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Strategic Management and Strategic Competitiveness
How globalization and technology changes have impacted the Apple as a corporation There are a couple of assumptions provided by this model with regards to the resources of a firm playing a role in its competitive edge.
Globalization refers to the possibility of a firm opening up and expanding it in various places whose culture might be different from that of the place that it originally is from.
Apple recently launched two of its latest phones. The larger phone is a 5.5-inch "phablet" which is also known as iPhone 6 Plus and has specifically been designed for the Asian market whereas, the smaller phone is of 4.7 inches and resembles the competitive phones a lot (Simonds, 2014).
When changes take place in a market it usually results in the creation or appearance of untapped markets and domains of such kind were inspected by Apple so that it could be the first one to reach those markets and gain a primary position.
On researching Apple realized the potential for digital services in the market. However, the firm knew that they will face a lot of competition in the world of digital cameras as there were already a lot of big players in the market. Therefore, Apple focused its direction towards the digital MP3 players as there was high demand for them in the market but not a lot of option for the customers with regards to designs and functionality. Upon realizing this Apple decided to work on music and more specifically, music on the go for its customers as no one in the market was providing it (Ashcroft, 2010).
Therefore, Apple incorporated globalization and technological changes in its company's policies in a very positive manner. Due to detailed research, globalization helped Apple in reducing their production costs as it moved its manufacturing to China and with the help of technological changes Apple was able to target untapped markets such as the demand for Digital MP3 players etc.
Application of the industrial organization model and the resource-based model
The first assumption is that firms within the same industry can be different on the basis of their resources and this variation in the resources can stay for a long period of time because it is not always possible to copy or achieve those resources for the other firms (Bridoux 2007, p. 3)
Along with the building of competitive advantage, these resources also allow the firms to charge more for their products and services which is ultimately related to a firm having competitive advantage. In addition to all this, Apple can also try to erect entry barriers with the help of these resources which would further increase the chances of the firm to earn returns that are above average (Bridoux 2007, p. 3).
The industrial organization model
According to the industrial organization model, which is based on economics, Apple can earn above average returns if it starts the implementation of strategies that are made according to the environment of the industry as well as the competitors. The chances of success of those companies which acquire or develop the internal skills which are necessary for the implementation of needed strategies by external environment are quite high as compared to the firms who fail to do so (Hoskisson et all 2008).
How the vision statement and mission statement of Apple Inc. influence its overall success.
The vision statement
A vision statement is more like the heart of a company as it is on the basis of the vision statement that a company forms its operations (Hull, 2012).
Apple's CEO Tim Cook in an interview once…
References
Ashcroft, J., (2010). iPod to iPadL: innovation and entrepreneurship at Apple. 1st ed. Manchester: Metropolitan Business School.
Bridoux, F., (2007). 1 A resource-based approach to performance and competition: An Overview of the Connections between Resources and Competition . 1st ed. Belgium: Universite catholique de Louvain.
Hoskisson, R.E., Hitt, M.A., Ireland, R.D. & Harrison, J.S., (2008). Competing for Advantage,. 2nd ed. Natorp Boulevard: Thomson Higher Education.
Hull, P. (2012). Be Visionary. Think Big.. [ONLINE] Available at: http://www.forbes.com/sites/patrickhull/2012/12/19/be-visionary-think-big/. [Last Accessed 13 January, 15].
Jurevicius, O. (2013). Mission statement of Apple. [ONLINE] Available at: http://www.strategicmanagementinsight.com/mission-statements/apple-mission-statement.html. [Last Accessed 13 January, 15].
Available at: http://leoleavinobusiness.blogspot.in/2013/11/pestel-and-stakeholders-analysis-of.html. [Last Accessed 13 January, 15].
Simonds, D. (2014). Apple keeps customers happy -- and paying a little more each year . [ONLINE] Available at: http://www.theguardian.com/technology/2014/sep/14/apple-customers-happy-paying-more-each-year-iPhone-6. [Last Accessed 13 January, 15].
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