Corporate Strategy Essay Example for Free

Corporate Strategy EssayIn Corporate Strategy, Collis and Montgomery explain there be two kinds of diversification conjugate and constrained. Companies using linked diversification enter new businesses when it relates in some way to another business they are already in (it is linked to it), but does not necessarily have any connection to their other businesses. If they are using constrained diversification, however, they only enter a new business if it is based on their nerve center resources or competencies. Companies based on linked diversification have little coherence to their over any collective outline, while companies using constrained diversification tend to be more focused. Constrained diversification allows companies to maximise the effect of their resources because they are shared (100).Apple uses constrained diversification. Apple is, inherently, a personal computer follow (hardware and software), and their businesses utilize their competencies in developing ha rdware 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, Apples operating system. This creates economies of scope, which, Collis and Montgomery point out, create cost nest egg for the company because their resources are shared across treble businesses (72).Rather than just have related businesses, though, distributively business is a focused curriculum with no extraneous products or product types. The Macintosh, for example, consists of two kinds ground and notebook. These separate product lines to each one share resources and complement each other. The iMac and MacBook Pro are both chiefly constructed from aluminum and glass, so not only do they share the same materials (which reduces costs), but they resemble each other, creating unity between product lines.Each platform, too, complements the other. Apples Macintosh compute rs sync their media and personal data (calendar, contacts, email) seamlessly with the other platforms. Because they work so well together, owning products from each platform benefits users by creating an experience where their devices just work.The platform advantage does not apply just to Apples devices. Through iTunes, users can purchase music, movies and television system shows that syncs across all of their devices, or even do so from their iPhone or iPad. The App Store allows users to download applications for their iPhones and iPads wheresoever they are, and now the iBook Store, released in April, will allow them to do the same with books.Because Apple has chosen what businesses to enter carefully, these platforms repay the others and make them more powerful. The sum is greater than the parts. This creates a complete package for consumers to choose, and it is difficult for competitors to match. Their platform outline makes each individual business more valuable than it wou ld be as a separate entity.Their strategy can be improved, however. Currently, MobileMea service Apple offers that keeps contacts, calendar, and email in sync across multiple devices over the airis a premium service that costs $99 per year. This is the wrong approach. Rather than a premium service, MobileMe should be free and integrated into Apples platforms. MobileMe should act like the glue that integrates the platforms and as a draw for users. Apples goal should be to get as many MobileMe users as possible. Once someone is happily using MobileMe across their various devices, they are less likely to commutation to a competitors product.