When Tim Cook was talking to a High school finalist Rebecca Kahn, he advised her ‘’to find your north star and focus on it.’’ Looking keenly on the statement it is exactly what Apple has been doing to gain a competitive edge over its competitors (Meyer, 2017). The apple generic strategies and intensive growth strategies are according to Tim cook statement. It is clear that the strategy is one of the things that makes it different and successful than their competitor Samsung, LG and Blackberry (Rothaemel, 2016).
When Tim Cook became CEO of the company in 2010, apple used the following generic strategies, and he continued to use the same strategies. One key generic strategy of the company is the differentiation of the whole company and its products set it apart from other competitors. With this differentiation using user-friendliness of the products, and high-end branding, it plays a key role in ensuring that not only does it set itself apart from competitors by its pricing but rather by the key features that are critical to its consumers (Meyer, 2017). The broad differentiations also reach the business sector where the provide the MacBook’s to companies. Tim Cook uses this generic strategy and encourages by focusing on the R&D to make sure that they have continuous innovations to always keep ahead (Meyer, 2017).
Additionally, Apple uses Product development as a generic strategy. Therefore, it has to offer more attractive products to keep the high performance and grow the market share. As a result, innovation is a critical success factor for the company (Meyer, 2017). Additionally, the company uses market penetration and market development as an intensive growth strategy. Apple ensures that it sells more of its current products through advertising. Through market development, the company ensures that they create a new market for new products. Due to all these advantages, the company’s products are relatively high priced, but they still manage to sell more of the products (Rothaemel. 2015).
First Tim Cook narrowed down the generic and intensive growth strategy and used the specialization. Under this approach, it fits his saying of finding north star and focusing on it. Under this approach, the CEO focuses on the products that are performing well and pushes them to greater heights (Meyer, 2017). For instance, the best performing product of Apple Inc. is the iPhone. Therefore, the company focuses on the few things it can create and creates them excellently . Secondly, Tim Cook has embraced the public advocacy and governing of the company with the belief that they should also have values like human beings. The third key is that Tim Cook has invested in other products to generate product development and diversify the company’s products (Meyer, 2017). The fourth Key Tim Cook has focused on having the Apple become a service company. Finally, Tim Cook is also chasing a new frontier in medical transport, streaming platforms, and other services.
However, in all these attempts to put his personal stamps, Tim Cook may experience a downside. Specifically, the company is investing in new frontiers and diversifying their products. They may lose their competitive edge if the concentrate on other products and forget their core products. Additionally, the chasing of new frontiers will cost the company much money. In an attempt to change products and enter the streaming sector, and healthcare, they will not be able to enjoy the title of trendsetter the way they do in iPhones and MacBook’s. Thus they may lose the popularity. Tim Cook is betting much money on new markets, and it may backfire on him badly. It is therefore, important for the CEO to remain with the product development, differentiation, market penetration and development as the company’s key generic strategy for Apple Inc.
Meyer, P., (2017). Apple’s Generic Strategy and Intensive Growth Strategies. Panmore Institutte
Rothaermel, F. T. (2015). Strategic management: Apple Inc. McGraw-Hill Education.