Apple inc. document

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Glossary
 Company Profile …………………………………………………………………………….Page2
 SWOT…………………………………………………………………………………………….Page10
 Objective& Strategies ……………………………………………………………………Page 15
 SWOTStrategies / Matching Phase……………………………………………....Page21

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Apple Inc. Company Profile
Introduction
Apple Inc., formerly Apple Computer, Inc., American manufacturer of personal computers,
computer peripherals, and computer software. It was the first successful personal computer
company and the popularizer of the graphical user interface. Headquarters are located in
Cupertino, California.
The Birth of Apple, Inc.
Started out as an idea of one man. This man was Steve Jobs. Jobs and his friend, Steve
Wozniak, weretwo high schooldrop outs living in the Silicon Valley with extremely innovative
and intelligent minds (Santa Clara Historical Society, 2012). Thepair teamed up, while working
for Hewlett Packard, to start Apple, Inc. fromthe basement of Jobs’ home (Santa Clara
HistoricalSociety, 2012). Thepair created the first Apple computer on April 1, 1976 (Santa
Clara HistoricalSociety, 2012). Therest, as they say, is history. The creation of that first
computer—and subsequently the birth of Steve Jobs’ brain child-- is whatstarted Jobs and
Wozniak on the path that has now revolutionized the way that many people all over the world
use a computer, search the internet, listen to music, and even talk on the phone. Apple, Inc. is
the perfect example of how a dreambecame a reality—one step at a time.
From birth to Innovative Success (A Brief History of Apple, Inc.)
Ron Wayne, Steve Wozniak, and Steve Jobs founded whatwould become Apple, Inc. in 1976;
however, soon after, Wayneleft the company (Santa Clara HistoricalSociety, 2012). Steve
Wozniak introduced and designed Apple’s firstcomputer, the Apple I, to Hewlett Packard (HP);
HP was notimpressed and chosenot to pursuethe venture (Doughtery, 2011).
Jobs and Wozniak did not let this deter them fromcontinuing to develop and sell their
computers. In 1978, theApple II was introduced and sales went from35,000 computers in
1979 to 78,000 computers in 1980(Doughtery,2011). Then, in 1980, thecompany (which
consisted of about 1,000 employees at the time) went public and the stock offering did well
(Santa Clara Historical Society, 2012). In the1980’s and early 1990’s, Appledid well in sales

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due to new versions of Macintosh and their new market, the office computers (Doughtery,
2011). In 1984, Applemadethe Macintosh computer; the Macintosh made sales of 70,000
units soon after it was made (The (Doughtery, 2011).
Shortly thereafter, there was a major power struggleamong executives. This power struggle
would lead to the departureof Jobs and some other executives (Santa Clara HistoricalSociety,
2012). Thecombination of sales success and departureof the company’s leaders found Apple
at a monetary loss in the mid 1990’s which can be directly linked to unfilled orders for the
Power Macintosh line of computers(Doughtery, 2011). In 1997,
Steve Jobs returned to Apple as an advisor when Apple, Inc. purchased his new company
NeXT, Inc. (Doughtery, 2011). Jobs then became CEO of Apple, Inc. and introduced the iMac,
which sold 800,000 units by 1998(Doughtery, 2011). Fromthatpoint on, the company did very
well. Jobs and Apple began introducing new, innovative products oneat a time; the iPod was
unveiled in 2001 and the iPhone in 2007(Doughtery, 2011).
In 2008, theiTunes storesold more music than Wal-Mart (who was the leading music provider
up to that point) and then the innovation continued with the introduction of the iPad in 2010
(Doughtery, 2011).
The growth of Apple, Inc’s music sales was in direct correlation to the fact that iPods sold 275
million worldwidebetween 2001 and 2010(Doughtery, 2011). Jobs was consistently rated the
no. 1 CEO due to the value he added to Apple by coming up with these new products and, at
this time, Apple, Inc. is considered the world’s bestcompany by many magazines (Doughtery,
2011). TheInnovativeSuccess thatis Apple, Inc. 2
On August 24, 2011 Apple’s Board of Directors today announced that Steve Jobs has resigned
as Chief Executive Officer, and the Board has named Tim Cook, previously Apple’s Chief
Operating Officer, as the company’s new CEO. Jobs has been elected Chairman of the Board
and Cook will join the Board, effective immediately.
On October 5, 2011 Appleannounced Steve Jobs’ death after years of fighting cancer.
2011–present: Post-Steve Jobs era; Tim Cook leadership
On October 5, 2011, after SteveJobs died, marking the end of an era for Apple. The firstmajor
productannouncement by Apple following Jobs’ passing occurred on January 19, 2012, when
Apple's Phil Schiller introduced iBook Textbooks for iOS and iBook Author for Mac OS X in New

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York City. Jobs had stated in his biography that he wanted to reinvent the textbook industry
and education
From 2011 to2012, Applereleased the iPhone 4S and iPhone 5, which featured improved
cameras, an intelligent softwareassistantnamed Siri, and cloud-sourced data with iCloud; the
third and fourth generation iPads, which featured Retina displays; and the iPad Mini, which
featured a 7.9-inch screen in contrastto the iPad's 9.7-inch screen. These launches were
successful, with the iPhone 5 (released September 21, 2012) becoming Apple's biggest iPhone
launch with over two million pre-orders and sales of three million iPads in three days following
the launch of the iPad Mini and fourth generation iPad (released November 3, 2012). Apple
also released a third-generation 13-inch MacBook Pro with a Retina display and new iMac and
Mac Mini computers.
On June 6, 2016, Forbes released their list of companies ranked on revenue generation. In the
trailing fiscal year, Apple appeared on the list as the top tech company. Itranked third, overall,
with $233 billion in revenue. This represents a movement upward of two spots fromthe
previous year's list.
On April 6, 2017, Applelaunched Clips, an app that allows iPad and iPhone users to make and
edit videos. The app provides a way to produceshortvideos to sharewith other users on the
Messages app, Instagram, Facebook and other socialnetworks. Applealso introduced Live
Titles for Clips that allows users to add live animated captions and titles using their voice.
In May 2017, Applerefreshed two of its website designs. Their public relations "ApplePress
Info" websitewas changed to an "Apple Newsroom" site, featuring a greater emphasis on
imagery and therefore lower information density, and combines press releases, news items,
and photos. Its "AppleLeadership" overview of company executives was also refreshed,
adding a simpler layout with a prominent header image and two-column text fields. 9to5Mac
noted the design similarities to severalof Apple's redesigned apps in iOS 10, particularly its
Apple Music and News software.

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Old Mission Statement: -
It was widely reported that a famous quote from Steve Jobs in the 1980's was the Apple
company mission statement:
"Man is the creator of change in this world. As such, he should be above systems and
structures, and not subordinate to them."
Current Mission&Vision:-
Apple, Inc.’s Vision
“We believe that we are on the face of the earth to make great products and that’s not
changing. We are constantly focusing on innovating. We believe in the simple not the complex.
We believe that weneed to own and control the primary technologies behind the products
that we make, and participate only in markets where wecan make a significant contribution.
We believe in saying no to thousands of projects, so that we can really focus on the few that
are truly importantand meaningful to us. We believe in deep collaboration and cross-
pollination of our groups, which allow us to innovate in a way that others cannot. And frankly,
we don’tsettle for anything less than excellence in every group in the company, and we have
the self-honesty to admit when we’rewrong and the courage to change. And I think regardless
of who is in what job those values are so embedded in this company that Apple will do
extremely well.’
Analysis: thevision is too long but it is clear that they are in technology but it is not clear what
is the exact technology, as they create phones and have software
Apple, Inc.’s mission
“Apple designs Macs, the best personalcomputers in the world, along with OS X, iLife, iWork
and professionalsoftware. Appleleads the digital music revolution with its iPods and iTunes
online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App
store, and is defining the future of mobile media and computing devices with iPad.”
Analysis: their mission statement is less than 250 words, itmentions it product and services,
the marketand technology

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CompetitiveHistory:-
Apple& Samsung
The Apple vs. Samsung patent battle may not be as exciting as the Cola wars, butit is so trouble
stirring that it screams ‘thermonuclearwar’ (SteveJobs words, notmine!). For over seven years
Apple and Samsunghavebeen at each other’sthroats in the constantstrugglefor a bigger piece
of the billion-dollar smartphone market. The lawsuit, one of the more than 50 Apple and
Samsung filed against one another in at least 20 countries, is among the world’s most closely
watched patent trials.
Samsung agrees to pay Apple $548 million.
Apple vs. Samsung Timeline: Where are we now?
During the week-long patent trial, jury sides with Apple and awards $5.3 million in damages for
violating three patent designs. Today’s ruling is a huge victory for Apple. Although, it’s worth
noting that Apple was originally seeking $1 billion in damages, and Samsung, however, wanted
to pay not a dime more than $28 million.
Apple vs. Samsung: Who Won?
In the Apple vs. Samsung timeline of patent wars, both the companies were found guilty of
infringing some of each other’s patents in the patent trial which began in 2011. WhileSamsung
didn’t have to pay the initial $1 billion amount in damages, it did face an overwhelming defeat.
Itis still deemed a copycatin a lot of aspects. And Apple, which was also found guilty of copying
some of Samsung’s patents, strongly believes the punishment is light.
Microsoft & Apple
The decades-long relationship between Apple and Microsoftis packed with ups and downs, but
it also shaped the evolution of personalcomputing. The companies have again cozied up to one
another, and this time they have a new endgame: enterprise.
Youthful innocence of the early '80s

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During the firstMacintosh's developmentand early years of production, Microsoftwas a critical
Apple ally. The software pioneer created important programs for Apple's PC in the early '80s.
"We had more people working on the Mac than [Jobs] did," Gates said of the early years,
according to Walter Isaacson's biography, Steve Jobs.
At an Apple event in 1983, Gates told attendees Microsoftexpected to earn half of its
revenues selling Macintosh softwarethe following year. And when Jobs asked Gates if he
thought Mac would become another standard in personalcomputing, Gates praised the
platform: "To create a new standard it takes something that's not justa little bit different, it
takes something that's really new and really captures people's attention. And the Macintosh,
of all the machines I'veseen, is the only one that meets that standard."
An awkward periodof harmony
When Apple acquired NeXT in 1997 and broughtSteve Jobs back into the fold, the company
was in disarray amid growing uncertainty about the future of MicrosoftOffice for Mac. During
his keynoteaddress at the Macworld Expo that year, Jobs extolled the virtues of partnering
with industry leaders and spokeof the need to improveApple's partner relations.
Jobs suggested Apple needed help fromothers and that destructiverelationships weren't
helping any tech companies. Then he announced a new pact between Apple and Microsoft,
which was received with a chorus of boos fromthe audience.
The previously unimaginable deal had many components, including a perpetual cross license
for all existing patents and patents issued during the next five years; IEbecame the default
browser on Mac; Microsoftsaid it would release Office for Mac for the next five years; and
Gates's company invested $150 million in Apple.
"Microsoftis going to be partof the game with us as werestore this company back to health,"
Jobs said beforeasking Gates to address the crowd via satellite. The "kumbaya moment"
continued when Gates told attendees that someof the mostexciting work of his career was
done with Jobs on the Mac.
"We think Apple makes a huge contribution to the computer industry," Gates said. "Wethink
it's going to be a lot of fun helping out."
When Gates finished and the attendees' collective blood pressuredropped, Jobs tried to frame
the deal in a way Mac users and Apple fans could appreciate. "We need all the help we can
get. If we screw up and we don't do a good job, it's not somebody else's fault, it's our fault,"
Jobs said. "I think if we wantMicrosoftOffice on the Mac we better treat the company that

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puts it out with a little bit of gratitude. We like their software. Theera of setting this up as a
competition between Apple and Microsoftis over as far as I'mconcerned."
However, history hinted at whatwas to come, as Apple inched toward dominance and
eventually overtook Microsoftin the computing market by 2010.
Products: -
1. IMac: Consumer all-in-onedesktop computer, introduced in 1998.
2. Mac Mini: Consumer sub-desktop computer, introduced in 2005.
3. MacBook: Consumer ultra-thin, ultra-portable notebook, introduced in 2006 and
relaunched in 2015.
4. MacBook Pro: Professionalnotebook, introduced in 2006.
5. Mac Pro: Workstation desktop computer, introduced in 2006.
6. MacBook Air: Consumer ultra-thin, ultra-portable notebook, introduced in 2008.
7. iPod introduced on October 23, 2001,
8. iPhone that was firstintroduced on September 12, 2018
9. Apple Watch which quickly became the best-selling wearable device, with the shipment
of 11.4 million smartwatches in the firsthalf of 2015.
10.Apple TV firstintroduced in 2007 and in September, 2017 event, Apple released a new
4K Apple TV with the same formfactor as the 4th Generation model.
11.HomePod: Apple's first smartspeaker, the HomePod was released on February 9, 2018
after being delayed fromits initial December 2017 release.
12.Software: Apple develops its own operating systems to run on its devices, including
macOS for Mac personalcomputers, iOS for its iPhone, iPad and iPod Touch
smartphones and tablets, watchOS for its Apple Watch smartwatches, and tvOS for its
Apple TV digital media player.
13.Electric vehicles: According to the Sydney Morning Herald, Apple wants to start
producing an electric car with autonomous driving as soon as 2020. Applehas made
efforts to recruit battery development engineers and other electric automobile
engineers fromA123 Systems, LG Chem, Samsung, Panasonic, Toshiba, Johnson
Controls and Tesla M
14.Apple Energy: Apple Energy, LLC is a wholly owned subsidiary of Apple Inc. that sells
solar energy. As of June 6, 2016, Apple's solar farms in California and Nevada have been
declared to provide 217.9 megawatts of solar generation capacity.[290][291] In addition
to the company's solar energy production, Apple has received regulatory approvalto
constructa landfill gas energy plant in North Carolina. Apple will usethe methane

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emissions to generate electricity. Apple's North Carolina data center is already powered
entirely with energy fromrenewable sources.
Corporate identity
Logo
First Apple logo
(1976–77)
First official logo (1977–98)
Apple third logo (1998–03)
Current logo (since 2003)

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Apple's first logo, designed by Ron Wayne, depicts Sir Isaac Newton sitting under an apple tree. It was almost
immediately replaced by Jaroff’s "rainbow Apple", the now-familiar rainbow-colored silhouette of an apple with
a bite taken out of it. The logo was designed with a bite so that it would not be confused with a cherry. The
colored stripes were conceived to make the logo more accessible, and to represent the fact the Apple II could
generate graphics in color.
On August 27, 1999 (the year following the introduction of the iMac G3), Apple officially dropped the rainbow
scheme and began to use monochromatic logos nearly identical in shape to the previous rainbow incarnation.
An Aqua-themed version of the monochrome logo was used from 1998 to 2003, and a glass-themed version
was used from 2007 to 2013.
Apple Inc. SWOT Factors
Apple’s Strengths – InternalFactors
1 - Unique ability todesignand developproprietary hardware, software, applications
and services [Researchanddevelopment]
Apple Inc.’s ability to design and develop its own hardware, software, applications and services
allows the company to introduce unique, innovativeand easy-to-useproducts and solutions
for its customers.
Unique, innovative and easy-to-useproducts and services that integrate seamlessly into one
Apple ecosystemare the reasons why customers buy Apple’s premiumproducts and enjoy
using them. In other words, it creates a competitive advantage no other company can match.
Apple’s ecosystemis the result of the company’s ability to design a wide variety of
integrated proprietary hardware, software, applications and services.
Many of Apple’s competitors have tried and still try to imitate the success of Apple’s product
ecosystem, but fail due to not having strong capabilities in designing, manufacturing and
developing both hardwareand software, applications and services.
Samsung Electronics, Apple’s strongestcompetitor, lacks a comprehensiveOS and has very
few apps and services to offer its customers. Google, Apple’s second largestcompetitor is very
strong on software, application softwareand services, but has only developed a few
unsuccessfulhardwareproducts.

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Except for Google and Samsung Electronics, no other company could seriously attempt to
challenge Apple’s competitive advantage.
2 Powerful brand supportedby strong advertising andmarketing capabilities
[Marketing]
Apple is the world’s mostvaluableand recognizable brand. According to Interbrand and
Forbes, the Apple brand is worth US$184.154 billion and US$170 billion, respectively. Brand
value is closely related to its recognition, meaning that Apple is also one of the world’s most
recognizablebrands. Their brand recognition is supported by its vastproductecosystem.
Moreover, Apple has a reputation of developing highly innovative, well designed, and well-
functioning products, as well as for delivering a great customer experience and sound financial
performance.
The company has been able to achieve such strong brand recognition and reputation through
its strong advertising and marketing capabilities.
Apple’s excellence in creating spectacular marketing campaigns, its superior advertising
capabilities, premium quality products and ability to deliver an excellent customer experience
has allowed the company to build the most powerfulbrand in the world.
3 Globally Iconic – Apple is one of the mostreliable company when it comes to personalized
advanced computers and smarttechnology devices. They havebillions of customers with
steady increment. [Marketing]
4 Top Technology – Apple was the firstto introduce some of the most innovative
products that have changed the world (iPhones, iPads). Appleis still determined to build
and craftbetter, moreproficient technology devices. [Research and development]
5 Brand Of Choice – Itisn’t big news that Apple is a demanded brand in corporateoffices.
Apple has a specific business page that offers top quality technology solutions for every
corporation’s needs. [Marketing]
6 Proficient Research –Apple puts dedication into its product designs. Carefulstudy is
initiated and further research is performed to help understand customer needs and
requirements. [Research and development]

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7 Sustainability made Possible throughLiam – Liam is an iPhone recycling robot that breaks
down and dissects an iPhone. Itstrips them all the way down to a single bolt. Most parts of
an iPhone can be reused. Liam is designed to yield as many reusable parts as possible.
These reusable parts are then categorized and safely stored so they can be used for new
manufacturing. [Production and operations]
Apple’s Weaknesses –Internal Factors
1. Lack of Marketing &Promotions – Apple has solidified their grounds by establishing loyal
customers, even with poor marketing tactics. Becauseof their success, Appledoes not feel to
have any additional investments towards marketing funds. [Marketing]
2. Lack of Competition – Apple doesn’treally compete againstits competitors. Ithardly markets
its products and you only get to hear about Apple when something new has been launched or
if there has been a recent update. [Marketing]
3. HighPricedProducts – Apple’s products can be considered a luxury due to
their premium prices. The products arepriced for middle and high-incomeconsumers. Low-
Incomeconsumers can’tsimply afford Apple products. Dueto their premium pricing, only
middle or high-class individuals can afford their products. [Marketing]
4. Incompatibility WithOther Software –When a customer buys an apple product, they enter
the Apple universe. Apple’s products do not supportother softwareor technologies making
them incompatible with other devices. Customers haveto exclusively purchaseApple apps or
accessories to continue using their Apple products. [Research and development]
5. Matching Customer expectations –Being a leading company since 1980’s Applehas a major
market shareand the consumer expectation is going through the roof. People expect great
things from apple year after year and maintaining these expectation levels is not easy for
anyone. [Marketing]
6. Dependency onfew products – Apple has only 7-8 products in its portfolio in comparison to
the various products thatits closestcompetitors Microsoftand Google have. Hence the
dependency of Apple on each of its products is very high. If one productfails, then that is a
10% loss to Apple. Hence, there is a common demand fromApple to increase its product
portfolio [Production &Operations]
Apple’s Opportunities –External Factors
1. Consistent Customer Growth –Apple has been dominating the technology sector for years
now. They providetop quality and cutting-edge technology that offers a breakthrough in
customer experience. Their customer retention rate of 92% is phenomenal. Apple can always

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rely on the power of the internet for futureopportunities to gain new customers and form
new alliances. [Task environment – Customers]
2. QualifiedProfessionals–Apple’s researchers, developers, and productspecialists area team
of highly qualified professionals thathave years of experience in branding consumer products.
With the expansion of their team, Apple can continuously build new opportunities. [Task
environment – Employees]
3. Expansive DistributionNetwork –Apple Inc. has the opportunity to expand its distribution
network. Currently, the distribution network that Apple has is very limited and leaves roomfor
minimal growth. Applecan generate higher revenue and sales if it focused on creating an
expansivedistribution network. Furthermore, thecompany can benefit fromdiligent
marketing and promotions. [Task environment – suppliers]
4. Lack of GreenTechnology – Apple is yet to launch products that are created using green
technology. The company has not yet implemented or participated in creating sustainable
technology that is eco-friendly. [Natural physical environment –Climate]
5. Smart Wearable Technology – Smartwearable technology will soon dominate the
world. According to Forbes, smartwearabletechnology device sales will double by 2022. Itwill
become a 27 billion+marketwith 233 million unit sales. Apple has the opportunity to
capitalize on smart wearabletechnology. [Societal environment –Technological]
6. Utilize Artificial intelligence –To increase its profitmargins and have a strong marketposition,
Apple should utilize artificial intelligence. Recently, the company has extended its AI portfolio.
In the year 2017, Appleacquired Regaind, a French AI startup and Desk Connect, an AI tool.
The former acquisition helps Apple to integrate intelligent search to the photos app on the
iPhone, while the latter acquisition automates tasks by helping the consumers to arrangeapps
and features with a string of commands. The company should focus on extending its AI
portfolio to have a strong foothold in the future. [Societal environment –Technological]
7. Apple cars – Naturally, with Facebook expanding with Instagram, Oculusrift, WhatsApp and
others and Google expanding in 10 different ways, Apple wanted to find out some new
products which Apple could launch. Apple is now fixated on Apple Car which is supposed to be
launched in 2020. Likeany other productof Apple, we can expect great things from the Apple
car as well. [Production &Operations]
Apple’s Threats –External Factors
1. Apple BulliedBy Counterfeits –Applehas become vulnerable to third world countries
illegally utilizing the brand image to sell counterfeit products. Theillegal dealers sell
Apple counterfeit products at the same value as an original Apple product. Counterfeit
products can make potential customers believe that it is a productmade by Apple with

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low quality. Big news can resultin negative reviews and bad publicity for the company.
[Task Environment – Competitors]
2. Increasing Competition –Although Apple as a brand has solidified itself, it still faces
threats fromcompetitors. With the advancementin technology, brands
like Samsung, Google, and Dell are giving Apple tough competition. As the competition
is getting stronger, Appleeither has to introduce new technologies or revise its pricing
policy to stay ahead of its competition. [Task Environment –Competitors]
3. Market Penetration –There has been a significant change in market penetration by
other brands in the smartphonemarket. Companies like Samsung, HTC, and Lenovo are
using Android softwareto create new smartphones. Currently, Android has
captured 72.23% of the marketshare, while Apple has only 24.55% of the market share
globally, Smartphones replacing iPod – In 2014, Ipod suffered a major decline of 52% in
its sale over 2013. Overall, Smartphones havereplaced music players altogether
because of the various ways thatyou can utilize music and carry it around. Hencethe
functionality of iPod is no more unique. (Other “Only music players” are also finding it
hard to exist in the market). [Task Environment – Competitors]
4. Lawsuits: 60 class-action lawsuits havebeen filed againstApple. Consumers wereupset
and baffled when Apple announced that it deliberately throttles CPUperformanceon
iPhone models with older and degraded batteries.
The tech giant said that it did so to prevent unexpected shutdowns. Despitethe clarification,
consumers felt betrayed because they that Apple does not believe in transparency. This led to
a number of people filing lawsuits against the company. The first class-action lawsuitwas filed
on December 21st, 2017 and alleged that Apple’s actions not only negatively affect the resale
value of their products but also forces its users to upgradeto newer versions prematurely.
[Societal environment –Political-Legal]
5. Taxes:after income inequality became a big political issuein USA, apple is considered to
be in a higher tax bracketfor the country. Apple is heavily depending on lower cost of
labor in china which will causesocial/political unrestin china that could increase the
manufacturing costin china. apple havebeen banned from selling iPhone in china The
company says that a Chinese courthas granted two preliminary injunctions that will
forceApple to stop selling iPhones released since the iPhone 6s. [Societal environment
– Political-Legal]

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Apple Inc. Objectives & Strategies
Apple’s Generic Strategy (Differentiation) &Objectives (Strategic)
Apple’s generic strategy is broad differentiation, this generic strategy focuses on key features
that differentiate the company and its products fromcompetitors. Through the broad
differentiation generic strategy, Apple stands out in the market emphasis on elegant design
combined user-friendliness and high-end branding effectively differentiate the company, this
means that Apple always aims to set itself apart fromcompetitors not by price but by other
key features beneficial to customers Thesekey features include seamless connectivity among
devices and cutting-edge aesthetics in design. Even though this generic strategy makes Apple
stand out, the company still broadly reaches various segments of the market. The firm’s
products aredesigned for everyone, thereby supporting a broad market reach
Apple’s IntensiveStrategies
Product Development. Appleuses productdevelopment as its main intensive strategy for
growth. Productdevelopment requires that the company mustoffer attractive products to
grow its marketshare and performance. Apple implements this intensive growth strategy
through innovation in its research and development processes
Market Penetration. Appleuses marketpenetration as its second most significantintensive
strategy for growth. Market penetration involves gaining a larger market shareby selling more
of the company’s currentproducts. For example, Apple applies this intensive strategy by
selling more iPhones and iPads to its currenttarget markets. In particular, the firm achieves
more sales by adding more authorized sellers in its currentmarkets. This approach is
important in penetrating markets where Apple has not yet achieved a significant position.
Also, under the market penetration intensive growth strategy, Apple uses promotion through
various websites and media outlets. For example, advertisements encourage more people to
buy Apple products. This intensivegrowth strategy agrees with Apple’s broad differentiation
generic strategy because it addresses the need to broadly capturethe market. By selling more
currentproducts to more customers in currentmarkets, this intensive strategy enables Apple
to reach customers in all market segments.

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Market Development. Appleuses marketdevelopment as the least significantof its intensive
strategies for growth. Marketdevelopment involves creating new markets for new products or
entering entirely new markets. This intensive growth strategy is similar to market penetration,
but market development focuses on establishing presencein new markets. Apple implements
the marketdevelopment intensive growth strategy through novel products. For example, the
company innovates to offer goods like Apple Watch, which is an entirely new productline for
the firm. Through Apple Watch, the company develops its reach in the smartwatch market.
Other objectives&Strategies
Long-termgoals [SMARTER]
Environmental responsibilities
Environmentalresponsibility, is a partof Apple’s vision statementto bea company that focuses
on innovating. Therefore, the company wants to focus on utilization of renewable energy in its
offices and stores. Although renewable energy is utilized in 94% of the corporateoffices, the
challenge Apple faces is that renewableenergy is not readily available for all their in-store
locations. A way Apple is attempting to achieve environmental responsibility is through
eliminating toxic substances fromtheir production process and products (SteveW. Pearce).
Leveraging ability todesignanddevelop
This goal is an ongoing one because for the company to maintain a competitive advantage
they must offer superior innovation and integration through all products. Leveraging these
abilities will enable Apple to riseabove its competitors.
Enhancing and expanding
To enhanceand expand continuously, Appleinvests heavilyin Research and Development
(R&D). Over the last three years Apple has increased investment in R&D from$2.4 in 2011 to
$4.5 billion in 2013. This investment has again proven the importance of enhancing and
expanding. Additionally, Apple believes in a high-quality buying experience. Therefore, the
company strategy also includes expanding its retail and online stores to provide high quality
sales and post sales.

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Objective: (Financial Objective)
Double the size of its services business
Apple plans to double the sizeof its services business within the next four years, turning
revenues fromthe App Store, iCloud and its Music and video services into a nearly $50bn-a-
year business by 2021. Services werethe fastest-growing revenueline in Apple’s December
quarter, rising 18 per cent year-on-year to $7.2bn, setting a new all-time record for the
company. In its last financial year, ending in December, services revenue grew 22 per cent to
$24.3bn. In an interview with the FT, Apple’s finance chief, LucaMaestri, said that its services
division will become “the size of a standaloneFortune 100 company” this year and set out its
new target. “We havea goal to double the sizeof the services business over the next four
years,” he said. “We havea lot of momentum and plenty of opportunity.” App Store revenues
grew by morethan 40 per cent in the December quarter, he added, while sales fromMusic,
Apple Care and iCloud storageall hit new all-time records.
Strategy [Integration –Vertical]
This business strategy can be also characterized as vertical integration in a way that the
company has advanced expertise in software, hardware, and services atthe sametime.
Apple’s vertical integration is one of the major factors that set it apart fromthe competition.
The company has been benefiting fromits vertical integration immensely. Specifically, an
important sourceof Apple competitive advantagerelates to its ecosystem, which is enabled by
such integration.
Apple devices and softwaresync easily and work well with each other. Applications work on
multiple Apple devices at the same time and there is no much difference in user interfaces;
however the same items do not pair with products of other companies, thus creating the likes
of a closed ecosystem. Apple’s ecosystemcreates switching costs for its customers to the
competition. The ecosystemalso provides the opportunities to leverage relationships with
existing customers to offer other products and services

18 | P a g e
Objective: (Financial Objective)
To expand their sales to customers who have not yet own any Apple’s products.
Strategy:
Expanding their distribution network to reach more consumers. [Integration –Forward]
– InternetProviders
– Third Party Retail Stores
– Flagship Stores
One of Apple’s objectives is to expand their sales to customers who havenot yet own an Apple
product. They do this not only through advertising but by expanding their distribution network
as well. In my opinions, in order to expand their distribution network, Applehas their products
such as the iPhone sold in various Internetproviders likeSmartone, 3, and CSL. Stores such as
Smartoneaim to sell long-term phone plans with the iPhone. By promoting the popular
generations of the iPhone they are able to sell plans along with the iPhone. Apple also offers
its products in third party retail stores such as Broadway and Fortress. Lastly they also sell their
products in Flagship stores such as the new store opened in Central, Hong Kong. The use of a
Flagship storeeliminates the need for people to visitstores such as “DGA-Design” in Causeway
Bay or the previous “DG” that was located in the IFCMall. A flagship store located in the heart
of Hong Kong for example is a great way to attract customers. Also they offer anything Apple
related, fromproducts to softwareand servicing.
Objective (Strategic Objectives)
To producehassle free products that provides serviceand enjoymentfor customers.
Strategy:
To continue investments in Research and Development [Intensive – Productdevelopment]
– Improved new generations of products
– New features
Another objectivefor Apple is to producehasslefree products that will provideserviceand
enjoymentfor customers. To reach this goal Apple believes in the continuous investment in
their Research and Development department in order to continue producing quality products.
For example, in the pastfew years Apple has revolutionized the global networking world
through their improved generations of the iPhone. I believe, with the upcoming fifth

19 | P a g e
generation iPhone coming out, Apple will be attracting more customers than it has before. In
2007, according to an article in CNN, the firstgeneration iPhone reached sales of up to
US$500,000 in justtwo days after being launched. Last year, three days after the launch of the
iPhone 4, sales roseto about US$1.7 million. Furthermorethe improved generations of the
iPhone offer new features such as Face Time, Voice Control and access to new games and
softwareupdates. Customers areable to enjoy movies and play their favorite games in the
palm of their hands and they are able to connect with friends and families even faster than
before.
Strategy [Diversification –Related]
Apple believes that the strategy for diversification will help it to have moremarket share, for
example the iMac has changed the trend for PC users another innovation was iBook laptop, to
diversify the rangeof Smartphones. In the rangeof MacBook Pro. Apple also introduced the
iWatch that is designed to make fitness tracking and health care orientation and health
orientation capabilities with integrated IOS with wireless connection with the iPhone.
Strategy [Diversification –Unrelated]
ProjectTitan Justlike iPhone started off as a tablet, became a phone, and then expanded to a
tablet again, Apple Car will likely take a twisting, turning path to market. That's if it ever comes
to market. Plenty of Apple projects, including the television set, never have.
The car feels different, though. For one thing, due to regulatory issues, it's forced to be more
public than most of Apple's special projects. Second, the logistical revolution is real and Apple
is uniquely positioned to be one of the major players in that space.
Because autonomous cars won'tjustbe about the destination, they'll be about the
differentiated experience of the journey.
FromBloomberg:
“An Apple Inc. hardwareengineer was charged by the U.S. with stealing driverless car secrets
for a Chinese company, the second such casesince July.
The company discovered that Joshing Chen, who was hired in 2018, had taken photographs
inside a secret work spaceand had downloaded 2,000 files, including manuals and schematics

20 | P a g e
for the robocar project, according to a complaint in federal courtin San Francisco. Prosecutors
said Apple considered disclosureof the data to be "enormously damaging."
When questioned, Chen didn't tell Apple he had applied for a job with a China-based
autonomous vehicle company, according to the complaint. He informed Apple this month that
he intended to travel to China to visit his ill father.”
Competition with China will only intensify and the opportunities for people with no honor to
abusethat competition, in multiple ways and directions, will only grow.
December 21, 2017:Apple grantedpatent for autonomous vehicle navigation
Apple has been granted a patent on a self-driving vehicle navigation system. The patent
outlines ways to create more efficient self-driving vehicles using data stored on the vehicle in
question.
Strategy [Horizontal integration]
Apple has increased its market shareby setting strategies for acquiring Shazamcompany for
400$ million the app that allows users to identify songs, movies, TV shows, and commercials
using shortaudio clippings., Shazam’s CoreMusic Features Could Help Apple Music While
Apple already uses Shazam’s music identification capabilities with its Siri voice assistant, it’s
possiblethat the company could integrate Shazammoredeeply and seamlessly with its
products and services the company also increased its market shareby acquiring Beats by Dr.
Dre becausethe company sells a lot of headphoneproducts, Apple could be quite excited at
the possibility of integrating Beats Music into iTunes, or turning it into somekind of iOS-
exclusive service

21 | P a g e
Matching Phase
Strengthwith Opportunity
 With apple having unique way of designing their products they can keep up with consistent
customer growth
 With having proficient research they can use more qualified professionals to improvetheir
research capabilities
 Having already top technology they can develop and improvethe smartwearable
technology as it has future growth
 Since apple is already having Sustainability made Possiblethrough Liam they can be
prominent leader for green technology as it there aren’t many companies who use green
technology
 Though having top technology they can utilize the power artificial intelligence as it will
making manufacturing, production much more easier
Weakness with Opportunity
 One of their weakness is having few products so they are going to utilize the
opportunity to create apple cars and enter a new market and diversify their product
lines
 Since apple is having low to no marketing or promotion they have a chance to find
qualified marketing professionals sincethey are many looking to work for apple
Strengthwith Threat
 Apple uses it powerfulbrand and its unique ability to develop it product and services to
try and combat counterfeits
 And sinceapple is a brand of choice it is trying to use proficient research to find out
what customer needs to keep them from going to competitors
Weakness with Threat
 Since apple has low competition with IOS butthere is increasing competition in the
mobile marketsince Android market shareis around 85% in 2016 , they rely on having
incompatibility with other softwareto keep people in the Apple ecosystemand making
the costof switching high

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