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.

1. Group #10: Binh Thieu Lan Phan Minh Thu Luu Tung Duong (Communication Equipment Industry) ------------------ BUS 890: Strategic Management What is the one item you never leave home without?

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

3. Smart-phones allow users to: e-mail, internet store information, entertainment install programs, along with using a mobile phone in one device 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

5. Market size and growth rate Number of rivals Product Innovations Learning/experience curve effects Total Mobile Sales: Mobile phone sales to exceed 1billion in 2009 More than 200 million smart-phones will be sold in 2008. Source: http://www.palminfocenter.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

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

10. Vision: "Man is the creator of change in this world. As such he should be above systems and structures, and not subordinate to them" 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." Industry: Computer software & hardware Consumer electronics 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

13. Sharp rise in consumer demand 56% of smart-phone buyers prefer iphone New target market – price reduction attract more customers High Potential Software – upgradable; can add new features 3G Apple iPhones to captivate business demand worldwide Source: http://www.linuxdevices.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

14. New powerful entrant - Google Many similar or substitute products Intense competition with major rivals Increasing bargaining power of buyers 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

15. First mover advantage Ownership of technological patents Apple is one of the most established brand Customers loyalty Cultural, fashion identity Source: http://www.appleinsider.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

16. Dependence on third party provider: AT&T, Content Provider, Application provider Less appeal to corporate customers Technological complication Gorilla arm Limitation of particular features Application slow down and freeze 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

17. iTunes : Synchronization between the iTunes - App store and Apple devices. User interface of consumer gadgets and computing devices Intuitive design, easy-to-use and self-discoverable 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

21. Focus-Differentiation Strategy Innovative products to target early adopters Premium Price to target high-end consumers , business market Broad-Differentiation Strategy Offer more products to a broad of buyers Deliver value to customers by differentiating Source: Textbook 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 …

24. Peter Burrows (2008,7,30). How to spend Apple’s cash. Business Week. Retrieved August 11, 2008, from http://www.businessweek.com/magazine/content/08_32/b4095000656875.htm?chan=magazine+channel_news Olga Kharif (2008, 8,4). That iPhone Nano rumor. Business Week. Retrieved August 11, 2008, from http://www.businessweek.com/the_thread/techbeat/archives/2008/08/that_iphone_nan.html?chan=top+news_top+news+index_news+%2B+analysis Peter Abilla (2007,1,18). The Apple iPhone Supply Chain. Shmula. Retrieved August 11, 2008, from http://www.shmula.com/304/the-apple-iphone-supply-chain Charles Jade (2008,4,23). Apple Q2 2008: Mac sales surge, iPhone not so much. Ars Technica. Retrieved August 11, 2008, from http://arstechnica.com/journals/apple.ars/2008/04/23/apple-earnings-mac-sales-surge-iphones-not-so-much Bryan Gardiner (2008,4,1). The smartphone smackdown: who satisfies customers best? Wired. Retrieved August 11, 2008, from http://blog.wired.com/business/2008/04/the-smartphone.html