Reference

Classify the strategies by their type, and explain why you understand they belong to that type.

Using brand and ecosystem reputation as leverage (FO)

This is a focused strategy because it focuses on a specific market segment, namely Apple's existing customers. It is also an offensive strategy because it aims to increase market share by retaining and attracting new customers.

This strategy recognizes the value of keeping its present clientele by focusing on increasing customer loyalty and satisfaction. Apple can firmly cement its position within this market sector and lay the groundwork for future expansion by catering to its current clients' unique demands and preferences. Given that this tactic aims to increase market share, it might be categorized as offensive. Apple wants to attract new clients rather than just trying to keep its present clientele by utilizing its advantages and distinctive products. Apple can develop a compelling value proposition that keeps current consumers and persuades new ones to move from rivals by consistently innovating and offering excellent goods and services. Apple can actively respond to market dynamics and competitive pressures by taking an aggressive position. The business may leverage its solid brand recognition, technical improvements, and user experience to its advantage to expand into new markets. Apple successfully positions itself as the go-to option for its target market segment by enhancing its product range, growing its service offerings, and building a strong client base.

Innovation and Diversification (FA)

This strategy is forward-looking because it focuses on new opportunities like augmented and virtual reality. It is also an aggressive strategy because it aims to expand Apple's product line and generate new revenue streams.

The forward-looking strategypresented here demonstrates Apple's emphasis on fresh possibilities, particularly in augmented reality (AR) and virtual reality (VR). Apple wants to establish itself as a leader in innovation and take advantage of the potential development in this market area; thus, they are focusing on these new technologies. To develop new goods, apps, and experiences that might fundamentally alter how people engage with technology, this approach entails investigating and investing in AR and VR. Because it is proactive and ambitious, this tactic might be described as aggressive. Apple plans to introduce AR and VR devices, software, and services to broaden its product offering. Apple aims to provide a seamless and engaging user experience in AR and VR by utilizing its hardware, software, and design expertise. Apple can enter unexplored markets, create new income streams, and diversify its product line thanks to its proactive pursuit of new opportunities. Apple wants to remain ahead of the curve and influence the direction of consumer technology by embracing AR and VR technologies. Gaming, entertainment, education, and productivity are just a few industries these new technologies might revolutionize. Apple establishes itself as a major participant in this developing industry by adopting an aggressive strategy, giving it a competitive edge over rivals and luring early adopters and tech aficionados.

International Expansion and Market Penetration (DA)

This is a defensive strategy because it aims to reduce risk by expanding into new markets. It is also a growth strategy because it aims to increase revenue by expanding into new markets.

Due to its emphasis on risk reduction through market growth, the approach discussed here might be considered defensive. By entering new areas, Apple hopes to reduce any risks that may result from depending on current markets. Apple aims to reduce the impact of market volatility, shifts in customer tastes, and other uncertainties that might harm its present income sources by broadening its market presence. This tactic is also regarded as a growth tactic concurrently. Apple wants to exploit the untapped potential and open new income sources by entering new areas. Finding new client groups or geographic regions where Apple's goods and services might be effectively introduced and marketed is a key component of this growth-oriented strategy. Apple strives to create a balanced portfolio that balances stability and expansion by adopting a defensive posture and seeking growth. The business understands how crucial it is to keep its current clientele while working on expanding and investigating new market niches. With the help of this plan, Apple can maximize its revenue potential and sustain long-term growth.

• Describe each strategy in two SMART objectives.

Using brand and ecosystem reputation as leverage (FO)

• Objective 1: Increase customer loyalty by 10% in the next year.
• Objective 2: Increase market share by 5% in the next year.

Innovation and Diversification (FA)

• Objective 1: Develop a new product line that generates $1 billion in revenue in the next three years.
• Objective 2: Invest $100 million in research and development in the next year.

International Expansion and Market Penetration (DA)

• Objective 1: Open 100 new retail stores in emerging markets in the next five years.
• Objective 2: Increase revenue from emerging markets by 20% next year.

Questions (Balance scorecard)

1. Explain the flow model describe the relationship between the financial, customer insight, internal process, and learning and growth perspectives.

2. Make a cause and effect flowchart between the different aspects of the strategy.

3. If there is no example or element for any of the four perspectives, circle it blank to indicate the lack of a "connection" in the strategy.