Apple strategic management study casePresentation Transcript
Apple Inc. Strategic Management Case Study Apple Now: Revenue: US$ 65.23 billion. Operating income: US$ 18.39 billion. Profit: US$ 14.01 billion. Total assets:US$ 75.2 billion. Total equity:US$ 47.79 billion. Employees:49,400 employers. Team Members
Mahmoud M. Ramadan
Ahmed Ezz El-Din Arafa
Instructor/ Mr. Omar Shawky
AGENDA Company profile. History Corporate Culture … The Incredible “Steve Jobs” Mission, Business Philosophy and Vision. Environmental & Industry scanning PEST Porter’s 5 Forces Value Chain Analysis SWOT Hierarchy of Strategy Corporate analysis Business analysis Life cycle BCG Matrix Recommendations
Company Profile History Apple Inc. (Previously Apple Computer, Inc.) is an American multinational corporation that designs and markets consumer electronics, computer software, and personal computers. The company's best-known hardware products include the Macintosh line of computers, the iPod, the iPhone and the iPad. Apple software includes:
The Mac OS X operating system
The iTunes media browser
The iLife suite of multimedia and creativity software
The iWork suite of productivity software
Aperture, a professional photography package
Final Cut Studio, a suite of professional audio and film-industry software products
Logic Studio, a suite of music production tools
The Safari internet browser
iOS, a mobile operating system.
As of August 2010, the company operates 301 retail stores in ten countries,and an online store where hardware and software products are sold. As of May 2011, Apple is one of the largest companies in the world and the most valuable technology company in the world, having surpassed Microsoft.
Company Profile Time Line Of Apple Products
Company Profile Corporate Culture Apple was one of several highly successful companies founded in the 1970’s that bucked the traditional notions of what a corporate culture should look like in organizational hierarchy (flat versus tall, casual versus formal attire, etc.). Originally, the company stood in opposition to staid competitors like IBM by default, thanks to the influence of its founders; Steve Jobs often walked around the office barefoot even after Apple was a Fortune 500 company. By the time of the"1984" TV ad, this trait had become a key way the company attempts to differentiate itself from its competitors. Steve Jobs Steven Paul "Steve" Jobs (born February 24, 1955) is an American business magnate and inventor. He is the co-founder and chief executive officer of Apple Inc.Jobs also previously served as chief executive of Pixar Animation Studios; he became a member of the board of directors of The Walt Disney Company in 2006, following the acquisition of Pixar by Disney. He was credited in the 1995 movie Toy Story as an executive producer.
Vision / Mission Vision
“To be the most admired company in the world and the most loveable brand people ever use”
“Every person around the global should taste at least 1 apple product”
We believe that we're on the face of the Earth to make great products.
We believe in the simple, not the complex.
We believe in saying NO to thousands of projects so that we can really focus on the few that are truly important and meaningful to us.
We don't settle for anything less than excellence.
Vision / Mission Mission Apple is committed to bring the best personal computing experience to students, educators, creative professionals, and consumers around the world through its innovative hardware, software, and Internet offerings. Apple Computer is committed to protecting the environment, health and safety of our employees, customers and the global communities 'where we operate. Apple strives for continuous improvement in Our environmental, health and safety management systems and in the environmental quality of our products, processes and services Apply recycling programs:- Once an Apple product reaches the end of its useful life (assumes a seven-year product lifetime), we will help you recycle it responsibly
Environmental Scanning PEST Analysis Assuming Apple Inc. is scanning Egyptian Environment for opening a software development office at Egypt in Smart Village. The Main purpose of this office is to deliver the required Arabic support for its software & hardware products; not only in Egypt but to the Middle East area and Gulf sector.
PEST Analysis Political-Legal Forces
Since Apple Inc. is one of the leading companies in the world, it has the best trust ship for all the countries and societies around the global. And Egyptian Government is encouraging the technology investments right now.
Tax's Laws in Egypt towards the electrics and computers products is well known and law. 20% after 5 years permission.
Foreign Trade Lows in Egypt is very compostable in software industry.
Customs Regulations legality is highly supported by Egyptian laws.
PEST Analysis Economic Forces
Money Supply and Banks are available in Egypt specially for a world 500-Global company in the information technology & electronics sector.
Wages rates and salaries in Egypt are low comparing with other MIDDLE EAST countries. Plus, the Egyptian IT employment is promising.
Energy Costs & Availability in Egypt.
PEST Analysis Socio-Cultural Forces
Life Style Changes.
Population growth rate.
Age distribution which encourage people to use high quality products.
PEST Analysis Technological Forces
Industry spending on R&D.
Availability of certain Technology need to improve productivity by promoting Apple Software and Hardware products for Small-to-Medium size tech. companies & professionals.
Industry Analysis Porter’s 5 Forces
Industry Analysis Porter’s 5 Forces (In General)
Industry Analysis Porter’s 5 Forces (For PC Market Only, the first life cycle)
Company Analysis Value Chain Analysis Technology and Product Design: This Component is the true core of Apple’s Capability. The learning and innovation in technology in its products has led Apple to leverage its expertise in iPod, iPhone, iTunes and iWorks suite of products. Over due course of time, Apple has been able to perfect the chain of activities in innovation. Followed By, Marketing & Advertising >>>> Customer Service Center Of Gravity
The Key Element in the Apple Value Chain Analysis is the R&D section.
SWOT Analysis SWOT Analysis
Partnership with Intel Computers
Apple Computers has the strongest
iTunes Music Store is a excellent
source of revenue.
The product life cycle of Apple
products are very small.
Weak presence at enterprises &
governmental business arena.
Apples market share is far
behind from other compotators. Strengths Weaknesses
The switching in technology is
Microsoft launched Microsoft Vista,
Windows 7 which is gaining market share.
Apple software and hardware are
expensive as compared to other competitors such as Dell.
The laptop & consumer electronics
market growth is high.
Downloadable music and MP3
Players are highly marketable.
Increase in worms and viruses on
PC so the antivirus solution can be developed by Apple. Threats Opportunities
Strategy Corporate Strategy Growth is the main corporate strategy with the following integration models
Horizontal Integration: Via New Products and new areas of creativity. Also via hitting new regions and countries.
Vertical Integration: Via direct contacting with the end customer either online through the online Apple Store (iTunes) or through the 300+ Retail Apple store which introduce a very luxuries customer care & support.
Apple Retail stores – world wide
Strategy Business Strategy Apple Is Competitive to the Edge.
Apple Competes with Microsoft in Operating systems and software.
Apple Competes with IBM, DELL and HP in Personal Computers and Laptops
Apple Competes with Adobe in Multimedia Software Applications.
Apple Competes with HTC, Nokia, Samsung, Sony and Google in Smart Phones and Small Personal Computers (I PAD).
Apple Competes with Retails Stores as well as Online Multimedia contents resellers.
Apple is Maintaining the Specialty in the highest level of it while its products is in a high cost average.
If we want to describe Apple as a company, it’s the strongest competitor ever in Information Technology.
Strategy Business Strategy – Company Life Cycle Apple has 2 main stream life cycles as Follow
Apple Computers Inc. (1976 – 2007) : the company was producing personal computers as well as software totally compatible with it.
Apple Inc. (2007 – Now) : the company started a new business line focusing on the consumer electronic devices such as iPod, iPhone, Apple TV, iBook, iPad...etc.
Strategy Apple Computers Inc. Life Cycle For these 30 years, the company started as an idea for a 5 years of a question mark. Then started to go away into the sky as a star, they made up their base customer base, their revenue getting into a stability then started lately to decline a bit. They are a nice Cash Cownow. Apple Inc. Life Cycle For these last 5 years, the consumer electronics line of business went fast from a question mark into a BIG HUGE Star. This line of business is in Growth phase currently.
Recommendations Apple should start thinking of hitting other regions such as growing countries. And to start a wider marketing plan to reach every in order to achieve the last objective for Apple’s vision.