Corporate Strategy Essay

In Corporate Strategy, Collis and Montgomery explain there atomic number 18 two kinds of diversificationlinked and constrained. Companies using linked diversification insert new businesses when it relates in some way to a nonher business they ar already in (it is linked to it), but does not necessarily go for any connection to their other businesses. If they ar using constrained diversification, however, they except enter a new business if it is based on their lens nucleus resources or competencies. Companies based on linked diversification have exact coherence to their overall corporate strategy, while companies using constrained diversification tend to be more than center. Constrained diversification allows companies to maximize the progeny of their resources because they are shared (100).Apple uses constrained diversification. Apple is, inherently, a ain computer company (hardware and software), and their businesses utilize their competencies in developing hardware an d 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 comprise savings for the company because their resources are shared across multiple businesses (72). earlier than just have related businesses, though, individually business is a focused platform with no extraneous products or product types. The Macintosh, for example, consists of two kinds background knowledge and notebook. These separate product lines each share resources and complement each other. The iMac and MacBook master are both primarily constructed from aluminum and glass, so not alone do they share the same materials (which reduces costs), but they resemble each other, creating haleness between product lines.Each platform, too, complements the other. Apples Macintos h computers sethronize 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 erect purchase music, movies and television 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 wherever they are, and now the iBook Store, released in April, get out allow them to do the same with books.Because Apple has chosen what businesses to enter carefully, these platforms fortify the others and make them more powerful. The sum is greater than the parts. This creates a complete software product for consumers to choose, and it is difficult for competitors to match. Their platform strategy makes each individual business more valuable than it would be as a separate entity.Their strategy can be improved, however. Currently, MobileMea dish up 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 gingiva 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 shake off to a competitors product.