Apple Inc.
Upcoming SlideShare
Loading in...5
×

Like this? Share it with your network

Share

Apple Inc.

  • 2,204 views
Uploaded on

Strategic Management case study.

Strategic Management case study.

More in: Technology , Business
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
No Downloads

Views

Total Views
2,204
On Slideshare
2,203
From Embeds
1
Number of Embeds
1

Actions

Shares
Downloads
116
Comments
0
Likes
1

Embeds 1

https://twitter.com 1

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1.  Case Study: Apple Inc. Lujain Aisha Sakira Farida Maryam Khadijah Aida Safiza
  • 2. Introduction Steve Wozniak and Steve Jobs dropped out of college in 1976 and established Apple. Steve Wozniak found a way to make long- distance phone calls from building boxes. Apple I, Apple 2e, Apple 2c, iPod, iPad. Operates 233 stores in the USA and 84 stores internationally.
  • 3. Mission Statement (Actual) Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with .the Macintosh. Today ,Apple Inc continues to lead the industry in Innovation with its award-winning computers, Os X operating system and I life a professional applications. Apple Inc. is also spearing the digital media revolution with its IPod portable music video players and ITunes online store and has entered the mobile phone market with its revolutionary I phone.
  • 4. Vision Statement (Actual) + = “An Apple computer on every desk”. Steve Jobs “Don’t follow you customers; lead them”. “Temper engineering with art”. “Clear your mind and think different”.
  • 5. Vision Statement Actual (Cont.) Environmental values: “Communicate environmental, health, and safety policy and programs to Apple employees and stakeholders”. Design manage, and operate our facilities to maximize safety promote energy efficiency and protect the environment.
  • 6. Proposed mission statement Apple will continue to provide revolutionary and innovative products (4) to the customer electronics industry (1) by meeting their expectation of high quality products such as the iPhone and iPad (2). We will also make every effort to give back to the society by providing best in class service and support (7); recognize our responsibility to the global citizen (8) and to our employees (9); strive to reduce the environmental impact of the work we do and the products we create. Proposed vision statement To be the global leader in the consumer electronic industry. Mission & Vision (Proposed)
  • 7. The 5-Forces Model of Competition Rivalry Among Competing Firms • Competitors- Dell,HP, Microsoft • Disadvantages as a first mover • Others competitors also offer wide range of products • Do not offers other services Potential Entry Of New Competitors • Forces that shape competitive structure • Lead entrance of many competitors • High brand recognition
  • 8. Potential Development Of Substitute Products • E.g- HP, DELL, HTC • Produce own substitute • Switching cost decreased due to cheaper price offered by other competitors. Bargaining Power Of Suppliers • Determine by number of suppliers • Suppliers have more bargaining powers • Backward integration Bargaining Power Of Consumers • Developed high brand loyalty • Target customers who emphasize on quality
  • 9. Competitive Profile Matrix (CPM) APPLE’S HP DELL Critical Success Factors Weight Rating Score Rating Score Rating Score Market share 0.10 3 0.30 2 0.20 3 0.30 Price 0.10 4 0.40 3 0.30 3 0.30 Financial position 0.15 4 0.60 3 0.45 3 0.45 Product quality 0.15 4 0.60 3 0.45 3 0.45 Customer loyalty 0.15 4 0.60 4 0.60 3 0.45 Advertising 0.04 3 0.12 2 0.08 3 0.12 Management 0.08 4 0.32 3 0.24 3 0.24 Global Expansion 0.08 3 0.24 2 0.16 3 0.24 Innovation 0.14 4 0.56 2 0.28 2 0.28 Web Development 0.05 3 0.15 2 0.10 3 0.15 Total 1.00 3.89 2.86 2.98
  • 10. IFE Matrix
  • 11. EFE Matrix
  • 12. SWOTAnalysis STRENTGHS 1.First mover of innovative products. 2.No long-term debt. 3.Superior operating system, not as vulnerable to virus attack. 4.Strong quarterly rev growth of 82.7% exceeding industry’s average of 24.3%. 5.Procure deals with major music labels. 6.Store formats adapt to the demand in that specific market. 7.Employed knowledge workers to provide prod advice, service and training. WEAKNESSES 1.Its operating system is only available in Apple products. 2.Mac software has limited share of the market. 3.Products are limited to technology hardware and software. 4.Low sales volume via website. OPPORTUNITIES 1.Greater sales growth percentage in America compare to Europe. 2.Greater profit in Europe compare to America. 3.Highest revenue generating product is the iPhone. 4.Microsoft OS is more vulnerable to virus. 5.Annual growth in revenue in Europe and Asia Pacific more than 50%. 6.Increasing number of users using the internet. THREATS 1.Dell utilizes JIT, internet, advantage in quality control, use direct sales. 2.Microsoft OS is available in all computers, provides consulting services and business application. 3.Financial risks of being a first mover. 4.Replication of products/ illegal file sharing sites. 5.Virus threats. 6.Low demand for fee-based music services/uncertainties in demands of new products.
  • 13. SO Strategies: Stock new products to Europe and Asia the same time as in America (S1 O6) Constant R&D to protect OS from viruses (S3 O4) WO Strategies: Priced at competitive prices in its top market (W2 O6) SWOT Analysis (Cont.)
  • 14. SWOT Analysis (Cont.) ST Strategies: Release new products to Europe and Asia Pacific the same time it is released in America (S1 T1) Develop 1 product for business application and test it out (S1 T2) Conduct market research to mitigate financial risks (S2 T3) Introduce 1 legal department to collect damages in infringed on patents (S1 T4) Provide good after-sale services to entertain customer complaints (S1 T6) WT Strategies: Create accessibility to stores
  • 15. Commercial Break
  • 16. Positioning Map High Price – expensive High Quality Low Low Smartphone's
  • 17. Positioning Map (Cont.) High Price – expensive High Quality Low Low Laptop’s Tablet’s
  • 18. SPACE Matrix 5.50-4.00 5.00 6.00 5.00 6.00 Growth potential Profit potential Financial stability Ease of entry into market Average industry position -5.00 -4.00 -4.00 -3.00 Product quality Customer loyalty Technological know-how Control over suppliers and distributors Average competitive position Industry Position (IP)Competitive Position (CP) -3.005.50 -2.00 -3.00 -3.00 -4.00 Technological change Price range of competing products Competitive pressure Barriers to entry into market Average stability position 6.00 5.00 5.00 6.00 Increment in net sales Increment in earnings per share Return on assets Revenue Average financial position Stability Position (SP)Financial Position (FP) 5.50-4.00 5.00 6.00 5.00 6.00 Growth potential Profit potential Financial stability Ease of entry into market Average industry position -5.00 -4.00 -4.00 -3.00 Product quality Customer loyalty Technological know-how Control over suppliers and distributors Average competitive position Industry Position (IP)Competitive Position (CP) -3.005.50 -2.00 -3.00 -3.00 -4.00 Technological change Price range of competing products Competitive pressure Barriers to entry into market Average stability position 6.00 5.00 5.00 6.00 Increment in net sales Increment in earnings per share Return on assets Revenue Average financial position Stability Position (SP)Financial Position (FP)
  • 19. SPACE Matrix (Cont.)  Conclusion:  Directional Vector Coordinates: x-axis (CP + IP): -4.00 + (+5.50) = 1.50 y-axis (FP + SP): +5.50 + (-3.00) = 2.50  Apple should pursue aggressive strategies.
  • 20. CompetitiveDefensive AggressiveConservative CompetitiveDefensive AggressiveConservative 1 2 3 4 5 6 7-7 -6 -5 -4 -3 -2 -1 -1 -2 -7 -6 -5 -4 -3 7 6 1 2 3 4 5 (1.50, 2.50) SPACE Matrix (Cont.)
  • 21. Grand Strategy MatrixWEAKCOMPETITIVEPOSITION STRONGCOMPETITIVEPOSITION SLOW MARKET GROWTH RAPID MARKET GROWTH Quadrant IVQuadrant III Quadrant I 1. Market penetration 2. Product development Quadrant II Quadrant IVQuadrant III Quadrant I 1. Market penetration 2. Product development Quadrant II
  • 22. EFESCORES IFE SCORES STRONG 3-4 AVERAGE 2-2.99 WEAK 1-1.99 HIGH 3-4 I II III MEDIUM 2-2.99 IV V VI LOW 1-1.99 VII VIII IX The IE Matrix
  • 23. Liquidity Ratios Current Ratio 0 0.5 1 1.5 2 2.5 3 2009 2010 2011 2012 Current Ratio for Apple Current Ratio for HP Current Ratio for Dell
  • 24. 0 0.5 1 1.5 2 2.5 3 2009 2010 2011 2012 Quick Ratio for Apple Quick Ratio for HP Quick Ratio for Dell Liquidity Ratios Quick Ratio
  • 25. 0 5 10 15 20 25 30 35 2009 2010 2011 2012 Fixed Assets Turnover for Apple Fixed Assets Turnover for HP Fixed Assets Turnover for Dell Activity Ratios Fixed Assets Turnover
  • 26. 0 0.5 1 1.5 2 2.5 2009 2010 2011 2012 Total assets turnover for Apple Total assets Turnover for HP Total Assets Turnover for Dell Activity Ratios Total Assets Turnover
  • 27. -15 -10 -5 0 5 10 15 20 25 30 2009 2010 2011 2012 Net Profit Margin for Apple Net Profit Margin for HP Net Profit Margin for Dell Profitability Ratios Net Profit Margin
  • 28. -15 -10 -5 0 5 10 15 20 25 30 35 2009 2010 2011 2012 Return on Total Assets for Apple Return on Total Assets for HP Return on Total Assets for Dell Profitability Ratios Return on Total Assets
  • 29. Quantitative Strategic Planning Matrix (QSPM)
  • 30. STRATEGIC ALTERNATIVE Key Factors Market Penetration Product Development Weight Attractiveness Score (AS) Total Attractiveness Score (TAS) Attractiveness Score (AS) Total Attractiveness Score (TAS) Strengths First mover of innovative products 0.09 4 0.36 4 0.36 No Long-term debt 0.11 3 0.33 4 0.44 Superior operating system 0.06 4 0.24 3 0.18 Strong quarterly revenue growth 0.15 3 0.45 3 0.45 Procure deals with major music label 0.10 3 0.30 4 0.40 Store formats adapt to the demand 0.09 3 0.27 4 0.36 Employed knowledge workers 0.09 3 0.27 4 0.36 Weaknesses Its OS only available in Apple products 0.05 2 0.10 1 0.05 Limited to technology hardware & software 0.07 2 0.14 2 0.14 Mac Software has limited share of the market 0.09 1 0.09 2 0.18 Low sales volume via website 0.10 1 0.10 2 0.20 Subtotal 1.0 2.65 3.18
  • 31. Opportunities Greater sales growth percentage in America 0.15 4 0.6 3 0.45 Greater profit in Europe 0.10 3 0.30 4 0.40 Highest revenue generating product 0.13 3 0.09 4 0.12 Microsoft OS more vulnerable to virus 0.05 2 0.10 3 0.15 Annual growth in revenue In Europe and Asia Pacific 0.09 4 0.36 3 0.27 Increasing number of user using the internet 0.05 2 0.10 4 0.20 Threats Dell utilizes JIT, Internet, advantage of quality control, use direct selling 0.13 4 0.52 3 0.39 Microsoft OS is available in all computers 0.05 2 0.10 3 0.45 Financial risk of being first mover 0.07 2 0.14 3 0.21 Replication of products/ illegal file sharing sites 0.10 3 0.30 2 0.10 Virus threats 0.03 3 0.09 2 0.06 Low demand for fee based music services/ uncertainties in demands of new products 0.05 3 0.15 2 0.10 Subtotal 1.00 2.85 2.90 Total 5.50 6.08
  • 32. Recommendations & Justifications Apple’s products are of high quality and high price, the company needs to continually innovate and come up with new products to defeat its competitors. The company needs to improve its website sale system to create convenience for its customers. Apple has the fast mover advantage, hence they need to continue with that spirit.
  • 33. Islamic Perspective Islamic view of fair trade includes transparent management and relations that aim to promote fairness and respect between trading partners. Muslims are encouraged to participate in markets with a consciousness of God in mind; they are required to be just and help their brothers and sisters provide for themselves. Muslims are able to take a positive measure to avoid unfair competition if they take into account the teaching of Islam and abstain from the prohibition of Allah. Allah stated in the Qur’an: “God loves those who are fair and just” (Qur’an, 49:9). According to the Prophet (p.b.u.h.), “the best earnings are from a blessed sale and the product of a man’s own hands.” A sale would not be considered to be a “blessed one” if it has an element of deception or cheating of any sort in it; the character of a Muslim trader must be upheld at all times.
  • 34. The End “Being the richest man in the cemetery doesn't matter to me. Going to bed at night saying we’ve done something wonderful … that’s what matters to me.” Steve Jobs