Apple Inc. Case Study for Strategic Management Course

1. Apple Inc.
CASE STUDY
Presented By: Saeeda Batool & Inam ul Haque
MSc. Telecom Engineering Management (Semester 1)

2. CONTENTS
Overview and Mission Statement
History
Strategy
Financial Analysis
SWOT Analysis
Competitors
Challenges and Result
Conclusion

3. OVERVIEW AND MISSION
Apple headquarter in California, was founded by Steve Jobs,
Steve Wozniak, and Ronald Wayne on April 1, 1976 to develop
and sell personal computers.
It was incorporated as Apple Computer, Inc. on January 3, 1977,
and was renamed as Apple Inc. on January 9, 2007 to reflect its
shifted focus towards consumer electronics. Apple Inc.
headquarter in California. Apple Inc. has currently operates 450
Apple stores and employs 98,000.
Apple's corporate mission is “to bring the best personal
computing products and support to students, educators,
designers, scientists, engineers, businesspersons and consumers
in over 140 countries around the world.”

4. HISTORY
Apple was so named because Jobs was coming back from
an apple farm, and he was on a fruitarian diet. He thought
the name was "fun, spirited and not intimidating"
Apple Inc. is an American multinational corporation
headquartered in California, that designs, develops, and
sells consumer electronics, computer software and
personal computers. Its best-known hardware products are
Mac line of computers, iPod media player, iPhone
smartphone, and iPad tablet computer.
Its consumer software includes the OS X and iOS
operating systems, the iTunes media browser and the
Safari web browser

5. STRATEGY AND ORGANIZATION STRUCTURE
Apple products are generally more user friendly than those of
Windows, Android, and other operating systems.
Apple also has a culture of not collecting every detail about its
users.
Apple introduced Apple Pay, a mobile app that enables Apple
customers to use their existing Master Card, Visa, or American
Express card to make mobile payments at retail stores.
To keep costs low, almost all Apple hardware products are
manufactured in Asia and many of these are manufactured at a
single location.
Organization structure comprises of 9 VPs reporting to the CEO
and is not complex.

6. FINANCIAL ANALYSIS
For 2015 fiscal first quarter that ended in December 2014. Total
revenues and profits were $74.6 and $18 billion, respectively, up
from $57.6 and $13.1 billion in first quarter 2014. In addition,
international sales accounted for 65 percent of total revenue as
the iPhone is now the most popular phone in China.
Among its products, iPhones comprised 59% of total revenue;
Macs (8%); iPads (8%); and Wearables, Home and Accessories
(12%).
I-phone accounted for more than 55 % of sales (2014) and
Apple increased its Android market share significantly through
introduction of Apple watches in 2015 growing its share
significantly to being the leader in market.

7. SWOT ANALYSIS

8. COMPETITORS

9.  Market leadership status was a challenge so citing its patents, Apple sued its
biggest rival Samsung twice to tarnish its reputation
 Although Apple market is Geographically diversified, with regards to
manufacturing, The top four smartphone manufacturers in China are
Samsung, Lenovo, Apple, and HTC, accounting for over half of the total
industry revenue in 2014. For Operating Systems Major firms by market share
include Microsoft and Apple, with 62 and 20 percent of the total market.
 Keep the encryption was a big challenge and so Apple did a great job in
research & development taking pride in itself by having products highly secure
which resulted in increased customer confidence compared to rivals.
 Apple increased revenues by roughly 18-25% percent annually and currently
leads the global phone market from quality perspective which resulted to
cement its position as a quality phone provider.
CHALLENGES AND RESULTS

10. CONCLUSION
Established in 1976, apple has its network around the world. It is
the first company to launch iPod and iPad.
It is a public oriented company & has computer hardware and
software, electronic industries as well.
In spite of high strengths, company’s high prices products,
faulty battery back ups of laptops and mobile phones prove a
drawback for company as well as its products.
Despite that Apple’s competitors have prices 50 to 70 percent
on comparable products, still Apple has no issue with it since it
does not target being the most in market rather it prides itself
being the best in quality.