Tim Cook’s Apple Future Survival Strategies
Apple, in the recent past, experienced some challenges in the global market and obstacles create new opportunities which the paper will propose as future strategies for market dominance. Notably, Apple’s most prominent problems got recorded as difficulties in emerging markets like China and lower sales revenue for the iPhones (Rosenstock, 2019). In China, the biggest challenge was the slow economic growth in 2018 and the more prolonged trade tensions between China and USA administrations. The low iPhone sales could get explained by the stronger dollar that makes the smartphone expensive to countries with lowly-valued foreign exchange reserves. Thus Cook in a letter to the stakeholders came up with possible strategies going into the future to continue operating at a profit.
Firstly, innovation remains a significant strategy for Apple to persist as competitively advantaged in the smart devices global market. Artificial intelligence (AI) technology is one such innovative strategy that the company is cementing in its existing and new products. The innovations will get spearheaded by renowned AI specialist John Giannandrea previously of Google Inc. Artificial intelligence is getting introduced to a range of products like Apple health, Apple Television, Smart Home Appliances, and Self-driving cars (Kovach, 2019). Secondly, Apple is promoting trade-in services by allowing the exchange of old iPhones for new ones for an agreed hire purchase deals (Rosenstock, 2019). It not only prevents high cases of electronic pollution but helps Apple renew its old products as it boosts sales through the flexible trade-in and purchase arrangement.
Similarly, Apple will invest in the acquisition of the best talent and creativity in the technology industry to come up with the most unique and quality products in the market. It led to the hiring of John Giannandrea as the head of Artificial Intelligence and many other talented innovators to drive Apple’s plans of providing best quality products to remain competitive. Cook’s acquisition of the best Artificial intelligence talent resonates with Gamble’s view that the management should get higher productivity from the workers to comply with firm’s goals and objectives (Gamble et al., 2015). With the best team in the company, Apple gets guaranteed of innovating high-quality products that will make it competitive and profitable.
Additionally, more emphasis can get concentrated on service products, which generated over $10 billion in 2018 and showed steady growth over the years (Rosenstock, 2019). Service products include subscription services like Apple Television streaming services, Apple health heart monitoring services and Apple music. Also, the sale of IOS apps contributed to that revenue; thus, the company should introduce more service products going into the future to increase sales revenues. Last but not least, the company plans to expand its retail links to the new emerging markets in Asia, Latin America and Africa (Kovach, 2019). The company has minimal operations in the new frontiers, and the company must invest more resources in these markets if it wants to dominate the global market. Going global requires the manufacture of affordable products to become competitive as these smaller economies get flooded with cheaper smart devices.
References
Gamble, J., Thompson, A., Peteraf, M., & III, A. J. (2015). Crafting & executing strategy: The quest for competitive advantage: Concepts and cases. McGraw-Hill Education.
Kovach, S. (2019, February 19). Apple’s priorities are shifting as iPhone sales continue to sink. CNBC. https://www.cnbc.com/2019/02/19/apple-shifts-priorities-to-grow-services-ai.html
Rosenstock, J. (2019, January 2). Letter from Tim Cook to Apple investors. Apple Newsroom. https://www.apple.com/newsroom/2019/01/letter-from-tim-cook-to-apple-investors/