In order to carry out strategic analysis of Apple Inc., its internal and external environments need to be studied. So, in this section, Porter five forces analysis and PEST analysis of Apple have been done whereas for internal analysis of the company SWOT analysis will be conducted.
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.
The presentation is made under the guidance of Professor Sameer Mathur, IIM Lucknow The presentation gives an insight about how the company works and what are its marketing strategies and how they implement them. It also tells what are the factors responsible for such tremendous growth of the company.
Presentation on apple explaining the evolution of the brand from its beginning to the current position in the world along with their competitors, strength and weakness.....steve jobs along with his life flow and about the apple market share worldwide and current ceo tim cook with the latest updates of the brand
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.
A detail analysis of internal factors (SWOT Analysis) and external factors (PESTLE Analysis) affecting Apple Inc. along with company overview and recommendations to overcome weaknesses and avoid threats.
The presentation is made under the guidance of professor Sameer Mathur, IIM lucknow. This presentation tells a few details about the apple company and how it begun and what its current position is, what are the current marketing aspects of the company and what are their future scopes of expansion. The presentation also describes why the company is such a good innovator.
Running head: APPLE ENVIRONMENTSL SCAN 1
Running head: APPLE’S ENVIRONMENTSL SCAN 4
Title
By
Apple’s Environmental Scan
Economic factors and trends
Apple is one of the fastest growing companies that had blossomed into a well recognizable consumer name for electronic devices globally. Apple operations depend and performance significantly on global and regional economic conditions (Apple Inc., 2016). Their components are manufactured in other countries. Some of these countries include, Korea, Japan and Taiwan, but their products are assembled in China (Wright, A., 2012). Even those Apple is seen as a status symbol of financial stability for the elite and others, there are many others that built their self-esteem off of owning Apple products. Unemployment is a big key factor in the financial dealing with Apple’s products. In 2015, economists are projecting that unemployment rate will fall to a low of about 4.7% by the end of 2016 (Zumbrun, J., 2015). Their predictions were close, as of the end of October of 2016; unemployment rate in the United States was at 4.9% (U.S. Bureau of Labor Statistics, 2016).
Political, Regulatory and legal factors and trends
Earlier this year, Apple wrestled with the U.S. Government over unlocking a suspected terrorist Iphone. The FBI and the U.S. Department of Justice, solicited Apple as the suspect has a code on their phone. Apple’s Iphones enables users to set up a passcode to lock out intruders. If the code is entered incorrectly in excess of ten times, then the phone will automatically delete the data on it. Apple’s fear was that by the government requesting them to unlock this one phone, that this was a privacy violation (Rash, W., 2016). These fears of Apples became the same-shared views among iphone users. Giving the government access would allow them to future access for any reason.
Societal factors and trends
A person’s family, friends and even colleagues can serve as a strong contributor to a person’s choice of mobile phone. Today’s youth are more into electronics. Teenagers have more economic clout than that of their predecessors (Grant, I.J., and Graeme R.S., 2006).
Technological factors and trends
The survival and the competitiveness of Apple Inc. is a result of its ability to innovate new technologies. Since the time of its formation, they have relentlessly developed new technologies. It started at the lowest point, but is now one of the top technology companies. The success of the company is attributable to strong and favorable internal environment, which entails such elements as the organizational structure, culture, mission and vision and also the coordination among different departments within the company (O'Grady, 2009). Apple Inc. has a culture of innovation and invention (O'Grady, 2009).
It is a company that is capable of producing a steady stream of innovative products an ...
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.
The presentation is made under the guidance of Professor Sameer Mathur, IIM Lucknow The presentation gives an insight about how the company works and what are its marketing strategies and how they implement them. It also tells what are the factors responsible for such tremendous growth of the company.
Presentation on apple explaining the evolution of the brand from its beginning to the current position in the world along with their competitors, strength and weakness.....steve jobs along with his life flow and about the apple market share worldwide and current ceo tim cook with the latest updates of the brand
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.
A detail analysis of internal factors (SWOT Analysis) and external factors (PESTLE Analysis) affecting Apple Inc. along with company overview and recommendations to overcome weaknesses and avoid threats.
The presentation is made under the guidance of professor Sameer Mathur, IIM lucknow. This presentation tells a few details about the apple company and how it begun and what its current position is, what are the current marketing aspects of the company and what are their future scopes of expansion. The presentation also describes why the company is such a good innovator.
Running head: APPLE ENVIRONMENTSL SCAN 1
Running head: APPLE’S ENVIRONMENTSL SCAN 4
Title
By
Apple’s Environmental Scan
Economic factors and trends
Apple is one of the fastest growing companies that had blossomed into a well recognizable consumer name for electronic devices globally. Apple operations depend and performance significantly on global and regional economic conditions (Apple Inc., 2016). Their components are manufactured in other countries. Some of these countries include, Korea, Japan and Taiwan, but their products are assembled in China (Wright, A., 2012). Even those Apple is seen as a status symbol of financial stability for the elite and others, there are many others that built their self-esteem off of owning Apple products. Unemployment is a big key factor in the financial dealing with Apple’s products. In 2015, economists are projecting that unemployment rate will fall to a low of about 4.7% by the end of 2016 (Zumbrun, J., 2015). Their predictions were close, as of the end of October of 2016; unemployment rate in the United States was at 4.9% (U.S. Bureau of Labor Statistics, 2016).
Political, Regulatory and legal factors and trends
Earlier this year, Apple wrestled with the U.S. Government over unlocking a suspected terrorist Iphone. The FBI and the U.S. Department of Justice, solicited Apple as the suspect has a code on their phone. Apple’s Iphones enables users to set up a passcode to lock out intruders. If the code is entered incorrectly in excess of ten times, then the phone will automatically delete the data on it. Apple’s fear was that by the government requesting them to unlock this one phone, that this was a privacy violation (Rash, W., 2016). These fears of Apples became the same-shared views among iphone users. Giving the government access would allow them to future access for any reason.
Societal factors and trends
A person’s family, friends and even colleagues can serve as a strong contributor to a person’s choice of mobile phone. Today’s youth are more into electronics. Teenagers have more economic clout than that of their predecessors (Grant, I.J., and Graeme R.S., 2006).
Technological factors and trends
The survival and the competitiveness of Apple Inc. is a result of its ability to innovate new technologies. Since the time of its formation, they have relentlessly developed new technologies. It started at the lowest point, but is now one of the top technology companies. The success of the company is attributable to strong and favorable internal environment, which entails such elements as the organizational structure, culture, mission and vision and also the coordination among different departments within the company (O'Grady, 2009). Apple Inc. has a culture of innovation and invention (O'Grady, 2009).
It is a company that is capable of producing a steady stream of innovative products an ...
Running head APPLES EXTERNAL ENVIRONMENT .docxjoellemurphey
Running head: APPLE'S EXTERNAL ENVIRONMENT 1
APPLE'S EXTERNAL ENVIRONMENT 2
Apple Inc's External Business Environment
Introduction
Companies do not operate in a vacuum and as such they have to pay attention to their external environmental in order to remain competitive. Managers have little influence on the external environment and businesses have to adapt as the external factors keep on changing. External business environment factors include the political landscape, technology, legal and regulatory frameworks, societal factors, the economy in general, and competition. These factors are not static and the more they shift, the more volatile the environment becomes. Apple Inc. operates on a global scale, which means that the external business environment is quite complex. This paper will explore some of these factors which affect the business strategy that the company uses.
Political Factors
Political factors are perhaps what the company cannot exert any influence on because of the complexities involved. Apple Inc is an American company which has customers all over the world including those countries whose relations with the US are strained (Grant, 2003). The company has to hope that tensions between the various countries it has interests do not become rocky to a point where business becomes impossible to run. The company has factories in China and other Asian countries where there is an ample supply of labor. Potential conflict between the US and China could force the company to shift the locations of the labor-intensive factories.
Economic conditions affect the demand for Apple's products because of people's purchasing power. Increase in inflation and recessions have a negative effect on demand because people tend to check their spending habits (Grant, 2003). The company's products can be classified as luxury products, which mean that people can decide to reduce spending on them to be able to purchase their basic needs. Further, economic conditions affect the cost of raw materials for production and labor as well. Therefore, the company has to keep track of developments in the economy because they have to adjust their prices and product offering to match the changes (Husso, 2011).
Social factors are quite important to Apple because their competitive advantage currently lies in the perception that their products are of high quality. Their customers feel classy because of the premium pricing which the company practices. The company has to keep track of the people’s attitude towards their products so that they can produce what people want in case their preferences change. Another dimension of the external business environment is technology. Apple has to invest in research and development to produce innovations that will keep customers interested in what the company is producing. Further, the co ...
Running Head CASE STUDY ON APPLE INC,’S EXPANSION TO ASIA AND SOU.docxhealdkathaleen
Running Head: CASE STUDY ON APPLE INC,’S EXPANSION TO ASIA AND SOUTH AMERICA 1
CASE STUDY ON APPLE INC,’S EXPANSION TO ASIA AND SOUTH AMERICA
CASE STUDY ON APPLE INC,’S EXPANSION TO ASIA AND SOUTH AMERICA
Student’s Name
Institutional Affiliation
Professors’ Name
Date
ABSTRACT
Telecom manufacturing companies in the United States experience difficult times with the fast-growing rate of technology. According to a 2015 inter-industry survey , the media ranks top with telecom companies coming second in the order of ranks facing possible massive digital interference in the next 12 months.
Apple company has full control of 100% of its' supply chain; it, therefore, can make operational expansions in any number of outlets globally. The company was founded in 1976 and built the type of personal computers that were made easy for customers to operate. Initially, the Apple software was facing a direct competition after the launching of the first windows operating system by Microsoft. Apple sued Microsoft from using the Mac technology in their introduced windows 1.0 and signed a treaty which resulted in Apple remaining manufacture of computer hardware full time.
INTRODUCTION
Due to the advance in technology, Apple has opened up supply chains globally, which has registered colorful amounts of profit and income. This was made possible by scouting on the variations of technology with time in addition to the eruption of new tactics to remain at the top in satisfying customer preferences and being the leader of the market. Apple introduced a new corporate strategy in the year 2000 to utilize the worldwide market in entertainment devices by adding value to the products- easy to use the software. Such products include the iMovie for professional cameras and CD players. There are different strategies to operate globally, and Apple is capable of utilizing all the procedures at once to give a chance of better growth against all the odds.
STRATEGY
Apple is currently the world's number one design company, and this is as a result of the cooperate strategy to outsource, which also brought in stiff competition among the telecom companies. Profit being the main Merit of most companies to grow, Apple viewed outsourcing as a stepping stone to being where it is at the global telecom manufacturers. This is a behaviour that has promoted better margins for the company, as discussed below.
STRATEGIC RISK
Foreign Outsourcing and Exporting
Outsourcing has been the most discussed topic politically in the United States; it has been dramatically discouraged as politicians view it as a stance to creating more job opportunities to the citizens in the United States. Although in the world of company expansion, outsourcing means opening up new manufacturing bases overseas, and this could help them in many different ways.
In the context of improving efficiency, outsourcing Apple to South America, India or China could in large part reduce the exporting costs, importing costs and ...
Running Head STRATEGIC MANAGEMENT PLAN1STRATEGIC MANAGEMENT.docxtodd521
Running Head: STRATEGIC MANAGEMENT PLAN 1
STRATEGIC MANAGEMENT PLAN 2
STRATEGIC MANAGEMENT PLAN
Professor’s Name
Student’s Name
Course Title
Date
Internal Portion
Apple in an American corporation which designs manufactures and sells personal computers, media devices and mobile communication. The organization has various internal factors which informs the decisions of the management in developing the company. The company has a strong brand image. It has one the strongest and the most valuable brands in the globe. This helps it to introduce new products in the market by virtue of its strong brand. However the company has limited distribution networks. This is attributed to its policy of exclusivity. For instance the organization selects sellers of its products. This limits their market reach despite their having a strong brand (Blenko et al., 2016).
The organization has an opportunity to develop new products. Their current products have been well received in the market. However, innovating further, the organization can achieve more success in the market just as it has happened with the Apple watch. Development of new product can significantly support business growth not only in the local market but also in the international market (Castro, 2016). One internal threat that affects the organization is employee turnover. Some employees feel that they are not given an opportunity to develop their careers through training. Some other employees could leave the organizations after being motivated by a higher pay. Employees will likely consider leaving your organization if they are offered a better pay no matter how much they love their work.
External Portion
The company enjoys stable political environment in developed countries. Developing countries have developed free trade policies which helps the apple company to distribute more products to different geographies in the world. Few political issues affect their business therefore giving the company an opportunity to grow. The company has a weakness of overdependence of high end market. This process only attracts customers from the high income bracket and prevents low income customers from purchasing their products (Chen & Ann, 2016). The low income customers represent the largest global market while high income earners represent the minority and this affects the organization in a big way. This weakens the distribution of their products in the market.
Technological factors such as growing app market, technological integration and cloud computing trends present the company many opportunities. Cloud computing is gaining significant popularity among many organization and individuals. The company can offer cloud friendly apps and devices to exploit this opportunity. Technological integration is becoming a popular trend and Apple can use this opportunity to provide products which can easily connect to each other. The company is facing the threat of tough competition in the industry. Their co.
Running Head Apple CompanyApple Company.docxSUBHI7
Running Head: Apple Company
Apple Company
Apple Company
Name
Course
Date
Apple Company
The products at apple include Ipads, IPhones, Tablets, macintosh, Apple TV. These items have done well in the market and their request is still high. The organization Apple Inc. begun in 1977 January, 3. The organization has composed items like advanced music players, PCs related programming, which are one of a kind in nature. The organization has done enormously well with regards to advancement and making of astounding and great products that have intensely beaten their opponent in the market. This paper is an outlook on the structure, products and nature of the apple company with regards to stakeholders and corporate social responsibility.
Apple's achievement is their craft of offering magnificent client benefit understanding and in-store better alternatives. The Company gives assortment of items and even the sales people use wonderful language. Apple evaluated that just about half of individuals purchasing Apple items are new clients. Apple has utilized talented and experienced group of offers representatives who have added to organization's prosperity. The organization in 2002 opened tech retail I Tokyo, Japan and there after the organization has kept on opening more shops all around. Their retail technique has truly worked to support them in this manner with higher returns compared to their counterparts (Francois nonnenmancher, 2004).
Apple's hierarchical structure is one of the variables adding to the organization's fruitful advancement. An association's authoritative structure can make open doors for business development. However, it can likewise force restrains on how the firm creates. For Apple's situation, the hierarchical structure is principally a conventional pecking order, with some key components from different sorts of authoritative structure. The achievement of the organization is connected to advancement and the authority of Steve Jobs, however its hierarchical structure is halfway in charge of guaranteeing support for such administration. Presently, under Tim Cook's administration, Apple has rolled out some little improvements in its hierarchical structure to suit market and industry requests.The advantages of Apple's various leveled hierarchical structure incorporate tight control controlled by senior administration over all parts of the business. Also, advancement openings rouse representatives to perform well and there are clear levels of expert and duty. On the negative side, Apple's progressive authoritative structure may trade off adaptably off the business to reflect changes in the worldwide commercial center. Moreover, in various leveled associations correspondence across various offices has a tendency to be less compelling than in level associations (Dudovskiy, 2018).
Unveiled over 10 years ago, the iPod is the one gadget that changed Apple from a PC organization into a mass-advertise hardware monster and would late ...
Running head: APPLE INC
APPLE INC 8
Apple's SWOT Analysis and Strategic Scorecard
Introduction
One of the most important actions the management of a company can take towards improving a company's performance and competitiveness is to conduct a business environment scan. The output of a scan is the often the company's strengths, weaknesses, threats and available opportunities. The analysis should be followed by a set of recommendations on how the company can make use of strengths and opportunities, as well as how to improve the weaknesses. This paper will conduct a SWOT analysis on Apple Inc, then followed by a balanced scorecard assessment of the company.
SWOT Analysis
The internal environment of a company is a matrix of its financial position, management, employees, objective, and so forth. Apple Inc has enjoyed enviable financial success in the recent past and as such its strong financial position is its biggest strength. Currently, the company can afford to fund big acquisitions of other companies that can be useful in pursuit of its strategic goals. The financial strength means that other companies are willing to work with Apple because its operations can only get bigger. Another internal strength of the company is its team of employees who are innovative and highly motivated (Husso, 2011). The company does not have a hierarchy in management and all employees interact freely. The company also encourages employees to take responsibility for projects they work on. The result is high productivity. Another major strength of Apple Inc is the large portfolio of products that it sells customers which helps in boosting annual revenue as well as creating a brand image. Currently, customers know Apple as a producer of high quality and premium products. This makes it easier for the company to introduce new products into the market (Husso, 2011).
The company's major weakness lies in the high prices they charge for its products. Consumers are becoming more mindful of their spending habits due to economic conditions. Premium pricing has been Apple's marketing strategy but the company could be forced to relook the strategy due to consumer behaviors (Maltz, 2003). The company is also facing court cases regarding copyright infringement and this could result in fines against the company. This could hurt Apple's financial position and possibly force it to withdraw certain products from the company. Critics are also arguing that the company's innovative engine is starting to slow down compared to three years ago. The company's iPhone 5S is seen as only a slight improvement on the iPhone 4S. If consumers realize this they could begin to stop purchasing new products from the company (Husso, 2011).
On the positive side though, the company has an opportunity to make the iPad its biggest product yet. The company's tablet has ...
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 ...
14Cumulative Strategic Plan and Leadership AnalysisMatthewTennant613
14
Cumulative Strategic Plan and Leadership Analysis: An Apple Inc.’s Case
Student’s Name
Institution Affiliation
Course
Instructor’s Name
Date
Introduction
Apple Inc. is a real business example of a successful brand (Aljafar, 2017). The firm’s success stems from its ability to use its strengths to exploit business opportunities and overcome its weaknesses and threats. Strengths and weaknesses usually characterize corporations’ internal business environments. On the other hand, Hassan (2017) posits that opportunities and threats are aspects of external environments. Internal environments comprise factors that businesses have control over, whereas external environments are the opposite. The key question here is what is the current internal and external environments of Apple?
Overview of the Apple Organization
NAME
Apple Inc.
INDUSTRIES SERVED
Computer hardware, Computer software, Consumer electronics, Digital distribution
GEOGRAPHIC AREAS SERVED
Worldwide
HEADQUARTERS
U.S.
CURRENT CEO
Tim Cook
REVENUE
$ 156.508 billion (2012)
PROFIT
$ 41.733 billion (2012)
EMPLOYEES
72,8
Apple’s Mission, Vision, and Core Values
Apple’s Mission Statement
Apple’s mission statement is “to bringing the best user experience to its customers through its innovative hardware, software, and services. In this mission statement, Apple outlines its business operations’ scope besides how it exploits it to meet its customers’ needs and expectations. Among the core business components that emanate from the mission are best user experience, improving the lives of people, empowerment of the society, and top-quality products.
Apple’s Vision Statement
Apple vision statement states, “We believe that we are on the face of the earth to make great products and that’s not changing.” The statement highlights Apple’s determination to deliver top-quality goods and services for its customers. According to the statement, this is a long-term process. The vision also tables a detailed account of the perspective and mechanisms through, which the firm approaches its business operations to station itself as the leading force in the technology industry. Some of the core business components related to this vision includes Innovations, Integration of partners and excellence, and Market specialization.
Apple’s Core Values
Apple Inc.’s core values comprise “inclusion and diversity, education, accessibility, environment, supplier responsibility and privacy.” The values communicate the business aspects, which the organization considers essential to its general success as a leader in the technology and innovation sectors. Apple is keen on the doctrines, which have facilitated its modelling of the self as a quality-oriented firm in more than two decades now. To remain focused and loyal to these principles, Apple ensures that all its business set-ups are in synchrony and harmony with every piece of the values as highlighted in its statement of core values.
Apple’s Internal Environment ...
14Cumulative Strategic Plan and Leadership AnalysisAnastaciaShadelb
14
Cumulative Strategic Plan and Leadership Analysis: An Apple Inc.’s Case
Student’s Name
Institution Affiliation
Course
Instructor’s Name
Date
Introduction
Apple Inc. is a real business example of a successful brand (Aljafar, 2017). The firm’s success stems from its ability to use its strengths to exploit business opportunities and overcome its weaknesses and threats. Strengths and weaknesses usually characterize corporations’ internal business environments. On the other hand, Hassan (2017) posits that opportunities and threats are aspects of external environments. Internal environments comprise factors that businesses have control over, whereas external environments are the opposite. The key question here is what is the current internal and external environments of Apple?
Overview of the Apple Organization
NAME
Apple Inc.
INDUSTRIES SERVED
Computer hardware, Computer software, Consumer electronics, Digital distribution
GEOGRAPHIC AREAS SERVED
Worldwide
HEADQUARTERS
U.S.
CURRENT CEO
Tim Cook
REVENUE
$ 156.508 billion (2012)
PROFIT
$ 41.733 billion (2012)
EMPLOYEES
72,8
Apple’s Mission, Vision, and Core Values
Apple’s Mission Statement
Apple’s mission statement is “to bringing the best user experience to its customers through its innovative hardware, software, and services. In this mission statement, Apple outlines its business operations’ scope besides how it exploits it to meet its customers’ needs and expectations. Among the core business components that emanate from the mission are best user experience, improving the lives of people, empowerment of the society, and top-quality products.
Apple’s Vision Statement
Apple vision statement states, “We believe that we are on the face of the earth to make great products and that’s not changing.” The statement highlights Apple’s determination to deliver top-quality goods and services for its customers. According to the statement, this is a long-term process. The vision also tables a detailed account of the perspective and mechanisms through, which the firm approaches its business operations to station itself as the leading force in the technology industry. Some of the core business components related to this vision includes Innovations, Integration of partners and excellence, and Market specialization.
Apple’s Core Values
Apple Inc.’s core values comprise “inclusion and diversity, education, accessibility, environment, supplier responsibility and privacy.” The values communicate the business aspects, which the organization considers essential to its general success as a leader in the technology and innovation sectors. Apple is keen on the doctrines, which have facilitated its modelling of the self as a quality-oriented firm in more than two decades now. To remain focused and loyal to these principles, Apple ensures that all its business set-ups are in synchrony and harmony with every piece of the values as highlighted in its statement of core values.
Apple’s Internal Environment ...
Quadrant Strategic Objective Measure Target for YearFinanc.docxmakdul
Quadrant Strategic Objective Measure Target for Year
Financial
Be profitable at the end
of the year profit margin Breakeven
Customer
Grow business by
focusing on gaining
customer and
outstanding customer Market share
5%
Operation
Build on to the Apple
name and expand brand
Marketing campaign
with a developed
plan in place 4 months
Learning and Growth
Employees have proper
training and knowledge
to expand brand Training hours 20 hours
Running Head: APPLE CORPORATION
APPLE CORPORATION
7
Daniel Price
Professor Keen
BUS/475
Week 4
Apple Corporation
Apple Corporation
Introduction
Apple Corporation is an American universal technology company with its headquarters in Cupertino, California. It deals with developing computer software and designing and selling consumer electronics. It also offers online services. The hardware products of Apple include smart phones, iPads, iPods and personal computers. The consumer software includes the iTunes media player, iOS operating system, OS X and the Safari web browser. Its online services include the iOS App Store, iCloud, Mac App Store and the iTunes store.
Apple Corporation was founded by a group of associates on 1st April 1976 to design and sell personal computers. It was however incorporated as Apple Computer Inc. on 3rd January 1977 only to be renamed thirty years later to Apple Inc due to its focus on consumer electronics. It is the largest technology firm in terms of total assets and revenue and the second mobile manufacturer after Samsung. It has a net worth of over 700billion USD with over one hundred thousand employees and over four hundred retail stores around the world. Apple Inc. has over one billion products in the market as at May 2016.
However, the aim of this paper is to develop strategic objectives in the measurement of attaining company's vision and mission based on a balanced scorecard taking into account different perspectives of the whole company. The balanced scorecard contains the financial perspective, Customer value, Internal Operations and Employee perspective.
Financial Perspective
Apple Corporation is the world’s largest technology company based on total assets and revenue valued at over 700 USD as at May 2016 (Ingram, 2008). It is also the world’s second largest mobile phone manufacturer. Apple Corporation Inc entered the top ten Fortune 500 list of publicly traded companies on May 2013. It announced a dividend of $0.57 in May 2016 after earning revenue of $51.5 billion and a net profit of $11.1 billion which was a 22% increase in revenue from the previous year. Apple Inc has transferred 90% of its cash and marketable securities outside the United States, which is about 234billion USD due to tax purposes. In 2015, the company accumulated over 80% of the total earnings made by the eight largest universal smart phone manufacturers.
High tax rates in the United States pose big threat to the profitability of Apple Corporation Inc. In ord ...
Over the last five decades, Apple Inc. has succeeded in creating a business empire in the technological industry. Apple’s I-products are among the most loved technological items across the world. In the business world, Apple’s IT products and operations are unmatched. To this end, Apple Inc. growth is remarkable and shows no signs that it will decline in the near future. This is typified by the fact that the company keeps setting new sales records for every product that it introduces into the market. Whatever Apple Inc.’s does only catches its competitors unaware and therefore they play the role of catching up by mimicking its strategy though largely unsuccessfully. This paper examines the impact of various internal and external organizational environments that affect Apple Inc. As such, the paper will keenly explore the extent to which the organizational environment affect Apple. Among the various external and internal environments that will examined in this paper include economic, social, technological and economic factors. It will also give the implications that these factors have on Apple Inc. if the company is to continue with its success story.
STRATEGIC ANALYSIS Page 1 of 10
STRATEGIC ANALYSIS Page 10 of 10
Organizational and Competitive
Jade Nguyen
Argosy University
BUS480 | Business Tactics and Execution
Apple Inc. Corporation
Apple Inc. is a United States-based company that deals with designing, manufacturing, and marketing both computer hardware and software as well as networking solutions among other consumer electronics. The firm’s commitment is introducing and providing personal computing as well as music experience to students, professors, creative professionals, management agencies as well as businesses among other clients through innovative hardware and software as well as internet services (Khan, Alam & Alam, 2015). Notably, the firm’s commercial approach leverages its exceptional capacity by the way its system of operation and technologies are designed and developed. Accordingly, it can camouflage in a competitive market and bring in innovative products and solutions which are easy to use. Like any other successful Corporation, Apple Inc. also exhibits tremendously stiff competition against other firms that produce computers as well as from other consumer electronics Corporations. Most of its competitors are large corporations with established markets either regionally or globally, for example, Compaq, Lenovo, Intel Corporation, Samsung, Microsoft as well as Dell among others.
Apple Inc. began the move of developing personal computing in 1977, however, because of variations in the management as well as contrasting opinions plus missed opportunities, it has lost its competitive advantage to other corporations like Microsoft, Dell as well as Samsung. Even with such stiff competition from its business counterparts, it continues to hunt the personal computer market though not like it used to do before. It opts to deviate its focus and venture into the music business through the manufacture and exchange of iPod, iTunes as well as digital music players. Marketing approaches like differentiation and specialization have enabled Apple to rejuvenate its market share. Significantly, the adoption of such strategies empowers an organization to acquire diverse knowledge as well as skills hence producing best quality products sold at considerable prices. Therefore, Apple company applies costs as well as products as the focus on their strategies to strive in the international market.
It is imperative to note that, Apple Inc. is grounded on two significant values which are; Inclusion and Diversity. To break it down further, Apple Inc. believes that humanity is not a singular concept but a plural and the most appropriate way to operate is through "everybody in" hence inclusion is the company's religion. On the hand, working with different people despite race, ethnicity, age .
Running head EXTERNAL ENVIRONMENT SCAN—APPLE .docxjoellemurphey
Running head: EXTERNAL ENVIRONMENT SCAN—APPLE 1
EXTERNAL ENVIRONMENT SCAN—APPLE 5
External Environment Scan—Apple
An environmental scan is vital for every company as it helps to determine the threats and opportunities that are posed to the company. The following will be included in the environment scan of Apple incorporated: economic factors, political factors, legal factors, societal factors, technological factors, geographic factors and Porter’s five forces.
Key Factors and Trends
The economic environment of the company is determined by factors such as taxation policies, exchange rate, inflation, the economy, living standards, the average income and consumer buying power. Apple’s products main target market are people of medium to high income and standards. In an economic boom, the company’s products are more likely to be bought than during a recession. The rapid growth of developing countries provide an opportunity for Apple to venture into new markets.
Political stability can be a threat to Apple’s products. Poor political stability would mean a reduction in sales and distribution of the products would be hard as trade barriers would be imposed. Various trade policies that could be imposed on a country would have an adverse effect on the company’s sales. However, developing countries create an opportunity for Apple expand its customer base as more free trade policies are put into effect. As Lombardo (2015) states, “Additional free trade policies increase the opportunities for Apple to distribute more of its products to various markets around the world” (section 2).
Social-cultural factors, such as lifestyle, living standards, and demographics important to Apple. Social factors have an effect on consumer behavior and expectations. The increase in mobile phone use and social media is an opportunity for Apple to provide easy-to-use smart phones.
Current technology and technological changes can affect a customer’s priorities changing the demand for Apple products. For example, with the increasing popularity of Cloud computing, Apple can use that to bring in customers and retain their existing customers. Apple has taken advantage of this by making it so that information can be transferred between the different apple devices and between family members. “Everything’s better when shared, and sharing has never been easier” (Apple, 2016, section 3).
Legal factors can also create a threat to Apple. As governments become more aware of privacy issues in relation to digital technology, stricter regulations are imposed on companies like Apple. This poses a threat to Apple as they are now required to develop a product that not only meets consumer demand, but also the privacy regulations imposed by the government. Stricter regulations have been implemented on telecommunications therefore increasing threats to Apple. ...
Running head TEAM PAPER TEAM PAPER-A competitive analysis.docxagnesdcarey33086
Running head: TEAM PAPER
TEAM PAPER
-A competitive analysis of the organization and offering using Porter's five competitive forces model, and
-The criteria you will use to segment your market and select your target market including geographic, demographic, psychographic, and behavioral factors.
-A written positioning statement that identifies:
· Your target market
· The needs that drive purchase
· Your organization's industry category
· How your organization solves the target's needs
· Your organization's competition
· What makes your organization different from its competition
Abstract
Reason: the motivation behind this paper is to recognize a marked item or administration to be analyzed through the session; inspecting components of shopper conduct as they identify with business sector division, focusing on, and situating for it. This paper, and consequent papers, will prompt a SWOT showcasing investigation of the picked marked item.
Technique/approach: the marked item for this paper will be Apple's iphone. Information to be secured in this first paper will incorporate the accompanying:
Item/Brand Analyzed
Corporate Background
Market/Industry Analysis and Competition
Market Segmentation and Target Marketing
Pertinent External Factors
Module 1 SWOT Analysis
Discoveries: Apple is a pioneer in deals and creation in US Markets; with items that claim crosswise over target markets. iphone 4s deals have overshadowed inner Apple brands, and additionally other cell phone organizations in the U.s. market. Late deals strength, on the other hand, has not settled an industry lead. Samsung, in association with Google's Android Operating framework, possesses the worldwide commercial center with something like 21% of aggregate piece of the pie. Fruit faces both innovative and political difficulties in the biggest cell phone market, China, as it is not able to build an organization with the biggest transporters there because of non-4g/LTE items. SWOT Analysis area gives particular insights in regards to marked item qualities, shortcomings, open doors and dangers.
Conclusion: while Apple rules incomparable in US advertises regarding deals, and is in reality a worldwide power, it has not settled itself generally as the business pioneer. It must expand on brand/item qualities through arrival of more up to date 4g innovation; decrease risk to market dangers and gain by business sector open doors (both in the U.s and internationally) so as to overwhelm contenders, and beat the extending hole made by Google and Samsung's developing Android client base.
Paper sort: Module 1 SLP
Presentation
Throughout the Session Long Project, I will be breaking down the iphone 4s, a marked item from Apple, Inc.; inspecting components of shopper conduct as they identify with business sector division, focusing on, and situating.
This paper, and resulting papers, will prompt a complete SWOT promoting investigation of the iphone 4s.
Segment 1: Branded.
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.
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The cultural property chosen from the World Heritage List is the Red Fort Complex in Delhi, India (World Heritage List, 2016). The Red Fort Complex was built by the fifth Mughal emperor in India, Shahjahan. Like other emperors of the Mughal Empire, Shahjahan made numerous contributions to the subcontinent in the form of beautiful, culturally enriched buildings that are present till date. Taj Mahal, one of the wonders of the World, was also built by Shahjahan.
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Synthetic fiber production is a fascinating and complex field that blends chemistry, engineering, and environmental science. By understanding these aspects, students can gain a comprehensive view of synthetic fiber production, its impact on society and the environment, and the potential for future innovations. Synthetic fibers play a crucial role in modern society, impacting various aspects of daily life, industry, and the environment. ynthetic fibers are integral to modern life, offering a range of benefits from cost-effectiveness and versatility to innovative applications and performance characteristics. While they pose environmental challenges, ongoing research and development aim to create more sustainable and eco-friendly alternatives. Understanding the importance of synthetic fibers helps in appreciating their role in the economy, industry, and daily life, while also emphasizing the need for sustainable practices and innovation.
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The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
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The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
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2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...Levi Shapiro
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The US House of Representatives is deeply concerned by ongoing and pervasive acts of antisemitic
harassment and intimidation at the Massachusetts Institute of Technology (MIT). Failing to act decisively to ensure a safe learning environment for all students would be a grave dereliction of your responsibilities as President of MIT and Chair of the MIT Corporation.
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• The Committee on Education and the Workforce has been investigating your institution since December 7, 2023. The Committee has broad jurisdiction over postsecondary education, including its compliance with Title VI of the Civil Rights Act, campus safety concerns over disruptions to the learning environment, and the awarding of federal student aid under the Higher Education Act.
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A Strategic Approach: GenAI in EducationPeter Windle
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1. Strategic Analysis of Apple
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.
Strategic Analysis of Apple Inc.
Apple Inc. - Introduction
It is necessary to understand the brief background of the company, in order to conduct
its strategic analysis. Apple Inc. was founded in 1976, by Steve Jobs, Steve Wozniak,
and Ronald Wayne as “Apple Computer Inc.” for developing and selling computers
(Weinberger, 2018). The Apple computers were successful in achieving high number of
2. sales in the market, and in 1980 the company went public. As the demand for personal
computers grew, Apple computers being high priced, lost market share to low priced
personal computers, predominantly to ones that had Microsoft Windows as their
operating system. However, the company attained new level of success after Steve Job
became the CEO in 1997 (Weinberger, 2018). Under the leadership of Steve Jobs,
company was successful in rebranding its status. In 2001, Apple opened its first store
and also acquired various companies. The acquisitions were done to build an
assortment of software and altering some hardware that were used in Apple computers.
In 2007, the company was renamed as “Apple Inc.” and iPhone was launched which
achieved substantial success. However, in 2011 Tim Cook took the role of CEO due to
deteriorating health conditions of Steve Jobs (“Apple History — Apple Museum,” 2015).
In the fourth quarter of 2018, Apple has been able to generate revenue worth $93 billion
(“Apple Reports Fourth Quarter Results,” 2018). In terms of revenue, Apple is world's
largest IT business and is ranked as third largest mobile business in phone
manufacturing (Salinas, 2018). Currently, it has a workforce comprising of 123,000
permanent employees (Cina, 2018) and has approx. 504 retail outlets across 24
countries of the world (Fignas, 2018).
Environmental Analysis of Apple Inc.
In order to carry out strategic analysis of Apple Inc., its internal and external
environments need to be studied. So, in this section, Porter five forces analysis and
PEST analysis of Apple have been done whereas for internal analysis of the company
SWOT analysis will be conducted.
PEST Analysis of Apple
PEST is an abbreviation for Political, Economic, Social and Technological factors that
could affect a business (Shabanova, et al., 2015). In context of Apple, since it is a global
company therefore is affected not just by political situation in the home country but also
the political scenario of other countries where it is operating. The factors such as
political stability, taxation and tariffs affect the business operations of Apple Inc. Apple
3. faced high taxation due to high disposable cash in its bank account worth $34.7 billion
in 2015 (Hoxie, 2018). Due to high disposable income, it faces a constant pressure to
pay higher taxation, particularly in US, where the unequal income distribution is one of
the major issues (Hoxie, 2018). Furthermore, the components used in Apple products
are manufactured across the world. China, however, has been a prime location for the
manufacturing of its various parts as well as for assembling. Therefore, it is highly
impacted by political stability in China. Furthermore, the USA - China relationship could
also influence the operations of Apple Inc. The hostility and breaking economic ties with
China would lead to increased cost of manufacturing for Apple as, Apple benefits from
low-cost manufacturing in China (Yueh, 2018). Furthermore, there is a growing anti-
America sentiment in China as well which could lead to reduced sales for Apple
products (Yang, 2018).
The economic factors such as cost of labor in China, purchasing power of people
around the world, and dollar value impact the operations of Apple Inc. The increase in
the value of dollar can also impact the sales of its high-end products particularly in
developing countries (Wong, 2012), which is one of key factors influencing the strategic
analysis of Apple. The operations of Apple Inc. are also impacted by social factors. The
biggest backlash Apple could face is due to its unethical practices; Apple faces severe
criticism in regard to its labor practices such as child labor, overtime as well as working
conditions in its Chinese factories. Apple has recently launched an investigation to
inquire about these charges (Cuthbertson, 2017). Furthermore, Apple faces pressure
from its customers and activists to carry out corporate social responsibility (CSR) and to
invest in green activities. Though the company has taken green initiatives, however, it
still lags behind its competitors such as IBM, HP, Dell who all made to the list of
"Newsweek's 100 Green Businesses" till 2010 (Hayoun, 2017). In the year 2006, Apple
was targeted by Greenpeace in a customer campaign. Apple Inc. is also criticized for
maintaining a policy of secrecy. For instance, the critical condition and illness of Steve
Jobs was kept as a secret till Tim Cook took over (Bobrow-Strain, 2012). The
technological factors that impact Apple include the sophistication of ability of its
competitors such as Google and Samsung to replicate the features of Apple products.
4. Google replicated the idea of Apple Pay with its Android pay in less than a year’s time.
Furthermore, with the increased use of tablets and smartphones, the demand for
Apple’s personal computers will decline. Moreover, the increase in cybercrimes has
made Apple vulnerable to security and data theft which is the key strength of its
products (Savvides and Orellana, 2018).
Figure 1: PEST Analysis of Apple
Porter Five Forces Analysis of Apple
Porter five force model is used to assess the attractiveness of an industry. The first
force that affects the business operating in a particular sector is the degree of
competition (Dobbs, 2014). In context of Apple, there are numerous established players
in the market as a result this force is high for Apple. Apple inc. faces direct competition
from Google, Inc., Samsung Electronics Co., HP Company and Amazon, Inc. Moreover,
all the players in the industry have their focus on innovation and invest heavily in R&D
(Mourdoukoutas, 2011). The second force that impacts a business is bargaining power
of buyers. In context of Apple Inc., the low switching cost for buyers due to variety of
available options is significant. A customer can easily switch to other brands such as
from iPad to Kindle without investing substantially (Savvides and Orellana, 2018). The
Political Factors
•High Taxation pressures due to high disposable
income
•US-China relation moving towards hostility
•Anti-US sentiment in China
Economic Factors
•Cost of Labour in China
•Purchaisng power of people across the world
•Value of dollar
Social Factors
Increased criticism over ethical practices in its
Chinese factories
Pressure to invest in CSR and Green Activiities
Technological Factors
High ability of competiton to replicate ideas
Security breach and data theft
PEST Analysis ofApple
Inc.
5. third force of Porter’s model that affects the industry attractiveness is the bargaining
power of suppliers. This force is comparatively, a weaker force in context of Apple Inc.
Since, Apple chooses suppliers for its parts from the pool of suppliers from all the parts
of the world which implies that Apple has an upper hand over its suppliers (“Apple and
Procurement,” 2018). In addition, the switching cost related to changing a supplier is low
for Apple.
The fourth force of the Porter Five Forces Model is the threat of substitutes, which
includes all the products that could be indirect competition to a business (Dobbs, 2014).
In context, of Apple the probable substitute for a mobile phone could be a land line. This
force is low for Apple as the substitute products are lower in technology and offer less
convenience. The last force in Porter Five Force Model is the threat of a new entrant.
This is relatively low because of high capital required for setting up a business and high
marketing expenditure required for reaching out to the customers. In addition, the cost
associated with R&D is very high which is essential for the survival of businesses in this
industry. Also, the industry has many strong brands like Apple, Samsung Google etc.
therefore it is extremely difficult for a new entrant to gain foothold in the industry
(Mourdoukoutas, 2011). Therefore, it should be noticed in the strategic analysis of
Apple, that it is influenced by low threat of substitute products, strong rivalry, low
bargaining power of suppliers, high bargaining power of buyers, low barriers to entry.
6. Figure 2: Porter Five Forces for Apple Inc.
SWOT Analysis
SWOT Analysis is a strategic marketing tool, which is used by businesses to carry out
internal analysis. It allows businesses to identify the internal strengths and weaknesses
of a business, as well as the opportunities and threats present in external environment,
for formulation of effective business strategies (Shabanova et al., 2015). In context of
Apple Inc., the biggest strength of the business is its strong brand name, high quality
products, extensive product line, focus on innovation and global presence. Moreover,
the financial health and sales are also the key strengths of Apple. In a press release by
Apple, it reported a quarterly income worth $62.9 billion which is 20% higher than the
revenue of last year and a 41% increase in earnings per share. The global sales of
Apple also rose by 61%. Furthermore, the company has been successful in generating
an operating cash flow amounted to $19.5 and distributed dividends of $23 billion to
its shareholders (“Apple Reports Fourth Quarter Results,” 2018). In addition, Apple also
maintains a strong hold on its distribution channel in order to maintain the strategy of
exclusivity. The weaknesses are the internal insufficiencies faced by a business
(Shabanova et al., 2015). In context of Apple, the limited size of its distribution network
Porter
Five
Forces for
Apple Inc.
Degree of
rivalry - High
Bargaining
Power of
Suppiers -
Low
Bargaining
power of
buyers - High
Barriers to
Entry - Low
Threat of
substitutes -
Low
7. is also one of its weaknesses. Since, Apple maintains an image of exclusivity therefore
company selects and choose the authorized dealers with careful evaluation. This also
restricts the availability of Apple products to reach wider audience. In addition, the
company faces criticism over the unethical labor practices and lack of focus on CSR
(Hayoun, 2017).
The opportunities present in external environment for Apple include opening retail
stores in new markets. Furthermore, Apple can also increase its number of stores in the
countries where it already has its stores. The emerging markets such as Oman, India,
Pakistan, Malaysia, etc. have great potential of profit and Apple does not have any retail
store in these countries. Furthermore, it can also invest in the R&D related to designing
products with artificial intelligence which is an emerging technological trend. The
strategic analysis of Apple shows that its biggest threat is the high degree of
competition (Savvides and Orellana, 2018). Another grave threat faced by Apple is that
of imitation of its products. China is the biggest seller of fake apple product which has
remained as one of the biggest challenges faced by Apple Inc (Wong, 2012).
Figure 3: SWOT Analysis of Apple Inc.
Strengths
Strong brand name and customer loyalty
Extensive product Line
High Quality Products
Global presence
Competent w orkforce
Focus on R&D and innovation
Financial Health
Weakness
Criticsm over labor practices and CSR
Limited distribution netw ork
Limited target market
Opportunity
Increase number of stores in developing economies
R&D in emerging technologicaltrends
Threat
High Competition
Imitation
SWOT Analysis of Apple Inc.
8. Apple’s Sustainable Competitive Advantage
According to Porter, a business that outperforms other players in the industry in terms of
profitability is considered to have a competitive advantage. In order to gain a
competitive edge, businesses strive to attain a sustainable competitive advantage. A
business can achieve a sustainable competitive advantage through either having a cost
advantage or through differentiation (Riasi, 2015). Apple has a differentiation strategy
which is when a business is successful in delivering features and benefits that are better
than its competitors (Belton, 2017). Apple uses strategy of differentiation and focuses
on innovation to create superior value for its customers. The sustainable advantage of
Apple Inc. is primarily due to its strong brand name and Apple's enclosed ecosystem.
Figure 4: Apple’s Sustainable Competitive Advantage
Apple has an enclosed system which refers to the fact that all Apple devices are run
only by its own operating systems such as iOS and macOS. This implies that a
customer has to keep buying iOS devices if he or she wishes to stay within the
ecosystem of Apple (Worstall, 2012). On the other hand, Android users can switch to
various smartphones such as Samsung, Huawei, HTC etc. as they can all be synced
with their Google accounts across devices having Android operating system (Villas-
Boas, 2016). Moreover, the prices of Android devices also fall primarily because of two
Closed
Ecosystem
Strong
Brand
Name
Sustainable
Competitive
Advantage
9. factors. Firstly, Android is an open-source operating system which could be used by any
company for developing their smartphones. Secondly, companies like Qualcomm are
facilitating small companies to launch low priced smart phones. Due to this, premium
brands of Android Smartphones such as Samsung and HTC are losing their market
share (Tibken, 2018). On the other hand, the prices of iPhones do not fluctuate because
of Apple’s strategy of enclosed ecosystem. Furthermore, it is more difficult to develop
Android apps as they are required to be tested on large number of hardware devices as
compared to the iOS apps. Samsung has also tried to duplicate the Apple’s strategy of
protected ecosystem with its OS Tizen. However, it has not attained much of
acceptance by the customers (Tibken, 2017).
Another factor that has led to the attainment of sustainable competitive advantage for
Apple is customer loyalty and its strong brand name. The premium pricing strategy used
by Apple has also worked in its favor as it has resulted in customers to place the Apple
products higher than other brands in their minds (Mourdoukoutas, 2011). Apple
products are known for their high quality and aesthetic designs. Therefore, the
customers feel pride in owning an Apple product. Apple has a strong focus on
innovation and R&D; the company is known for its innovative and unique products
(Rogowsky, 2017). Furthermore, Apple has a diverse product line and is offering
products such as Mac, iPhone, iPod, iPad, HomePod, Apple Watch, Apple TV, Apple
Energy and Operating systems for its devices. The innovative approach of Apple to
provide its customers with high quality and unique products has resulted in creating a
strong brand image (Rogowsky, 2017). This has enabled Apple to sustain its success
over the period of time. So, the strategic analysis of Apple reveals that its innovative
policies favor the company over its competitors.
Recommendations
After carrying out a detailed strategic analysis of Apple, following recommendations are
proposed for strengthening the company’s position in the market:
10. ● It is recommended that Apple invests in the CSR activities. At present, it faces
criticism from the environmentalists and customers of not investing enough in
CSR and green activities. As a result, Apple will be able to build an image of a
brand that cares about the community and is concerned with the environment.
This will require Apple to allocate financial resources to the cause; which is not
significant for a business with the financial health as that of Apple.
● Apple Inc. is also criticized by activists for its labor practices in China, therefore, it
is also recommended that it should take up a transparent approach in addressing
and resolving these issues as these are negatively impacting the image of the
brand.
● Apple has a very high dependence on China; on the other hand, US-China
relations have become hostile. This is one of the biggest challenges faced by
Apple. Therefore, it is recommended that Apple should relocate its assembling
and manufacturing points from China to some other low-cost country. However,
this has to be done gradually as it would bring a financial crunch for Apple initially
but will be beneficial in the longer run.
● Apple can open its stores in emerging and developing economies as they have
great profit potential like India, Pakistan, Russia, Iran, Malaysia etc. It can open
more stores in countries like Turkey where it has only two stores (“Apple Retail
Store - Store List,” 2018). This will require capital however Apple has enough
disposable income to invest in such expansion strategies (Salinas, 2018).
● It is also recommended that Apple should maintain its focus on innovation and
should keep on investing in R&D. Apple should work on future technological
trends such as artificial intelligence in order to stay ahead of its customers.
● It is also recommended, that the company increases its distribution partnership
with more distributors; as currently it has very limited distributors across the
globe. As, Apple maintains a strategy of exclusivity so finding partners with right
capabilities could be costly and time consuming but will benefit as it will increase
the reach.
11. Conclusion
The purpose of this paper was to carry out an in-depth strategic analysis of Apple to
propose strategic recommendations. Apple is one of the most successful companies of
the world. The success of Apple is due to its innovative approach in developing unique
and high-quality products for its customers. Apple has been able to achieve a
sustainable competitive advantage because of its strong brand name and the closed
ecosystem. However, the hostile US-China relation has increased the political risk for
Apple. Furthermore, the forces such as, degree of competition and bargaining power of
buyers is high for Apple. Moreover, Apple can expand to new markets and can open
new stores in existing locations to increase its profitability and global presence.
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