Analysis of Diversification strategy of Apple Inc

Abstract

In order to study how Apple can quickly improve its own advantages and become a leader in the digital realm, this paper analyzes the different stages of Apple’s diversified products and services as well as its diversified strategy, it is found that the external causes of Apple’s diversification are strategic industry transfer, scope economic benefit, tactical development, tax advantage and the influence of government anti-monopoly measures.The internal motivation of Apple’s diversification is to make full use of the remaining resources, to spread the risk, to reduce the gap between the target and the transaction cost./nThe role of Apple’s diversification strategy: one is to spread risk, improve operational security. The second is to help Apple move into promising new industries. Third, it is conducive to promoting the development of Apple’s original business, to achieve synergy./nIn this paper, the case of Cook Cook’s acquisition of Didi horizontal expansion of the company’s business, the analysis is to reduce management risk, improve compensation and benefits for the diversification of motivation./nThrough the analysis of the internal and external environment, we can see that the diversification strategy implemented by Apple can be adapted to the resources, core competitiveness and the opportunities and threats in the national system and competitive environment, this gives Apple a strategic advantage.