Apple s Corporate Level Strategy of Integration

Apple Strategy

Apple Inc. is a global technology company renowned for its ability to innovate and change the direction of the technology industry in numerous ways over the years. From the iPhone to iTunes to the iPad, it has disrupted the sector again and again, and has constantly kept competitors chasing to keep up. In one way, its success can be attributed to its strategic business and corporate-level strategies, which have positioned it to be an absolute and unquestioned leader in the market. This paper looks at Apple\'s business and corporate-level strategies, and analyzes its competitive environment to determine its positioning in slow-cycle and fast-cycle markets.

Business-Level Strategies

Apple operates in the technology industry, originally in the consumer electronics segment but now in many segments. This is because the most appropriate business-level strategy for Apple\'s long-term success is differentiation. However, Apple\'s core competency has been its ability to design and develop new products that have never been seen before: the iPhone was the first of its kind, for example—basically a mini-computer for one’s pocket that doubled as a phone and a camera and had other great features and superior quality. The company\'s products are sleek and chic, and tend to have a very user-friendly interface, with a well-thought out ecosystem of integration. This level of differentiation is truly what sets Apple apart (Heracleous, 2013). Because it is able to set itself apart so well from everyone else in the field, it can afford to charge premium prices and maintain high profit margins. At the same time, its ecosystem integration keeps everyone locked in to committing to buying Apple products: once you go Apple, you simply cannot go back. On top of all this, there is Apple\'s constant emphasis on research and development, which ensures that it stays ahead of its competitors in terms of product innovation. Truth be told, not every one of Apple’s products is a resounding success—but the company always keeps people’s eyes on the stage to see what will come next.

Corporate-Level Strategies

At the corporate level, Apple\'s strategy is based on the concept of diversification (Campbell et al., 2014). Apple has expanded its product portfolio over the years: it started out with basic computers, and then it got into the smart phone business; next came tablets (the iPad) and wearables (the iWatch), and then there came services for streaming media content (like Apple Music and Apple TV+), all of which have been very successful. These products and services are all also interconnected through Apple\'s ecosystem, which means if one buys one Apple product one is basically signing up for Apple for life. This interconnection of integrated technology is the ultimate corporate strategy to hope for, as far as the company is concerned: the goal is for consumers to remain within the Apple universe, for it means that the company can continuously be increasing customer loyalty and cross-selling opportunities. This strategy also increases Apple\'s revenue streams and it also strengthens its competitive position by creating barriers to entry for competitors. Few companies are as established as Apple (actually, it is probably safe to say that none are), and therefore it is virtually impossible now for any company to compete at the same level of integrated ecosystem of technology that Apple has in place.

Competitive Environment Analysis

There are competitors in ways—but not really in terms of a whole view. Samsung is probably Apple\'s most significant competitor, but mainly only in the smart phone segment (Gupta & Prinzinger, 2013). Samsung follows a combination of strategies of cost leadership and differentiation, whereas Apple adopts a differentiation strategy. Samsung offers a wide range of products at various price points, catering to a broader audience: it is not trying to wield a premium, trusting that buyers will pay just to get access to the ecosystem. Samsung has not really developed an exclusive ecosystem the way Apple has. At the corporate level, both companies engage in related diversification; this is true. However, Samsung\'s diversification extends beyond consumer electronics to other sectors.

Competitive Environment Conclusion

Considering the business and corporate-level strategies of both Apple and Samsung, Apple seems more poised for long-term success. The evidence to support this conclusion is its brand loyalty, its profit margins, and its record of innovation. First of all, Apple\'s ecosystem creates a strong bond with its users, which facilitates the continuation of repeat purchases and higher customer retention. Second, Apple\'s differentiation strategy has enabled it to have high profit margins, year after year, which investors love to see, and which is one reason its stock continues to make all time highs (further increasing Apple’s ability to basically do whatever it wants). Third, Apple\'s consistent investment in R&D has let to huge, groundbreaking products that have established it as the industry leader.