Operating in an extremely competitive digital environment, Apple seems to have the edge over its competitors if the steady increase in revenue in the last couple of years is a reference point. At the core of its immense success is a business strategy that worked so well to Apple’s advantage. Part of its business strategy includes product differentiation both in functionality and design and “building and expanding its retail and online stores and third-party distribution network to effectively reach more customers and provide them with a high-quality sales and post-sales support experience.” Such rapid expansion both in online stores and physical distribution network brings with it both challenges and opportunities that this post seeks to unravel.
Opportunities and Challenges in the Online Apple Store
Apples’ special focus on the customer is perhaps the company’s biggest asset. In a bid to improve the customer’s experience, app developers have the authority to build apps, a concerted effort to expand the customer’s experience. The company’s revenues skyrocketed partly because of the sales from apps in the online App Store, creating an important base for a competitive advantage. The creation of Apple Pay felicitates is a hustle-free and safe mode of payment in the online App Store, further enhancing the customer experience.
Consistent
with its policy of putting the customer first, Apple ensures that apps
developed by third parties meet stringent guidelines in their development
because the buck stops with the company when the apps fail to meet the
customer’s needs or expectations or when they fail in functionality. Therefore,
not accidental when you see Apple quickly taking responsibility for certain
apps malfunctioning and promptly trying to resolve them, often with an apology.
This aspect is because Apple understands that unbridled negative customer
experience can rapidly spill over and negate the progress the company has made
over the years.
Apple’s success in creating a large market share of loyalists is perhaps another attestation to its focus on the customer’s experience. As their products become more ubiquitous, efforts exist to ensure the maintenance of this focus. Consequently, the company has come up with innovative ways of bringing more customers to the fold. Currently, Apple offers coding classes for children free of charge. Futuristic as it may seem this effort, undoubtedly, endears the company to the future generation of Apple brand loyalists thus maintaining and even improving its market share.
Opportunities and challenges in operating in physical locations
In the recent past, Apple placed a special focus on the expansion of its physical retail outlets across the globe, sometimes closing small stores and opening larger outlets in different locations. With more than 506 retail shops spanning more than 25 countries by 2018, the company’s revenue is a direct result of an exponential expansion that skyrocketed, making it one of the most profitable global retail outlets. With sales of more than USD 16 billion in 2011, Apple entered the list of top tier retail stores on the planet. According to Apple CEO Tim Cook, the runaway success of the iPad partly attributes to the strategic location of these retail shops since its launch in 2010. Many of these retail stores are in big shopping malls. Therein lies a big opportunity; easy access to customers.
A good number of flagship stand-alone stores were constructed in upmarket locations. Their award-winning architectural design speaks volumes about the aesthetic value the company attaches to its retail stores. The recently redesigned Store in San Francisco is a case in point. The eye-catching large glass entry and a big open space where customers can meet up and socialize is an effort by Angela Ahrendts – the company’s Senior Vice President of Retail, to turn the Apple Stores into “town squares” a model Apple intends to apply to all outlets globally. Inside the redesigned stores there are “creative pros” who offer expert advice to customers in the “Genius Bar”. By doing this, Apple has succeeded in creating a one-stop tech store where customers can meet, buy Apple products and get expert advice all under one roof.
The creation of “The Plaza- a place created for public concerts and which has free Wi-Fi is another out–of-the-box strategy that Apple uses to create an unforgettable customer experience. " Today at Apple," a series of educational and creative programs are intended to motivate customers to learn new skills in furtherance of their passions. Since its inception in 2016, the program has played a central role in Apple’s quest for its retail expansion.
Notwithstanding the lush glass design of the front door and the security measures put in place in Apple Stores to forestall possible break-ins, incidences of robberies have hit the headlines in the recent past. A good number of Apple Stores have witnessed burglaries with thieves making away with a significant portion of the Stores’ stock. Noteworthy incidences include the December 2016 incident where individuals drove through the glass door of a store and made away with unspecified number of Apple products on display, a March 2016 burglary where 67 iPhones with estimated worth of $ 49,300 were stolen, an incident in June 2016 where a thief disguised as an Apple employee made away with 19 iPhones worth $16,130, and a store which was attacked twice , in November 2016 and April 2017 which resulted in the loss of a combined sum of $ 64, 000 worth of goods. In December 2018 in Paris in the gilets jaunes protests, looters targeted Apple Stores and stole products of unspecified value.
Conclusion
Apple cuts for itself as a global company keen on creating an unforgettable customer experience. By so doing, it successfully navigated the murky waters of cut-throat competitions to profitability. Rather than get involved in price wars geared towards winning more customers to its fold, Apple focuses on retaining existing ones. The company redesigned its physical stores for just this purpose while its online store offers a safe and secure platform to purchase apps. The residual outcome is an unmatched loyalty among its customers.
Refference
Apple Inc. AnnualReports.com, Apple inc., 30 Sept. 2017, www.annualreports.com/HostedData/AnnualReports.
AppleInsider. “Imposters Again Target NYC Apple Store, Pilfer $16,000 in iPhones." AppleInsider, AppleInsider, 9 June 2016, appleinsider.com/articles/16/06/09/imposters-pilfer-16000-in-iphones-from-new-york-city-apple-store.
Hitesh, Bhasin. “Marketing Strategy of Apple Inc – Apple Marketing Strategy." Marketing91. Marketing91, 11 Jan. 2019. Web. 8 Feb. 2019. https://www.marketing91.com/marketing-strategy-apple/
Moorman, Christine. “Why Apple Is Still A Great Marketer And What You Can Learn." Forbes, Forbes, 16 Feb. 2018, http://www.forbes.com/sites/christinemoorman/2018/01/12/why-apple-is-still-a-great-marketer-and-what-you-can-learn/#5fc1ac7f15bd.
New York Post. “Thieves Steal Dozens of iPhones from UWS Apple Store — Twice." New York Post. New York Post, 3 Mar. 2016. Web. 8 Feb. 2019. nypost.com/2016/03/30/thieves-steal-dozens-of-iphones-from-uws-apple-store-twice/.Vincent, James
“‘Today at Apple’ Sessions About Art, Music, and Coding Expanding to Every Apple Store in May." MacRumors: Apple Mac iPhone Rumors and News, MacRumors: Apple Mac iPhone Rumors and News, 25 Apr. 2017, www.macrumors.com/2017/04/25/today-at-apple-sessions-launching-worldwide-may/.
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