Apple's Strategic Growth: Success through Innovative Business Models Case Study

Exploring Apple's Business Strategies and the Role of the MACS Framework

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Introduction

This essay is focusing on the strategic thinking of “apple business”, introducing the model of “strategic management” by creating the relations between the planning of strategy and making the “operational decision”. Managers identified for sources constrained by resources. The performances highlight the issues and opportunities locations. This promotes and rewards the services of thinking of strategy of the company. These key factors have the ability for the company to enhance and capture the value through selling, buying, etc.

Research question

• What are the strategies adopted by Apple to increase their growth?
• What are the challenges faced by the company?
• What is the role of the MACS framework in the growth of the company?

Summary of MACS

“Market Activated Corporate Strategy” (MACS) framework developed with some procedures to this framework. As per the view of Awasthi et al. (2021), this matrix represents the growth of the market and is related to the share of the market as per the rate of business which is separated into four parts. In this time the tools are designed to restrict the weakness of the “BCG matrix” which takes into execution to the factors, prevented by others which have the effects onthe profitability. BCG matrix assumes the independence of every unit of business which leads to underestimation of interrelations which exist. MACS framework represents Apple's finance andstrategy; this is a framework which provides the approach of systematic for “multinational business” to prioritize the investments among the units of business. The attractiveness of this company competes with others in this industry.

This company extracts the value of business. The owners of the company extracted value from the business. The company makes use of the possibility ofunits of business which is not strong for them. As per the opinion of Suárez et al. (2020), the insights of MACS is the ability of corporations to extract the value from units of business which is related to the owners of potential which should determine the value of the company in the units. In “MACS matrix” the nine boxes axes framework measure the attractiveness of industry and ability of business units competing into the “single horizontal axis” represent the unit of business potential for makingthevalue as the company. The axis in MACS helps the ability of a company which is related to the owner ofthe company for extracting the value from the unit of business and measure which takes the uniqueness of MACS.

• Chart of matrix

Figure 1: MACS chart

Managers are using MACS as they are using a “nine box tool” by representing every unit of business as the rate of sales, fund of employees and value added by the unit. The qualification of business focuses on the ability of the business owner. As per the insights of Morrison III et al. (2019), the company is able to shape the industry and manipulate the assets with equilibrium. The matrix of MACS combines the capability of corporations and units of business offers the scope of making value with tools for MACS. This company determines the owner of units of business and increases the value of business by selling the product to the proper owner in business. Business strategies refer to the activities in which companies gain the benefits of competition in the market that involve with “core competencies” which value the customers. The strategy of business is form of unique in operating or offering the various products from competitors.

There are the strategies of business in which this company gains advantages of competitive such as “cost leadership, differentiation, integrated cost leadership differentiation, focused cost leadership and focused differentiation”. As per the thoughts of Mao et al. (2020), this company has been forced into the “technology industry” and increased by the technologies in “iPhone, iPadand Macbook”. Apple dominated in “computers, mobile phones, digital music players and online music stores”. The strategy of Apple engaged with the company for offering the operating system and products of hardware. This allow the company to concentrate on quality of design and company has positioned in the market and made the product which is valued by customers. the strategy adopted by Apple related to the distribution of goods. This made the “retail stores” in the world and service of the company deliver superior and support the technology which dejected the services of customers. Thisallows the customer to buy their goods before buying them.

• Value creation model

This company is improving the “value creation models” and trying to make some examples by usingcompanies. The idea of “value creation” is the existence of business to solve these problems for customers. As per the words by Tien (2019), this makes the infrastructure of various kinds of sources to create this occur. The main category of sources has property, partners, capital and people of tangible. This approach uses the capital of strategy of capital of finance. The capital of strategy addresses monetization through the models ofbusiness. However, this is strategy in the components of purpose and culture that holds the “value creation system”. The structure of natural has selection such as the elements of a company's goods but the main elements of goods which is not available inreport.

Figure 2: “Value creation model” of apple

• Strengths

MACS highlight the level of analysis for increasing the valueof creation and capture of value. The chart of outcome used the plan of divestitures and found the sorts of skills of instruction to make the effort which parent’s corporation engaged in. As per the discussion by Littleson et al. (2022), the dimension of the horizontal of “MACS matrix” shows the units of business with value as man gablescompanies that measure the value of business and data is required the manager can use the value of the net of the unit of business and compare with the units. The “vertical axis” of “MACS matrix” measures the ability of a company to extract the value from the unit of business. The company extracts the valuefrom the unit of business that has been done. The owner of the company makes the value from assets and units of business kept.

• Weaknesses

The dominance of this company has the space of devices of movie and computing. As per the ideology by Sarto et al. (2019), the company is facing challenges among weaknesses are entering the location of competition, incompatibility with software and highest cost goods.

Revenue data of three products over three consecutive years for measuring the performance of “products and management challenges”

The statement of financial and accompanied is the part of forming the 10K. This section is the form of 10K generally discussing the items in theyear of 2022 and 2021 which comparethe yearbetween 2022 and 2021. As per the remarks of Zhao et al. (2021), the discussions of items of the year of 2020 and compare between the years of 2020 and 2021 which are not forming 10K. This can be found in discussion of management and condition of “analysis financial and operations results” in item on form of 10K for the “fiscal year ended” in the year of 2021. The company is launching new goods, software and services providing at different times during this year. The announcements during “fiscal year of 2022” include the updated “Mac Book Pro 14” and “Mac Book Pro 16” powered by the “Apple M1 Pro” or “M1 Max chip” and generation of third of “Air Pods”.

Figure 3: “Structure-Conduct-Performance” of Apple

They are updated with the “Mac Book Air and Mac Book Pro 13”powered by “Apple M2 chip, iOS 16, mac OS Ventura, iPad OS 16 and watch OS 9” which update to the “Company’s operating systems”. They have updated their products such as “iPhone 14, iPhone 14 Plus, iPhone 14 Pro and iPhone 14 Pro Max; Second generation of Air Pods Pro; and Apple Watch Series 8, updated Apple Watch SE and all-new Apple Watch Ultra” (apple.com, 2023). In the year 2022, the company declared the enhancing program authorised from “315 billion dollars” to “405 billion dollars” and increased the separation from“0.22 to 0.23 dollar per share” which starts in the year of 2022. During this year, the company purchased “90.2billion dollars” of the commonstock and paid separate equivalents of “14.8 billion dollars”. The following table represents the “net sales” for the years 2022, 2021 and 2020.

Table 1: Performances of products of apple

“Net sales” of products deferred the value of “unspecified upgrade rights of software” that bound the prices of sale of products. As per the thinking of Zhang et al. (2022), the accessories , wearable and home “net sales” such as sales of “sales of Air Pods, Apple TV, Apple Watch, Beats products, Home Pod mini and accessories”.net sales of services such as skates from the “advertising, Apple Care, cloud, digital content, payment and other services” of the company. Net Sales of theservice deferred the service value in the price of salesof goods. “iPhone net sales” enhanced their rate of sales during the year of 2022 compared to the year of 2021 due to the higher rate of “net sales” from the new model of “iPhone” of the company during the starting of “fourth quarter of 2021”. “Net sales of Mac” enhanced the rate of growth during the year of 2022 compared to the year of 2021 during the rate of “net sales” of laptops (sec.gov, 2023). The “net sales of iPad” reduced the rate of growth during the year of 2022 compared with the year of 2021 during “lowest net sales of iPad Pro”. “Net sales of wearable, home and accessories” enhance the rate of growth during the year of 2022 which differs to the year of 2021 during the rate of “net sales” of “Air Pods and Apple Watch”. “Net sales of services” enhance during the year of 2022 difference to the year of 2021 which is higher “net sales” from “advertising, cloud services and the App Store”.

• Risk management

This company balanced the rate of exchange with the positions and rate of interest both of those get access with basis and underlie the currency of foreign and exposure of invested rate the risk management of the company has the activity and nature of exposures. According to the view of Bramel and Volk (2019), there is no assurance to those positions that a portion of the financial effect result from the movements in exchange rate of foreign and rate of interest. The recognition of the losses and gains to the instruments may not gain the timing of band sloes related withunderlying exposure of count and impact the condition of financial of company operating outcome.

• Interest rate risk

The exposure of the company changes in the rate of interest related to the investments of the company and debts. The company is exploring the rate of net sale fluctuations andimpact by rate of interest. According to the view of Tsangas et al. (2020), the changed rate of interest impacts the base of interest on cash of the company and equivalent cash and securities of increasing and value ofsecurities. Those costs are associated with the rate of interest paid on debts of the company. The policy of company investments and strategy highlighted the operating of capital and support the requirements of the company. According to the opinion of Bogers et al. (2019), the company uses the combination of management to consider the strategy of investment and achieve the objectives of investments. The company invests the securities with reducing the loss of risks. The investment of company policies need the securities to the grade of investments and restrict the amount of loss andrestrictions the amount ofexposure to the problems. They are offering the assessment of “interest rate risk” associated with the investments of the company.

The company performed the sensitivity to determine the effect of changing “interest rate” value of assuming the basic point shifts in the survival. According to the thoughts of Knight et al. (2020), the position of investments assumes the position of investment in the year of 2022. The rate of interest has the outcome in “4 billion dollars and 4.1 billion dollars” with the value of the market of the portfolio. In the eyewear of 2022, the company has the rate and matured for carrying the number of “110.1 billion dollars and 118.7 billion dollars” respectively. The company entered the rate of interest and managed the risk of interest rate with terms of debts. The rate of interest allows the company to transfer the payments of “fixed rate” into “floating rate payments” into “fixed rate payment”. The losses and gains on debtoffset the corresponding gains and losses related to the instruments. The expenses of interest on debt of the company have measured 2022 to enhance by the “201 million dollars and 186 million dollars”.

• Foreign Currency Risk

The company is a “net receiver” of currencies other than the dollars. The changes in “exchange rate” and in specific will negatively impacted the “net sales” of the company and “gross margins” expressed the money. There are risks which this company has to control the local currency price during the pressure of competitionand volatility in the rate of exchangecurrency. According to the words by Kretschmer et al. (2022), the company entered the “foreign currency” option to start with the “financial institutions” to protect against the “foreign exchange risks” associated with the liabilities and assets that were committed with transaction and flow of cash and subsidiaries of “net investment”. The company has entered into “foreign currency contracts” to the “foreign currency exchange” gain and losses on “currency denominated debt insurance”. The company has the portion of rate of foreign exposure of currency associated with the purchase of investor and revenue.

The company many chose not the “exposure of exchange” for the different types of reasons such as accounting consideration or cost of economy of exposures of specific way. They are offering the amount of the “foreign currency risk” associated with the “company's foreign currency position”. This company performs the selectivity analysis by using the “value at risk” (VAR) model to assess the effect of fluctuations in exchange rate of exchange. The model of VAR contained by simulating is generating thethousands of prices of markets to assume the consortium of markets. According to the discussion by Chen et al. (2021), the VAR represents the losses by using estimates and tools of management. The company estimated withthe rate of confidence and barley of“1 billion dollars" which compared to increasing value of “550 million dollar” in the year of 2021. The company uses the currency for purposes and loses in value ion the instruments by enhancing value of exposures.

Recommendations for increasing & capturing value

Recommendations 1: Need to keep products and marketing simple

The company understands that the consumers of technology get it difficult. Apple decreases that confusion of customers by simplifying their copy of sale and web. Apple should use the simple words by reducing stress with the benefits which customers require and be thrilled by this. This is part of the “content marketing”. According to the remarks of Wu et al. (2020), they should carry this concept through their advertising of products and facilities of the product. The customer has not many choicesand is designed to drive teeth goods. The super of the company is used by around 79% ofusers of the website and understands the content of marketing by using the “social media” with “digital date”. They are making the count by using conveyed the advantages.

Recommendations 2: Need to design the better experiences of customer

Apple made the experience of customers and purchasing the products in “retail stores”. They are charging the princess which take part of “content marketing” for them. The components ofthis company from concepts of purchasing process differ to the version of product by buying the item. The element of the company has changed toappeal to the sense of customer. As per the thoughts of Mao et al. (2020), Apple spent their time to design and match the process with experience of retail stores. Most of the people are not entering their store and purchasing products. The “retail stores” designed and replaced with the liabilities and features of stores. The company installed a new design by charting the experiences of customers and analyzing the patience to make contact with the perspectives of customers. As per the view of Awasthi et al. (2021), they are making every part of the journey consistent with the components and personality of the brand. Every element of the company happens by chance and is crafted, refined and revised to appeal to the sense for customers. The company thinks the way they create the difference with other stores and make a store or products which will be simple for the customers.

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Conclusion

The summarized version of this report has highlighted the strategy of Apple. The strategies of the company have been assessed briefly by using some models. Those measure the rate of productivity and efficacy by marketing every product and model of SCP ion globalization. Thedimensions of vertical and horizontal cannot explain the rate of buying and selling. They are manipulating the seat in a way that helps to increase the value of the trend of new business. The effects of technologies on “strategic management” help this company to target the specialized for the assets of value strategy.

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