This document provides an overview of Apple Inc.'s business strategy presentation from February 2012. It discusses the importance of strategy, Apple's mission and vision, an analysis of Apple's external environment, industry, SWOT analysis, value chain, and long-term objectives. Apple's mission is to bring the best personal computing experience to users through innovative hardware, software and offerings, with a vision of being a leading innovator of new technologies that change daily life.

1. Apple, Inc.
Business Strategy Presentation
Feb, 12 2012
Lalatendu Bishoyi
Shweta Banka

2. Is Strategy Important ?
Without a strategy, an organization is like a
ship without a rudder, going around in
circles. It’s like a tramp; it has no place to
go.
- Joel Ross and Michael Kami

3. Have faith in future

4. Executive Summary

5. Apple Inc – The Company

6. Apple Profile
Products: Mac and Industry:
accessories, Apple  Key Players:
TV, Software, iPad,  Dell, HP
iPod, iPhone  Samsung, BlackBerry
 Microsoft
Markets: High-end,
technology-savvy  Keys to success:
users  Innovation
Revenue: $108.3  Quality support services
billion in 2011

7. Apple’s Mission & Vision
Mission: Apple is Vision: To be a
committed to bringing the leading innovator of
best personal computing
new technologies that
experience to students,
educators, creative change the way people
professionals and go about their daily
consumers globally Life
through innovative
hardware, software and
internet offerings.

8. Mission Statement Evaluation Matrix
Concern for
Survival,
Products Growth,
Organization Customers Services Markets Profitability Technology
Apple Inc Yes Yes Yes No Yes
Self- Concern for Concern for
Philosophy Concept Public Image Employees
No Yes No No

9. External Environment

10. Operating Environment
Economic Factors
 Intense growth – dependent on machines
 Demand for product services & support
Social Factors
 Wireless communication
 Powerful & portable devices
Political Factors
 Copyrights protection
Technological Factors
 Continuously changing products
Competitive Factors
 Strong rivalries among top competitors
Summary
 Product support services
 Powerful & portable devices

11. Industry Analysis

12. Porter’s Five Force’s Model

13. EXISTING RIVALRY
Windows OS and media player for playing
music and video ( Microsoft)
Competition to Mac OS X (Linux)
Alternate sources of computer hardware
(Dell, HP, Lenovo)
Small stylish MP3 players (Creative,
Samsung)
Phones (Samsung, BlackBerry)

14. THREAT OF NEW ENTRANTS
Software for mobile devices (Google,
Microsoft)
Streaming audio and video with v-cast
(Verizon)
On demand online services (similar to i-
tunes)
New entrants with disruptive technology
(Boxee)

15. BARGAINING POWER OF SUPPLIERS
Suppliers of processors and computer
memory(Motorola, IBM, Intel)
Strategic alliance/supplier of Mac
(Microsoft)
Supplier of TV and movies (Disney, ABC,
Fox, Sony)
Flash Memory for iPhone & iPad
(Samsung)

16. BARGAINING POWER OF CUSTOMERS
Customers share music using peer-to-peer
networks without paying for music (Ares,
Limewire)
Retailers may pressure for lower prices or
better terms(Distributors)
Consumers/Businesses may reduce
spending on computers if they fear
economic downturns (Consumer Attitudes
& Behaviors)

17. THREAT FROM SUBSTITUTES
Satellite radio for music (XM, Sirius)
Entertainment media, media and music
(XBOX, PS2)
Alternative means to acquire music (Music
CDs, DVDs, free download)
Alternative to Mac, iPhones (Tablet)

18. SWOT Analysis

19. Strengths
54% of Apple Profits are in foreign markets
High Quality Products
Brand Name
Innovation
Product Diversification
Easy use product (‡Attractive, Small, Light)
Control over the product by manufacturing
both hardware and their OS

20. Weaknesses
High Price
Poor leadership
Internal engineering focus rather than a
market focus
No Dividends
The product life cycle are very small for
that reasons revenues are more depend on
launch of new products and services.

21. Opportunity
Enlarge target market with new product
Integration with other products
 Strategic Alliances with leading
communication firms
The use of Intel chips
Good relationship with other companies for
joint ventures

22. Threats
‡ High level of competition in the
technology market
High product substitution effects
The switching in technology is very fast.
 Forward integration

23. Value Chain Analysis

24. Value Chain Analysis
Primary Activities:
 Technology Development
 Research & development leading to product and process
innovations, timeliness of technology developments,
encourage creativity
 Operations
 Product design, productivity of equipment, effective
quality control systems
 Marketing and Sales
 Identify customer segments, innovate sales &
advertising, image of quality, favorable reputation, brand
loyalty
 Service
 Ability to provide replacement parts or tech support,
warranty/guarantee, quality of customer education &
training

25. Value Chain Analysis
Supporting Activities:
 General Administration:
 Identify new-product market opportunities &
environmental threats, public image & corporate
citizenship
 Human Resource Management
 Recruit, train, motivate, challenge, and promote the
most talented employees
 Procurement
 Good relationship with suppliers,

26. Long Term Objective & Strategy

27. Long Term Objective
Technological Leadership
 Product Development
 Quality Support Services
 Innovation
Grand Strategies
 Concentrated Growth
 Concentric Diversification
 Strategic Alliances
 Apple after Steve