Strategic value of IS/IT in different organisational forms and sectors
Strategic business unit for Apple is competitive advantage refers to offering consumers better value and being ahead of them. Here Apple have a huge advantaged because they are ahead in the mobile market and music hence the release of iTunes where it isn’t a software but an application that play music also users can access apple store to download podcasts, eBooks and application not just music. Apple competitors have seen this and have decided to release one of their own. The price of iTunes is free this has rapidly increased the revenue of apple.
Cost leadership strategy is where companies would compete for large amount of customers through price. Here Apple has chosen to the way to get more customer is to build a cheaper iPhone then the original high priced iPhones. Such as the iPhone 5c is generic acceptable iPhones for lower prices.
Differentiation strategy defined as “provide a product or service with distinctive qualities valued by customers”. Apple have succeed in this as from its competitors they have their own unique as the clear stylist deigns and features of Apple products. They keep their products similar to the others and with the colour as either white, black or sliver users can decide in the detailed product this is why apple can charge high prices for their products whereas others are lower.
Focus strategy refers to “concentrate on a particular customer, product line, geographical area, market niche, etc. The idea is to serve a limited group of customers better than your competitors who serve a broader range of customers” apple have used this strategy by targeting consumers in building products that can be unique and help people day to day.
BCG matrix refers to “Boston Consulting Group to evaluate the strategic position of the business brand portfolio and its potential”.
Star is defined as “promising products for the company”; this is where the products with good investment can contribute to company’s success. For Apple the star would be the Ipad as it was the first tablet to be released and a high share growing the tablet market. However as Apple ipad was the first release it losing to other competitors as they are launching their own tablet devices.
Question marks are defined as “They do not generate profits unless the company decides to invest resources to maintain and even increase the market share”. This the 50/50 question into whether the company decides to invest or scrap the product. Apple have attempted with the computing market however with Microsoft operating systems still dominating the computing market, apple could use “strong business-to-business marketing and high switching costs for businesses and consumers, alike” with this help build up more consumers and business in using mac software.
Cash Cow refers to “These are products or services which are mature and which generate interesting profits and cash”. With this it will need to be replaced in the future of the growth to make profit. From this the iPhone and iPod have Apple in the front market share of the mobile & mp3 markets. However as the iPhone has made a lot of profitable generated from existing customers and new its guaranteed consumer invest such as downloads in apps, or iTunes store for music.
Dogs refers to products that are “declining market and highly competitive”, here the company would need to decide whether if to maintain the existing product more expensive. With Apple products not all of their products have been successfully as the Apple TV has not caught the attention of consumers in this product. With consumers being so trusted Virgin, SKY and BT being high competitors it can be hard for Apple to get a share of digital media receiver. However Apple has shown commitment by investing more and even releasing second and third generations.
IDEAVIST (link)http://ideavist.com/2011/03/03/apples-business-unit-strategy/ (assessed on 16/10/2013)
strategicmanagementinsight written 1st May 2013 (link) http://www.strategicmanagementinsight.com/tools/bcg-matrix-growth-share.html (assessed on 16/10/2013)
manifestedmarketing http://manifestedmarketing.com/2012/03/29/apple-an-introduction-to-marketing-strateg/ (assessed on 16/10/2013)