This document discusses strategic analysis of the communication equipment industry and Apple Inc.'s smartphone business. It provides an overview of industry drivers and trends, a PESTEL analysis, Porter's Five Forces analysis, a SWOT analysis of Apple, and recommends that Apple pursue product diversification, expansion through M&A/partnerships, and continuous innovation.

2. Outline Industry Analysis Why? Driving Forces Dominant Features Five Forces Strategy Group Map Key Success Factors Company Analysis Overview Value Chain Analysis SWOT Analysis Competencies Business Analysis Competitive Strategy Recommendations

4. Outline Industry Analysis Why? Driving Forces Dominant Features Five Forces Strategy Group Map Key Success Factors Company Analysis Overview Value Chain Analysis SWOT Analysis Competencies Business Analysis Competitive Strategy Recommendations

6. 1. Consumers market 2. Corporate market 1. Carriers AT&T … 2. OS providers Linux, WM… 3. Hardware makers Intel … 1. Establish mobile manufacture: LG, Samsung 2. Software giants: Google, MSFT 1. VoIP Skype… 2. PDA phone Palm… 3. Features phone Nokia, LG … 1. More companies enters… 2. Strong brands and finance Outline Industry Analysis Why? Driving Forces Dominant Features Five Forces Strategy Group Map Key Success Factors Company Analysis Overview Value Chain Analysis SWOT Analysis Competencies Business Analysis Competitive Strategy Recommendations

7. Source: www.w ikinvest.com Outline Industry Analysis Why? Driving Forces Dominant Features Five Forces Strategy Group Map Key Success Factors Company Analysis Overview Value Chain Analysis SWOT Analysis Competencies Business Analysis Competitive Strategy Recommendations

8. Source: http://blog.bryanstarbuck.com Outline Industry Analysis Why? Driving Forces Dominant Features Five Forces Strategy Group Map Key Success Factors Company Analysis Overview Value Chain Analysis SWOT Analysis Competencies Business Analysis Competitive Strategy Recommendations

9. “ This is a difficult industry, part of it is technology; part of it is fashion…” Outline Industry Analysis Why? Driving Forces Dominant Features Five Forces Strategy Group Map Key Success Factors Company Analysis Overview Value Chain Analysis SWOT Analysis Competencies Business Analysis Competitive Strategy Recommendations

11. Outline Industry Analysis Why? Driving Forces Dominant Features Five Forces Strategy Group Map Key Success Factors Company Analysis Overview Value Chain Analysis SWOT Analysis Competencies Business Analysis Competitive Strategy Recommendations

12. Taiwan – Facilities of camera, circuitry, connectors, stainless casings Singapore – Facilities of CPU, processing chips US – Facilities of touch screen, specific parts China – Shenzhen Assembly Facility Source: http://www.shmula.com Outline Industry Analysis Why? Driving Forces Dominant Features Five Forces Strategy Group Map Key Success Factors Company Analysis Overview Value Chain Analysis SWOT Analysis Competencies Business Analysis Competitive Strategy Recommendations

18. Users’ experience Source: http://blog.wired.com Outline Industry Analysis Why? Driving Forces Dominant Features Five Forces Strategy Group Map Key Success Factors Company Analysis Overview Value Chain Analysis SWOT Analysis Competencies Business Analysis Competitive Strategy Recommendations

19. Apple may well pass Microsoft, which has $23.7 billion in cash, and could have $40 billion in 2 years Source: http://www.businessweek.com Data: Standard & Poor’s Outline Industry Analysis Why? Driving Forces Dominant Features Five Forces Strategy Group Map Key Success Factors Company Analysis Overview Value Chain Analysis SWOT Analysis Competencies Business Analysis Competitive Strategy Recommendations

20. Source: http://www.artechnica.com Outline Industry Analysis Why? Driving Forces Dominant Features Five Forces Strategy Group Map Key Success Factors Company Analysis Overview Value Chain Analysis SWOT Analysis Competencies Business Analysis Competitive Strategy Recommendations

22. __APPL-IZATION__ Outline Industry Analysis Why? Driving Forces Dominant Features Five Forces Strategy Group Map Key Success Factors Company Analysis Overview Value Chain Analysis SWOT Analysis Competencies Business Analysis Competitive Strategy Recommendations Diversification: iphone Nano, iphone Biz… Expansion: M&A, alliances, partnership… Innovation: smart-card, Apple cloud …