, it is possible to say that Apple’s strategy successfully aligns with the postulates of external and internal flexibility. Apple considers the performance of its competitors and follows the tendencies of the market, which helps regulate the demand on the company’s products. However, there is a need to optimize the strategy in order to increase its dynamic fit. It will help Apple work ahead of its competitors and surprise customers with innovational ideas in the new product lines.
Recommendations to the Senior Leaders
The case study provided detailed information, which helped evaluate the company’s competitive position. As long as the competition is rising, Apple is in the center of threats coming from the competitors. In this way, it is necessary to look for transformations of the organizational strategy in the aspect of competition on the global level. Google and Samsung, the main competitors of Apple, are taking a significant share of the market, which is threatening to the company’s sustainability and success (Gupta & Prinzinger, 2013). In fact, the key recommendation based on the received information refers to the improvement of Apple’s performance in the aspect of innovation and pricing strategy. It is one of the most controversial recommendations, which Apple has not addressed in combination yet.
In fact, Apple needs to consider the fact that its products are not affordable to all layers of the society globally. It is obvious that consumers with different levels of income need to have access to every Apple product. Today, Apple represents a luxurious product for some consumers, who cannot afford purchasing an iPhone for $700 (Wright, 2012). It means that Apple can start collaborating with the developers in the emerging markets and create a new product line, which replicates the latest company’s products, high quality, and design. In fact, the new product line should cost less than 100$, which will make the products affordable for the diverse target audience and will increase the company’s financial sustainability.
Support of Literature
There are several sources of information, which prove that Apple needs organizational change. In fact, the company needs to adhere to its core competences and use new opportunities to channel competitive advantages by providing customers with low-income levels with high quality products. The organizational strategy transformation is necessary for the optimization of all processes taking place in the company. There is a need to consider the evolution of Apple’s strategy and adding more creativity, organizational and product innovation, which should lead to the update of the competitive advantages (Barge-Gil, 2013). Moreover, there is a need to involve personnel from every corner of the organization in the transformation of the aforementioned spheres (Higgins, 2010). Further, the company’s collaboration with developers of the developing countries will have a positive effect on globalization (Stowe & Grider, 2014). In general, the combination of training, innovation, pricing strategy, and overall organizational change should contribute to the strengthening of the company’s leading market position.
Evaluation of the Recommendations
The aforementioned recommendations are most likely to work for Apple and provide it with an increased market share and upgrade of the performance. Every component of change should provide the company with a clear vision from the new perspective. In addition, the company will not deny the core strategy introduced by Steve Jobs and supported by Tim Cook. It is obvious that there is a need to consider the fact that Apple performs in a highly competitive environment, which requires quick responses to the tendencies of the global market. The essence of each recommendation helps to understand that Apple still has room for both innovation and self-improvement. Although the company successfully operates in terms of contemporary competition, there is a need to think about future performance. Apple has tough competitors willing to win the share of the market belonging to Apple. Therefore, various organizational changes should be beneficial in terms of strategic development of the company.
In addition, it is important to mention that Apple will not be capable of remaining a primary leader if it does not accept the fact that there is a need to innovate and optimize its performance. The analysis of the company’s performance proved that Apple should intensify its creativity and innovations in order to offer its customers a unique product line. Hopefully, the mentioned recommendations will make a positive change to the company’s productivity and competitiveness.
Obstacles to the Recommendations
Regardless of the effectiveness of the recommendations, there are various obstacles on the way to successful implementation of the proposed changes. The first challenge is the organizational structure of the company, which has a centralized character. It does not mean that its primary disadvantage is Tim Cook being the core of the decision-making process. However, it may be difficult to implement changes quickly without need to revise the transformational processes. Apple has a low level of flexibility, which can be compensated by the improvement of the employees’ rights and diversification of the employees’ duties. Moreover, it will help to enhance trust between Tim Cook and his subordinates, which will make Apple perform better in terms of teamwork and collaboration. Aggressive competition is another obstacle, which can prevent the effective implementation of these recommendations. The global market transforms in a rapid way, which means that some recommendations may lose their effectiveness under the influence of competition. Nothing prevents competitors from implementing the same changes in their performance. It means that creativity and continuous innovation are necessary to guarantee that Apple would find its own unique way of satisfying customer’s needs.
The discussed recommendations fit the organizational strategy and aim to reach high quality standards and innovational ideas. Nevertheless, the surrounding environment offers various challenges, which can be threatening to the financial sustainability of Apple. It means that there is a need to take immediate action, which should change the company’s status in terms of competition. Apple has already achieved enough success to remain a legend in the history of business. However, the company should fight in order to stay loyal to the core competences in the organizational strategy introduced by Steve Jobs. Tim Cook performs successfully enough to ensure further development of Apple. In combination with proposed changes, it is most likely to see long-term benefits for the company’s strategic performance. It should be a supportive element, which will create a balance in the products offered by the company.
In conclusion, it is important to mention that the paper successfully revealed the essence of Apple’s performance according to the presented case with the help of a SWOT analysis, a fit-test, and recommendations aimed towards improvement. In particular, the SWOT analysis and the fit-test showed that there is a need to revise the company’s organizational strategy and optimize it in terms of the contemporary competition. In this way, the paper revealed not only the analysis, but also recommendations regarding Apple’s performance. The mentioned product line should be capable of meeting the needs of all segments of customers based on the flexible pricing strategy. In case of a successful development of the product line and implementation of changes, Apple would be capable of winning a significant share of the market. It will help Apple reduce the negative influence of the competition and remain a primary leader in the industry.
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