Apple, Inc. is in the top of Information Technology. They have several including notable items such mobile devices, desktops, laptops, and multimedia devices. They are extremely innovative in the technology world. The company’s success is because of the late, Steve Jobs. The company has always believed in revolution which is the reason it has been successful in the mobile phone segment. In recent years Apple, Inc. became second only to Samsung in the Global Mobile Phone industry. The operations are based in the United States and in times of stagnation the company will focus on growth opportunities like Diversification and Market Development.
Marketing strategies are based on the 4 P’s or Product, Price, Promotion and Place Channel. The product has two major aspects which are material and immaterial. The material part is packaging and the product. The immaterial part constitutes things like installation services, warranties, credit etc. In case of Apple, Inc. Products the material part of the product and the packaging are the very best in class, hands down. The iPhones and iPods had been created to have the best in functions. Apple, Inc. relies solely on deep market research and considers the exquisite tastes of the consumer and designs the products accordingly (Aaker, 2010). Mac users never want to change to another brand and this holds true for iPhone users as well. Also, sales support and warranties are the best for products and user experience is always very high.
The products can be classified into three areas: Core- The benefit of service of the product is analyzed. The products offered are extraordinary on service quality. Apple, Inc. invests heavily in research and development. All products or services have life cycles; this is where there the decline phase begins. The following figure illustrates the product life cycle for all products (Baker, 2007).
In the next level of product categorization the points focused on are the brand name, style, features, quality, and packaging. The value and brand name is very high. With brand name and value there is the Perceived User Value of the service and products. The PUV of the product is the awareness of the customer regarding the value of the product regardless of the production cost. The brand will always position itself into the niche segment and therefore the PUV will remain high. Style and quality are areas that they always concentrate on. Niche design, fast processing, are features that makes Apple, Inc. standout from the competition when it comes to their graphics. For the Australian market the product level would need to be altered for to focus on local consumers. It would need to revamp its packaging to suit the Australian consumers (Kotler and Keller, 2009).
The growth has been ample and the products reached a maturity stage and there is a small chance of decline. This has also shown true as Samsung has become the market leader in the mobile phone segment. The rise of cheaper brands like Dell, Asus and Aspire is a challenge. Apple, Inc. has always focused on consumer trends and demands and has avoided the decline stages. Additional market development strategies have been applied. to warrant no major failures (Graham, 2008). They have proven to be very successful in market penetration and product development. The organization has majorly focused on the US market which leads to openings for market development and diversification strategies. The organization needs to classify its products and services based on the Australian Market. The consumer needs and preferences will always be different which means the organization needs to turn their focus on trends in a particular country and focus on socio-cultural aspects to innovative products for the market (Kohtler, 2009).
The final product categorization is done on the basis of growth. This includes warranties, services, and sales support. They dedicate customer support services and provide awesome sales support in all stages of the consumer’s purchases. The products also have global warranties so customer satisfactions remain extremely high. It is globally known that product strategies used by Apple, Inc. have been substantial in safeguarding market sharing and higher profitability. The entry into the Australian Market will most likely be successful since product strategies used by Apple, Inc. have a global appeal. However, the company should focus on the local market and its exact needs. The maps on iPhone do not work for some countries, this is an area that. needs to be focused on . The navigation feature is essential and Apple, Inc. needs to ensure this feature will be supported for each country the product is being targeted (Lane, 2008).
The Direct Export strategy is already in use by the organization as it has already has a network of distributors for its products all over the world. In the case of licensing Apple, Inc. would need to share its patents with other organizations, which is not likely at all since the company heavily invests in research and development. Joint Ventures with cellular operators are the best possible way of joining a foreign market. They will need to see who the best carriers in Australian to set up joint ventures so both can be equally profitable. Cellular operators can provide phones that are cost effective for the consumer and provide bundled data for their customers. This means the foreign entry would be largely organized. in other countries as well. The company needs to form joint ventures with cellular operators in Australia in order to have a good market share. As foreign market production is being considered Apple, Inc. needs to focus on total control of operations in Australia and needs to have a fully functional operation in the country. Apple’s headquarters in California is expanding its branches in various other countries. Its organizational structure and growth strategies in Australia are being discussed at great lengths in this article. Apple, Inc. is a brand that has grown quickly at less time in other parts of the country. Its growth in Australia has undertaken the organizational strategies of headquarters to build its organizational structure in Australia.
Pricing strategies are based on presumed value and quality. In the case of Apple, Inc. quality has been the focus since the beginning. The following figure illustrates various pricing strategies that are used by organizations:
(Marketing Insider, 2013)
Pricing strategy Apple, Inc. focuses on is the Premium Pricing strategy. Premium pricing strategy is useful for the positioning of the product and product categorization. The expected market for Apple, Inc. product is upper middle class and upper class; this has always been the target concerning the niche segmentation. The company has also focused on quality and has never compromised in this segment which makes the skimming strategy is not valid. Niche segmentation has allowed Apple, Inc. to focus on their premium pricing strategy. This pricing strategy has not hindered the products attractiveness. It can be stated that in the laptop segment, Apple, Inc. has been affected due to rise of organizations like Asus, Dell and Aspire, however the company continues with pricing diversity since it is concentrated on the niche segmentation. If the company choses a penetration strategy can lose its product distinction and it will have an impact on its global brand image and the premium pricing strategy would be kept unbroken even when it chooses to focuses on the Australian Market (Baker, 2007).
In 1977 the initial organizational structure created by Steven Jobs and Stephen Wozniak was simple, it was changed a number of times by the CEO’s and managers. The culture of Apple, Inc. is generally based on that workers will work more efficiently if they are market sharing and passionate towards their job. This distinct strategy has proven to be worthy in generating progress in the growth of their organization. This tactic has always focused on delivering the responsibilities of decision making in the hands of its employees in the field (Apple, Inc. Computer, 2009).
Apple, Inc.’s entire organization depends upon one motto that is ‘Think Different’. Apple, Inc. has a strong and potential following of loyal customers and wide fan list that consistently deliver to the success of organization. Apple, Inc. has incorporated the tactic of influence and creating innovations with more relevant ideas in its Australian expansion. They have the ability to develop and design application software, operating system, and application hardware that is suited for them. They are open-minded and innovative when it comes to being universalized worldwide. The focus of Apple, Inc. is to provide quality products and services to its customers. Apple, Inc. is a well-known company in the corporate technology and always strives to retain its top position. It gives priority to office staff the same as it gives to its customers (Baker, 2007). Apple, Inc. strongly believes their philosophy from headquarters stating that business can never be operated as usual. In order to expand it to the highest level it has to undergo changes by having countless meetings. Ideas and innovation are all that made Apple, Inc. a distinct name in corporate technology (Apple, Inc. Computer, “Investor Relations”, 2009). Innovation is the leading factor of Apple, Inc.’s business strategy. Apple, Inc. classified its strategies into three sub-sets;
• Business innovation
• Quality and innovative products
• Pioneers in business
The other way it incorporates state-of-the-art ideas and technologies is inventing or developing new products or services with updated features. Innovating products is refining the features of services and existing products. Process innovation in business is comprised of re-engineering of the business structure which opens a complete new branch of the market and reach wide range of customers. Innovation in the business process begins the condition of delivering answers to the needs of customers. Innovation proposes a complete new introduction of business to the market. The Australian extension of Apple, Inc. Company has its entire business process introduced and innovated ideas and variations of products and services to their customers (Kohtler, 2009). Innovation is the best way to lead competitively. Innovation of products, business structure models help to create lasting impressions in the market. 95% of customers want products and/or services that are innovative. For that reason it is a successful strategy to draw more customers and satisfy them by fulfilling their pioneering demands. Companies that do not stay on top in the field of innovation and stick to their existing products can face major pitfalls in the market (Lane, 2008).
This graphic represents the organizational structure of Apple, Inc.:
Current products in the Australian sector of Apple, Inc. in both the hardware and software production has been kept in mind while generating newer models of Apple, Inc. products. (Mac OS X) is the signature operating system of Apple, Inc., which operates on Mac but Apple, Inc. controls the development, distribution and price of the products. This is completed to ensure a powerful, secure, integrated and powerful group of computers built by Apple, Inc. Apple, Inc.’s latest products list comprise of all Apple, Inc., iPhone, iPod and iTunes media store, and iPad. These inventions are the most cutting-edge technology incorporated in the innovative device (Apple, Inc. Computer, “iPad: Technical Specifications”, 2010).
Apple, Inc. plans to make use of earnings obtained from its market segment in the operation of their business in Australia. With the earnings and revenues obtained from market segments and Australian segment, Apple, Inc. is planning on expanding its operation by increasing its market share, extending product life cycles, reducing consumer costs and obtaining greater vertical integration (Funding Universe, “Apple, Inc. Computer, Inc.,” Funding Universe Company Histories, 2009).
Apple, Inc. tries to offer ample quantities of quality products to customers at a competitive rate. The company focuses on consistent demand for its products by implementing new designs, innovative features and operation. The operation of this brand rides on the evolution of superior quality devices. Its operation in Australia may see rise and falls with resources, exchange rates and taxes may also affect the finance strategies. They plan to lower the prices of their products to attract more consumers that typically would be deterred in international locations.
The various modes of entry into the market and the most applicable techniques have been highlighted. This report has shown the organizational structure that has to be maintained for consistent operations and growth. The suggestion of total ownership and control is needed and these factors have been discussed to show how the organization can be in the United States as well as Australia.