(Corporate) Product Selection & Strategy Formulation Essay

(Corporate) Product Selection & Strategy Formulation - Essay Example Apple Inc is even enjoying the overwhelming performance in the technology industry is associated with the continuous success and dominance (Abraham 2012). In corporate strategy there are two types of diversification which are: linked and constrained. Companies that use linked diversification enter new business when they are linked with other business they are already operating, if they use constrained diversification, they enter only in new business if it is based on core resources. Apple uses the constrained diversification, Apple is a personal computer company and its business utilizes its core resources in developing the hardware and software such as, iPod, iPad, iPhone, and Apple TV that allows the Apple to share its resources among the business. This even creates the economics of scope, and that create cost savings for Apple Inc., as their resources are shared across all the multiple businesses. Apple follows two strategies which are: Growth Strategy and Stability strategy (Abraham 2012). As the company has not reached to the optimum performance; therefore, there is a requirement for reaching at the optimum performance, this helps the company in expanding its profits, and market share, sales, and market coverage and product mix among the other accounting variables and market. Some of the other strategies utilized for enhancing eth growth include the market penetration enhancement in order to ensure the provision of efficient services. Another growth strategy of the Company is vertical integration, which is an efficient strategy for enhancing the growth, in that Apple Inc., takes activities which are performed by its suppliers or business in its distribution or channel. Diversification strategy is also used by the company in taking effective move for enhancing the growth; in this case the company must use the potential business ventures for enhancing its operations. The