Options strategy for apple company ppt
Because of the aggressive behaviors of competing firms, it is necessary to have strong fundamentals for maintaining competitive advantage. Tough competition in the industry is partly because of the aggressiveness of firms. Its current product lines are highly successful.
Diversification is a corporate strategy to enter into a new market or industry in which the business doesn't currently operate, while also creating a new product for that new market. Competitors eventually catch up with new products, so the broad differentiation generic strategy compels Apple to always innovate to keep itself always ahead of competitors. For example, emphasis on elegant design combined user-friendliness and high-end branding effectively differentiate the company. Apple must continually develop innovative products so that the firm always stands out against competitors. Of the four strategies presented in the Ansoff matrix, Diversification has the highest level of risk options strategy for apple company ppt requires the most careful investigation.
Whereas, the first three strategies are usually pursued with the same technical, financial, and merchandising resources used for the original product line, the diversification usually requires a company to acquire new skills and knowledge in product development as well as new insights options strategy for apple company ppt market behavior simultaneously. Through further innovation, Apple can introduce new product lines, like what the firm has already done with the Apple Watch. The second dimension involves the expected outcomes of diversification:
In order to measure the options strategy for apple company ppt of success, different tests can be done: In addition, Apple can use its strong brand image and rapid innovation processes to successfully develop and launch new product lines. Apple uses market development as the least significant of its intensive strategies for growth. Threats can limit or reduce the financial performance of companies. However, the firm faces the significant threats of aggressive competition and imitation, which are major challenges affecting players in the industry.
In addition, Apple faces the threat of imitation. Horizontal diversification is desirable if the present customers are loyal to the current products and if the new products have a good quality and are well promoted and priced. In this way, the generic strategy of broad differentiation supports the company in maintaining its leadership and position as a high-end and high-value business.
For instance, the addition of tomato ketchup and sauce to the existing "Maggi" brand processed items of Food Specialities Ltd. Threats can limit or reduce the financial performance of companies. This strategy tends to increase the firm's dependence on certain market segments. Apple grows because new products and models allow the firm to generate more revenues. However, the firm faces the significant threats of aggressive options strategy for apple company ppt and imitation, which are major challenges affecting players in the industry.
In addition, Apple faces the threat of imitation. However, there are a few good examples of successful diversification:. For example, advertisements encourage more people to buy Apple products. Whereas, the first three strategies are usually pursued with the same technical, financial, and merchandising resources used for the original product line, the diversification options strategy for apple company ppt requires a company to acquire new skills and knowledge in product development as well as new insights into market behavior simultaneously. This generic strategy focuses on key features that differentiate the company and its products from competitors.
The company can also use these strengths to exploit the opportunity to expand its distribution network. However, to improve performance, the company should emphasize more on market penetration and market development. Offensive reasons may be conquering new positions, taking opportunities that promise greater profitability than expansion opportunities, or using retained cash that exceeds total expansion needs.
For example, the company continues to innovate through products like iPhone, iPad, and Apple Watch. For example, Apple reaches to individuals and business organizations through the MacBook product line. In addition, the company must ensure that it keeps expanding its market reach. Moreover, rising labor costs in Apple plants, such as in China, can reduce profit margins or push selling prices even options strategy for apple company ppt. For example, the company innovates to offer goods like Apple Watch, which is an entirely new product line for the firm.