Paper Example: Corporate-Level Strategy

Apple has been consistently practicing diversification. Mainly it has introduced new electronic gadgets in the market such as I pod, iPhones, Apple Watch, Beats, and Airpods. Apple Computer which was once a hardware manufacturer for machines was introduced to Apple Inc. in 2017, branding its heart on consumer electronics. The ventures are successful in that they increase the value prepositional of other products of Apple. The corporate-level strategy has led to its growth and ensured that it does not risk its decline in the industry by producing many products (Chen et al., 2013). Apple works with various companies in the U.S. such as 3M, Qualcomm, Intel, On, and Jabil to produce its products and services. The entrances generated revenue of over $ 53.8 billion in 2019, with the iPhone contributing $26 billion, resulting in a spring in the shares of the organization (Yarow, 2020). The related growth can be attributed to the expansion strategy that has helped it create new products and avail them to the consumers. It has also helped the company hire more employees and gain more customers in Mainland China for Apple products.

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However, the production of iPhones is a killer business as it is highly profitable with a low growth rate. The firm has even decided to raise the standard price for the iPhone (Chen et al., 2013). Apple has engaged in a considerable stock buyback run, besides increasing its dividend. Since 2012, the company has used $200 billion in share repurchases. Also, it returned an extra $75 billion to affiliates over the same duration as dividends (Yarow, 2020). The move aids in alleviating any storm in the expansion of the iPhone for investors. The Apple Watch Beats, Air pods that are its wearable market have significantly grown at a robust double rate.

Apple Inc. unleashed services such as Apple Music, Apple Pay, and iCloud that have delivered over 30% revenue yearly, according to Tim Cook, its CEO (Yarow, 2020). Subscribers use these services to purchase apps and download apps and music, not to mention expanding storage and by this profiting the company. The tech company is focused on selling to customers smart speakers to use in kitchens.

References

Chen, Y. M., Yang, D. H., & Lin, F. J. (2013). Does technological diversification matter to firm performance? The moderating role of organizational slack. Journal of Business Research, 66(10), 1970-1975.

Yarow, J. (2020). Apple proved that it is no longer just an iPhone company. Retrieved 15 July 2020, from https://www.cnbc.com/2018/05/02/apple-proved-that-it-is-no-longer-just-an-iphone-company.html