'Corporate Strategy Essay\r'

'In Corporate Strategy, Collis and Montgomery inform there ar two kinds of diversification†conjugated and laboured. Companies using linked diversification enter in the altogether vocation sectores when it relates in some way to another business they are already in (it is linked to it), plainly does not necessarily switch any link to their other businesses. If they are using constrained diversification, however, they all enter a new business if it is establish on their core resources or competencies. Companies based on linked diversification have little coherency to their overall corporate strategy, while companies using constrained diversification tend to be more centre. labored diversification allows companies to maximize the effect of their resources because they are circumstancesd (100).\r\n apple uses constrained diversification. apple is, inherently, a ad hominem computer company (hardware and software), and their businesses utilize their competencies in gr owing hardware and software. The Macintosh, iPad, iPhone, iPod and AppleTV are all computers, which allows Apple to share resources between businesses. For example, the Macintosh, iPad, iPhone and AppleTV all run OS X, Apple’s operating system. This scores economies of scope, which, Collis and Montgomery point out, create cost savings for the company because their resources are divided up across multiple businesses (72).\r\nRather than just have related businesses, though, each business is a focused platform with no extraneous convergences or merchandise types. The Macintosh, for example, consists of two kindsâ€desktop and notebook. These separate product lines each share resources and complement each other. The iMac and MacBook Pro are both primarily constructed from aluminum and glass, so not only do they share the same materials (which reduces costs), only when they resemble each other, creating unity between product lines.\r\nEach platform, too, complements the oth er. Apple’s Macintosh computers synchronizehronize their media and personal data (calendar, contacts, email) seam slightly with the other platforms. Because they work so well together, owning products from each platform benefits users by creating an get under ones skin where their devices â€Å"just work.”\r\nThe platform advantage does not harbor just to Apple’s devices. Through iTunes, users potbelly purchase music, movies and television shows that syncs across all of their devices, or even do so from their iPhone or iPad. The App lay in allows users to download applications for their iPhones and iPads wherever they are, and now the iBook Store, released in April, volition allow them to do the same with books.\r\nBecause Apple has chosen what businesses to enter carefully, these platforms reinforce the others and make them more powerful. The internality is greater than the parts. This creates a complete package for consumers to choose, and it is tryi ng for competitors to match. Their platform strategy makes each individual business more valuable than it would be as a separate entity.\r\nTheir strategy can be improved, however. Currently, MobileMeâ€a service Apple offers that keeps contacts, calendar, and email in sync across multiple devices over the airâ€is a premium service that costs $99 per year. This is the price approach. Rather than a premium service, MobileMe should be degage and integrated into Apple’s platforms. MobileMe should act handle the â€Å"glue” that integrates the platforms and as a draw for users. Apple’s goal should be to get as many MobileMe users as possible. Once someone is jubilantly using MobileMe across their various devices, they are less likely to switch to a competitor’s product.\r\n'