STRATEGIC ANALYSIS OF APPLE INC.

• Apple Inc. is a multinational technology company born in America and it has
its headquarters in Cupertino, California.
• Apple is responsible for designing, developing, and selling consumer
electronics, computer software, online services and personal computers.
• Apple Inc. is one of the largest organisations in the world (Heracleous and
Papachroni, 2018).
Introduction

Strategic Framework: VMOST
Mission
This Apple mission statement of
states:
“Apple is developing Mac, the best
PCs in the world, as well as OS X,
iLife, iWork and expert programming.
Mac controls music from computers
using iPod and the iTunes online
store. Apple has re-evaluated the
phone using the Advanced iPhone
and the App Store recently released its
mysterious iPad, which is the perfect
place for wearable devices and
stickers.”
Vision
Apple introduced another vision led
by Tim Cook, stating:
“We recognise that we are in the
centre of the earth to produce
exceptional products and that they
do not develop. We constantly focus
on progress. We practice the basics,
not the complex ones. We recognise
that behind significant innovations
are the products that we
manufacture and own, own and
control. We participate only in those
areas of activity in which we can
play an important role.”

Strategic Framework: VMOST
Tactics:
Competitive Advantage
• Apple’s most competitive position is
that it has worked perfectly well to
abuse its brand.
• Apple is characterised by a high-quality
plan and personalised management.
• Apple is looking for a wide separation
technology
Objective 1 - Continue to produce
inspirational products.
Strategy: Apple must have an
incredible team that integrates
innovative idea and pioneering team.
Objective 2: Future Development
and Innovative Technology.
Strategy: In order to continue to
receive better products, Apple needs
to research the market to timely cope
with customers need.

Apple business strategy can be classified as product differentiation.
Specifically, on the basis of simple, yet attractive design and advanced
functionality.
Apple business strategy consists of the following three elements:
1. Focus on design and functionality of products.
2. Strengthening Apple ecosystem.
3. Decreasing dependence of the business on the sales of iPhones
Apple’s Generic Strategy

Both measure has
improved from
previous years which is
showing positive
inclination.
Apple Inc. ROE & ROA Analysis

The primary strategies that makes Apple Inc. competitive:
• Good Brand Image
• Innovative Products
• Strong network of Supply Chain
• Premium Pricing Strategies
Core Resources and Competencies

Value Chain Analysis of Apple Inc.
Inbound Logistics
• Apple is known for working with hundred of suppliers from all
around the world and their purchasing normally cover its
requirements for periods for 150 entire days.
Operations
• The majority of Apple’s hardware products are currently being
manufactured by outsourcing Asian partners.

Value Chain Analysis of Apple Inc.
Outbound Logistics
• Apple attempts to minimize the volume of its inventory due to cost.
Marketing and Sales
• Apple’s marketing budget is spent mainly advertising, public relations,
events and experiences and direct selling.
Service & Procurement
• Apple is famous for its customer service, there are trained sales
assistant at all experience centers in major cities all around the world.

Apple Stakeholders :
Apple has many stakeholder groups, such as governments, local
networks, community, organisations, Investors, employees and
many other customers and competitors.
Main Apple Shareholders are:
1. Steve Jobs, Co-founder of Apple Inc.
2. Chairman of the Board, Arthur Levinson.
3. Chief Executive Officer, Tim Crook.
4. Senior VP of Software Engineering , Craig Federighi.
Apple’s Shareholders and Stakeholders

Apple’s Strengths
• Most important brand
• brand valuation of $
234 billion.
• Maximum technology
SWOTAnalysis
Apple’s Weaknesses
• Expensive Products
• Advertising and limited
preview
• Mismatch with other
software

Apple Opportunity
• Reliable customer
growth
• Qualified professionals
• Large distribution
network
SWOTAnalysis
Apple Threats
• Corono virus outbreak
• Apple is intimidated by
counterfeiting
• Increased competition
• Market penetration

Apple Inc. Competitive Position

• Limited distribution network
• High selling prices
• Dependence of sales on high-end market segments
• Aggressive competition
• Imitation
• Rising labour cost in various countries
Apple Inc. Key Global Issues

• Innovative Designs:
• Put additional emphasis on design development with internal resource allocation to
continue to lead the industry in design.
• Research user interface possibilities:
• As a mode of setting Mac computers apart from other PCs Apple must continue to
innovate in user interface focusing on ease of use and intuitive menu functions
• Consumer electronics diversification:
• While the PC market has grown increasingly crowded with competitors and customers
saturated other areas of consumer electronics continue to grow. Developing
complementary products in other categories provides broader sources of revenue by
accessing more customers in markets with less intense competition. Apple should
consider all work related to its operations in the iPod, iTunes, iSync, and iChat sectors.
Recommended Generic strategies

Option One: Franchising of stores
Option Two: Growth Strategy through new products and new
market opportunities.
Option Three: Vertical Integration
Strategic Options

Expected Outcomes

There are three drivers behind Apple’s growth and positive revenue growth:
IPhone: The Average Selling Price of iPhone has increased up to $100 year-
over-year.
Wearables: The Apple's wearables platform have gradually increased sales
momentum with the AirPods and Apple Watch going mainstream.
Services: The App Store, AppleCare and licensing have resulted to strong
revenue growth.
Apple's Growth Drivers

Suitability:
• Growth Strategy will be most suitable strategy in Apple’s situation as other
competitors are imitating its icon products like iPhone. Apple should explore new
products and markets.
Feasibility:
• Growth strategy is feasible to Apple. As it has most innovative HR, Strong network
of supply chain and its vision and mission also support growth and innovation.
Acceptability:
• Stakeholders will be kept informed what the strategic plan is and where it fits.
Stakeholders will be actively involved in the process.
Apple’s SFAAnalysis

• The recommended strategies are implemented as follows:
• Apple should build long term organizational strength by implementing a clear
road map for its growth strategy.
• Apple should hire technically brilliant, innovative pioneers with strong team
working skills and high levels of ethics.
• Build specific products of high quality, for the huge populations of Asian
countries that are passionate about computers, mobile phones and
applications.
• prices should be according to the budget of underdeveloped countries economy.
• Continue and intensify the search for innovative, stylish and useful products in
its existing area of operations.
• Make productive use of strong cash reserves.
Recommended Implementation
Strategy

Recommended Action Plan

Recommendations:
• Apple Inc. should develop new- product line
• Apple need to decrease the price to attract low income segment
• Apple Inc needs to look its strategies to compete Samsung
Conclusion:
• This report has attempted to analyse in detail the Apple’s action plan and its bold methods.
• Apple is focused on developing products that become the business standard that all other
competitors are trying to emulate.
• Apple can lower the cost of its products and remain serious by becoming the first pacemaker
to succeed in some time (Heracleous and Klaering, 2014).
Strategic Recommendation &
Conclusion

• Aljafari, A. (2016) ‘Apple Inc. Industry Analysis - Business Policy and Strategy’, International Journal of Scientific &
Engineering Research.
• Apple Inc. (2020) Augmented Reality - Apple Developer, Apple Inc.
• Ashcroft, J. (2012) ‘Apple from the iPod to the iPad. A Case Study in Corporate Strategy’, Corporate Strategy Ninth
Edition.
• Description, B. (2013) ‘Apple Inc. SWOT Analysis.’, Apple, Inc. SWOT Analysis.
• Dimitrios, N. K., Sakas, D. P. and Vlachos, D. S. (2013) ‘Analysis of Strategic Leadership Simulation Models in Non-
profit Organizations’, Procedia - Social and Behavioral Sciences. doi: 10.1016/j.sbspro.2013.02.053.
• Finkle, T. A. and Mallin, M. L. (2010) ‘Steve Jobs and Apple, Inc’, Journal of the International Academy for Case
Studies.
• Lombardo, J. (2015) ‘Apple Inc. PESTEL/PESTLE Analysis & Recommendations’, Panmore Institute.
References