Strategic Audit: Checkpoint 6 1

Strategic Audit: Checkpoint 6

Sam Alender

Dr. Ritter

BUSN 409

25 April 2020
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Strategic Audit: Checkpoint 6

What is it that allows a corporation to achieve top tier status in their field? Is it their

products, services, public appearance, or maybe the way they strategically plan every move they

make? Apple Inc. has done a good job with planning ahead and responding to what consumers

want. Along the way they have recognized their mistakes, but rather than crumbling they

adjusted and excelled.

Are There Alternatives?

Having been founded in 1976, naturally there have been several changes along the way.

One of the most recent changes made regards the way they paid attention to their products at the

top levels. “The company was most aggressive with the products capable of making technology

more relevant and personal” (Cybart). This approach led to other products not receiving the

attention they very much deserved. The Watch and iPhone receiving the majority of the attention

due to their increasing popularity, “were located on the end of the rope held by Apple

management. Meanwhile, Mac desktops were located at the other end of the rope while iPads

and Mac portables were somewhere in the middle” (Cybart). They realized soon that the Macs

and iPads were starting to somewhat exist rather than excel as one of their products, so they

changed an approach. They decided to work on all products and upgrade them simultaneously,

that way none of them became less important in their product line. Recently they have upgraded

the Mac Pro, their flagship computer, and plan to continue this approach for their products.

This problem arose in the first place because they were focusing so much on their best

products, they let the others simply fall behind. Something that they have began to look into is a

less expensive Mac portable device. There are many consumers who look for a budget friendly
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laptop and Apple has never really had that option. They introduced the MacBook, which was a

base laptop, but it did not go over well. “A few years ago, low-end Mac portables seemed to be

on a dead-end path thanks to iPads. There is no longer any evidence that such thinking is widely

held in Apple’s senior ranks. An ARM-based Mac portable seems inevitable at this point”

(Cybart). Hopefully, this next round gives them something more successful. A potential side

effect that could come from this however is that some feel they lose their reputation for only

putting out top tier products, but I do not feel that would be the case. Simply having a low budget

option would not mean they are lowering the quality of the rest of their line.

Another rising topic with Apple is their support with third party services. “Apple is said

to be considering a radical change to the iPhone experience by letting users pick their own

default apps” (Wood). A growing complaint is that there is not enough support for music

streaming services such as Spotify, and that third-party accessories are not as compatible as

desired. Offering compatibility would be nice for those who are not using Apple supported

services/devices, however, would also take away from some of the push to fully transition over

to only Apple. Many Apple users are very committed and will stay with the company as they

upgrade their technology, and this is why, while not offering as much third-party support as

google and android devices, Apple is still successful.

Recommendations

Something that may arise is the question of how Apple could better use cost leadership.

At a glance one would say it is impossible for them to do such a thing considering they sell to a

more well-off market of consumers, but it is possible. They have their iPhone SE that is

significantly less expensive than their other iPhones but still offers a great user experience. For

the performance and options that the iPhone SE has, it has a very favorable price tag. It may not
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be the least expensive phone on the market, but for what is and what it can do it is one of the best

for the buck. If this same principle could be done as mentioned above in a Mac, I truly believe it

would sell very well and help consumers gain entry into Apple Products.

While looking at it in a short-term perspective, this would allow more individuals to be

using Macs. With their wonderful reputation for reliability, odds are they would want to

eventually buy another product and recommend them to more people. Much of Apple’s

advertising has been accomplished simply by people sharing their love for the products and the

statement that the Apple logo makes when seen.

Conclusion

When observing Apple and recognizing how phenomenal of a multinational company

they are, it is hard to point out what they are doing wrong. There are always areas of

improvement and it can most likely be agreed that the abovementioned recommendations make

sense. I look forward to seeing if they end up making a more affordable Mac, as I would not only

recommend it to friends, but would purchase it myself.

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References

Cybart, N. (2019, June 19). Apple's Product Strategy Is Changing. Retrieved April 25, 2020,

from https://www.aboveavalon.com/notes/2019/6/19/apples-product-strategy-is-changing

Wood, C. (2020, February 21). Apple may let people pick alternative default apps on the iPhone,

marking a radical change of philosophy. Retrieved April 25, 2020, from

https://www.businessinsider.com/apple-switch-default-iphone-apps-2020-2