Currently, companies fail to differentiate between operational effectiveness and strategy and continues to focus on management tool that has failed to provide the companies with maintainable profit. Firms should not focus on operational efficiency alone but should rather focus on both operational effectiveness and strategy. Companies should mostly focus on strategy since this is something that differentiates them from their competitors. Operational efficiency might be the same as multinational corporations have the capability of making their operations efficient. Also, companies should also focus on strategic positioning such as variety-based positioning, needs-based positioning, and Access-based positioning and all this positioning requires a simple set of activities since it is mostly a function of differences in activities (Porter, 1996).
Company's Current Strategic Position
Apple started the movement into personal computing arena in 1977 but failed to make an impact due to increased competition from Dell and Microsoft. Currently, Apple operates in different lines of computer and music industry and its operation involve not only designing but also developing of its computers and software. The company continues to venture into a personal computer but not as it did some years back since it continues to venture into music world through marketing of iPod and iTunes. The company has opted to establish its retail outlets majorly in developed nations as it concentrates on the provision of innovative products. Apple has tried to remain unique in developing its operating system and maintaining this difference is expensive (Kane & Rohwedder, 2010). With its superior operating system, the company has failed to convince consumers and also failed to capitalize on the problems that Microsoft has experienced whose operating system is prone to viruses and hackers are breaking into computers to temper with information remotely. However, Apple continues to remain competitive as it has focused mainly on valuing customers through the provision of exceptional quality product at a premium price. The company is well known for its passionate and dedicated customer base, therefore, enabling it to charge high prices (Kane & Rohwedder,2010).
Strategic Plan for Expanding Its Operations in A Different Country
Apple intends to expand its market share by exploiting different markets especially developing nations market that Apple has not dominated, and to achieve this; the company requires a proper strategic plan. Most of this country such as Kenya large corporations such as Microsoft and Hewlett-Packard that has already established themselves. For the company to successfully expand its operations, it must focus on both operational effectiveness and strategy. Operational efficiencies will enable the Apple to perform similar activities better than competitors show them. The approach allows the company to carry out similar activities but in a different manner. For instance, Apple and Samsung manufacture smartphones, and for Apple to remain competitive, it requires to establish a difference that can preserve. Apple needs to deliver greater value to customers at a lower cost, or do both. The company should seize from competing based on operational effectiveness since this leads to wars of attrition which can only be arrested by reducing competition. The strategy needs to rests in its unique activities that are all about being different. For instance, Apple should concentrate on developing personal computers with its operating system as compared to its competitors who rely on a universal operating system (Porter,1996).
Apple should also focus on need-based positioning whereby it targets a segment of customers. The company is known for its premium pricing, and hence it should target a market which is characterized with financially stable clients within the country. Conclusively, the global market continues to be competitive as other electronic giants continue to innovate. For any company including Apple to survive, it should focus on the uniqueness of its operations and products.
Porter, M. E. (1996). What is a strategy? Harvard Business Review (November-December): 61-78. Retrieved from https://www.linkedin.com/pulse/porter-m-e-1996-what-strategy-harvard-business-review-salman-siddiqui.
Kane Y., & Rohwedder C., (2010). Apple Strives for Global Market. The Wall Street Journal. Retrieved from http://online.wsj.com/article/SB10001424052748703302604575294530119152528.html
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