Apple Inc. Analysis for Strategy Class

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Apple Inc. strategy analysis for 3rd year Strategy Class at the University of Glasgow.

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Apple Inc. Analysis for Strategy Class

  1. 1. Apple Inc. Analysis Strategy Group 2
  2. 2. TABLE OF CONTENTS • Company overview • Hardware • Software • Supply Chain • Summary • Q&A
  3. 3. COMPANY OVERVIEW $532.18b
  4. 4. SHARE PRICE 700 525 350 175 0 1981 1990 2012 2000
  5. 5. HARDWARE
  6. 6. iPhone Pros: • Revolutionised • 250m • The the mobile phone iPhones sold since inception highest user engagement amongst all smartphone brands
  7. 7. iPhone Smartphone Market Share Vendor 2011 Q2 2012 Q2 Change Samsung Apple Nokia HTC ZTE Others Total 17% 18.8% 15.4% 10.7% 1.8% 36.2% 100% 32.6% 16.9% 6.6% 5.7% 5.2% 32.9% 100% 15.6% -1.9% -8.8% -5% 3.4% -3.3%
  8. 8. iPhone Solutions: • Invest more into R&D • Integrate latest technology such as NFC, Wireless Charging
  9. 9. iPad Pros: • Created the tablet market • Content consumption platform • Over ! ! ! 100m units sold
  10. 10. iPad Cons: • Strong competition from Microsoft Surface, Samsung Galaxy Tab & Google Nexus • Blackberry Playbook for enterprise • iPad Mini - small profit margins and might cannibalise iPad 4 sales • iPad ! 4 launch was rushed
  11. 11. iPad Suggestions: • Improve iPad Mini specs • Cut down the production cost for iPad Mini • Introduce more enterprise-level features (e.g. better videoconferencing)
  12. 12. iPod Problem: Too many models & the market is shrinking Solution: Streamline the diverse iPod portfolio
  13. 13. SOFTWARE
  14. 14. iOS Pros: • Apple mobile OS released in 2007 • Integrations Facebook with Twitter & • Passbook App • Improved Siri with restaurant info
  15. 15. iOS Cons: • Problem • Apple • No ! ! with WIFI connectivity Maps disaster radical updates
  16. 16. iOS Solutions: • Hire top mapping experts to work on the Maps App • Use crowd-sourcing to improve the map data ! !
  17. 17. MAC OS X Pros: • 3m downloads in 4 days • Penetrated 10% users in 1 • Integration with Twitter, month Facebook • Positive reviews
  18. 18. MAC OS X Cons: • Slower speeds • Problems • Mac downloading the OS OS X now is vulnerable to viruses !
  19. 19. iTunes, iCloud... • Acts • 30 as a hub for media and apps billion apps sold as of Mar 2012 • iTunes 2012 generated $7.5b in sales in • Secure and safe - all data is encrypted • Competitors: Amazon & Google Play
  20. 20. ACQUISITIONS • Apple acquired a number of companies including • FingerGesture • Siri • Anobit • AuthenTec
  21. 21. SUPPLY CHAIN
  22. 22. FOXCONN Pros: • Low production costs • Good quality production • Large scale production ability • Create ! ! a lot of jobs in China
  23. 23. FOXCONN Cons: • 1000s of workers gone on strike over working conditions • Factory shut in Northern China after a mass brawl ! !
  24. 24. ENVIRONMENTAL IMPACT
  25. 25. APPLE STORES Strengths: • Key element of strategy • Hub for ecosystem • $4.23 ! ! ! ! billion for the final quarter of 2012
  26. 26. APPLE STORES Weaknesses: • Apple stores in only 6% of the world • Competition from Microsoft, borrowed ideas: "Guru Bar” ! !
  27. 27. SUPPLY CHAIN Solutions: • Continue expansion into BRIC (Brazil, Russia, India & China) • Review ! ! ! contracts with suppliers
  28. 28. SUMMARY • Invest cash reserves into R&D • Continue • Continue • Keep to proactively target CSR issues expansion into BRIC countries the continuous collaboration across all devices
  29. 29. “We need to innovate our way out of this.” -Steve Jobs
  30. 30. QUESTIONS & ANSWERS

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