Business Strategy of Apple

Published June 21, 2021 | Author: PenMyPaper

As a part of its strategic choice, Apple has implemented strategies at all levels of operation. It competes at many different levels to maintain competitive advantage of its products. In the 2nd decade of 21st century, Apple has stood out as world’s most famous and presently, the richest company.

Apple’s growth story can be said to have begun with a series of innovative products like the iPad, iPhone etc. since 2001. They have brought about a revolution in the microcomputer market.

Apple’s revenue story has been phenomenal since 1991. It saw a slight decrease in revenues before 2000 owing to the internet bubble but with the introduction of iPhone in 2001, these have been compounded rise in revenues. Apple sales rose by 11 times and profits by 31 times by 2011 based on 2005 revenues.


Attributing to this growth story, Apple had to change its corporate strategy and reallocate resources to accommodate high sales growth in newer product launches.


Apple has observed the gradual decrease in sales of software and desktops with the advent of iPhone and iPad. Apple has started to design its own software to support its new product launches. It has also shifted concentration from desktop manufacturing to iPad owing to its huge demand. Apple’s share in the laptop market has also dropped because Macintosh brand needs to be repositioned.

In 2001, Apple wanted to create a demand for its products to generate revenues. Apple’s strategy now, in 2013 has been to maximize revenue and assets primarily by increasing sales and catering to an existing demand and not by making capital expenditures. It has, however not shifted focus from leading by innovation and is constantly launching new features in its iPhone and iPad. This strategy can be observed in the figure below.


Apple’s corporate level strategy compete others on many different levels. All the products they produce use similar design techniques, and these techniques can be used on many other different devices without changing its format. Apple is one of the few computer-based companies that have retail stores worldwide. The advantage of having both retail stores and online stores provided them the chance of making customers comfortable purchasing, when their businesses are linked and move forward at the same time. Capital expenditures are primarily made as research and development expenses.

Apple has always focused on the customer. Its excellent customer support has helped its gain a good competitive advantage. Their customer support, excellent product design and fun features have contributed towards making it a market leader.

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