Product Development and Production Strategy of Apple
Fact 1: The Company Only Designs Its Products From the U.S.
An important aspect of the business strategy of Apple revolves around product development and production. To be more specific, the company designs and engineers different products ranging from devices such as the MacBook and the iPhone to software such as the macOS and iOS operating systems, as well as electronic components such as chips.
Fact 2: The Company Outsources Manufacturing Overseas
However, with regard to the actual manufacturing of tangible products, the production strategy of the company centers on outsourcing. Apple contracts manufacturing companies in countries such as China and Taiwan. It also contracts the services of hardware manufacturers and chipmakers.
Fact 3: The Company Has a Focus on Disruptive Innovations
Another important fact about the overall product strategy of Apple is innovation. The company has introduced game-changing products and services such as the iPod and the iTunes that ushered in the era of digital music, the iPhone that launched the modern smartphone product category, and the iPad that paved the way for modern tablet computing.
Branding and Marketing Promotion Strategy of Apple
Fact 4: The Company Incorporates Visuals and Luxury In its Image
Apple maintains a brand image that speaks of innovation, simplicity, visual appeal, and luxury. The company does this by producing products made from high-grade materials while maintaining minimalistic designs. Its software or applications also embody minimalistic user interface and simplified the user experience.
Fact 5: The Company Purposely Sells Expensive Products
To promote further the luxurious branding while also ensuring profitability, Apple has utilized a pricing strategy based on the concept of premium pricing. Note that its products are considerably more expensive than counterparts from other manufacturers. However, there are consumers that associate high price points with quality.
Fact 6: The Company Enjoys Cost-Effect and Almost-Free Publicity
Apple also does advertising and other promotion as part of its marketing mix. The company has placed ads on traditional and digital mediums. However, it also takes advantage of cost-effective publicity it gets from its publicized events that allow its loyal consumers, tech aficionados, and the media to give the company an almost free promotional boost.
Supply Chain and Distribution Strategy of Apple
Fact 7: The Company Uses Lean and Agile Supply Chain Strategies
Apple shifts between a lean supply chain strategy and an agile supply chain strategy depending on trends. To promote the integrity of its product portfolio, the company uses a lean strategy to eliminate waste and simplify its product offerings. To respond to trends, the company uses an agile strategy through a wait-and-see approach to decide what product to develop and launch.
Fact 8: The Company Uses Push and Pull Distribution Strategies
The company has also maintained a global presence through its global distribution strategy. Apple uses a push strategy by keeping a relationship with regional distributors, as well as a pull strategy by maintaining a relationship with the public to pressure distributors to stock and distribute their products.