Answer to Question #284223 in Management for Kayan

Question

list 4 strategic issues Apple Company face and 4 long term objectives to overcome these strategic issues

Answer 1

Apple Computer is currently facing many strategic challenges, few of them mentioned below;

• Competition from new and existing companies. Apple’s iTunes, an online music store, faces competition from companies that seek to begin offering online music and video downloading services whether legally or illegally, and from existing companies that plan to modify its current strategies to become better aligned with the strategy of Apple.
• Product recalls that may hinder Apple’s reputation. The products that Apple sells are highly complex and from time to time they experience quality problems because of defects in design and manufacture.
• Navigating Trade Uncertainty. The company assembles iPhone's in China, making it vulnerable to price increases if a tariff were to be placed on Chinese exports. Tariffs are a potential thorn in Apple's AAPL. Uncertainty around U.S.-China trade policy haven't been kind to Apple's stock.
• Dependence on specific suppliers for various product components. Apple relies on third-party suppliers to provide components such as DRAM, TFTLCD flat panel displays, and NAND flash memory (Company Spotlight, 2009). Steinbock (2010).

However, Apple can have some long term objectives to overcome these strategic issues;

• Differentiation. This generic strategy focuses on key features that differentiate the company and its information technology products from competitors. Through the broad differentiation generic strategy, Apple stands out in the market. 
• To address the issue of product recalls, Apple can; Have a plan in place should a complaint or claim be filed against the company, retain records that allow traceability throughout the supply chain and also perform mock recalls to test recall plans.
• Apple can make plans to shift some of its production out of China, Apple is in a strong position to mitigate tariff risks and the company has the ability to both negotiate pricing and terms with its manufacturers and move its manufacturing out of China.
• Addition of a new supplier will provide a greater flexibility and Apple can react faster to supply chain disruptions, should they arise.