Business & Corporate Strategy: Key to Successful Implementation - Essay Sample

Introduction

Companies always choose what type of business and corporate level strategy they want to use as this sets the tone for future success. It is a crucial business decision that companies take seriously, and this is the reason why firms will even hire managers to determine the best strategy that the corporation should use. Most companies already have something to build on what they have already put in place. For a firm to successfully implement both corporate and business strategies, they need to understand the intensity of competition in their respective industries. A corporation's rival usually dictates what strategy a business will employ and therefore instigate efforts to achieve success. Apple Inc. global giant that has built its success from its business and corporate-level strategies as the paper will discuss.

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Business-Level Strategies

Business level strategies are those steps taken by a business to gain a competitive advantage of its rivals and at the same time, provide values to its customers. A company can achieve such fate by exploiting key competencies in service and product deliveries by determining what, where and whom to produce for and how to satisfy the needs of buyers (Hitt, Ireland & Hoskisson, 2013). Apple has a well-structured business-level strategy that has allowed it to move from a critical situation of bankruptcy to becoming one of the most valuable brands in the world. Apple has a reasonably different business strategy to that of its competitors singled out by the fact that this is the only company in this industry that takes time before releasing its products into the market. Unlike most companies that bring new phones and electronics every day, Apple releases a new product after the older brand has stayed in the market for at least six months. iPhones are a good example. They are released six months after the older series hit the market. The aim is to come with the best product, and Apple understands that coming up with the best type and style of products is a process that needs perfection achieved by taking time.

Apple has witnessed the reigns of many leaders since it was formed in 1976 (Yoffie & Baldwin, 2015). Over the years, the company had faced hardships, especially in the 1990s, when the company was almost going bankrupt before Steve Jobs' return as the CEO at the end of the century. At the start of the 21st century, Apple has seen success in Steve Jobs and his successor; Trim Cook. In each era of the two leaders, Apple's business strategy is distinct and distinct from the other era. In Steve Jobs' era, offering new innovative products to provide a unique user taste and experience was the dominant business strategy (Budnikas, 2011). The strategy is the one that is responsible for instigating innovation and subsequent venture of the company into the smartphone business. Today iPhones are a brand of smartphones to reckon within a market where competition is intense. Smartphones are also a line of business that provides the highest revenue amounts to Apple.

Under the reign of Tim Cook, Apple's business strategy was different from that of Steve Jobs. Rather than innovating new line of projects, this CEO changed this strategy so that the firm's business strategy now became strengthening already created products (Budnikas, 2011). For instance, today, Apple iPhones are improved to a new series rather than the company coming up with new product lines. Unlike Jobs, who inherited a company which was on the verge of bankruptcy, Cook took over as a CEO of a successful giant corporation. I believe that these strategies are justified. First, Jobs strategy was responsible for making Apple a great and successful company. He stuck by this strategy of innovating new products until it became a success. Second, Cook was responsible for maintain the success of this company rather than revive the firm. As a result, it was necessary to maintain its existing products and keep improving them to keep customers anticipating.

Corporate-Level Strategies

Like the business level strategy, the corporate-level responsibility is equally important. These strategies are important business decisions which affect the whole firm. Affecting the whole company means that corporate-level strategies are decisions that affect a corporation's finances, human resources, markets where the company sells its product, and the company's management (Hitt, Ireland & Hoskisson, 2013). For any firm, it is always coherent that they impose right corporate-level strategies as bad and good decisions affect the business negatively and positively, respectively. An enterprise must always decide on the most appropriate corporate-level strategy they must implement. Apple is one of the companies that have remained relevant in the business by its good corporate strategy. Its strategy is to remain a technologically competitive firm in the industry (Budnikas, 2011).

Remaining technologically relevant in the market is a hard task that the company has to undertake. As a result, Apple must focus on reinventing its products, and this means coming up with new products as well as making some improvements to its already existing products. Apple opened up a store in China like other multinational who expand to Asia because the cost of production is lower compared to their home countries. Additionally, opening a store in China has allowed the company to move further with vertical integration, a process that this firm emphasizes. Vertical integration in this company aims at integrating hardware and software approach (Budnikas, 2011). For instance, iPhones software and hardware components are manufactured by this firm, and this has allowed this company to set the pace for mobile computing. It is also advantageous of this company having both online and retail stores allowing customers to shop at their comfort, and this helps to link its businesses and propel growth. Apple Inc. has a long list of electronic products like watches, computers, and smartphones. It also has a variety of software products, and all these products have assisted Apple to reach such a high level because they create satisfaction among the consumers. This has been made possible because of the existence of an excellent corporate level strategy of remaining technologically competitive, which in turn keeps customers are consistent and satisfied.

Apple is a well-renowned firm in the technology industry that has created a high level of excellence for others to emulate. From an excellent unique design of its smartphones and other electronics to its software products, this company has created products that are easy to use but at the same time hard to forge. It is the strategy of remaining technologically competitive has made it possible for this company o peep into future demands of customers and therefore powerful influence the future of the technology industry.

Competitive Environment

Business competition is found in every industry, and the technology industry is no exception as the level of competition here is intense. Such competition is beneficial to consumers who get quality products at a lower price. However, businesses hate competition, and this is the reason companies like Apple tries to avoid or bear competition at all costs. Apple products compete in highly competitive market segments. The fierce rivalry is prevalent in this company's product categories, and this is the reason why Apple acknowledges that competition is its greatest threat. In the smartphone category, Samsung is its greatest rival, followed by Huawei Technologies and LG Electronics. In the Tablets category, iPads main competitors are Samsung Electronics, followed by Amazon. Hewlett-Packard Company and Lenovo Group Ltd are Apple's main competitors in personal computers. Smartwatches' segment faces competition mainly from Garmin Ltd and Samsung. In the Operating systems' segment, Apple faces rivalry mainly from Google Inc., Microsoft Corporation, and Samsung Electronics. Google Inc. and Samsung are the company's main threats in the mobile payments segment (Ulrich, 2012). Overall, it is Samsung that scores as Apple's main competitor.

Although Samsung is Apple's main competitor, it may never overtake Apple as the leader in this industry. Apple uses the blue ocean competitive strategy, and Samsung uses the red ocean strategy (Ulrich, 2012). This means that unlike Apple, that focuses on creating new and innovative products, Samsung tries to gain a competitive advantage by venturing in an already existing market. For instance, Apple was the first company to venture into the smartphone business, and Samsung ventured later in this market rather than create a market of its own. The two strategies come with their unique way of operation. For Samsung, it ventures in an already existing marketing by producing a variety. As a result, it produces a variety of brands of smartphones to its customers, and fast production is responsible for technical glitches prevalent in this company's smartphones.

On the other hand, Apple mainly focuses on quality rather than a variety. Therefore its primary customers are the high-end customers who can afford these quality gadgets. Samsung believes that it can appease and capture the market by producing gadgets that cater to both low and high-end customers, but I do not believe that it has achieved this fate. In either of the end, Samsung produces numerous devices, and therefore, customers do not get a chance to enjoy their devices before the company releases an upgrade. It is unlike Apple, who produce an upgrade after a duration of mostly six months and as a result, customers enjoy their gadgets before an upgrade is released into the market. Although its devices are expensive, Apple does not disappoint its customers on quality, and this gives it an upper hand over Samsung. It is for this reason that I believe that Samsung cannot catch up with Apple with its strategy.

Market Cycle

In my opinion, the above option would not differ in both slow-cycle and fast-cycle markets. If Apple remains keen on its customers and their needs, it will remain relevant and competitive in the technology industry. Most companies in this industry design eye-catching and attractive products at the expense of neglecting the software component, which negatively affects the performance of these devices, and this is not good. It is not a requirement that Apple launches an upgrade after every six months. As long as it is producing devices that meet the expectations of customers and their needs by maintaining consistency and quality, then it will always capture the market with its devices.

Customers prefer Apple because this company wants what these customers desire. Products created by this company are those that even its employees would yearn to have and they are easy to use. It is a tough task to create such products, but it takes sheer effort and excellent customer service and in-store experience to give customers an experience they would never forget. Apple shuns from producing new products until they have a better and improved version. Working two years before releasing its products allows this company to stay two years ahead of its rival, and this continues to be a great challenge to Apple's customers.

Conclusion

Business and corporate level strategies are essential aspects that every company should consider if they desire to be successful. Apple has a business level strategy of taking time before releasing a product and a corporate level strategy of remaining technologically relevant in the market. These strategies have enabled Apple to fend off competition from its rivals, including Samsung, its greatest competitor. Nevertheless, Apple is adamant and sticks to its strategy. It is an excellent lesson to other b...