This report for Apple company details.

1. UNIVERSITY OF ASIA PACIFIC
DEPARTMENT OF CIVIL ENGINEERING
Principles Of Management
Name of Topic: Apple Inc
Course code : IMG 201
Semester : 3-2
Group Number:01
Group Member:
Name Reg
Mahbubul Hasan 17505062
Md. Habibul Bashar Farid(G.L) 17205063
Md.Abu khaer Siddique 17205064
Shimul Kumar Kundu 17205069
Md.Abdul Mazid Sarker 17205091
Submitted To
Raihan Sobhan
Lecturer
University Of Asia Pacific

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Executive Summary
Information technology makes significance influence in today’s business context.
Organizations are becoming virtual with the technology advancement. It is a dream for an
organization to become more competitive and successful without information technology.
Therefore, companies make huge investments to implement information technology
advancements in their businesses. Apple Inc. is one of leading digital product manufacturing
organization in United States. This assignment explains about the management information
system of Apple Inc.
Firstly, report discusses about the overview of the organization and primary and supporting
activities of the company. Further, it discusses about the Information System of Apple Inc.
and key information systems of the organization. Moreover, it explains about the Customer
Satisfaction with Information System of Apple Inc. and Competitive advantage of Apple Inc.
Meanwhile, report elaborates about the Factors affecting to utilize information technology. At
end of the report, the MS Sway created link and preview was mentioned.

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Table of Contents
Introduction 4
Environment Analysis 13
Porter’s Five Forces Analysis 14
Porter’s Generic Strategies 17
SWOT Analysis 19
Human Resource Management and Employee Motivation 23
Conclusion and Recommendations. 24

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Apple Inc
Introduction:
Apple, Inc. engages in the design, manufacture, and sale of smartphones, personal computers,
tablets, wearables and accessories, and other variety of related services. It operates through
the following geographical segments: Americas, Europe, Greater China, Japan, and Rest of
Asia Pacific. The Americas segment includes North and South America. The Europe segment
consists of European countries, as well as India, the Middle East, and Africa. The Greater
China segment comprises of China, Hong Kong, and Taiwan. The Rest of Asia Pacific
segment includes Australia and Asian countries. Its products and services include iPhone,
Mac, iPad, AirPods, Apple TV, Apple Watch, Beats products, Apple Care, iCloud, digital
content stores, streaming, and licensing services. The company was founded by Steven Paul
Jobs, Ronald Gerald Wayne, and Stephen G. Wozniak on April 1, 1976 and is headquartered
in Cupertino, CA.
Other institutional 32.65%
Mutual fund holders 29.13%
Individual stakeholders 0.30%
Shareholders
Other institutional Mutual fund holders Individual stakeholders

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Overview of the Company
Apple Inc. is an American International Technology company which designs, develops and
sells computer software, customer electronics and online services. Apple is a world famous
brand and it has loyal and competitive customer base. The company was established at
California, United Status. When consider about the company hardware portfolio, it consisted
with iPhone smartphones, tablet computer iPad, personal computer Mac, portable media
player iPod, Apple watches and Apple TV. Customer software from Apple includes macOS
and iOS, Safari web browser, iTunes, iWork, iLife and productivity suites. Online services
include iOS App store, Apple music, iCloud and iTunes store (Mata, 2016).
Apple Inc. was founded by Steve Jobs, Steve Wozniak and Ronald Wayne in 1976 to sell
personal computers as the beginning of the company. Company was incorporated as Apple
Computer Inc. in 1977 through the significant momentum and revenue. Meanwhile they hired
computer designers and company marketing team was able to achieve more customers with
the products. With their instant financial success, company shipped innovative new computer
features with graphical interfaces. Apple’s product prices are higher when compare with the
competitors. Competitors were introduced low prices products for the market such as
Microsoft Windows and customers tend to purchase those competitive products. The Apple’s
CEO Gil Amelio decided to get back him to the company. Job’s regained his position as the
CEO and started to rebuild the process of the company. In 2001, they opened their new
Apple’s retail stores and they rebuilt their software portfolio and hardware technology of
computers. Through these strategies, company showed the profitability and success again. In
2007 January, Jobs announced that the Apple Computer, Inc. as Apple Inc. and highly
focused on iPhone. It showed higher financial success and in 2011 Steve Jobs resigned from
the position of CEO at Apple Inc. due to his bad health condition and Tim Cook become the
new CEO. After two months of time Jobs died by ending the of an era of Apple Inc. (Bleach,
2016).
Apple can be identified as the world’s largest information technology company through its
profitability. They are the world’s second largest mobile phone manufacturer and they
become the US first company which owned financial strength at over US$ 700 billion. In
2016 company has 116,000 full-time employee base with 498 retail stores among 22
countries around the world. They owned the world’s largest music retailer, iTunes Store.
More than one billion of Apple products are active around the world in 2016. The annual
revenue was calculated as totaled $215 billion in 2016 and company maintains a higher level
of brand loyalty while repeating the position among world’s most valuable brands.

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Evolution of Apple Logo
Figure 1: Evolution of Apple Logo
First Logo
(April 1, 1976, Prototype)
First official Apple Logo (1977 – 1998)
Apple Logo (1998 – 2003)
Current Logo of Apple (Since 2003)
Source: Bleach, 2016

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Companies core supported activities can be figured out as follows:
Figure 2: Core Business Activities of Apple Inc.
Source: Businessthoughts, 2012
Information System of Apple Inc.
Industrial society is changing to the information society and modern society is highly driven
by the information technology. Information technology reduces the geographical boundaries
and it needs higher level of effective communication system. Further, Management
Information System (MIS) illustrates the key requirements to differentiate the company
products and services. Management system can be defined as the system which monitors and
retrieves data through the business environment, gathers data from transactions and operates
data within the organization and provides data to management by analyzing and filtering for
different business requirements (Alsalloum, 2011).
When discuss about the Apple Inc, it requires to have well- structured information system to
provide information at right time, right people and right information. The key objective of
Apple is to be the leader of innovation. Also, company has highly established internal
communication process. Most of the processes are virtualized and company believes that
virtualization is the most important thing to achieve competitive advantage and make it
sustainable. Company intranet provides the opportunities to access all required data for
employees through their desktop. Further, company extranet helps them to have strong
relationship with suppliers and developers of Mac based applications. This supports company
to build value chain between organization, suppliers, production and retail stores. Information
from the retail stores communicates to the customer service department (Ramey, 2012).

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Apple information systems can be listed as follows:
• • Office Automation System
• • Transaction Processing System
• • Knowledge Work Systems
• • Management Information System
• • Decision Support Systems
• • Office Automation System
• • Expert Support/ Information Systems
• • Expert Systems
Knowledge management system is associated with decision support system,
transaction processing system and office automation system. Cashiers of the Power
Mac Store can be identified as an example of transaction processing systems. iTune
application is another example and it allows customers to purchase online products
through an invoices and online receipts. Further, office automation system uses
multiple computers to perform different business activities at one time. Meanwhile,
iCloud technology is a technology which allows ability to digital creating, collecting,
storing and relaying of different office information to accomplish different
organizational objectives at the organization. The knowledge management system is
an computer based application which helps organization to support knowledge
workers of the organization (Ramey, 2012).
Furthermore, information technology is the key requirement to make customer
satisfaction and customer services at Apple Inc. if there are any defects on the items,
research and development department take care about the issue and find the causes for
the defects. Apple is in creating or sketching designs for their new products
(AutoCAD and Sketch apps).
The decision support system (DSS) can be identified as computer application which analyzes
the organizational data and convert them as an effective information to make better decisions.
They use both qualitative management and quantitative management in their decision making
process. When company develops their management information system, they analyze about
the human thinking patterns and human behaviors in order to develop best and effective
system. Company uses “NEXPERT” as leading solution provider of mobile contactless
technologies for making payments, ticketing facilities, customer loyalty and access and
security. Further, company highly values customs, qualities, principles and standards in their
operational processes to be an unique among the competitors (Ramey, 2012).
Apple Inc. is one of world’s leading digital product manufacturing organization which has
achieved the competitive advantage through information technology. Through producing
innovative information technologies, company has achieved the distinctive manner of
customer satisfaction and brand loyalty. Management Information System has given the
competitive advantage for Apple Inc. (Ramey, 2012).
Customer Satisfaction with Information System of Apple Inc.
Apple Inc has loyal customers with their innovative product range and there are two types of
people in the world. Some people say that Apple is not just a company and it is a cause while

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some people saying that Apple is not a cause, it is a company. Company agrees with the both
groups.
According to the American Customer Satisfaction Index (ACSI), Apple was ranked as the top
competitor of PC industry and it achieved score of 86 out of 100.
ACSI: Cellular Telephones
Table 1: ACSI: Cellular Telephones
Company Name 2015 2016 % Changed
Cellular Phones 78 79 1.3%
Apple 80 81 1%
Samsung 80 80 0%
Motorola (Lenovo) 79 77 -3%
HTC 77 75 -3%
LG 74 74 0%
Microsoft
Mobile(Nokia)
75 74 -1%
Other 71 73 3%
Source: American Customer Satisfaction Index (ACSI), 2016
Competitive advantage of Apple Inc.
Apple has become a world’s highly recognized digital products manufacturing organization
and it has achieved the competitive advantage through different perspectives. It has become
an unstoppable product with higher customer satisfaction and brand loyalty. They have
protected their competitive position of the industry through strategic market approach.
• Hardware and Software
Entire PC industry is struggling to make differentiation on their products. Apple has
approached the PC industry with very competitive differentiation strategy. Apple develops
extremely competitive hardware as well as software. Company makes specific hardware
decisions in order to enhance the value of software. Rather than OS, Apple creates the good
core software call iLife. It focuses on entertainment and creativity. The success story of apple
related with the similar priorities between both hardware and software manufacturing of the
organization. As explained in above chapter, Apple Inc. has gained top position of ACSI
through their PC manufacturing. This is how company achieves the competitive advantage
through its hardware and software developing competencies (Bajarin, 2016).
• iTunes and Digital Asset Management

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iTune can be identified as one of most strategic element of Apple Inc. Apple is a digital asset
management organization and it announced in 2009 about their event for credit card account
information of more than 100 million customers through iTunes. They have become one of
largest digital retailer (Bajarin, 2016).
• Apple’s retail strategy
Several companies were failed to develop their own retail stores. Once the Apple identifies
the importance of handling own retail sector, they invested in developing retail chain for the
company. Location design plays an important part in retail business. Apple has implemented
perfect retail business which has ability to achieve customer satisfaction (Bajarin, 2016).
• Information System
As explained above, information system can make significant impact for any organization in
today’s business world. When discuss about Apple information technology, they keep their
secret because they want to protect their competitive position of the industry. Due to
following services, Apple was able to achieve competitive advantage through loyal customer
base (Apple Information Systems , 2016).
iCloud
Figure 3: iCloud
Source: Apple Information Systems , 2016
iCloud is one of competitive feature from Apple products and it allows users to back up the
data through multiple Apple product online. If the product was stolen or misplaces, iCloud
allows customers to locate any iDevice which connected to internet. It increases the customer
values and helps company to differentiate their products from the competitors.
• Apple Support Communities
Figure 4: Apple Support Communities
Source: Apple Information Systems , 2016
Apple’s website offers their customers the feature calls “Apple Support Communities” and it
allows customers to join conversation between Apple device users on specific topics. They
can ask questions and get answers for those questions. Middle management can use this
feature to analyze customer issues. Engineers and Scientists from middle management of the

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Apple Inc can learn about different problems through Apple Support Communities and fix
technical issues by increasing customer satisfaction.
Tumblr
Figure 5: Tumblr
Source: Apple Information Systems , 2016
Apple has their Tumblr page to advertise their iPhone colors and they have advertised short
advertisements with 15 seconds for iPhone 5c s with different colors. Each color has different
songs and videos. Further, each short statement consists with different languages.
• Supplier Information Database
Figure 6: Supplier Information Database
Source: Apple Information Systems , 2016
Supplier Information Database is a tool to find best supplier for Apple products. Through this
systems, customers can register with their SID and find information about the Apple products
as they wanted.
Apple Inc. has achieved the competitive advantage through their information technology
innovations, customer satisfaction, brand loyalty, product features and hardware and software
developments. Company management information system has playing an important role in
maintaining the sustainable competitive advantage over the period of time. Technology is
highly dynamic and competitive business industry which essential innovation to gain the
market position and survival.

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1.5 Factors Affecting To Utilize Information Technology
Information technology is the key diver for today’s business world and organizations utilize
their information technology in order to achieve competitive advantage through IT.
• Educational level and training
Employees’ education level has significant influence in usage of IT at organizational context.
People should be aware about the ways of using information technology in their day to day
office works. For an example when a company implements new Enterprise Resource
Planning (ERP) software for the organization, company management should provide training
for employees on how they can work with it and what are the advantages employees can
achieve through the system. ERP systems may include high cost structure since it covers
most of the business processes. It increases the process effectiveness and communication
efficiency. Therefore, it is very important for employees to be aware about the ways of
working with software. Further, company management should provide end- user training in
order to increase the IT usage utilization from the individual level (Gibson, 1997)
• Strategic planning
Organizations should have well- structured strategic planning process in order to achieve the
information technology utilization. Information technology is rapidly changing and it requires
high cost to integrate latest technology in business processes. Company’s strategic planning
process should be IT- oriented. It explains how organization should use information
technology advancements in different organizational perspectives. It aligns with the IT
related decision making. When company plans the IT requirement and its usage, management
should highly focuses to identify the ways to increase IT usage. It is a direction and guideline
for employees and middle management to use IT in a strategic way to achieve competitive
market position (TechTarget, 2017).

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• Change management
There is an information technology driven business context and each and organizations tries
to achieve the competitive advantage through information technology. Traditional business
approach is modernizing through the information technology advancements. When
companies convert their traditional business approach into IT driven business approach,
change management process is very important. When the company has well- structured
change management process, it enables company to implement better change while achieving
expected objectives. Change process has different steps and all the steps should be well-
prepared. Through an effective change management process, organizations can increase the
IT utilization at the company (Gibson, 1997)
Internal and external business environment of Apple
The aim of this report is to explain the brief history of Apple Inc and analyses the internal and
external environment and organizational culture of Apple UK. The findings in this report will
supported by academic models and theories.
Methodology:
The internet is useful source for any kind search, the information I gathered for this report is
from search engine e.g. Google, university recommended books and lecture notes.
Defining the Business Environment:
“Strategy is the direction and scope of an organization over the long term, which achieves
advantages for the organization through its configuration of resources within a challenging
environment, to meet the needs of markets and to fulfil stakeholder expectations”.
Business environment means the forces or the factors that affect the business decisions. It is
important for businesses to analyses those forces in order to come up with problem solving
solutions. Some of those forces are out of business control e.g. political, social, economical
these forces called as external forces which are out of business control. The environment
which businesses have or can hold is called the internal environment.
Importance of Business Environment:
History is abundant with paradigms of organization that have failed to apprehend their
operating environment, or simply fizzle to react to transform in the environment. The after-
effect was gradual decay in their profitability, and hereafter they may break off to exist as a
viable business. Therefore, understanding business environment is very important it brings
the early assimilation of opportunities and threats that business may suffer and helps to
prevent from oncoming business threats instead of losing to competitors.
Analysis of Business Environment:
Environmental analysis is a precise evolution that initiate from assimilation of environmental
factors, accessing their constitution and impact, analyzing them to come up with their impact

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to the business, and accomplishing distinctive contour for positioning. Business environment
can competently assay using following business environment:
Internal Business Environment:
Internal environment reflects the internal factor of the business which organizations can
control and can adapt or alter from time to time. The best way of explain internal business
environment of any organization is use of SWOT and Porter’s value chain analysis.
External Business Environment:
External business environment represent the uncontrollable factors, the external factors can
be analyzed using PESTEL and Porter’s five forces. Kotler argues that PESTEL analysis is
an effective strategic tool for understanding market development and decline, business
position, conceivable and direction for operations.
Apple Inc Mission Statement:
Apple is committed to bringing the best personal computing experience to students,
educators, creative professionals and consumer around the world through its innovative
hardware, software and internet offering.
Apple Inc Vision Statement:
“Man is the creator of change in this world. As such he should be above systems and
structures, and not subordinate to them.”
Apple’s Inc UK Environmental Analysis:
Apple Inc is the leading consumer electronic brand in United Kingdom, operating around 29
Apple’s retail stores and online store within UK. Apple UK environment can be analyze
using internal and external environmental analysis.
Apple’s Inc UK Internal Environmental Analysis:
Apple’s internal environmental analysis represents the factors which Apple has controlled
over them, those factors best analyze using SWOT analysis and Porter’s Value chain a
Porter’s Five Forces Analysis of Apple Inc UK:
The five forces model was developed by Michael Porter in his book competitive strategy in
1980s. The model is simple but effective tool to understand business position. It is helpful to
understand current competitive strategy and strength of business that it is cogitating to move
into. The five factors in this model are:
Supplier Power: it accommodates all the supply of inputs that are required to provide
products or services. It reflects how many, and who is the supplier of the company and what
is the strength of supplier and switching to different supplier will cost more, as Apple’s main
supplier of chips are Intel.

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Buyer Power: it is impact the consumers have on company, when buyer power is strong the
relationship of the company is called monopsony in economist term. When there are many
suppliers and one buyer then the buyer set the price. Apple has many competitors they sell
their products less in price than apple, the buyer threat for Apple is high.
Threat of new Entrant: competition is high and every organization wants to diverse it
business so it is easier for companies to enter in new market. Apple is electronic organization
it already has many competitors around so threat of new entrant is high for Apple.
Threat of Substitute: it focuses on the alternative products available in market with low price
and better performance. Apple produce music players, computers, mobile phone and iPad
there are many other companies which are producing same products with lower price.
Competitive Rivalry: it describes the competition between the existing companies in same
industry high competition result in margin, pressure on selling price. Apple’s products are
higher in price than its competitors so threat level is high for Apple.
nalysis.
Apple Inc. Five Forces Analysis (Porter’s Model)
Apple Inc. has achieved success as one of the most valuable companies in the world. This
Five Forces analysis gives insights about the external factors influencing the company’s
success. Michael E. Porter’s Five Forces framework is a strategic management tool for
evaluating the five forces affecting the business organization: customers, suppliers,
substitutes, new entrants, and competition. A Five Forces analysis of Apple Inc. sheds light
on what the company does to ensure industry leadership despite the negative effects of
external factors in the competitive landscape of the computer software and hardware,
consumer electronics, and online digital content distribution markets, which involve firms
like Microsoft, Google, Amazon, Walmart, Samsung, Dell, Sony, and Lenovo. Established in
1976, Apple has succeeded to become a dominant competitor in the industry under the
leadership of Steve Jobs. Based on this Five Forces analysis, the company addresses
competition and the bargaining power of buyers, which are among the most significant
external factors impacting the business. Also, this Five Forces analysis indicates that Apple
Inc. must focus its strategic efforts on these two external factors to keep its leadership in the
industry.
This Five Forces analysis (Porter’s model) of external factors in Apple Inc.’s industry
environment points to competitive rivalry or intensity of competition, and the bargaining
power of buyers or customers as the primary forces for consideration in the company’s
strategic formulation. Nonetheless, all of the five forces influence the company’s business
situation, together with the effects of others external factors, such as the ones identified in
the PESTLE analysis of Apple Inc.
Five Forces Analysis of Apple Inc. – Overview
Apple’s strategies are partly based on the need to address forces in the external business
environment. These forces can limit or reduce the firm’s market share, revenues, profitability,
and business development potential. This Five Forces analysis, based on Porter’s framework,
points to the following strengths or intensities of external factors in Apple Inc.’s industry
environment:

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1. Competitive rivalry or competition: Strong force
2. Bargaining power of buyers or customers: Strong force
3. Bargaining power of suppliers: Weak force
4. Threat of substitutes or substitution: Weak force
5. Threat of new entrants or new entry: Moderate force
Competitive Rivalry or Competition with Apple (Strong Force)
Apple faces the strong force of competitive rivalry or competition. This component of
Porter’s Five Forces analysis model determines the intensity of the influence that competitors
have on each other. In Apple’s case, this influence is based on the following external factors:
1. High aggressiveness of firms (strong force)
2. Low differentiation of products (strong force)
3. Low switching cost (strong force)
Companies like Samsung and LG aggressively compete with Apple. Such aggressiveness,
observable in rapid innovation, aggressive advertising, and imitation, impose a strong force in
the industry environment. Moreover, in terms of product differentiation, available products in
the market are generally similar in fulfilling specific purposes. For example, many popular
apps are available for Android and iOS devices, and cloud storage services from different
companies are available to iOS users. In Porter’s Five Forces analysis model, this condition
creates a strong force by making it easy for customers to switch to other sellers or providers.
On the other hand, the low switching cost means that it is easy for customers to switch from
Apple to other brands, based on price, function, accessibility, network externalities, and
related concerns. The combination of these external factors in this part of the Five Forces
analysis leads to tough competitive rivalry that is among the most significant considerations
in Apple’s strategic management.
Bargaining Power of Apple’s Customers/Buyers (Strong Force)
The bargaining power of buyers is strong in affecting Apple’s business. This component of
Porter’s Five Forces analysis model determines how buyers’ purchase decisions and related
preferences and perceptions impact businesses. In Apple Inc.’s case, buyers’ strong power is
based on the following external factors:
1. Low switching cost (strong force)
2. Small size of individual buyers (weak force)
3. High buyer information (strong force)
It is easy for customers to change brands, thereby making them powerful in compelling
companies like Apple to ensure customer satisfaction. On the other hand, each buyer’s
purchase is small compared to the company’s total revenues. Porter’s Five Forces framework
indicates that this condition makes customers weak at the individual level. However, the
availability of detailed comparative information about competing products’ features
empowers buyers to shift from one provider to another. This external factor enables buyers to
exert a strong force on Apple and other brands. Thus, this part of the Five Forces analysis
shows that Apple must include the bargaining power of buyers or customers as one of the
most significant strategic variables in the business.

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Bargaining Power of Apple’s Suppliers (Weak Force)
Apple Inc. experiences the weak force of the bargaining power of suppliers. This component
of Porter’s Five Forces analysis model indicates the influence of suppliers in imposing their
demands on the company and its competitors. In Apple’s case, suppliers have a weak
bargaining power based on the following external factors:
1. Moderate to high number of suppliers (weak force)
2. Moderate to high overall supply (weak force)
3. High ratio of firm concentration to supplier concentration (weak force)
The global size of its supply chain allows Apple Inc. to access many suppliers around the
world. In Porter’s Five Forces analysis context, the resulting high number of suppliers is an
external factor that presents only a weak to moderate force against the company. In relation,
the moderate to high overall supply of inputs, such as semiconductors, makes individual
suppliers weak in imposing their demands on firms like Apple. Also, the ratio of firm
concentration to supplier concentration further limits suppliers’ power and influence in the
industry. This external factor reflects the presence of a small number of big companies like
Apple and Samsung, in contrast to a larger number of medium-sized and big suppliers. Thus,
this part of the Five Forces analysis shows that the bargaining power of suppliers is a minor
issue in developing Apple Inc.’s strategies for supply chain management, value chain
effectiveness, innovation, and industry leadership.
Porter’s Generic strategy:
The generic strategy used by Apple is that of differentiation. This is a strategy of making
your product different from those of the competing brands. Apple is known mainly as the
maker of Mac, Ipod and Itunes as well as the Iphone. These all are premium products and
while they are sold at premium prices the quality of these products is matchless. So, basically
the competitive strength of Apple arises from excellent technology. However, these products
by Apple are just as excellent in design and looks as they are in terms of technology and
performance. Iphone and Macs look absolutely dazzling.
Still, the key thing is the underlying technology. Apple’s technology has always been hailed
for excellence. It is also maker of Macs and its own operating system. Moreover, it has made
an entire series of inter compatible products. You cannot use windows operating system on an
Apple laptop. However, the technology and quality of these products is what sets them apart
from the competition. Despite the premium price tags the Apple products are a favorite of
millions. Its fans are willing to pay the hefty prices for its products because they are simply
irresistible.

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Intensive Strategies:
Apart from the generic strategies that are to be utilized for building a sustainable competitive
advantage, there are intensive strategies that can be used to grow market share and to expand
one’s customer base. These strategies are Market penetration, Market development, product
development and diversification.
Market penetration:
It is the strategy of selling more to an existing customer base. Apple’s products are just so
good that it enjoys heavy brand loyalty. Its customers are quite brand loyal and would buy not
one but more of Apple products.
Market development:
Market development means selling to more customers in new markets or regions. Apple’s
market has continued to develop globally. It has grown into a global brand and from the
Americas to Europe and Asia Pacific, it is everywhere in all the markets. Apart from its own
retail stores and through other retailers, it also sells online. It is ranked among the biggest PC
and smart phone brands. The increased demand for I-Phones has also expanded its market.
Product development:
Apple has continued to add new products and services to its kitty. After Mac and Iphone, there
are Ipod, Ipad, Itunes and even the Apple TV and watch. It also continues to release new
versions of the Iphone. In this way, Apple has continued to expand its market share and market
presence by developing new products and services. Its product line continues to grow.
Diversification:
Apart from computing, portable and personal technology and music, Apple has also entered
solar energy which could be turned into a big business later. So, Apple is also employing this
strategy to grow its brand and market share further.

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SWOT Analysis of Apple’s UK:
SWOT analysis will focus on following factors of Apple Inc:
Strengths of Apple Inc UK:
Brand Name: Apple has well established and strong brand name among the consumer and its
competitor through quality and introducing new products.
Innovative: Apple is been innovative since the beginning, always come up with new ideas
and products.
Microsoft and Intel: Apple use to produce its own software for its product but working with
Microsoft and Intel gave edge to its profitability.
Research and Development: Apple has strong research and development to its competitor this
is the reason apple always come up with new innovation.
Financial Vitality: Apple has cash reserve continued strong and stable although the idle
market shares development of computer hardware and software area. Apple achieves this by
resisting market pressure to cut cost by product packaging and forming strategic agreement.
Customer Loyalty and Quality: Apple has strong customer loyalty because of the quality of
product that Apple provides to its customers.
Weaknesses of Apple Inc UK:
High Price: Apple’s products are higher in price, even though many of consumers want to use
Apple’s product but they cannot afford to buy one.
Weak Relationship: Apple relationship with Microsoft and Intel is not as strong as it should
be.
Weak Presence in Business Area: Apple have only 29 retail store operating in United
Kingdom.
The Product Life Cycle: The Apple’s product life cycle is very small so the revenue is mostly
depending on its new product or service.
Less Attraction towards Corporate Customers: Apple products do not attract corporate
customers.
Technological Complications: Apple’s mostly face problems with its software and hardware.

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Opportunities of Apple’s Inc UK:
Fast Growing Industry: Apple started with personal computers, now they are selling music
players, laptop computers, mobile phones, iPads and also online music store.
Technological Innovation: Apple can develop strong position in market doing joint venture
and Laptop computer market growth is high so it can develop new models to fulfil the need
of customers.
The Online Store: the e-commerce is growing rapidly, ITunes is the online store developed
by Apple.
Improve Warranty and Reduce Prices: Apple can improve its warranty program and reduce
its product prices to challenge its competitor’s prices and hold a strong position in market.
Threats of Apple Inc UK:
Fierce Competition: Apple has strong competition with its competitors within same industry.
Economic Crisis: economic crises have negative impact on Apple sales because consumers
do not spend too much in critical situations.
Microsoft: Microsoft recently launched windows 7 with alluring user interface and new
features which can attract Macintosh user to switch to windows.
ITunes: free downloading of music and videos may affect the profitability of Apple online
store.
Porter’s Value Chain Analysis of Apple’s UK:
The value chain approached was established by Michael Porter in his book competitive
advantage in the 1980s. Michael Porter value chain analysis accommodates a series of
activities found to be accepted to a wide range of organizations. Porters describe primary and
supportive activities as shown in the above diagram.
The Primary Activities of Value Chain and Apple UK:
Inbound Logistics: the process of acquiring and depot of raw materials and their distribution
to accomplishing as they are appropriated. In case of Apple UK the inbound logistics are the
new ideas, product designs, Intel chips and other required raw material.
Operations: it is the process of transforming inputs into outputs and services. Apple’s
software products are developed in US and all the hardware products e.g. computers, music
players and mobile phones assembled in China.
Outbound Logistics: it is the process of distributing and warehousing of products. In case of
Apple products are distributed from Chine and warehoused in Apple’s allocated warehouse in
UK.

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Marketing and Sales: the process of identifying customer’s requirement and creation of sales.
When the Apple product is ready to entre in the market Apple advertise it itself showing rich
features and Apple suppliers advertise it as well to generate awareness among the consumers.
Service: it is the process of feedback after the products and services are sold to customer.
Apple feedbacks from its customers are always good about its products and services it is
because of the quality Apple provide to its customers.
The Supportive Activities of Value Chain and Apple UK:
Firm Infrastructure: it focuses on the organizational culture, structure and organizational
control system. Apple is an American multinational organization its UK operation is
influence by its background and consideration of consumer needs in United Kingdom.
Critical Discussion on Apple Internal Environment:
SWOT and Porter’s value chain analysis explained the internal environment of Apple UK,
hence it will help to understand the current and future position of organization. SWOT
(strength, weakness, opportunities and threats) analysis of Apple shows the strength of
company the factors which Apple are doing its best, weaknesses explained the factors which
Apple do not provide its best, opportunity explained the factors what Apple can achieved
using its resources and threats shows the factor which can damage the profitability and
growth of Apple. SWOT analysis shows the strength of Apple is very strong to protect its
image, the weakness Apple has they can do more research and development to overcome
those weaknesses, Apple must utilise its opportunities to make its brand strong and if Apple
can work on their weaknesses and opportunities its threats will be overcome or may be
reduce. The Value chain analysis show the business culture and business operating system
which shows that Apple Value chain is valuable because their product assembled in China
with low cost and they have their UK operating system and human resource follows the
required environment as in United Kingdom.
Apple’s Inc UK External environmental Analysis:
External environment represent the factors which organizations do not have controlled over
them. PESTEL and Porter’s five forces will best explain the Apple’s external environment.
PESTLE Analysis of Apple Inc UK:
Political: government type, its stability, current and future taxation policies. Apple does not
have any control over it, to cope with this Apple has to change with it as in United Kingdom
VAT rate is going up to 20% from 17.5% it will cause Apple’s product prices will go up.
Economical: economical situation, inflation, interest rate and strengths of consumer spending.
It will directly affect the Apple and its profit, if economical situation is bad consumer will
spend less.
Social: population growth rate, life style of people, culture, religion media views and
perception. Apple has to consider all those things to do business and have to have with
consumer needs.

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Technological: it represents the current and future technology, research and development and
rate of technology change. Apple itself an electronic organization so it has to keep up to date
and move on to new technologies.
Legal: it focuses on legislation in employment and health and safety, changes in law, trading
policies and regulatory bodies. Apple has to update itself with new legal laws and change its
policies according to it.
Environmental: it focuses on recycling consideration, amount of pollution created by product
or services, attitude to the environment from government and environmental pressure groups.
Apple is electronic organization so it has to consider its packaging that it can be recycled.
Critical Discussion on Apple Inc UK External Environment:
External environments are the uncontrollable factors for any organization. Apple’s external
factors were analyzed using PESTLE and Porter’s five forces. PESTLE analysis focused on
political, economical, social, technological, legal and environmental factors of Apple UK.
However Apple does not have any controlled over them but Apple can change it with them,
recently the current United Kingdom government increased VAT rate to 20% from 17.5%
this will result in product prices it will go up. Apple can reduce its price to keep customers
happy or offered them some incentive. Most of the organizations have pressure from
environmental organization about environment pollution Apple can produce its recycled
packaging. Apple has to keep considering social and economical factors and do research and
development to cope with them. Porter’s five forces helps to gain competitive advantage,
Apple have many competitors around but it has strong brand value and name and competitive
advantage from its competitor. Apple have to keep analyzing five forces of Porter and find its
best place in the market and carry out more research and development to bring new ideas and
innovations.
Organizational Culture:
Organizational culture is the nature of the organization. Culture is composing of the beliefs,
values, norms and corporeal artefacts of organization employees and their behaviour. Any
organizational culture can be best analyze using Geert Hofstede cultural dimension.
Geert Hofstede Cultural Dimensions:
Hofstede found five different cultural dimensions in his study of interaction between national
and organizational culture.
Power Distance: represent the power within the society is divided equally or unequally and
what extant society accepts this power distribution.

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Individualism: individualism is the one side against its opposite. Individualism/ collectivism
represent the people act according to self interest or the interest of group.
Masculinity: masculinity against its opposite femininity represents the distribution of role
between genders.
Uncertainty Avoidance: it refers the member of the society requires structure and boundaries
at work place. High uncertainty avoidance societies are intolerant of risk. Low uncertainty
avoidance societies are where risk and anomaly widely accepted.
Long-term Orientation: it refers to society accent attached to future against the present and
past. In long term people appraise action and approach that affect the future and in short term
people appraise action and approach that affect present and past.
Apple’s UK organizational Culture:
Apple is a multinational organization its business structure based on country of origin. Apple
United Kingdom culture based demographic and social factors of UK. Hoftede study of
cultural dimension show UK is most like to be individualistic culture followed by
masculinity. It shows people in United Kingdom are individualistic and there is not much
difference between genders. Apple’s employees are more individualistic and there is not bias
against any gender, therefore Apple is the successful organization within the United
Kingdom.
Human Resource Management:
represents the recruiting of employees, development, training and compensation. Apple UK
recruits the local staff and trained them about their products so they can help and satisfy
Apple’s customers.
Technology Development: the important part of any organization it focuses on improves and
new technology introduce to system it gives organization a competitive advantage. Apple
itself a technology business so keep introducing new and beneficial technology to its
business.
Procurement: it focuses on valuable purchase of inputs such as raw material equipment and
supplies. Apple main raw material is to buy chips to produce good quality and moderate
products.
MotivationinApple
Apple is a large company made up of thousands of employees. At times, the work can be
stressful and take a toll on an employee’s stamina. In order to keep everything moving
efficiently, managers must motivate their employees to keep working productively. Steve
Jobs, former CEO of Apple, believed in empowering his employees to not only believe in the
company, but also to believe in themselves. Steve Jobs believed in socialized power, which is

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when a person uses their power to take interest in others and the goals of the organization,
thus connecting and motivating all parties involved. Apple employees also use each other as
motivation. They trust and inspire one another to be innovative and productive. There are
many brains behind the creation of new Apple technology, and this requires coworkers to
have each other’s backs and support one another. Apple is very much a team oriented
company, with many employees working together on projects. When employees are able to
feed off of each other, that creates more motivation for everyone involved. Apple’s belief of
genuine concern for others makes them a selfless company that likes to see each one of their
employees succeed. With this support, it is easy for motivation to be spread around.
Conclusions and Recommendations:
Apple is a strong market contender with a diversified product line within the computer and
electronic gadget market. Apple's products and services are clearly differentiated from those of
its competitors. The company is economically in a good position and can expect to have
growing stream of revenue and an increase in its share of the market every year for the near
future
One of Apple's main strengths lies in its extensive brand equity. The company has a strong
advertising and branding program which has been greatly successful in helping the company
develop its strong brand image.
Another source of strength for Apple is its technological advantage over its competitors. The
company spends a lot more on research and development activities than its competitors do.
Apple has also benefitted greatly from the strong leadership of CEO Steve Jobs who has been
at the head of the company since its very beginning.
A further factor which creates a competitive advantage for Apple is the fact that its products
have acquired a fashionable and trendy image. Apple is not only perceived as a leader in
technological achievement but is also considered to be an arbiter of aesthetic values and its
products are the leading edge of style and aesthetical design.
One of the unique characteristics of Apple Inc. is its reduced reliance on suppliers as compared
to its competitors. The company manufactures all or most of the parts of its hardware and most
of the software is developed in-house.
As a result of stronger branding and customer loyalty, Apple is able to charge more for its
products than its competitors do for similar products and still maintain its market share.
One of the side-effects of Apple being a market leader in terms of technological innovation is
that Apple’s products are frequently rushed out into the market without extensive testing which
results in the first versions of Apple products being bug ridden which often leads to product
recalls.

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Another source of considerable problems for Apple is the extensive amount of litigation the
company has been involved in both as a plaintiff and as a defender. A number of legal cases
involving Apple are currently pending.
A great opportunity for Apple comes in the form of the increasing demand for ‘Smartphones’
with such capabilities as internet access and multimedia recording and playback etc. The
iPhone is an attempt by Apple to seize this opportunity.
The high level of competition among technology companies means that Apple is constantly
under threat from its competitors. This threat is especially great within the market for personal
computers.
Another threat to Apple is from some of the suppliers to whom the supply of materials and the
manufacture of some components have been outsourced. The threat can take the form of poor
quality output from these suppliers.
Political factors influencing Apple include the increased taxes in the current era which force
consumers to restrict their spending. The recent economic downturn has also contributed to a
drop in sales. Social factors affecting Apple include its image as the producer stylish and
fashionable products. Technological factors include need to have multiple features in one
product. Environmental factors influencing the company include the need for emissions control
in the manufacture of electronic products. Legal factors affecting the company include the large
number of cases the company is involved in seeking to limit infringement of its copyright. The
company has also been the subject of copyright litigation and other litigation in various
countries which has resulted in limitations being placed on the various products and services
the company offers.
Apple’s major resources include effective leadership, its reputation in the market as a leader in
technology and style, its research work and technological expertise and its skilled and dedicated
workforce and competent management.
Recommendations to Improve Apple’s Standing in the Market
In order to improve its standing in the market, Apple needs to improve product testing prior to
launch. This should however, not come at the expense of Apple’s technological leadership.
Apple needs to come up with speeded up testing methodologies which would enable thorough
testing and early launches, both at the same time. Apple needs to maintain its technological
leadership and its trendy image in order to remain competitive in the high technology products
market. Apple may also need to reduce its litigation activities in order to prevent being
established as a litigation happy company.
Avenues for Further Research
There are many avenues for further studies into Apple’s business available to researchers.
Further studies could be done to determine whether there are significant differences between
Apple’s strategy in the United States and its strategy in the rest of the world, to compare
Apple’s business strategy to that of its main competitors, to compare the performance of Apple
and its affiliates in various countries and to determine the reasons for any differences in

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performance. In addition research can be undertaken to study Apple’s performance and strategy
in each of the international markets the company operates in.