Full strategic case analysis for Apple incorporation including industry , competitor's and firm's self analysis. It covers all the strategic issues facing the industry and Apple inc. as well as the recommended solutions for these issues on business and corporate levels.
The study shows the development on the Apple Inc. mission& vision and the strategic objectives over time.
Apple inc. Strategic Case Analysis PresentationMahy Helal
Full strategic case analysis for Apple incorporation including industry , competitor's and firm's self analysis. It covers all the strategic issues facing the industry and Apple inc. as well as the recommended solutions for these issues on business and corporate levels.
The study shows the development on the Apple Inc. mission& vision and the strategic objectives over time.
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.
Strategic Management Presentation - Apple Inc.Colby Nelson
The presentation slides for a Strategic Management class at Biola University. We presented on Apple Inc. and through a semester long study came up with recommendations for Apple to implement to create more sustainable competitive advantage.
Apple inc. Strategic Case Analysis PresentationMahy Helal
Full strategic case analysis for Apple incorporation including industry , competitor's and firm's self analysis. It covers all the strategic issues facing the industry and Apple inc. as well as the recommended solutions for these issues on business and corporate levels.
The study shows the development on the Apple Inc. mission& vision and the strategic objectives over time.
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.
Strategic Management Presentation - Apple Inc.Colby Nelson
The presentation slides for a Strategic Management class at Biola University. We presented on Apple Inc. and through a semester long study came up with recommendations for Apple to implement to create more sustainable competitive advantage.
Technology and innovation make significant influence in today’s market and it has become the basic requirement for any organization to make the survival of any industry. Therefore, organizations try to implement technology advancements with innovation in order to protect their market position for long time. This report is based on one of famous case analysis of Eastman Kodak Company. Even the Kodak has competitive market position in traditional photography film industry; they lost their market position with digital transformation of photography.
Report explains the Kodak case with reference to the selected three strategic perspectives such as Blue ocean strategy, strategy as narrative and transient advantage. Each of these strategies discuss with three initiatives. Three initiatives such as: academic review of the theory, implication to the case study and recommendations for future improvements. Finally, it explains the conclusion and recommendations of the case analysis.
A descriptive presentation about Apple Inc. Covering the History, company profile, Product line, competitors and SWOT analysis. Mostly all aspects are covered in it.
A literature-based research and analysis about the employment of the four basic managerial factors, namely planning, organising, leading and controlling, in the context of Apple Inc. operations throughout its history, and by the standpoint of all the Chief Executive Officers that passed from its Board of Directors.
Technology and innovation make significant influence in today’s market and it has become the basic requirement for any organization to make the survival of any industry. Therefore, organizations try to implement technology advancements with innovation in order to protect their market position for long time. This report is based on one of famous case analysis of Eastman Kodak Company. Even the Kodak has competitive market position in traditional photography film industry; they lost their market position with digital transformation of photography.
Report explains the Kodak case with reference to the selected three strategic perspectives such as Blue ocean strategy, strategy as narrative and transient advantage. Each of these strategies discuss with three initiatives. Three initiatives such as: academic review of the theory, implication to the case study and recommendations for future improvements. Finally, it explains the conclusion and recommendations of the case analysis.
A descriptive presentation about Apple Inc. Covering the History, company profile, Product line, competitors and SWOT analysis. Mostly all aspects are covered in it.
A literature-based research and analysis about the employment of the four basic managerial factors, namely planning, organising, leading and controlling, in the context of Apple Inc. operations throughout its history, and by the standpoint of all the Chief Executive Officers that passed from its Board of Directors.
NEW MATERIALS, NEW BUSINESS MODELS FOR SUSTAINABLE INNOVATION 2013Tracey Rawling Church
How can businesses use materials innovation to disrupt markets and create new revenue streams? What are the opportunities, and what are the challenges? Based on the experience of Kyocera, this presentation explores the application of new materials to solve resource efficiency challenges and facilitate new business models. Presented at Sustainable Innovation 2013, 4th November 2013.
Think Different - What Private Clubs Can Learn from Apple's Marketing PhilosophyPipeline Marketing
This presentation from the 2013 Club Manager's World Conference explores the similarities in the challenges that private clubs face from a marketing perspective, and those of arguably one of the most successful marketing organizations in the world, Apple.
In the late 1990's Apple was struggling due to a number of reasons that many private club operators will empathize with. The story of how they overcame this adversity by focusing on a set of core philosophies, thinking differently, and delivering enrichment for their customers provides a relevant lesson for anyone faced with a challenging operating environment. At the core of their DNA, is Apple's Marketing Philosophy - a simple yet powerful model for marketing that should be examined by every private club and exclusive hospitality venue.
1. Analizar la importancia de la Unidad Estratégica de telefonía con iPhone y su integración con la plataforma iTunes como modelo de construcción de un negocio digital. 2. Analizar la importancia de la Unidad Estratégica de telefonía con iPhone y su integración con la plataforma iTunes como modelo de construcción de un negocio digital. 3. Describir cuáles fueron las claves del éxito del lanzamiento del iPhone en el mercado de la telefonía 4. Reflexionar sobre que rol juega en el éxito del modelo la integración vertical de la oferta y profundizar sobre el análisis de la cadena de valor de dicho modelo de integración a partir de una aparato de teléfono. 5. Analizar la situación de mercado actual de iPhone versus su competencia a nivel estratégico. Considerar las debilidades y fortalezas del modelo de comercialización del iPhone versus la competencia. 6. Proponer la estrategia de defensa de la plataforma iPhone e iOS versus Android. 7. Intentar parametrizar el lanzamiento de la serie 6 de iPhone como modelo estratégico de evolución de iPhone.
Universal Music Group - SWOT, PEST, Porter AnalysisKevin Zi Liu
An in-depth analysis exploring Universal Music Group's (UMG) internal and external forces: SWOT, PEST, Porter's Five Forces.
We look at the current the current market share and cultural shifts and provide recommendations that align with their mission statement.
This report investigates the current state of Apple Inc. which an American corporation that specializes in consumer electronics and software and examines the predicted future advancements of Apple Inc. Brief history of Apple Inc. and its current profile is initially outlined. The discussion then focuses on the founder (Steve Jobs), Products, Competitors and Strategic alliances of apple Inc. The performance of Apple Inc. is examined in relation to two main criteria: external (Porter’s Five Forces Model) and internal analysis (SWOT). It is recommended that they must scale up its production capabilities and Build or buy a cellular carrier for further continuation and growth. It also suggests that continuing a stable commitment to licensing, pushing for economies of scope between media and computers, and becoming a learning organization will help to succeed and will continue to outperform their peers.
You can have the presentation regarding this report from my profile.
The focus of this project was to capture success of one of the most worldwide know company - Apple and track down its way to overcome its competitors. With the use of RBV Theory, Dynamic Capabilities Framework and Business Model Canvas.
WAL_SOCW6121_01_A_EN-CC.mp4Make sure to read the instruction.docxjessiehampson
WAL_SOCW6121_01_A_EN-CC.mp4
Make sure to read the instruction carefully
ASSIGNMENT 3
In this assignment, you are to use the same corporation you selected and focused on for Assignments 1 and 2.
Research the company on its own website, the public filings on the Securities and Exchange Commission EDGAR database (http://www.sec.gov/edgar.shtml), in the University's online databases, and any other sources you can find. The annual report will often provide insights that can help address some of these questions.
Write a six to eight (6-8) page paper in which you:
Analyze the business-level strategies for the corporation you chose to determine the business-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. Justify your opinion.
Analyze the corporate-level strategies for the corporation you chose to determine the corporate-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. Justify your opinion.
Analyze the competitive environment to determine the corporation's most significant competitor. Compare their strategies at each level and evaluate which company you think is most likely to be successful in the long term. Justify your choice.
Determine whether your choice from Question 3 would differ in slow-cycle and fast-cycle markets.
Use at least three (3) quality references. Note: Wikipedia and other Websites do not quality as academic resources.
Your assignment must follow these formatting requirements:
This course requires use of Strayer Writing Standards (SWS). The format is different than other Strayer University courses. Please take a moment to review the SWS documentation for details.
Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required page length.
The specific course learning outcomes associated with this assignment are:
· Identify various levels and types of strategy in a firm.
· Use technology and information resources to research issues in business administration.
· Write clearly and concisely about business administration using proper writing mechanics.
ASSIGNMENT 1
ASSIGNMENT 2
(http://www.sec.gov/edgar.shtml
Strayer Writing Standards (SWS).
Running Head: THE INTERNAL AND EXTERNAL ENVIRONMENTY OF APPLE
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THE INTERNAL AND EXTERNAL ENVIRONMENTY OF APPLE
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The External and Internal Environment of Apple
Clarice Torrence
BUS 499
Professor: Joseph Keller
August 12, 2019
Give your opinion on the corporation's greatest strengths and most significant weaknesses. Choose the strategy or tactic the corporation should select to take maximum advantage of its strengths, and the strategy or tactic the corporation should select to fix its most significant weakness. Justify your choices.
Apple being one of the most valued te ...
This document is originally written by AssignmentWOrkHelp. This report explains the successful running of the business of the Apple company. This shows the detail description of the factors influencing the future business, its internal analysis
and the reason of the success of the apple business.For more information, contact https://www.assignmentworkhelp.com/contact/
Apple’s SWOT AnalysisPoints of Strength· Globally Recognize.docxarmitageclaire49
Apple’s SWOT Analysis
Points of Strength:
· Globally Recognized Brand: Since its establishment, Apple has built an astounding reputation of being one of the most reliable companies providing technological services and solutions. It has one of the largest customer bases to ever exist, making it the first company ever with a stock price of one trillion dollar.
· Demanded Brand: Apple is a highly demanded brand all over the globe, it is the number one choice in America for smart phones, accessories and corporate office supplies. It has a technology that is suitable for every age and domain.
· Focus on Research & Development: Apple as a company puts a lot of its efforts and money into product design, manufacturing, quality, and marketing. A lot of studies and researches are conducted before product release that are based on customer needs and demands.
· Innovation: Apple changed the way people interact and communicate back in June 2007 when they introduced the IPhone, and that trend continued on when they introduced the IPad in April 2010. Apple shed a new light on the way people use their smartphones and tablets. Nowadays these products are an essential part of work and everyday life.
Points of Weakness:
· High Prices: Apple products are generally considered in the market as a luxurious items due to their premium prices. These products are more oriented towards middle to high income customers than low income.
· Incompatibility: Apple is considered a unique product when it comes to software and cross platforming. Items purchased from Apple whether they are computers, phones, tablets, or accessories will only function on a particular software produced by the company which leaves small space for sharing and cross platform.
· Competitive Market & Penetration: Although Apple has a solid place in market, it does not lower the chances of growth of competitive brands such as Sony, Samsung, Google, and Microsoft. In 2018 a research was conducted stating that while IOS software (Software used by Apple) is dominant nationally, 72.23 of the global market uses Android (Software produced by Google).
· Underwhelming Marketing & Promoting Efforts: Due to its solid reputation in market place, Apple has a bad reputation for promoting or marketing their products. They have poor marketing strategies the barely promotes the products and depend solely on their name to attract customers towards their products.
Opportunities:
· Focus on Services: While the main source of profit is from smartphones and tablets, Apple gets a decent amount of revenue from the services that they offer. Apple gains revenue from selling products like IPhone or IPad to every customer once every year, while they can gain profit from their services on a daily basis. These services include Apple Pay, Apple Care, Apple Music…etc. It is estimated that if Apple can put these services into good use, the company can gain up to 10 million dollar in a quarter of a year.
· Partner.
12 External and Internal Environments Mikia DixonBusiness BenitoSumpter862
1
2 External and Internal Environments
Mikia Dixon
Business Admin. Capstone BUS499
Professor Joseph Keller
November 11, 21
Apple corporation's general environment plays a significant role in influencing its working mechanisms both locally and internationally. External influences in the company distant or macro-environment have a direct impact on the company's performance. In the consumer electronics and information technology services industries, the company's performance is due to strategic management that exploits opportunities and defends the company from risks. Two of the most highly ranked general environment factors of the company include technology and economic environment factors.
Technology and technology breakthroughs are examined to identify company opportunities and dangers in the present and the future. Apple has a chance to grow by offering its technology services to a wider range of customers and institutions thanks to the growing importance of technology integration in business. For Apple to keep up with its competition, the company needs to release new goods more frequently. Apple's brand image and financial performance are negatively impacted by Apple's competitors' low-cost offerings of high-value technical products. Samsung, for example, has maintained its position in the PC market, whereas Apple has lost it. Competition from low-cost, high-tech rivals has contributed to this situation. Apple now has a big chance to take advantage of the growing demand for cloud computing services by establishing an extended cloud framework. The technological environment is likely to impact the future steps taken by the company because presently, this field is filled with numerous players who are all gearing towards competing with apple. With the new emerging trends in technology, the company is highly obligated to have working mechanisms that protect them from any threat from external sources such as competitors.
The economic environment impacts the working mechanisms of apple corporation in numerous significant ways. With the set-up of the modern global market dynamics, apple's success as a company relies on the sales made. For sales to be made, there must be markets that are dependent on good economies. According to MBA school Team (2021), Apple Corporation has numerous expansion opportunities. For instance, economic stability in industrialized countries, rapid economic growth in developing countries, and disposable income among target consumers. However, it is important to keep in mind all the competing factors in the worldwide marketplaces when investigating economic opportunities. In the context of major international corporations like Samsung and Huawei, these external strategic drivers represent growth opportunities for the company and its competitors.
Five forces of competition, also known as the Porter five forces analysis, are those elements that determine the success of a corporation through a comprehensive analysis of t ...
12 External and Internal Environments Mikia DixonBusiness AnastaciaShadelb
1
2 External and Internal Environments
Mikia Dixon
Business Admin. Capstone BUS499
Professor Joseph Keller
November 11, 21
Apple corporation's general environment plays a significant role in influencing its working mechanisms both locally and internationally. External influences in the company distant or macro-environment have a direct impact on the company's performance. In the consumer electronics and information technology services industries, the company's performance is due to strategic management that exploits opportunities and defends the company from risks. Two of the most highly ranked general environment factors of the company include technology and economic environment factors.
Technology and technology breakthroughs are examined to identify company opportunities and dangers in the present and the future. Apple has a chance to grow by offering its technology services to a wider range of customers and institutions thanks to the growing importance of technology integration in business. For Apple to keep up with its competition, the company needs to release new goods more frequently. Apple's brand image and financial performance are negatively impacted by Apple's competitors' low-cost offerings of high-value technical products. Samsung, for example, has maintained its position in the PC market, whereas Apple has lost it. Competition from low-cost, high-tech rivals has contributed to this situation. Apple now has a big chance to take advantage of the growing demand for cloud computing services by establishing an extended cloud framework. The technological environment is likely to impact the future steps taken by the company because presently, this field is filled with numerous players who are all gearing towards competing with apple. With the new emerging trends in technology, the company is highly obligated to have working mechanisms that protect them from any threat from external sources such as competitors.
The economic environment impacts the working mechanisms of apple corporation in numerous significant ways. With the set-up of the modern global market dynamics, apple's success as a company relies on the sales made. For sales to be made, there must be markets that are dependent on good economies. According to MBA school Team (2021), Apple Corporation has numerous expansion opportunities. For instance, economic stability in industrialized countries, rapid economic growth in developing countries, and disposable income among target consumers. However, it is important to keep in mind all the competing factors in the worldwide marketplaces when investigating economic opportunities. In the context of major international corporations like Samsung and Huawei, these external strategic drivers represent growth opportunities for the company and its competitors.
Five forces of competition, also known as the Porter five forces analysis, are those elements that determine the success of a corporation through a comprehensive analysis of t ...
1
10
Week 3 Assignment 1
Globalization and technological advancements have significantly influenced how modern businesses work to increase their competitive edge and financial performance standards. Furthermore, the strategic management framework and the resource-based framework may be used on enterprises to help them accomplish overall projected ambitions. For this assignment, I chose a company that many are familiar with. The Apple Company is among the most significant international businesses. Apple was formed in 1976 and is a global technology company that develops and sells computer hardware and software, internet service providers, and gadgets, along with various things. It is headquartered in the United States and works in various industries, including cellular telephone manufacturing. It is regarded as one of the greatest technological multinational firms in market share (Abdukarimova, 2021). Apple's earnings have increased due to its strong market sector growth and performance compared to its biggest rivals in the competitive market.Globalization
Globalization could be referred to as the progression through which companies make a worldwide influence or start to operate on a worldwide platform. It would be understood that globalization has culminated in removing obstacles, which has boosted imports and exports. The removal of restrictions has enabled Apple to grow into new markets and increase its competitiveness and earnings. Presently, this firm works in 24 nations and territories and has approximately 500 outlets, and its commodities are sold in most places in the world. It has extended Apple's consumer base, requiring the business to raise manufacturing power to satisfy growing consumer needs and requirements (Mamaghani, 2016). As a consequence, the firm employs a combination of direct and indirect distribution techniques to improve on-time deliveries and prevent unnecessary complications and delays.
The degree of competition in the marketplace wherein Apple's Current works has significantly grown due to globalization. The firm is presently facing severe pressure against companies such as Samsung, Nokia, and Toshiba, among many others, on a worldwide platform. The rivalry is mostly focused on pricing, responsiveness, and manufacturing efficiency, as certain businesses can accomplish low operating costs and therefore implement superior pricing tactics. The consumer wants in the sectors where Apple works are incredibly competitive, requiring firms to be extremely attentive to prevent deficits. Nevertheless, the more significant rivalry has led to the development of high-quality items that benefit buyers (Puncheva-Michelotti et al., 2018). Therefore, competing firms are the potential of producing items comparable to some of those made by Apple and selling goods at a discounted cost. Apple is concentrated on delivering high-quality goods that meet the demands of buyers worldwide, which has impacted company activities and its ...
110Week 3 Assignment 1Globalization and teSantosConleyha
1
10
Week 3 Assignment 1
Globalization and technological advancements have significantly influenced how modern businesses work to increase their competitive edge and financial performance standards. Furthermore, the strategic management framework and the resource-based framework may be used on enterprises to help them accomplish overall projected ambitions. For this assignment, I chose a company that many are familiar with. The Apple Company is among the most significant international businesses. Apple was formed in 1976 and is a global technology company that develops and sells computer hardware and software, internet service providers, and gadgets, along with various things. It is headquartered in the United States and works in various industries, including cellular telephone manufacturing. It is regarded as one of the greatest technological multinational firms in market share (Abdukarimova, 2021). Apple's earnings have increased due to its strong market sector growth and performance compared to its biggest rivals in the competitive market.Globalization
Globalization could be referred to as the progression through which companies make a worldwide influence or start to operate on a worldwide platform. It would be understood that globalization has culminated in removing obstacles, which has boosted imports and exports. The removal of restrictions has enabled Apple to grow into new markets and increase its competitiveness and earnings. Presently, this firm works in 24 nations and territories and has approximately 500 outlets, and its commodities are sold in most places in the world. It has extended Apple's consumer base, requiring the business to raise manufacturing power to satisfy growing consumer needs and requirements (Mamaghani, 2016). As a consequence, the firm employs a combination of direct and indirect distribution techniques to improve on-time deliveries and prevent unnecessary complications and delays.
The degree of competition in the marketplace wherein Apple's Current works has significantly grown due to globalization. The firm is presently facing severe pressure against companies such as Samsung, Nokia, and Toshiba, among many others, on a worldwide platform. The rivalry is mostly focused on pricing, responsiveness, and manufacturing efficiency, as certain businesses can accomplish low operating costs and therefore implement superior pricing tactics. The consumer wants in the sectors where Apple works are incredibly competitive, requiring firms to be extremely attentive to prevent deficits. Nevertheless, the more significant rivalry has led to the development of high-quality items that benefit buyers (Puncheva-Michelotti et al., 2018). Therefore, competing firms are the potential of producing items comparable to some of those made by Apple and selling goods at a discounted cost. Apple is concentrated on delivering high-quality goods that meet the demands of buyers worldwide, which has impacted company activities and its ...
Running head Swot synopsis1Swot synopsis4SWOT SynopsisSWO.docxtoltonkendal
Running head: Swot synopsis 1
Swot synopsis 4SWOT Synopsis
SWOT Synopsis
With the product on hand our goal is to lower the statistics of deaths, listen to what their needs are as far as comfort but still keeping them safe. When it comes to Identifying economic, legal, and regulatory factors, I think that just staying up to standards again listening to customers’ needs and make sure our product does what we say it does passes all the testing by law in order to market the armor. I think leader ship is what will make the company successful with a good person who has the same outlook as why they became a part of the company is what the focus is.
So I went ahead and did the SWOT analysis and I think it pretty much sums up the company as far as opportunities, weaknesses, strengths and threats.
References
Last Name, F. M. (Year). Article Title. Journal Title, Pages From - To.
Last Name, F. M. (Year). Book Title. City Name: Publisher Name.
External Forces
Strength
Weakness
Opportunity
Threat
Trend
Legal and Regulatory
Strong respect for legal entities concerning the company and this new division.
Regulations on the foreign market may be difficult to combat.
Take advantage of regulations to implement new software and division into various markets.
Any patents that companies already own concerning technology developed by us.
IBM follows the laws and regulations set up by the government.
Global
IBM is well established in countries outside the U.S.
May not be able be profitable in more poor countries.
Countries outside the U.S. are eager for youth to learn technology
Foreign technology companies reproducing products for their own people.
Countries eagerness for technology advancement should open the door for sales.
Economic
Rise in the economy should give people more inclination to purchase goods.
So much technology is free through apps and such that people may not pay for knowledge.
Take advantage of the better economy during holidays when customers are willing to pay more.
If the economy took a turn for the worse again, it could affect sales.
The economy has improved over the last couple years and should continue to do so.
Technological
Software team is at the top of the industry.
Software may already seem “too difficult” by older community.
Schools using up to date technology in classes could lead to software implementation.
Smart devices making computer software obsolete.
Technology is constantly improving and this generation wants it.
Innovation
Developing technology to cater to anyone in the family.
Innovating quicker than the public has time to react.
People want advancement in technology and this division is willing to innovate that on their level.
Foreign or domestic innovation rising at a quicker pace than the company.
Innovation will continue to rise, especially on the technological level.
Social
Division is focused on the family unit and connecting those families to technology and each other.
May not be able to attract ...
This presentation discusses one of the business concept i.e. startups and one of the top rated multi national startup company, Apple Inc. Also it includes various points like risks associated, market scenario, steps to make a startup successful and other various topics. Take a look.
In today’s rapidly changing business world, the pressure on a business to take up a proactive approach has increased due to factors such as globalization, rapid technological advancement and changing needs of customers (Mazzero et al., 2015). Businesses which have emerged as market leaders are devising their strategies in accordance to the customer needs and environmental changes. Strategy is defined as setting the future direction or goals of an organization and allocating the resources for the attainment of those goals (Proctor, 2014). The strategic planning process involves taking up a systematic approach in devising goals and strategies. Furthermore, the process of strategic management involves identifying the opportunities in market and experimenting in order to develop a competitive advantage in the longer run (Hill et al., 2014). The businesses that have outperformed; have been successful in recognizing the opportunities present in the market before their rivals could do. Apple is one such business that has achieved phenomenal success due to its preemptive approach (Rawlinson, 2017). Over the years, Apple has successfully developed a very strong brand name and highly loyal customer base and has been ranked as one of the world’s “most valuable brand” (“The World’s Most Valuable Brands List,” 2018). Therefore, the purpose of this report is to carry out a strategic analysis of Apple and to make strategic recommendations for its future direction. The report will firstly give a brief overview of Apple Inc. and will then carry out the external and internal analysis of the company. The report will then move to identification of Apple’s sustainable competitive advantage and will then give recommendations based on analysis.
Affordable Stationery Printing Services in Jaipur | Navpack n PrintNavpack & Print
Looking for professional printing services in Jaipur? Navpack n Print offers high-quality and affordable stationery printing for all your business needs. Stand out with custom stationery designs and fast turnaround times. Contact us today for a quote!
Accpac to QuickBooks Conversion Navigating the Transition with Online Account...PaulBryant58
This article provides a comprehensive guide on how to
effectively manage the convert Accpac to QuickBooks , with a particular focus on utilizing online accounting services to streamline the process.
As a business owner in Delaware, staying on top of your tax obligations is paramount, especially with the annual deadline for Delaware Franchise Tax looming on March 1. One such obligation is the annual Delaware Franchise Tax, which serves as a crucial requirement for maintaining your company’s legal standing within the state. While the prospect of handling tax matters may seem daunting, rest assured that the process can be straightforward with the right guidance. In this comprehensive guide, we’ll walk you through the steps of filing your Delaware Franchise Tax and provide insights to help you navigate the process effectively.
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
1. ِApple Inc. Case Study Page 1
Strategic Management
Team Project
Case Analysis
Apple Inc.
Presented by: Esraa Elseidy & Mariham Helal
2. ِApple Inc. Case Study Page 2
Table of contents:
Executive Summary…………………………………………………………………….3
Situation Analysis…………………………………………………………………….…4
Industry Structure………………………………………………………..……..4
Strategic group Mapping……………………………………………..………..6
Driving Forces…………………………………………………………………..7
Key Success Factors…………………………………………………………10
Industry Strategic Issues……………………………………………………..12
Industry attractiveness……………………………………………….……….16
Competitive Situation Analysis
Five Forces Model of Competition……………………………….………….17
Competitor's Strategies Analysis…………………………………………….25
Firm's Self Analysis
SWOT Analysis………………………………………………………..……….27
Competitive Strength Assessment………………………………………..…33
Firm's Strategic Issues and Problem……………………………………..…34
Financial Position Analysis
Profitability Ratios……………………………………………………………..35
Liquidity Ratios…………………………………………………………………36
Leverage ratios…………………………………………………………………36
Activity Ratios…………………………………………………………………..37
Past and Present Mission and Strategies……………………………………………37
Identification of Strategic Options
Industry Analysis……………………………………………………………….40
Recommendations
Long Menu……………………………………………………………………..42
Short Menu……………………………………………………………………..42
Expected Outcomes of selected strategies…………………………………47
Strategy Implementation………………………………………………………47
Company Culture…………………………………………………………..….49
Control and Evaluation…………………………………………………..……50
My Opinion……………………………………………………………………..53
References……………………………………………………………………..54
3. Executive Summary
Apple Computers started the movement into the personal computing arena in 1977 but
through changes in management and differences of opinion together with missed
opportunities it lost its competitive advantage to companies like Microsoft, Dell, and
Gateway. Apple operates in various lines of the computer and music industry today and
its operations include not only the designing but also the manufacturing of its computers
and software. Apple continues to pursue the personal computer market but not as
intently as in the years before. It has opted to change directions a little by venturing into
the music world through the marketing of iPod, a digital music player, and iTunes. The
opening of 65 new retail outlets, including one in Japan, has precipitated its move into
this new world.
Apple continues to work on providing innovative products for its customers but marketing
to such as small market has caused some problems. Its market share has been reduced
to below 5% and its operating system differs considerably from the Wintel operating
system used my dominant Microsoft. Costs of maintaining this difference have increased
in comparison to those utilizing the competitive operating system. Software designers
are not as enthused about writing programs to support Apple's operating system
because of limited potential sales. The advantages that seem to come into Apple's laps
are quickly removed because competitors are able to copy, steal, and share them.
The one advantage that Apple possesses is its operating system but it has failed to
convince the world of its superiority. The operating system in possession has not
encountered the problems that Microsoft and its fellow operating systems have
encountered. Microsoft upgrades have been plagued with virus and other programming
problems, including the ability of hackers breaking into the system and accessing ones
computer from another remote spot.
Apple has not capitalized on these problems. It has gained a few customers but nothing
in the numbers required to turn the company upwards in reclaiming considerable market
share. Apple customers are a devoted group that understand the superiority that they
possess but convincing the other 95% of the world because a rather large task.
This case study is to begin with a situational analysis that will encompass the
industry structure, competitive situational analysis and the firm's self-analysis.
Through which the external and internal analysis of the Apple incorporation will
be mentioned.
It will cover Porter's five forces and provide insight of the opportunities and
threats that Apple faces. The industry structure will be dismantled so that market
size, distribution channels, strongest and weakest competitors, and anticipated
strategic moves of rivals is captured.
Economies of scale and key success factors will be listed along with financials so
that a direction can be logically surmised. An internal analysis will also be
included so that Apple's mission, vision, and financial objectives are understood.
4. Products and services will be dissected, as will its corporate culture, values, and
morals. The core competencies will be noted together with value chain analysis so
that Apple can better define it true advantages for continued successful operation
in the future.
Recommendations will be provided, listing the pros and cons of each, so that
Apple management can consider implementation for strengthening their position
within the computer and digital music industries.
Finally it will include the past and present strategic options used by the company
as well as our recommended strategies with their anticipated positive and
negative outcomes.
The recommended strategies implementation process will be encountered in the
analysis with the control and evaluation ways for best strategies outcomes.
Situational Analysis
Industry Structure
Apple Inc. (Apple) has managed to create substantial value in the highly competitive
personal computer industry, by innovating and forging a path considerably different from
those of the largest competitors in the industry, successfully differentiating its products
from those of the competition by choosing to focus on quality, design elegance, and
superior customer service, while outsourcing actual manufacturing to trusted original
equipment manufacturers.
Yet, despite the advantages Apple has created for itself, the stiff competition within the
industry and other external factors present formidable challenges to the firm.
The personal computer/notebook market is becoming increasingly
commoditized, leading to intense rivalry among competitors within the industry, driving
prices down and creating potentially destructive price wars. Utilizing key resources and
capabilities including industry-leading design teams, talented software and hardware
engineers, backed by a sizeable research and development budget, which is
responsible for a portfolio of thousands of patents, and under the strategically brilliant
stewardship of CEO Steve Jobs, Apple has successfully innovated its way to a
comfortable market position commanding premium prices. Unfortunately, Apple cannot
rest on its laurels.
The position is not permanent and Apple must continually find new ways to
maintain profits and create value for customers and shareholders. The maturing
personal computer market is becoming saturated, leaving fewer new buyers and more
replacement buyers. To continue to grow, Apple must also look to new and expanding
markets as sources of revenue.
5. After considering Apple's strategic war chest; the firm's core competencies, key
resources, and capabilities and given its current situation within the industry and the
compounding factors in the form of trends from the general environment, it is clear Apple
stands to create considerable value through continued related diversification iPhone
provide sufficient evidence that it is well-equipped to continue its path of innovation, by
creating a digital lifestyle convergence device that bridges users on-the-go digital lives and
their at-home digitals lives. The proposed device will be powerful and feature packed,
while leveraging the Apple system of seamless integration to create a compelling user
experience, presented in an elegant package showcasing the firm's industry-leading
industrial design capabilities, to create the next must- have consumer electronics
product.
Industries' dominant economic features
The versatility of the computer industry allows a few dominant economic features to
stand out. The market size mentioned above is one of these dominant features. It has
increased to a range between $890 million to $2 billion. The competitive rivalry is
another dominant feature. The national and global levels are in the early maturity stage,
which is nice considering that, the local and regional markets a completely saturated. A
third dominant economic feature is the technological innovations that continually surface
from the many competitors.
Innovations such as software advancements, 32 bit and 64 bit chips, networking
expansions, and improved design technologies. Each has a direct link to the economic
structures of the company and its competitors.
Distribution channels
The distribution channels for PCs have been changing considerably in the past couple of
years. The changes are being driven by price declines and the 'mature product' phase of
the computer life cycle.
Many of the expansions involve channels that already carry PCs or other sources not
previously used. A few examples of those not previously used are cable TV firms,
telephone companies, and bookstores.
6. Strategic Group Map of Apple Inc.
As learned in Chapter 4 (p.144); for better understanding of the market, it is
useful to categorize the firms of the same industry in strategic groups for
better understanding of the competitive environment. Here we compared
quality versus price to differentiate between several smartphone market
players.
APPLE
HTC
SAMSUNG
0
2
4
6
8
10
12
0 0.5 1 1.5 2 2.5 3 3.5
Price
Quality
Smartphones SGM
Apple
Inc.
Microsoft
Google's
Android
HighQuality
High
Price
Low
Low
7. Relation between Apple's Strategic Group & its organizational focus:
High quality products
Premium prices
Focus is mainly upon valuing customers by providing exceptional quality
products, repairs and expert advice.
Well known for its passionate and dedicated customer base thus it enables Apple
to charge premium prices.
Driving forces
Driving forces are part of the external analysis and provide the company with insight on
opportunity and threats that it must contend with. Some of the driving forces for Apple
Inc. are:
1) Industry growth rate (short or long-term)
The computer industry has been slow for the past number of years. It is affected by a
weak economy and less disposable income within the households due to layoffs and
outsourcing of jobs outside of the United States. Upgrades have not been
technologically advanced enough to warrant constant change so many consumers
wait until a few upgrades are offered before purchasing one.
8. The industry has usually been supported by big business and since the slow-down big
business has not been expanding so need for additional computer and software is not
required. Apple has to face another hurdle when viewing this because big business is
more Wintel operating system driven and with the cost of cloned PCs, they are just more
affordable.
2) Changes in who buys the product and how it is used
3) Changes in society - different concerns, attitudes, and lifestyles
The people purchasing computer have been become accustom to using Windows
operating systems. The population growth has increased and all of those individuals that
come into computer using modes are being subjected to the Windows environment.
Many are not knowledgeable of the Apple operating system and have only heard of
Macintosh computers.
The younger generations are coming to know of Apple with the onset of iTunes, iSync,
and iPods. This is bringing a younger generation into Apple's marketing world but Apple
has yet to convince them that the computer systems provide the quality and ease of use
just as the music materials that Apple is able to supply for them.
4) Product innovation and technological change
Microprocessors, semiconductors, memory storage, and speeds of computers is
ever changing and as the technology improves so must Apple. Many products
strength innovations are being driven in the areas of miniaturization. Companies are
spending millions of dollars to provide themselves a position in being the one to
make the next innovative improvement. Customers have a desire to possess the
latest and greatest so the combination of the companies trying to create the new and
the customers desire to be first 'on the block' with the new certainly creates a major
driving force.
5) Firms - entering, exiting or mergers
Much of the computer hardware industry has defined players and market share
percentages allotted with a few shuffles taking place among them. Niche companies are
being merged or bought out by the larger companies so the larger ones make some
small gains from time to time. The music industry is different since it does not require the
capital outlay that would be incurred if entering a hardware market. The same applies to
the software developers. New software developers can infiltrate the industry and music
related equipment providers can easily provider newer systems or a different avenue for
accessing the music clips.
The need to remain competitive on both fronts keeps everyone moving forward. The
differentiation in the Apple operating system can hinder the amount of software being
created but this works against the company because few products are available to use
on their computers.
9. Competitors that can affect the direction of the company can easily copy the iPod and
iTunes sectors.
6) Increased globalization of industry
Companies are surfacing in the global markets. Many companies in other
countries are driven by their desire to capture a large market share on their side
of the world or by governments pushing them to enter into the global systems
7) Changes in cost and efficiency
The product life cycles have become shorter as technology advances and consumer
whimsical purchasing changes. The mode forces increases in need for being innovative.
Innovation and competitiveness cost the companies a considerable amount of money
that has a direct effect on the profits. Matters worsen as competitors cut costs when
providing their products to market. Apple moved into the retail world by opening 65
stores so costs increased considerably but it will take time to learn if the efficiency of
their sales increased proportionately.
Apple's different operating system also incurs addition costs in the selling and
administrative costing realms. Apple must provide consumers with superior or value
added equivalents to justify the higher prices for their products.
8) Regulatory influence and policy changes
Government regulations will continue to change domestically and abroad. Environmental
issues have been part of Apple's proactive approach to being environmental stewards.
This cost must be absorbed into the products being manufactured. Money spent on
cleaning up or providing cleaner operations does not add to the value of the product
production so it is a negative affecting cost that must be incurred.
The choice of not being a good environmental steward could backfire and be far more
costly than the amount being spent to do it up front.
9) Changes in degree of risk and uncertainty
Apple components and products are ordered before manufacturing begins so forecasted
sales dictate how much should be ordered. If the sales do not occur then the orders may
have been more plentiful than required and excess inventory could adversely affect the
company. New innovative product may be presented to the consumer and make the
present inventory obsolete so the company again stands to incur all the risk and face
uncertainty of the future.
Apple's control of those that do produce components for them is limited and subject to
much risk and uncertainty.
10. Key success factors
As learned in Chapter (4) (p.147); Key success factors are the variables that
significantly affect the overall competitive positions of companies within a
particular industry through the economic and technological characteristics
of the industry as well as the company's competencies.
Apple Stores – Retail Locations
The introduction of Apple stores has provided the company with an important
physicalpresence to act as both a sales location and an advertisement. The
stores allow Apple to tightly control the image of the brand and provide
excellent customer service. This resource is of incredible value to Apple and
a success that is a relative rarity in the industry. Matching success and
impact like the Apple store model is difficult for other firms to achieve.
Relationship with OEMs
Apple has outsourced all of its manufacturing processes to OEM partners
in China, like Foxconn and Hon Hai Precision Industry while focusing on design
internally. The relationships between Apple and their OEM partners are very
close to provide Apple with excellent service and high quality products. Mutually
beneficial business relationships are time-consuming and difficult to develop and
maintain is of considerable value to Apple and puts them ahead of other
manufacturers who may decide to outsource some production.
1. Technology related
The first Macintosh computers were equipped with a physical chip on the logic board
because RAM and HD space were costly and ROM contained routines required for
computer startup and other higher-level Mac OS code. The iMac release divided ROM
into boot ROM and Mac OS ROM. The startup and higher-level code routines were
separated. The Mac OS ROM no longer needed to be in a chip form but instead is now
an image file inside of the MacOS system folder. This change updates with the use of
firmware feasible for both ROMs. Each Mac also had a unique machine identification
number
Apple also offers a better-integrated computer operating system than its competitors. It
is also not easily copied so Apple could offer a superior computing solution free of any
troubled operating system.
Apple has put audio, print spooler, bridging, and Ethernet into one small package call
AirPort Express. The system works with any Wi-Fi device and supports streaming music
through analog and digital audio jacks and USB printer spooling through USB ports on
Mac OS X and Windows XP and 2000. The introduction of AirPort Express raises the
bar on these combined features.
11. 2. Manufacturing related
Apple subcontracts it's manufacturing to third parties so it can focus on its core
competencies of testing and developing software. It can also concentrate on ensuring
that what is manufactured meets required specifications so quality remains a top focus.
3. Distribution related
Apple operates some of its facilities round the clock and after manufacturing they are
automatically feed to a system though a case taper where it is prioritized and sorted prior
to being palletized. This system can divert the product for shipment or audit before it is
released from the warehouse. Apple's use of this system minimizes the intervention and
monitoring time cycles. It even has the capability of paging a maintenance mechanic
when problems occur within the system
Apple not only contends with the physical distribution of its computers but it must also
address distribution of its music and iTunes software products. The AirPort Express
system is one of Apple's new methods of staying on top of the distribution of its
innovations.
4. Marketing related
Apple had survived rather well through the use of its aesthetics and user-friendly
systems but the computer's position changing to a commodity eliminates much of the
differentiation. Its opening of the retail stores has also assisted with marketing of product
since more people can readily see the name on company storefronts. Branding and logo
help keep the name fresh in people's minds and Apple has designed some very creative
commercials that help this.
The differentiation is not easily copied by competitors and can provide Apple user with a
superior computing solution. It can offer a trouble free operation, rapid response to
technological change, and a direct link to customer concerns. Apple differentiation offers
a clean, simple product line with a single controlling company dedicated to the
production of quality products.
5. Skills related
Apple has spent much of its hiring practices dealing with upper level managers,
computer technologists and specialists, programmers, engineers, and R&D scientists.
They have gain a reasonable understanding of the skills required to sustain a
competitive advantage in their areas of expertise. Apple has chosen to follow other
companies in employing engineers as business managers and they have seen the
fallout from having done so just as other companies have also seen.
Apple's expansion into the retail store business has been a change to what they are
accustomed to hiring. The storefronts use three key employee levels for selling product
and providing expert support for customers. The three levels include the store manager,
'genius' position, and 'keyholder'.
12. Industry Analysis
Industry Wide Strategic issues
External Analysis
General environment analysis
Companies engaged in manufacturing electronic computers are listed under SIC code
3571 and/or NAICS code 334111. Electronic computers are machines that
1) Store processing programs and data necessary for program execution,
2) Can be freely programmed to user requirements
3) Perform arithmetic computations and
4) Execute processing programs that requires modification of execution by logical
decision without human intervention. Personal computers fall into this category.
The electronic computer industry has been struggling since early 2000 when the
economy weakened. The US Census Bureau reported a decrease in computer
shipments from 1999 $64.7 billion to 62.9 billion in 2000 and continued downward to
$49.3 billion in 2001. Unit shipments also declined from 27.2 million (2000) to 22.7
million in 2001.
Rising unemployment and anticipated war with Iraq assisted in reducing the number of
computer purchases. The terrorist attack on the Pentagon and the Twin Towers in New
York City also added to the decrease. Much equipment was available at reduced costs
due to the bankruptcy of many Internet companies in the early 2000s. IDC also reported
in 2001 that Dell, Compaq, Hewlett-Packard, and IBM controlled over 40 percent of the
world PC shipments. Hewlett-Packard purchased Compaq and became a formidable
power competitor for Dell. The control of this large a portion of market share is
something Apple would have to contend with each step of the way.
Demographic segment
This is an increase of 13 million people in just a little over four years since 2004.
Increases in population combined with the advances in technology will continue to drive
increased sales in future computer markets.
The same Census bureau report broke down the ages into the groups listed in the
Table01 below. Americans begin using computers in the early years. Survey of the
numbers easily points out that a majority of the American population is of age to readily
use a computer in some form or fashion. Even some of the older generations are
experimenting with computer use. USA Today back in September 1997 published an
article that claimed that 10% of seniors own a PC and that 25% of those have Internet
access.
13. The domestic populace included 84 percent of people 25 years and over who had at
least graduated from high school and 27 percent had a bachelor's degree or higher. The
group also included approximately 8 percent dropout rate of the 16 to 19 year old group.
Enrollment for 2003 was 75.1 million students. The median income was $43,564 of
which 80 percent of the households received earnings and 17 percent received retire
income other than Social Security. Thirteen percent of the population was considered to
be living in poverty.
The group's occupational status was broken down into the following categories by
percentage.
34 % Management, professional, and related occupations
36% Sales and office occupations
16% Service occupations
13% Production, transportation, and material moving occupations
10% Construction, extraction, and maintenance occupations
The world population estimation for 2005 is 6,449,000,000 people
and for 2010 it is 6,812,000,000.
The computer industry will be required to support the increases. The computer industry
is growing rapidly in the Asian market and number indicates that a majority of the
population growth will be concentrated into that area.
Economic segment
Computer requirements are increasing across the globe. Data collected has all but 4
countries increasing the number of computers being used per 1000 individuals within
each respective country. The data was not restricted to PC type computers but listed
computer use in general so Apple computers were included within the data gathered
even though it is undergoing a market share loss of computer sales.
Exports felled from $9.6 billion in 2000 to $8.8 billion in 2001 with Canada being the
largest regional market for US computer sales (23% of U.S. exports). Asia and Europe
accounted for two-thirds of the total exports. Imports of computers dropped from $13.6
billion in 2000 to $12.2 billion, a 15 percent drop. Most of the imports are from Asian
sources with Latin America and Europe serving as secondary sources
Political/legal segment
Apple faces political/legal segment issues both domestically and abroad. Domestically
the Federal and State government continues to tighten up on the environmental issues
that constrain manufacturing and disposal of the units.
Environmental concerns are issues that directly affect each computer manufacturer. The
Environmental Protection Agency updated EPA/310-R-95-002 "Profile of the Electronics
and Computer Industry Code in the September 1995. This document provides directives
that must be adhered to by companies manufacturing computer components (EPA site,
2004). Apple has willfully promoted the buyback and proper disposal of computer parts
in effort to promote product stewardship from the environmental perspective)
14. Apple Environmental Programs :
All Apple manufacturing sites ISO 14001 certified worldwide, signifying that Apple has a
structured environmental management system (EMS) in place to manage the
environmental impact of our operations
2001
Apple's complete product portfolio meets applicable ENERGY STAR® requirements
(also in 2002/2003)
Started voluntary phase-out of tetrabisphenol A (TBBA) in all plastic enclosure parts> 25
grams
2002
Product take-back solutions implemented in U.S. and Japan
Roll-out of Apple's global Regulated Substances Specification
Signatory of European Union Code of Conduct on Power Supplies, created to encourage
manufacturers to design power supplies that minimize energy consumption in off mode
Founding member of U.S. Federal Energy Management Program (FEMP), which
introduced energy efficiency requirements for the off mode of computer products
2003
The global market differs in its segmentation depending upon which country is involved.
Different countries impose varied restrictions on the equipment components and its use
once it is operational. China can be used to simplify explanation of some issues. China
began allowing computers into its borders in the early 1990s but still places restrictions
on its use. It also controls whom, how, and what negotiations take place between foreign
companies and local Chinese companies. It limits citizen Internet activity once machines
are operational. High tariffs combined with government regulations to prohibit foreign
companies from trading directly with the Chinese companies (Kraemer, 2004).
Foreign companies often favor the local companies over the foreigners trying to
manufacture within their borders. In many cases additional tariffs are imposed on foreign
competitors. International trade regulations also differ between countries with some
being lucrative initially but changing in favor of the local company as time progresses.
Apple faces the battle of overcoming the market dominance of the PC based computers
but does have tremendous opportunity present in the iPod and music associated
industry.
Apple and fellow computer companies have recognized that pirating and copying is more
easily done in some countries than in others. The laws are in effect in both places but
one is more apt to prosecute than the other. This illegal activity directly affects the
bottom line for every company involved.
15. Socio-cultural segment
Cultures are restrictive and the restrictions have effects on company profitability. China
Internet traffic increased by 71% from 1997 to 1998 and continues to do so as we
approach 2005. Some technological changes are more readily accepted than others.
Chinese people still have trouble accepting credit card transactions since the initial cost
of computerization is high. Internet sales in many overseas countries are not as
successful as in the United States and Europe because many of the customers prefer to
view the products they are purchasing. The same applies to other parts of the world so
the computer companies have to adjust according to the cultural differences being
encountered within the different countries in which they chose to market and sell.
Adapting to the differences in culture is not very easy and some manufacturers are trying
to build value into their company name. This is being done in hopes that branding will
eventually equate with honesty, integrity, quality, and good service so that storefronts
will not be as necessary as they presenting are. Apple computer began opening
storefronts in the United States in effort to compete against the PC based companies.
Their thought is that by having it available for the customers some will eventually make
the switch away from the PC-based systems.
The largest socio-cultural hurdle for companies such as Apple is the lower educational
standards of many countries. While many are making great progress, they are limited in
number. Those that are progressing can take advantage of the outsourcing that is being
done by American companies.
Technological segment
The governmental has always favored the computer industry's research and
development and it has shown favor by the amount of funding that is made available.
This trend has held true since the Cold War. It was just recently that any significant
cutbacks occurred and the industry has been unable to make up the difference. Most
computer companies began to cut back the amounts of R&D funding in the early to mid-
1990s and also began to focus on the short term. Product life cycles have been
shortened and the computer has become an everyday commodity.
Many of today's technology driven innovations that are being developed affect the
microprocessors, semiconductor, memory storage, and speed capabilities of the
computer units. Miniaturization is definitely on top of the required changes for the future.
Everything seems to be getting smaller and with the decrease in size comes integration
of multiple technologies. Phone, PDA, and Internet modules are being combined into
one piece of equipment. Telephones, video players, answering machines, and
televisions sets are being intermeshed. The future of technology seems endless.
16. Industry Attractiveness
Overall Attractiveness of the Industry
The overall attractiveness of the PC manufacturing business is affected by
several factors. These include general macroeconomic conditions as well as
industry specific factors such as the unique economic features of the industry,
competitive forces, forces of change, the market position and expected
behavior of the various competitors already in the industry, and the industry’s
key success factors.
Attractiveness of External Environment
The external environment of the technology sector has become highly
competitive and barriers to entry have naturally developed over the years of
growth some companies and the industry in general have attained. The
attractiveness of this sector of business is still quite favorable but has been
tough for new companies to try to enter and compete. Some of the other
forces involved signaling industry attractiveness includes:
❏ Consumers still demanding new high tech products
❏ Natural move to a higher tech more service based economy
❏ Economic conditions have started to improve
Dominant Economic Features
The market for PCs in the home as reached its maximum and growth has
largely stagnated.
Analysis shows that the market is highly concentrated with most of
the revenue (90%) coming from half of the approximately 1,500
companies. Further analysis identifies only five major players (Dell,
Hewlett-Packard, Acer, Apple and Lenovo) accounting for the lion’s
share of the market. The fact that there are so few large competitors
with the remaining market share divided by over 1,000 other
companies indicates that anyone can enter, but few can grow. This
has negative implications for the attractiveness of this market.
The number of buyers in this market is relatively stable and growing
only with population. The market is fully penetrated with every one of
the estimated 111 million households already fully served. This is also
reflected above in the analysis of market growth rate. Also as noted
earlier, the replacement market is driven by technological change.
This has very negative implications for this attractiveness of this
market.
This industry is strongly affected by both experience curve effects and
large economies of scale. Companies entering this industry would
require significant experience in large-scale electronics manufacturing
17. in order to have a chance at competing. This has negative
implications for the attractiveness of this market to most
companies.
From a financial perspective, standard measures of company
performance, such as profitability and liquidity ratios, as well as
economic efficiency measures such as ROA, are low for the major
players in this market. It seems that in order to achieve a large market
share a company must compete primarily on the basis of price and
efficiency. This has extremely negative implications for the
attractiveness of this market.
The Five Forces Model of Competition
As learned in chapter 4 (p.138); using porter's approach for
industry analysis:-
Every market including the financial industry can be evaluated through the use of
Porter's five-force theory. Porter's uses the five forces, supplier power, and barriers to
entry, threat of substitutes, buyer power, and the degree of rivalry, as tools that help
analyze a company's position against its competitors.
18. 1. Threat of New Entrants/Barriers to Entry
2. Bargaining Power of Suppliers
3. Bargaining Power of Buyers
4. Threat of Substitute Products
5. Intensity of Rivalry: Among Competitors
1-Threat of New Entrants
1. Economies of Scale
2. Product Differentiation
3. Capital Requirements
4. Switching Costs
5. Access to Distribution Channels
6. Cost Disadvantage Independent of Scale
7. Government Policy
8. Expected Retaliation
1. Economies of Scale
❏ Apples economies of scale give it a clear advantage over its competitors in the
same industry
❏These advantages can be broken down into external or internal economies of
scale
Internal and External Economies of Scale
❏ Apples internal economies of scale were established through its learning curve
and volume of production
❏ Apple has been in the industry for a while to have a leg up on competitors like
Samsung by figuring out how to lower their production costs and analyzing their
market better
❏ Apples external economies of scale give them an advantage because of where
they are located
❏ California is the mecca for the computer industry in the U.S. as such, suppliers
naturally flock their and computer workers can easily share their ideas and build off of
another
❏ Therefore, Apple gains a significant advantage of lower supply costs and a more
intelligent labor pool
High barriers of entry
❏ Apples economies of scale give it a clear competitive advantage of their
competitors
❖They know their market, have access to reduced input prices, and figured out
production processes to lower costs in producing their goods
❏As such it will be extremely hard for competitors to enter the computer industry
market given the advantages Apple has created for itself
2. Product Differentiation - High barriers to entry
❏The technology sector is a tough market to enter regarding product differentiation
because of the innovative powerhouses currently there, such as:
❖ Apple
❖ Google
❖ Microsoft
19. ❏When you have companies currently present that have already matured and gone
through the learning curve it is hard to match their prices, and all their expenses are
much lower compared to yours.
❏These high barriers give the companies like Apple a advantage and form of
protection against new up and coming companies who try to compete.
❏Trying to beat the innovative nature of companies releasing the iPhone, iTV,
Android, and other highly differentiated products is a tough task.
3. Capital Requirements - High barriers to entry
❏Most capital requirements needed to start a new business or compete in a
particular sector are normally fairly high, but it is especially high in the technology
sector.
❏There is need for a lot of capital because:
❖ Technological products are not cheap
❖ Human capital is additionally needed
❖This human capital needs to be highly skilled
❖ High R&D costs to innovate
4. Switching Costs - Low barriers to entry
❏ Compared to other factors regarding potential new entrants this factor is much
lower.
❏ But it does change, how this occurs is based on what industry the new competitor
is emerging from. If it is coming from a similar background to technology the
switching costs are not big.
❏It may be more challenging if the switch is from a completely different industry.
❏If different, the former low cost industry company may find challenges in adapting
to the high cost tech industry.
❏The reasons behind classifying this factor as lower barriers are as follows:
❖ Company already works in a high cost industry
❖ Switching costs may be worth the future returns
❖ Lower regulations present in the tech industry
❖ Benefits outweigh switching costs
5. Access to Distribution Channels - High barriers to entry
❏Another high barrier to entry due to bigger companies already locking down the
major suppliers in the region, this occurs due to:
❖More mature companies present
❖ Companies like Apple and Microsoft forming contracts with big suppliers
❖Not being able to match what other companies currently pay
❖Higher costs associated with premium suppliers
6. Cost disadvantages independent of Scale - High barriers to entry
❏As mentioned before these costs deal with the learning curve.
Other reasons companies already present in the industry have an advantage over
potential entrants are as follows:
❖ Learning curve
❖ Lower costs per product
❖ Favorable government support or subsidies
❖ Connections with suppliers providing favorable prices
❖ Locations better suited for business than what the entrant may be able to obtain
20. ❖ Historical advantage- matured companies
7. Government Policy - High/Low barriers to entry
❏This factor is varied by specific industry.
❏The reason for a high/low rank is due to constant changes governments can
implement and make.
❏ Government policies can make entry completely impossible or favorable.
❏ Limits to raw material suppliers could also be put into place to protect the industry.
8. Expected Retaliation - High barriers to entry
❏ Due to companies that are large and experienced high barriers to new entrants
are expected to come, they take the form of:
❖Large companies with excess cash flow can hinder new companies.
❖ Distribution channel leverage of present companies.
❖Excess capacity to produce more goods
❖Higher market share
❖If truly threatened, buyouts early on could emerge.
2- Bargaining Power of Suppliers
1. No Satisfactory Substitutes
2. Industry Firms not Significant Customer to Supplier Group
3. Suppliers’ Goods are Critical to Buyer’s Success
4. High Switching Costs Due to Effectiveness of Supplier’s Products
5. Threat of Forward Integration
1. No Satisfactory Substitutes
❏If you take a look at the big time companies such as Apple, Google, and Microsoft
you will find that they have a lot of exposure to the worldwide supply market.
❏This fact gives suppliers to these big tech industry leaders very low if any
bargaining power. The reasons why includes:
❖ Many other potential suppliers
❖ Conduct business with big global market leaders
❖Not well leveraged
❏These are the reasons why they have no power in this respect, the big
conglomerates have many substitutes.
2. Industry Firms not Significant Customer to Supplier Group
❏For smaller firms the supplier may have more leverage and power here, but when
doing business with big multinational companies it is most likely not.
❏The reason is quite simple; market leaders in the tech sector are just about as big
as they come.
❏They have some of the largest market caps/market shares/consumer appeal.
❏This is why suppliers cannot bargain with these companies, for most of them they
make up most of their business.
3. Supplier Goods Critical to Success
❏It all comes back to control the buyers possess over the suppliers.
❏In a sense the answer is yes that the suppliers goods are critical to their success,
except there are a few other factors that work against them, some are:
❖ Buyer market share
21. ❖ Multiple potential business partners
❖Everyone wants to be a supplier to a company like Apple
4. High Switching Costs Due to Supplier Effectiveness
❏ Switching costs are not such a big expense to firms such as Apple.
❏The reason these expenses do not break the bank is due to their large amounts of
cash and market presence.
❏Another reason suppliers do not have much say is because there are a lot of
suppliers who are effective and can minimize these costs for their buyers.
5. Threat of Forward Integration
❏ Apple has many different suppliers.
❏They have multiple semiconductors who specialize in different forms of tech,
holding companies, and electrical companies.
❏ Some of Apple’s suppliers include:
❖Analog Devices Inc.
❖Amperex Technology Ltd.
❖ Arvato Digital
❖ Asahi Glass
❏These are just four of a long list of suppliers that work for Apple.
❏The reason for labeling some of these companies is to show their size and power
vs. the powerhouse buyers.
❏A lot of these companies is very small, and because of this the threat of forward
integration is low. While it is possible to use this method it is not practical and smart.
❏The lost profits suppliers would lose from using this method would be huge, and
Apple knows this.
❏That is why there is no bargaining power here.
3- Bargaining Power of Buyers
1. Purchase large portion of industry’s output
2. Product sales accounts for significant seller annual revenue
3. Low switching costs
4. Industry products are undifferentiated or standardized
5. Threat of backward integration
1. Purchase large portion of industry’s output
❏ Apple is a MNE and has substantial ties worldwide.
❏ Due to the fact that they are present in multiple markets and have a wide variety of
customers it is safe to say that the company’s product output is fairly distributed
across many buyers.
❏This lower amount of bargaining power among buyers is common in these
attractive industries.
2. Product sales accounts for significant seller annual revenue
❏With the amount of product sales; comes the seller’s annual revenue they make off
these products. Apple is a large company and very profitable due to highly
differentiated products.
❏When a company has this advantage and many buyers it results in lower
bargaining power for the buyers.
22. 3. Low switching costs
❏The reason for this yes/no explanation is due to the fact that a part of this issue is
dependent on different consumer behavior.
❏Some buyers do not mind switching from an iPhone to a
Google Android because they do not see the switching costs as substantial.
❏ But other customers may see these costs as big enough to decide not to switch.
Switching costs would include the new phone/plan, new charger, apps that will not
transfer, and possible cancellation fees.
4. Industry products are undifferentiated or standardized
❏ Due to the type of industry and company that Apple is there is no contention when
determining their products as not being standardized.
❏The ways this gives buyers no power is:
❖ Differentiated products
❖Since differentiated you can’t get close substitutes
5. Threat of backward integration
❏ Due to the big MNE Apple is there is not much of a chance this can happen.
❏ Apple enjoys the below advantages in relation to this idea:
❖ Economies of scale
❖ Great reputation
❖ Access to major distributors
❏These are the reasons that if buyers try and backward integrate the strategy will
most likely fail.
4-Threat of Substitute Products
1. Switching costs - high/low
2. Price comparison
3. Equal quality/performance
Substitute Product Examples
❏iPhone alternatives:
❖Walkie Talkie
❖ Letters
❏ IPod alternatives:
❖ Basic CD’s
❖ Music Library
❏ Macintosh alternatives:
❖ Typewriter
❖ Telegraph
1. Switching costs - high/low
❏The costs associated with switching from Apple products to one of its competitors
is very high
1) Apple products, like the iPhone, run on their own operating system called iOS
❖This means iCloud, iPhoto, and all the other apps will not be compatible with other
competitor's operating system
❖This increases the customer’s perceived costs of switching products because of
the hassle of not being able to use their favorite apps
23. ❖ Also, the more Apple devices a consumer has the likelihood these switching costs
will increase
2. Price comparison (Intensity: High)
❏ Apple is a market leader, thus many competitors will emulate them by offering
similar products at reduced prices or with unique features
This competition can get so heated that Apple will sue its competitors for copyright
infringement to protect its products and market share
❏ In Apple v. Samsung, Samsung had to pay Apple $1 billion dollars for copyright
infringement on its iPhone
3. Equal quality/performance (Intensity: N/A)
❏In the technology world assessing the performance of two similar products can be
difficult to achieve
❏Each product has their own unique designs yet they all accomplish the same tasks
❏ Benchmark tests could be used as a measure but they are unreliable because
companies can inflate the results to make their products seem more applying
❏ Therefore, the true performance of a product depends on the needs of the user
and how much they are willing to pay for a few extra RAMs or memory space
5- Intensity of Rivalry among Competitors
1. Numerous or equally balanced competitors
2. Slow industry growth
3. High fixed or storage costs
4. Low differentiation
5. Low switching costs
6. High strategic stakes
7. High exit barriers
1. Numerous or Equally Balanced Competitors
A. Intensity: High
❏ Apple produces a variety of products to penetrate many markets, which creates
many different competitors
❏ Apple’s top competitors are Microsoft, Google, and Samsung
❏These three companies contain the technology, supply chain and funds to be
equally balanced with Apple
❏One reason why Apple is ahead is because they were the first
to revolutionize the consumer markets with their products
❏This helped them establish a large share of the markets early on and create loyal
consumers
2. Slow industry growth
B. Intensity: Moderate
❏In developed economies the industry growth for smartphones has slowed down
considerable
❏ However, emerging economies are compensating for this slow growth by
exhibiting high volume of sales
❏This is important because Apple’s iPhone sales were 52% of their total revenue
from their last fourth quarter
❏ Therefore, if Apple wants to continue its growth they must focus on penetrating
other countries markets besides the U.S.
24. 3. High fixed or Storage Costs
C. Intensity: High
❏ Apple’s fixed costs for producing its products are relatively high because of the
numerous individual parts it has to create to make one whole product
❏ In addition, Apple is currently building a campus in California
❏This project costs about $5 billion dollars, which will significantly raise its fixed
costs
4. Low differentiation
D. Intensity: High
❏ Apple is a highly innovative company that produces unique products that
revolutionize their target markets
❏ As a result, competitors copy Apple's products and designs to reduce the
differentiation status they hold over them
❏This forces Apple to come up with more innovative ideas to remain ahead of their
competitors and retain their market share
❏ As such, Apple holds a high product differentiation in their markets until
technology diffusion makes their products available to their competitors to copy
5. Low switching costs
E. Intensity: Low
❏The overall intensity for switching costs is relatively high because each competitor
has introduced numerous of products that offer unique features compared to their
competitors and previous models
❏These features entice consumers to buy the new more expensive models, which
raise the level of switching costs in the industry
❏ In addition, accessories change to only be compatible to with newer models to
further the switch
❏ For example, phone chargers, cases, and services
6. High strategic stakes
F. Intensity: High
❏ Competitive rivalry in Apple’s chosen markets have become so fierce that Apple
has to look elsewhere to continue growing
❏This is brought on by Apple’s competitors gaining ground and selling more units in
the domestic market
❏ Therefore, Apple has the potential for great gains within the global market by
focusing on emerging economies such as China
7. High exit barriers
G. Intensity: High
❏ Apple has recently been investing huge amounts of money into their supply chain
management
❏Over the next year they plan to invest “$10.5 billion in supply chain robots and
machinery”
❏ Last year they spent about $7billion on related expenditures and custom built
machines
❏These high investment costs contribute to high exit barriers because it places such
a high costs on abandoning its products that use this supply chain system
25. Competitors' Analysis
Apple is taking 93% of the profits in the smartphone industry now
Apple is basically the only company making money from smartphones anymore.
Every quarter, the analyst Michael Walkley takes a look at the state of the profits of
smartphone companies. This quarter, it is found Apple had a record breaking 93% of the
industry's profits.
Apple is always the leader, but for a short while, it looked like Samsung was going to
catch Apple. Those days are long gone. Apple has blasted away from the pack.
Samsung's share of the industry's profits is down to 9%, its lowest point since 2008 as
its profits crater. Samsung is under attack from Apple at the high end with the iPhone 6
and 6 Plus, which both have big screens.
Apple sold 74.5 million iPhones last quarter, generating roughly $12.6-$13.5 billion in
profits.
26. Competitors: strongest - weakest
The focus on the strongest competitor extends beyond Microsoft but that will become
clearer in a few sentences. Microsoft's control of the PC market speaks for itself so they
can easily been seen as the strongest competitor. Apple will eventually have to tackle
trying to take away market share but a head-on battle may not be the best approach
(Machanick, 1998).
Another side of competition is the music side that Apple is presently doing well in.
Samsung and Napster 2.0 have teamed up to release a new service/hardware
combination that is intended to compete directly with iTunes Music Store and iPod. The
scheduled release is to offer unlimited downloads and services that the iTunes Music
Stores offer.
Rivals anticipated strategic moves
Apple's strategy has not gone unnoticed. Its rivalry has created an air of 'bad blood'
between itself and digital rival RealNetworks.
Apple management was quoted as stating: "We are stunned that RealNetworks has
adopted the tactics and ethics of a hacker to break into the iPod, and we are
investigating the implications of their actions under the DMCA and other laws."
The move has prompted Apple to consider restricting iPod software updates so that
Real's Harmony technology would no longer be supported
Speculation has surfaced that video conferencing functionality may be added to iChat
(Geek.com, 2002). The move has been seen as being gutsy.
27. Economies of scale
Expense of software creation was be extremely expensive and but once it has been
refined the cost of producing copies for sale is minimized. The difference in expense
between Apple and Microsoft is the systems put into place. Apple chose to go with a
closed system that not have any others assist with programming, testing, and bugging
as did Microsoft. Microsoft gobbled other companies that had made sustainable
improvements to their operating system up. This reduced some of Microsoft up front
costs and multiplied the progress.
SWOT Analysis
Strengths
1- Product differentiation
When Apple first hit the market in the early 1980s it had a product that differentiated it
from all other computer products on the market but it failed to capitalize on what it had.
The system continues to be strength for the company since its closed operating system
is not subject to the computer viruses and hacking that affects the Microsoft Windows
operating system. The small market share controlled by Apple can be increased every
time Microsoft encounters problems.
Apple's system for graphic and architectural production and design is far superior to any
Windows application and this strength should receive considerable advertising to
capture more of that niche market. Apple cannot continue to make the mistakes it has
made in the past when it could have countered the Windows upgrades as they occurred.
The Macintosh's high-resolution graphics and ease of advantage over MS-DOS had
made it a natural for software developers who created the "desktop publishing" segment,
which was widely credited as saving Apple and the Macintosh.
The iPod and iTunes markets are strengths but they can be easily copied by competitors
and are subject to the control of third parties.
At present it does control the market but without pursuit of a core competency that
cannot be easily imitated by others it will fall off of the strength category.
2- Brand name and image
Branding of products helps in keeping consumers abreast of the company products.
Whenever a company established a popular brand name or image it can reap some
benefits. Some of the benefits associated with the name recognition is the ability to
reduce advertising from the recognition perspective. Apple computers got its name from
28. Steve Job's favorite fruit. He has run three months late in filing for a name for his
company and threatened his colleagues that he would call the company Apple
Computers if they were unable to come up with something better by 5:00 pm that day.
His friends didn't so the name stuck. The brand has some to be known for its superior
quality and aesthetics. It is valued in the graphic world for having an operating system
superior to any Windel platform. The innovations in the music industry have been linked
with Apple's brand name and its quality products and services.
3- Manufacturing both hardware and software
Steve Jobs is pursuing the combination of hardware and software manufacturing and
does not intend to lay off any of his employees since they are what make Apple
successful. Apple will continue to run lean while management pursues the business of
making machines and applications that even their most stringent critics regard as some
of the best in the business.
Apple does manufacture both hardware and software for its computers so it has the
ability of controlling design so that it appeals to the functional uses and aesthetics
required by consumers. Some of Apple's clients are web designers and its computers
provide the specific hardware and software needs to accommodate them. Output is
found to be impressive both for customers and their clients. Apple is providing the most
affordable 64-bit technology and a new operating system OS X in effort to position itself
in the scientific and academic high performance computing tasks.
4- Diversified markets
Apple has built an alliance with Sony and Ericsson with aims at capitalizing on the
broadband wireless market in the future. Apple's launch of iSync software in 2003 allows
synchronizing of personal information management applications and devices such as
mobile phones and hand-held computers (PDAs) (Barker, 2003).
Weaknesses
1- Economic and political uncertainty
Apple's operating performance is affected by the economic and political uncertainty that
shadows the United States. Education entities have postponed purchases due to budget
cutbacks and shortfalls. Businesses are not expanding and employment reductions in
force have provided less disposable income reducing sales. Failure to improve could
continue to affect the company and its suppliers negatively. The entire tech market has
been weakened by the economic and political uncertainty as well as other constraints.
2- Research and development costs higher than competitors
The market requires that participants continually provide innovations and competitive
products and technologies. Apple has been working extremely hard to accomplish this
and in doing so is spending more money for research and development that its
competitors. This increased spending negatively affects its profit margin and with
competitors cutting prices on their products it makes it difficult to compete on the same
playing field.
29. 3- Selling, general, and administrative costs are higher than competitors
Expansion into the retail 'bricks and click' world has increased Apple's costs. Marketing
fees for advertising its unique operating system and new equipment again affects the
bottom line, even though they are necessary expenditures. Competitors are able to
enjoy the luxury of utilizing operating systems, in Windows users case, that controls a
considerable amount of market share so they do not have to spend anywhere near as
much to promote their operating system. Apple has to focus on creating more
awareness not only of its products but also of its operating system. It must continue to
develop innovative products that offset the expenditures of these group costs.
4- Component order placement places company at risk
Components and products are ordered before the computers are manufactured so if
something occurs that represses sales the company is vulnerable because of the high
priced inventory that it retains.
This occurs because pricing competition is ever going so to purchases of components
and products at present day cost would usually be lower than prices paid for what is
presently in inventory. The worst-case scenario is having inventory become obsolete
and then having to be written off of the financials. Cancellations of orders usually result
in cancellation fees that still affect the companies' financial position.
The process of production requires that a company forecast possible sales so that they
can order the products and components necessary for being able to manufacture a
desired output. The risk is in making incorrect forecasts. Apple components may not be
as plentiful from vendors since their market share is smaller and the operating systems
are different. This puts the companies with the Windows operating systems at an
advantage since Apple could run into a problem procuring a sufficient supply of
components.
5- Apple relies on third parties
Apple relies on third parties for music and for manufacturing. This can affect the costs
being relayed to the consumer. The music sales have been profitable for Apple but they
have to contend with the fact that the material is in the control of third party
representatives.
The fees for having access to these materials can be extremely expensive. Another
concern is being outbid or restricted from being able to provide the contents previously
provided. Most of the licensing agreements are short-term and do not come with a
guarantee that the materials will be licensed in the future. Some music industry parties
have announced that consolidation of their distribution might occur in the future. A move
such as this would restrict availability of material for Apple's iTunes Music Store and
drive costs upward so that they might not be as attractive as they are now. iPod sales
could decrease rapidly if material restrictions occurred and Apple would remain at the
mercy of these third-party controllers.
30. The music coming from third parties is not the only thing that Apple should be concerned
with. It also has third parties manufacture it products. The company also out sources
much of its transportation and logistics management. Outsourcing does lower the fixed
operating costs but this is at risk of not having any or at most restricted control.
Quantity output and quality of manufacturing are in the control of the third party
supplier/manufacturer. The company is ultimately held responsible in the end, especially
when defects or other liabilities surface. This is another risk that Apple must contend
with.
Apple is also reliant on Motorola and IBM for processor chips so if these companies run
short or increase the price on the chips Apple must either absorb the cost or pass it
along to consumers. Either of the two scenarios is highly likely especially when the tech
market is recessed.
Apple is faced with multiple weaknesses that it cannot control. Each of them or a group
of them could affect its operations in a negative direction and Apple will be faced with
more hardships than what it encountered in the past. Management must look at how
these weaknesses can either be bridged in effort to minimize risk or turned into
strengths.
Opportunities
1- Apple's different operating system
Apple can take advantage of its operating system differences by turning it into an
opportunity to develop improvements to the Macintosh platform in order to achieve
greater perceived functional and design advantages over competing platforms.
Various computer worms and other hacker anomalies that provide a grand opportunity
for Apple to take advantage and garnish some small sectors of this frustrated market.
With such a widespread system the vulnerability increases and fixes are not easy to
make in short time periods. Micro-soft bashers love to point out that Linux or Apple's OS
X are not vulnerable to whatever the exploit du jour is on the Microsoft platform (Bradley,
2004).The Apple Mac OS X is seen as a stable, reliable, and secure system that is also
very easy to use.
2- Apple's pursuit of music industry
Apple's pursuit of the music industry through its iTunes also provides a good opportunity
to increase Apple's bottom line and also increase brand awareness. The launching of the
iTunes Music Store resulted in over 2 million downloads in only 16 days. Knowing that
all of the downloads were done on Macintosh computers. Apple's opening of its music
store worldwide will be a great opportunity.
31. 3- Microsoft upgrade costs versus benefit
Microsoft users are finding it less feasible to continually upgrade software packages
unless they can truly see a benefit for the money being spent. The last few Microsoft
upgrades have been plagued with glitches that provide another grand opportunity that
Apple can use to its advantage so long as it doesn't make the same mistake with its
issues of upgrades. The customer will continue to look for value when money is spent.
Threats
1- Very competitive industry
The market for design, manufacturing, and sales are all extremely competitively
aggressive in Apple's business. The rapid technological advances made by competitors
in the hardware and software segments has increased the number products offered in
shorter time spans. Price competition, including sellers with computers with other
operating systems, has been very intense as the battles for increased market share rise.
All of these affect gross margin, especially when combined with increased reliance on
the Internet and the miniaturization of components that decrease prices since they are
smaller and simpler.
2- Competitor's copying programs
Companies such as Future Power USA copied Apples Imac and have been selling it.
These copies pose a major threat to Apple sales. The copies look identical to the iMac
even to the point of making the colors the same but under different names. These
copycat computers can even be considered as substitutes for an iMac. Website
www.lowendmac.com states that many other companies are copying the iMac either
because they are too lazy to come up with a different design or because the iMac is
such a great idea everyone wants to copy it.
Competitors are quickly mimicking the unique presentations of digital music products.
Entry into these markets is costly but unfortunately for Apple the competitors have an
abundant supply of funding to address marketing, manufacturing, and technical resource
requirements that may arise. Consolidation of major players has made for larger and
potentially stronger competitors. Competitors are even promoting free peer-to-peer
services.
3- Microsoft dominance
Microsoft Windows continues to dominate the market. More than 90% of the world's
computers use the Microsoft operating system. Apple needs to work on convincing the
world that its system is better than Microsoft. This dominance and need to overcome the
world's mental state of thought about Windows operating systems is a major threat to
Apple.
Windows based PCs have cut prices and lowered product margins to maintain market
share since demand has been declining during the past few years. This pattern does not
seem any brighter in the near future so these practices are very likely to continue. PC
technological advances in software and hardware, and miniaturization of parts, together
with a more reliant Internet movement make the competition for market share even
hotter.
32. Apple's operating system has lost some of its market share during the past few years but
is working to regain its losses. The introduction of the G5 has helped with sales, as have
the Powerbook portables.
Apple's operating system has provided graphics and creative designers with a useful tool
that is not comparable to Windows operating system applications. This difference must
be managed with continued improvements that allow the public to perceive design and
functional advantages over the competitors' operating system platforms. Failure to
compete effectively could cause a negative affect on Apple's financial and operating
results.
4- Software Piracy
Software piracy has been a problem for software and operating systems producing
companies. As the technology advances the more susceptible the companies become to
additional piracy. The piracy issue has grown to global proportions and stopping unlawful
copying and distribution of copyrighted software does not seem to have a remedy for
prevention in the future.
5- Global competition increases
Competition continues to increase worldwide. Other countries are getting into the
manufacturing as the expansions of existing companies occur. Cheap labor and parts
manufacturing in less privileged countries provide opportunities for larger companies
with extra capital to spare for expansion. Pursuit of savings drives them into the other
countries and with labor and parts costing less they utilize that as a means for cutting
costs making them more competitive.
The amount of product introductions hitting the market requires that each company
continue pursuing more innovative products in a shorter period of time. Lack of newly
enhanced product will reduce customer demand even more than what is being affected
by the weakened economy.
Companies must hope that the product introductions will be well received by the
consumers. If the product is well received then the company must be in a position to
ramp up production in short order but not enough to be overwhelmed by large
inventories when the sales regress. This need for judging demand is critical and must be
determined as accurately as possible because over supply will lead to dead inventory
and not enough supply will lead to unhappy customers.
Finding the balance is very difficult. Innovations within the operating systems must
continue to support the existing systems at the risk of losing customers should this not
occur.
6- Aggressive pricing practices
Competition in this highly competitive market faces overcoming aggressive pricing
practices, frequent new product introductions, shortened product life cycles, new
industry standards, continuous product improvements, rapid technological changes,
consumer price sensitivity and abundance of competitors. Each section is intense and
staying on top of each is difficult for any company to manage. Those with considerable
market share continue to battle to prevent relinquishing any while those with little push
with the items above to take any amount of market share they can get.
33. Competitive Strength Assessment
The chief elements of Apple’s overall competitive strategy are based on
product differentiation, sustainable competitive strategy, product innovation &
vertical integration. Product differentiation based on manufacturing its own
personal computers and software. Apple has done a great job through
effective innovation with its three core products, computers, personal media,
and mobile phones. The company designs, manufactures and markets a
range of personal computers (PCs), mobile communication and media
devices, and portable digital music players. Apple also sells a variety of
related software, services, peripherals, networking solutions, and third-party
digital content and applications. In addition, the company sells a variety of
third-party Mac, iPhone, iPad and iPod compatible products, including
application software, printers, storage devices, speakers, headphones and
various other accessories and peripherals. Apple sells its products worldwide
through its retail stores, online stores, direct sales force, third-party cellular
network carriers, wholesalers, retailers, and value-added resellers
Apple’s sustainable competitive strategy focus on building strong customer
loyalty by meeting their customer needs more effectively with their products
innovations, and unique designs. This competitive strategy has advantaged
Apple apart from rivals and has kept them in front of the competition in new
products introduction and on the updates of existing ones. Apple has followed
a vertical integration strategy to build a formidable competitive advantage.
Apple’s business strategy controls its unique ability to design and develop its
own operating systems, hardware, application software, and services. . Apple
on the other hand practiced horizontal and vertical integration which gave it
the dual advantage of significant reduction in costs as well as its creating its
own proprietary designs. The vertical integration provides control over the
entire user and provides lock in. Apple’s sustainability market share
successfully connect its devices from each other or process from hardware to
software which facilitates higher customer loyalty. Apple builds sustainable
competitive advantages that are hard to replicate.
A key piece of their strategy involves converting physical products and turning
them virtually to exploit the network knowledge in a way no one has done it.
As technology evolves, Apple main focus is on the computer industry on
taking digital media plus constants evolutions, digitized knowledge, and
combined it to feed the global consumers. This along with Apple’s entry into
the mobile industry with its iPhone and tablet computer industry with its IPad
are evidence of continue innovation.
34. Apple’s Strategic Issues and Problems
1. Cloud Services. We never hear much about this issue now that they’ve launched
iCloud and it’s worked reasonably well so far. There was the initial launch of it which
marred with issues but they seemed to work their way around them. Today, most
people think that, just because they built some big server farm in North Carolina.
The question is — does Apple have enough cloud talent inside the company to
continue to grow and develop iCloud? It’s debatable. There was a reason that they
tried to buy Dropbox. That deal would have made enormous sense for Apple – not
just for tagging on to Dropbox’s momentum but for bringing in that domain-specific
knowledge into Apple. Such a deal would still make a lot of sense. Very few people
know that, when iCloud launched, it relied heavily on Amazon (AMZN) Web Services
and Microsoft (MSFT) to deliver their first cloud functionality. As Facebook (FB) and
Google (GOOG) continue to develop these services, they have a lot of in house
knowledge on scaling these up. Apple – at present – does not.
2. Internet Services. This has received some attention quite a bit over the last few
months on blogs and in the press and it deserves to. As the battle between mobile
IOS’s continues to heat up over the coming years, rolling out amazing Internet
Services will become more important, not less. Apple is again taking a go slow and
grinds it out approach to these. We’ll learn from that. Apple Maps didn’t work. We’ll
learn from that. The thinking seems to be internally: we don’t need to be first to
market with great services; we just need to get to market. Sadly though, consumers
seem to be getting more and more impatient in waiting around for Apple. Google
was never perfect out of the blocks with their Internet Services but they do seem to
be on a roll lately. Apple does need more external talent with these skills injected
into the organization. Yahoo could be a great fit and Marissa Mayer would be an
ideal head of Apple mobile Internet Services. Mail, Flickr, and their core properties
would fit very well into prominent positioning in iOS. As Mayer has been saying of
late, the Yahoo properties map on very well to the top 10 list of activities of what
people do most on mobile.
3. Social. Apple has to be social but that doesn’t mean it has to own a social
network. From an internal skill set perspective, it’s not obvious that Apple can
understand social and take advantage of its evolution from here, without having a lot
of internal talent who live and breathe social. Twitter has been often talked about as
a great way of Apple to inject social into its lifeblood if they were to acquire it. I’m in
favor of this approach as well. The two companies have been working closely since
first deeply integrating Twitter into iOS 5. However, the biggest concern among
Valley insiders I discussed this idea with last week was: the big differences in culture
between the two companies. How do you keep what’s special at Twitter if it’s
swallowed up by Apple? And that leads to the next point.
4. Apple outside acquisitions As studied in chapter 7 (p. 226&227) That global
expansion isn't always a successful path to expansion. Apple hasn’t done any
big multi-billion dollar acquisitions of outside companies. The Quattro Wireless deal –
was unsuccessful. The founders are gone. Apple didn't really get everything they
could have out of it. Siri is also an interesting case study. Apple has made it a major
focus and selling point for the new iPhones starting last year. But the Siri founders
are also out of the company now. Even if Apple were to buy Twitter (or Foursquare),
a study should be made for the progress of these properties be a year from now.
Apple needs real technology transfer of core cloud, internet services, and social skills
into the company. And this leads to the last problem.
35. Financial Position Analysis
Profitability Ratios
Ratio 2010 2009 2008 Comment
Profitability Ratios
Gross Profit Margin 39.30% 40.10% 35.20% Gross profit margin increased in
2009 compared to 2008,slightly
decreased in 2010. It indicates the
margin available to cover
operation expenses and generate
profits
Operating Profit Margin 28.20% 27.30% 22.20% OPM improved throughout the
years indicating profitability from
operatins regardless og interest
Net Profit Margin 21.50% 19.20% 16.30% NPM improved throughout the
years indicating good profitability
and pricing strategies
Return on Total Assets (
ROA)
18.60% 17.33% 15.40% ROA improved through the year
reflecting good return on
investment or the ability of assets
to generate return
Return on Equity (ROE) 29.30% 26% 29% ROE slightly declined in 2009
compared to 2008, but again it
increased in 2010 reflecting the
improved return on stockholders
investments in the co.
Earnings per share 15.15% 9.08% 6.78% EPS improved in 2009 compared
to 2010 and improved dramatically
in 2010 thus owners are well paid
off
36. Liquidity Ratios
Liquidity Ratios
Current Ratio 2.01 2.74 2.46 Decreased liquidity ratio but
still good in 2010, it indicates
that every 1$ of current
liabilities is covered by 2.01$
of current assets
Quick Ratio 1.96 2.7 2.42 Decreased quick ratio but still
good in 2010, it indicates that
every 1$ of current liabilities
is covered by 1.96 $ of current
assets, without the need to
sell inventory
Inventoryto net working capital 5.01% 2.27% 2.47% Inventory increased
drastically in 2010 compared
to 2009 & 2008, yet still
represents 5.01% from the
working capital
Leverage Ratios
Leverage Ratios
Debt-to-Asset ratio 36.40% 33.40% 46.80% Improved debt ratio in
2009 compared to 2008 ,
and slight increase in
2010. yet the ratio
indicates that the co.
tends to lower financing
its assets through debt
Debt-to-Equity ratio 57.30% 50% 88.20% Improved debt to equity
ratio in 2009 compared to
2008 , and slight increase
in 2010. yet the ratio
indicates that the co.
tends to increase self or
equity finance and
decrease external debts
Long term debt to Equity ratio 13.90% 13.70% 21% Improved long term debt
ratio in 2009 compared to
2008 , and slight increase
in 2010. yet the ratio
indicates that the co.
tends to lower depts
financing its long term
capital structure
37. Activity Ratios
Activity Ratios
Inventory turn Over 62 94 73.6 Inventory turn over increased in 2009
compared tp 2008 then decreased in
2010 to 62 times, this might indicate
accumulation of finished goods
inventory , or mmay be the company
metigates the risk of supply through
increasing stock of raw materials
Fixed Assts Turn Over ( FATO) 2.08 3.08 12.7 FATO is decreasing through the
years of comparison, indicating mis
management of fixed assets to
generate sales, or that the company
maintains too much fixed assets that
are not much productive
Total Assets Turn Over ( TATO) 0.87 0.9 0.94 TATO decreased slightly throughout
the years of comparison, the
decrease might indicate inefficiency
of total assets o generate sales , but
it should be compared to industry
average to determine clear analysis
Past and Present Mission, Strategic Objectives, Strategies
and Competitive Advantages Resulting from these strategies
As learned in chapter6 p.202 that an organization's mission statement and
objectives must be made before alternative strategies can be generated and
evaluated. The optimum result is to have choices that are clearly matching our
objectives and mission statement and to avoid the gaps that occur between
planned and achieved objectives.
Past and present company mission
Apple – Past Mission:
“To bring the best personal computer experience to consumers around the
world through its innovative hardware and software
At that time, Apple Inc. was involved in the computer business only which explains
their mission statement that is mainly oriented to computer business.
Current Mission
"Apple is committed to bringing the best personal computing experience to
students, educators, creative professionals and consumers around the world
through its innovative hardware, software and Internet offerings"
38. Mission Statement Analysis for APPLE Inc.:
Apple is mainly focusing at the following components of mission statement:
1. Apple may not be important to elaborate on its concern for its employees or to
thoroughly outline its customers and targeted market. Apple is a trendy technology
company which prides its self in providing easy to use electronics and efficiently run
software systems. Because of this it is most important for Apple’s mission statement
to focus on components like company philosophy, self-concepts, and current
technologies. These aspects of Apple are what make it popular and successful today.
2. Apple ignited the personal computer revolution in the 1970s with the Apple II and
reinvented the personal computer in the 1980s with the Macintosh. Today, Apple
continues to lead the industry in innovation with its award-winning desktop and
notebook computers, OS X operating system, and iLife and professional applications.
Apple is also spearheading the digital music revolution with its iPod portable music
players and iTunes online music store.
Apple’s mission statement only includes descriptions of products &
services and past & present technologies.
Apple Strategic Objectives
Apple Past Strategies
• High- growth at personal computer industry
• The leader of the industry 1976-1982.
• Introducing New business lines:
1- Mobile phones.
2- Consumer electronics.
Past strategies adopted by the company:
Corporate Level and Business level:
- The company follows consistent
- Full integration : company designs , develop its own operating systems,
hardware, applications and services
- Company depends on a limited number of suppliers for its components
- Company adopts Differentiation strategy
- Company invents heavily in R& D
- Expanded distribution network and third parties “ Apple Prime Resellers”
- Successful alliances such as that with Disney
- No clear succession planning
- Expanding range of products with a focus on I-phone and I-pad
39. - I- Tune successful third party programs was a good source of profits
Strategies adopted by Apple Inc. at corporate level and business level
Corporate Strategy
Growth is the main corporate strategy with the following integration
models
Horizontal Integration: Via New Products and new areas of creativity. Also via
hitting new regions and countries.
Vertical Integration: Via direct contacting with the end customer either online
through the online Apple Store (iTunes) or through the 300+ Retail Apple
store which introduce a very luxuries customer care & support.
Apple Retail stores – world wide
Business Strategy
Apple Is Competitive to the Edge.
Apple Competes with Microsoft in Operating systems and software.
Apple Competes with IBM, DELL and HP in Personal Computers and
Laptops
Apple Competes with Adobe in Multimedia Software Applications.
Apple Competes with HTC, Nokia, Samsung, Sony and Google in Smart Phones
and Small Personal Computers (I PAD).
Apple Competes with Retails Stores as well as Online Multimedia contents
resellers.
Apple is Maintaining the Specialty in the highest level of it while its products is
in a high cost average.
Main difference between past and present strategic objectives is that
Apple is more focusing on the smartphones development (Iphone)
Based on, the company name was changed from Apple computers Inc.
to Apple Inc.
Identification of Strategic Options
Apple is an undiversified company focusing on the electronics industry only.
Apple has always produced some of the most fascinating gadgets. Between the
revolutionary iPhone, beautiful laptops and industry-changing MP3 Players, Apple
truly produces a treasure trove of creative and reliable products.
40. Industry Analysis
Consumer Electronic Industry Life Cycle
1. International- Growth Stage
For the international markets Apple’s market is in its growth stage cycle.
Firms are focusing on emerging markets such as China to continue their growth and
expand operations.
This involves high capital costs and low competition because the emerging markets
have been uncharted territory before this point
2-Domestic- Mature Stage
Apple’s domestic market of the U.S. is currently in itsmature stage of the industry life
cycle
Growth within this industry has substantially slowed down due to saturation and
intense competition
Within the U.S. the biggest firms of this industry have been founded or based within
its borders
Companies like Microsoft, Samsung, Sony, HP, Gateway and many others have
saturated the market with good sand dominate the industry Domestic- Mature Stage
Apple’s domestic market of the U.S. is currently in its mature stage of the industry life
cycle
Growth within this industry has substantially slowed down due to saturation and
intense competition
Within the U.S. the biggest firms of this industry have been founded or based within
its borders
Companies like Microsoft, Samsung, Sony, HP, Gateway and many others have
saturated the market with goods and dominate the industry
41. Which Cycle Apple’s In
A. Fast-Cycle Environment- International and Domestic
The technology sector is characterized as a fast cycle industry.
With all the high flying competitors and the innovative products it is virtually
impossible to hold a competitive advantage.
There are also a wide range of substitutes that threaten Apple.
This is why Apple and the tech industry reside in this industry environment.
Apple's Inc. position in the Electronics Industry- Market Leader
The main business of Apple Inc. is designing, production and the marketing of the
mobile communication and other media devices, computers and digital and portable
music players, the company also sells a variety of software that are related to their
products, solutions of networking and digital content.
Basically the products and services of the company includes iPhone, iPad, Mac,
iPod, Apple TV, a portfolio of consumer and professional software applications, the
iOS and OS X operating systems, iCloud, and a variety of accessory, service and
support offerings iPhone is the Company’s line of smart phones that combines a
phone, music player, and internet device in one product, and is based on Apple’s iOS
Multi-Touch™ operating system. IPad and iPad mini™ are the Company’s line of
multi-purpose tablets based on Apple’s iOS Multi-Touch operating system. iPad has
an integrated photo and video camera and photo library app, and on qualifying
devices, also includes Siri.
iPad works with the iTunes Store, the iBooks Store, and the App Store for purchasing
and playing music, movies, TV shows, podcasts, books, and apps. This segment
contributes 53.5% in total sales. Mac is the Company’s line of desktop and portable
personal computers. Macs feature Intel microprocessors, the OS X operating system
and include Mail, Safari web browser, Messages, Calendars, Reminders, Contacts
and the iLifesuite of software apps. This segment contributes 18.7%.
The Company’s iPod line of portable digital music and media players includes iPod
touch, iPod nano, iPod shuffle and iPod classic. This segment contributes 12.5%.
ITunes is integrated with the iTunes Store, the App Store and the iBooks Store. The
iTunes Store facilitates the users to buy and download music and TV shows and to
buy or rent movies. The iTunes Store also includes hundreds of thousands of free
Podcasts on a multitude of subjects. This segment contributes 2.58%. Accessories
including Final Cut Pro, Logic Studio, Logic Pro, and its FileMaker Pro database
software. Apple also produces Apple LED Cinema Display and Thunderbolt Display.
Intense Competition
Computer industry seems to be more intense for Apple as it can gain only
8.5% of the total market shares. While Dell Inc gets 23.4& and HP gets
16.8&.
Apple is used to be just in the computers and software industry then it has
expanded its business to the digital music players (iPod) industry
occupying 71% of the total market shares. While SanDisk has 11%,
42. Microsoft has 4% and Creative has 2% which shows significant revenue
upon Apple Inc. contribution.
B) Revised Company Mission and Objectives.
Mission statement of Apple lacks the definition of customer market and costumer
needs. As the specifications of a good mission statement, it should be able to answer
the following questions as learned throughout the strategic management course:
1. What do they do?
2. How do they do it?
3. Whom do they do it for?
Apple is committed to bringing the 1)best personal computing experience to
3)students, educators, creative professionals and consumers around the world
through its 2)innovative hardware, software and Internet offerings
But, what we can see in the mission statement of Apple is more like covering
all the characteristics of a reliable mission statement.
Apple strategic objectives are perfectly fitting the future goals that will drive
apple to a sustainable market leading position.
Recommendations
Long Menu
Options for competing in a mature industry
• Develop close relationships with suppliers: Because there are few suppliers
of key components required in PC manufacturing developing close relationships
with suppliers is of utmost importance. Rather than searching for the supplier of
lowest cost, maintaining a collaborative and exclusive business relationship will
help mitigate the power of suppliers and help to lock in attractive component
prices.
• Franchising of stores
• Seek exclusivity arrangements with OEM partners ( Third parties): Continue to
build relationships with OEM partners and enter into exclusivity arrangements to
lock out competitors and gain favorable business deals.
43. Options for a leading company
Focus on differentiated lifestyle branding: Apple has successfully
developed a differentiated lifestyle brand and must continue to build on
this foundation while resisting pressure to move to the middle to directly
compete with Dell and HP.
Options for competing in international markets
• Continue the expansion of Apple stores: The stores represent an
important source of revenue for Apple and serve as an interactive
advertisement for the Apple brand. Their success has been
unmatched by any other industry player.
• Emphasize the integrated system in advertisements: Apple's
integrated system holds a significant advantage over other
industry systems relying on Microsoft Windows, yet some
customers have not experienced the seamless interoperability of
all Apple products. This marketing angle will result in cross selling
of more products to new and existing customers.
• Apple should continue to support the educational and creative
professional markets
Generic strategies
• Design innovation: Put additional emphasis on design
development with internal resource allocation to continue to
lead the industry in design.
• Research user interface possibilities: As a mode of setting Mac
computers apart from other PCs Apple must continue to innovate in user
interface focusing on easy-of-use and intuitive menu functions
• Consumer electronics diversification: While the PC market has grown
increasingly crowded with competitors and customers saturated other
areas of consumer electronics continue to grow. Developing
complementary products in other categories provides broader sources of
revenue by accessing more customers in markets with less intense
competition.
• Apple should consider all work related to its operations in the iPod,
iTunes, iSync, and iChat sectors.
Defensive strategies
Apple should consider infiltration of the business sector with an Enterprise Resource
Planning (ERP) system merger.
44. Short Menu
Option One: Franchising of stores
Option Two: Growth Strategy through new products and new market
opportunities
Option Three: Vertical Integration
Alternative Functional Strategic Options
Marketing:
Recommendation 1
Franchising of stores
Pros:
It will help costs to Apple to be reduced. They could still control sales and system
operation without the excessive cost outlay. A franchisee will work harder at promoting
the product since their livelihood is tied to the success more closely than an employee.
Apple already has data accumulated that shows employees obtain so much training and
then 'abandon ship' for better paying positions elsewhere. Franchisees would not just
leave since they have a vested interest in the success of the store.
Cons:
Being so wrapped up in opening stores that management does not want to admit failure
if profits start dropping off. Each store opening should be viewed economically so that
the law of diminishing returns is applied overall. When the numbers show that the
company is approaching the even mark or goes negative then it must consider whether
to continue support of the existing stores or cutback of the less profitable.
Management evaluation is needed in this area for sure.
Apple should aggressively promote hardware, software, and peripheral products through
its retail outlets. Market awareness might help increase market share.
Growth Strategy
Market Development Strategy: to increase a large market share through market
penetration Apple Explores New Territory
Product Development Strategy: to upgrade its current products and produce new
versions and at the same time produce new products
45. - New products :
They should also focus on producing new products to be ahead of their competitors and
not to fall back.
For example :
Ifridge , ioven, iwasher and to link all those home equipment in to one system that can
be controlled and monitored by your iphone or ipad.
- New markets (target different demographics ) :
The company should promote the products in new markets as they are missing
opportunities in many regions
- New customer segments :
Apple price is known to be above average in the industry. The company is using a
differentiation strategy and focuses more on innovation, and quality. This strategy is
justifying their premium prices.
Lately their new technology and their high cash flow allowed them to lower their price
and to offer more discount to certain markets .
We recommend to focus more on penetrating new customer segments by trying to
produce products with high value and lower prices
46. Research and Development
Apple should consider infiltration of the business sector with an Enterprise Resource
Planning (ERP) system merger.
Pros:
Loss of data, either through a system crash or invasion by hacker's programs, is
detrimental to any business operation. Apple has the ability of producing and controlling
its hardware and software. A merger of operations with PeopleSoft, Oracle, or SAP
could provide a positive financial influx that will provide continued life to Apple's
operating system platform.
Apple provides an easy to use operating system and user friendly operations that can be
taught to even the smallest children so older computer-illiterate employees can easily
learn to operate quickly. This lessens the computer intimidation and allows for focusing
on learning the ERP program that will be modified to fit the same easy to use formatting.
This would be a big plus for the employer and employee.
Cons:
Apple's might lose control of some of its operation when merging with an ERP company.
Management might not be willing to share operating platform information with this ERP
Company making it difficult to perfect such a blending of operational systems.
Recommendation 2
Human Resources Management:
Continue training and development programs for employees (iCare)
Pros:
Guarantee quality of service provided for clients all over the world
Succession planning
Cons:
High Cost
47. Selected Strategies:
Corporate Strategy : Growth Strategy
Business Strategy : Vertical Integration
Function Strategy : Increase Franchise outlets
Expected Outcomes of selected strategies :
Strategy Positives Negatives
Growth Strategy -New Markets and business
opportunities
- Increased profits
- Lack of Focus
- Implementation & Control might
be affected
Vertical Integration -Avoid risk of suppliers
- Lower cost
-Increased investment cost
As this industry is rapidly
changing, vertical integration
might be risky
Increase Franchise outlets - Expansion of Distribution
channels
- Low Cost
- Need more control
- Quality of service might be
affected
Strategy Implementation:
Organization Structure:
48. Current organizational structure is categorized by business lines a, functions and
regions.
This structure fits with the recommended strategies, as growth with new products or
business lines could be easily added , same for markets.
Resources should be allocated to fit the strategies through more budgets for
Research and Development to develop new products.
Staff should be trained to be more efficient
The recommended strategies are implemented as follows:
Build long term organizational strength by implementing a clearly thought out
leadership development and selection programmer that will be able to
develop the special leadership required for Apple.
49. Future leaders should be technically brilliant, innovative pioneers with strong
team working skills and high levels of ethics.
Build specific products of high quality, but lesser prices, for the huge
populations of India and China that are passionate about computers, mobile
phones and music.
Continue and intensify the search for innovative, stylish and useful products
in its existing area of operations.
Make productive use of strong cash reserves
Recommended strategy supportive policies:
Human Resources structured training programs
Rewarding plan for innovative ideas
Reward scheme for staff to increase their loyalty
Effective performance Management
Career planning and development
Company Culture:
Apple is a pretty divided mix of typical corporate red tape and politics mixed
in with startup level urgency when the direction comes from Steve. If you
have a project that Steve is not involved in, it will take months of meetings to
move things forward. If Steve wants it done, it's done faster than anyone
thinks is humanly possible. The best way to get any cross departmental work
done was to say its for Steve and you'd probably have it the same day.
This reflects a culture where charismatic leader plays a great role.
The culture in Apple is still friendly and achieving objectives is the core value
at all levels in the organization.
The culture as well values innovation and novelty, which fits perfectly with
the recommended strategies.