Global Benchmarking Plan: Apple

Global Benchmarking Plan: Apple
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Introduction
Benchmarking relates to setting standards so as to compare results based on the business strategies, and aimed at improving business performance. Benchmarking results in improving the efficiency and effectiveness of performance with the outcome measured against targets. Benchmarking practices not only focus on setting objectives and budgeting, but also process improvements, since organizations go beyond internal analytics (Shapiro, 2013). Learning from others is one of the strategies to improve performance and goes beyond financial information to overall performance of an organization. Global benchmarking focuses on performance evaluation based on geographical reach at the global scale. This paper looks into the global benchmarking plan of Apple as they sell new cell phones.
Strengths
Apple Inc needs to build upon strengths including the strong demand for iPhone and iTunes, which have registered strong demand in the financial year 2013 (Apple, 2015). There was increased revenue from the sale of iPhone, iPad and iTunes, meaning that the company is well placed to perform well in the new markets (Apple, 2015). At the same time, the company has a leading market position in the Smartphone and tablet market segment (Apple, 2015). A strong market presence gives the company a competitive edge and combined with research and innovation there are opportunities for the company to build strength. The new cell phones will integrate unique features that are the result of innovative technology.
Core competencies
Vertical integration is an important element to the success of Apple Inc in the phone market, enabling the company to control the most essential components of the chain. Innovative technology is an important element to the success of Apple, given the need for company to wow consumers. Nowadays, cell phone manufacturers have core competencies focusing on software, captive retail and substantial cash reserves, which all help to build a competitive advantage (Duncan 2009). As such, the company has its own designs for the hardware, it develops its own software, and it also offers services for various products including apple stores while it also a retail company (Vergara, 2013). Integrating the four elements has meant that the company has a competitive advantage compared to its competitors, who have to rely on other suppliers or companies to provide them with applications, operating system and hardware. In any case, the consumers get unique retail experience since the company has its own outlet stores (Vergara, 2013).
Key business processes
Organizations that integrate systems with people gain capabilities as they are better placed to effect changes in the existing business processes (Chang, 2005). Typically, organizations have different key business processes including fulfillment, procurement and production, but the processes are executed differently in most organizations. In the case of Apple the need for outsourcing has played an important role in procurement. The company relies on the capability of suppliers while focusing on what the consumer wants and what the maker ought to do. This facilitates vertical integration based on the notion that the cooperation integration of different businesses processes allows the company to respond to high competition in the cell phone market. The product innovation strategy for Apple creates value with the company placing importance on designing and innovation as this support the business strategy.
Critical success factors
One of the factors that have made the Apple products successful is that there is integration of hardware with the software applications. Running the various apps that are unique to Apple cell phone differentiates the products from the competitors. In any case, buying one Apple products increase the likelihood that one would but other Apple products. For customers, the differences between the various Apple products are their function, while the products share functionality as well as information, while it is easier to update the customers about the plug-ins. Hence the main critical success factors are:
Advanced and flexible cell phone designs
Delivery time
Delivery precision through outlets Price
Product design and looks
Ease in maintenance
In order to determine the processes then there is a need to have production planning, component manufacturing, component purchasing, and assembly of components product development as well as design.
The company’s cell phones will still rely on retail outlets to sell the stores. The retail strategy has enabled the company to distinguish itself from the competitors where customers get customized services. Focusing on both location and priority are the factors that have improved the company’s sales growth. Through providing an avenue for repairs and support, the Apple outlets control retail experience without compromising the core values of Apple. The way consumers buy products and experience retail highlight that the cell phone will focus on their advantages. Customers prefer stores as they influence conversations with existing and potential customers. In any case, the future needs of customers are of paramount importance for customers to continually purchase Apple cell phones.
Plan of Action
Even though, there have been declining sales of the iPad, and the benchmarking plan seeks to focus on strategies that will increase visibility and sales. In the first quarter of 2015, Samsung sold more smartphones compared to Apple in terms of volume, and although the market share for the company was lower it was still better compared to Apple (Benchmarkmonitor, 2015). One of the challenges has been the pricing strategy that has mostly used on Apple products as premium goods meaning that as people buy the products there is falling interest in purchasing ...