1-Industry driving forces analysis
Some of Apple’s driving forces include technological changes and growing or declining markets. Technology keeps on changing, and it is not possible for the business to avoid it. The business must embrace it if it anticipates gaining a competitive advantage in the industry. In this case, the corporation should strive to automate most of their services. This will increase the speed and efficiency of their services. Some of these areas comprise the supply chain management system and the accounting department among others. As a result, the entity can attract many clients hence, boosting its revenues (Eldring, 2009). Besides, this strategy can assist in increasing the customer’s satisfaction. The second factor is increasing or decreasing markets. However, the company’s markets are steadily growing because of the high demand for its quality items and services. Technological changes affect the entire industry because it can affect the operations of businesses positively or negatively. Also, increasing or declining markets may improve or decrease the incomes of the enterprise. For instance, an increase in markets will increase Apple’s profits in the industry.
The company can use various approaches to solve the problem. First, It can familiarize itself with the new technological advancements in the industry. This plan can enable it to use the latest skills in the industry hence, increasing productivity in the company. The firm should invest in reliable internet connectivity to reduce chances of failure. The entity has an option of liaising with internet service providers to ensure that their network is strong. The issue of declining sales can also be addressed through various methods ( Banker & Tripathy,2014). One of the ways is by carrying out intensive advertising campaigns to create awareness about the existence of the corporation’s products. Secondly, the company can understand the needs of their customers and address them regularly. The step is likely to increase the customer’s loyalty to the company’s products. Moreover, the business can differentiate its products from those of their rivals. It can make it easier for clients to identify the products of the company. The last approach that the firm can embrace is to diversify its items to have many revenue streams.
3-Strategic Option Selection Criteria
I will use different methods to assess the suitability of each strategic option. The first one is by conducting competitive analysis. This means the advantages that the business may get after using a certain strategy. I selected it because it can assist the business to perform better than other players in the industry. It is also essential to use opportunities and threats to determine the suitability of a particular option. The former will show the chances that the business can utilize to improve its performance. On the other hand, the threats show the dangers that are likely to face the business in the future. The rationale for choosing it is to ensure that the business utilizes opportunities and minimizes risks. Finally, it is also essential to identify customers segments. It is the categorizing of clients according to their specific needs. The main purpose is to ensure there is no wastage in the production process. This is because the needs of every customer are known in advance.
4-Evaluate each strategic option
Each evaluation criterion can be assessed for each strategic choice. For instance, a competitive analysis should be conducted to determine the effect of technological changes on the business. It will, therefore, determine whether the company should embrace modern technology in its operations or ignore it (Boehe & Cruz, 2010). However, the corporation should use it because of the numerous benefits it has to the enterprise. Additionally, it is essential to divide clients into segments before carrying out marketing campaigns. The step can help the company to catch the attention of the target audience. This approach is also effective because it will assist the enterprise in identifying the tastes and preferences of the customers. Thus, the items produced will suit their interests. Moreover, the business should identify the potential opportunities and risks of the entity
The competitive strategy should be implemented by comparing the business with other corporations. It can help them to use a strategy that is not common among businesses. For instance, uniquely packing their items from those of rival companies. Markets can also be divided into small groups according to the customer’s age, gender, geographical locations and their tastes and preferences (Ackermann & Eden, 2010). As a result, their products offered to their clients will suit their interests. The distribution channels should also follow these matters to ensure that customers get the right products that can satisfy their needs. Such a step can also help to increase the sales of the company, thus increasing its revenues. Finally, opportunities and risks can be implemented by looking its chances in the industry and utilizing these openings. Risks should also be classified according to their effects on the business. However, the entity must try and minimize them to ensure that they do not interrupt the operations of the business.
Ackermann, F., & Eden, C. (2010). Strategic options development and analysis. In Systems approaches to managing change: A practical guide (pp. 135-190). Springer, London.
Boehe, D. M., & Cruz, L. B. (2010). Corporate social responsibility, product differentiation strategy and export performance. Journal of Business ethics, 91(2), 325-346.
Eldring, J. (2009). PorterS Generic Strategies, Performance and Risk. Hamburg: Diplomica GmbH.