Article

Strategic Marketing Plan for APPLE Inc.

Muhammad Anas KHALID 1

Viktoria VIDA 1

Abstract: This study aims to explore the inner workings of Apple Inc. to gain a
deeper understanding of the company's success and to identify opportunities for
further growth and improvement. Through an analysis of market trends,
consumer behaviour, and Apple Inc.'s current marketing strategies, this research
Citation: Khalid, M. A. & Vida, V. (2023). will develop a comprehensive marketing plan that addresses key areas of growth
Strategic Marketing Plan for APPLE Inc. and improvement. Furthermore, the effectiveness of this research will be
Network Intelligence Studies, Year (volume) XI, evaluated using various marketing research tools (SWOT matrix, TOWS matrix,
Issue (21), 61-74 IFE matrix, EFE matrix, IE matrix, PESTEL analysis, Porter Five Forces Model and
Received: 24 April 2023
CPM matrix). This study will provide new information and strategies for new
Revised: 25 June 2023 organizations trying to enter the industry and want to be successful. It will also
Published: 26 June 2023 contribute to the existing body of knowledge in the field of marketing, specifically
as it pertains to companies operating in the technology industry. Additionally,
the research will also serve as a useful reference for businesses and organizations
in similar industries, as well as for marketing professionals looking to gain a
deeper understanding of the dynamics of the technology industry. It will also
Copyright: © 2023 by the authors. Published benefit academicians and researchers studying the field of marketing and
by Network Intelligence Studies.
technology.
This article is an open access article

distributed under the terms and Keywords: SWOT and TOWS matrix; IFE and EFE matrix; PESTEL analysis;
conditions of the Creative Commons Porter Five Forces Model; CPM matrix;

Attribution (CC BY) license (https://

Classification-JEL: M21, M30
creativecommons.org/licenses/by/

4.0/).

1 University of Debrecen, Faculty of Economics and Business

Network Intelligence Studies

Year (Volume) XI, Issue 21 (1 / 2023) https://seaopenresearch.eu/Journals/nis/
Network Intelligence Studies
Year (Volume) XI, Issue 21 (1 / 2023) pg. 62

remain anonymous, allowing him to focus on

INTRODUCTION product development without distractions.
Apple is one of the world's most valuable
According to data from a variety of sources, the companies, with a market capitalization of over $2
global smartphone market is a massive and rapidly trillion (Bursztynsky, 2020). Apple’s total net sales
growing industry. In 2021, approximately 1.43 amounted to 394.33 billion U.S. dollars in their 2022
billion smartphones were sold worldwide. In the financial year, an increase from the historical record
fourth quarter of that year, approximately 24% of all of 274.52 billion U.S. dollars in the financial year
smartphones sold to end users were from Apple 2020. Apple’s annual revenue quadrupled in the last
(Laricchia, 2022). The smartphone industry is ten years (Laricchia, 2022). In terms of financial
characterized by intense competition and rapid goals, Apple's objective for 2023 and onward is to
technological advancement, with many different maintain its revenue growth and improve its gross
brands such as Apple, Samsung, Huawei, and margin (Apple.com, 2022).
Xiaomi offering a range of smartphone models at The company is known for its sleek and minimalist
various price points According to a recent report, the design aesthetic, as well as its commitment to user
global smartphone market was valued at around privacy and security. Its products are used in homes,
USD 457.18 billion in 2021. Looking ahead, the businesses, and schools around the world, and the
market is expected to experience significant growth, company is a major player in the smartphone,
with projections forecasting a rise from USD 484.81 computer, and consumer electronics markets. Apple
billion in 2022 to USD 792.51 billion in 2029. This continues to innovate and introduce new products,
represents a compound annual growth rate of around including the Apple Watch, and AirPods.
6%. The competition between Samsung and Apple The company's focus on product development,
for the top spot in the smartphone market is a well- brand building, and customer engagement has
known phenomenon, with Apple typically earned it a reputation as one of the most successful
experiencing higher sales in the year's final quarter. and iconic brands in the world. Apple's marketing
However, the competition for the remaining places efforts are closely aligned with its financial goals
among the top five vendors is also intense, with and strategies, which are centred on revenue growth
Huawei, Xiaomi, and other Chinese manufacturers and profitability through product innovation and
all vying for market share. In addition to a large customer expansion. Despite increasing
number of smartphone brands and models available, competition, Apple's strong brand and reputation,
the smartphone industry is also characterized by coupled with its ability to adapt to changing market
frequent product launches and updates. This keeps conditions and consumer needs, position the
the market dynamic and helps to drive innovation company for continued success in the future.
and progress. Additionally, Apple has set an ambitious goal of
Overall, the smartphone industry is an important part becoming carbon neutral across its entire footprint
of the global economy and shows no signs of by 2030, which will involve reducing its emissions
slowing down in the coming years. As such, it is an and investing in renewable energy sources. This not
interesting and important area of study for only aligns with the company's commitment to
researchers and analysts alike (Fortune Business sustainability but also demonstrates the company's
Insights, 2022). focus on long-term growth and profitability
Apple Inc. is a multinational technology company (Apple.com, 2020).
that has become a household name over the past few
decades. The company's products, which include
iPhones, iPads, Macs, Apple Watches, and Apple MATERIALS AND METHODS
TVs, have become ubiquitous today. However,
Apple's success did not happen overnight - it was the The objective of our study is to conduct an external
result of decades of innovation and hard work. and internal analysis of a selected company by
Apple's success has not been without its challenges. employing various methods and considering
In the 1990s, the company experienced several different aspects. This study focuses specifically on
setbacks, including declining sales and the departure analysing Apple's marketing strategy.
of Steve Jobs (Rawlinson, 2017). However, Jobs Primary data was gathered through an extensive
returned to Apple in 1997, and under his leadership, review of the existing literature on Apple's
the company introduced several products that helped marketing strategies, target audience, competitive
to solidify its place in the technology industry. These landscape, and market trends. Additionally, we
products included the iMac, iPod, iPhone, and iPad. analysed content from various web sources to
One of the key strategies that Jobs employed was to identify the most frequently searched and asked
Network Intelligence Studies
Year (Volume) XI, Issue 21 (1 / 2023) pg. 63

questions related to Apple's products and services, weaknesses and develop strategies to address any
competitors, market trends. areas of weakness. The EFE Matrix is used to assess
To collect secondary data, we referred to various the external environment of a company, including
sources, including academic and industry the opportunities and threats that may impact the
publications, news articles, online resources, and organization. This will allow us to identify the
Apple's financial reports, annual reports, and press external factors that may impact the company’s
releases. We employed content analysis to extract operations and performance and to develop
relevant information and insights related to Apple's strategies to take advantage of opportunities and
marketing strategies, target audience, competitive mitigate any potential threats (David & David,
landscape, and market trends. The secondary data 2016).
sources were carefully selected to ensure they were The IE matrix help to summarise the internal and
from reputable and reliable sources. external environment. The IE matrix gives the
By utilizing both primary and secondary sources of results of the evaluation of the factors - based on the
data, we developed a comprehensive understanding results of the EFE matrix and IFE matrix (Chladkova
of Apple's marketing strategies and target audience. and Formankova, 2016).
Analysing the data from multiple angles led to the The IFE and EFE matrices will be used in
creation of a relevant and effective marketing plan. conjunction with other tools, such as the STEP,
The unique approach to data collection used in this SWOT analysis and PESTEL analysis, to provide a
study ensured that the marketing plan was based on more comprehensive view of the internal and
the most up-to-date and relevant insights related to external environments. By using multiple tools, we
Apple's products and services. will be able to get a more nuanced understanding of
To thoroughly understand the marketing landscape the factors that may affect the company. Internal
for Apple and develop a comprehensive and Factor Evaluation and External Factor Evaluation
effective marketing plan, we utilized a range of matrices gives the opportunity an organization to
materials and methods to gather and analyse data demonstrate their strengths, weaknesses,
about the company, its customers, and its opportunities, and threats. CPM uses important
competitors. This included utilizing tools such as the success factors, that the company compare itself to
Internal Factor Evaluation (IFE) Matrix and other competitors (Capps and Glissmeyer, 2012).
External Factor Evaluation (EFE) Matrix to assess Experts in the strategy formulation process employ
the company's internal and external environments, matrices as a key analysis approach. The IFE and
as well as the SWOT analysis and TOWS analysis EFE matrices and the QSPM matrix are business
to identify potential strategies. We also used the strategy tools that can be used to identify the
BCG Matrix, Competitive Profit Matrix (CPM), strength, weakness, opportunity and threat, as
Quantitative Strategic Planning Matrix (QSPM), internal, external business factors (Zulkarnain et al.,
PESTLE Analysis, and Porter's Five Forces Model 2018).
to evaluate the feasibility and attractiveness of A strengths, weaknesses, opportunities, and threats
different strategies. BCG Matrix and Quantitative (SWOT) analysis is a particularly useful technique
Strategic Planning Matrix (QSPM) are not explained in the analysis. It categorizes some of the most
in this article. important pieces of information into two major
The Internal Factor Evaluation (IFE) Matrix and the categories: internal factors and external factors, and
External Factor Evaluation (EFE) Matrix, both tools then by their dual positive and negative aspects, with
are used to identify and evaluate the key factors that strengths and opportunities as positive aspects and
may impact the organization's operations and weaknesses and threats as negative aspects
performance, and it will be used both as part of the (Czinkota et al., 2021).
marketing planning process. In this research, we Once the SWOT matrix has been formulated,
used the Internal Factor Evaluation (IFE) matrix to businesses try to follow strategies that build on
assess internal factors that could potentially impact strengths and enhance weaknesses (David et al.,
the success of our research plan. In David & David's 2021); that can be the TOWS matrix.
book, the IFE matrix is discussed as a tool for The Competitive Profile Matrix (CPM) is a strategic
analysing the internal environment of a company, management technique that helps analyze how well
including its strengths and weaknesses to help a firm is performing in comparison to its primary
develop effective strategies. It is a tool for competitors in the market. CPM identifies a firm’s
evaluating the company's internal resources and major competitors and its particular strengths and
capabilities, such as its financial position, marketing weaknesses. The weights and total weighted scores
and sales efforts, and organizational structure. This in both a EFE and CPM have the same meaning
allows the company to identify its strengths and (David, 2011).
Network Intelligence Studies
Year (Volume) XI, Issue 21 (1 / 2023) pg. 64

In business connection everybody have heard the differentiated products; Create user-friendly
definition of PEST analysis, which means the products that are aesthetically pleasing; Build and
analysis of the external business environment in maintain strong relationships with customers,
political (P), economic (E), socio-cultural (S) and educators, and creative professionals; Invest in
technological (T) terms. (Ho, 2014). The method of research and development to create new
analysis of macro-environmental factors is also technologies and features.
called PEST or STEP (Clulow, 2005), or SEPT
(Narayanan and Fahey, 1994). Johnson et al (2009)
SWOT matrix (Table 1.)
prefer the PESTEL analysis, which includes six
categories: political, economic, social, Strengths
technological, environmental, and legal. Apple's strong brand value is one of its most
significant strengths, with a value of $947.1 billion
in 2022, according to Statista database (Laricchia,
RESULTS AND DISCUSSION 2022). This makes it the most valuable brand in the
world, a title it has held for several years. In the past
Apple's vision statement, as outlined by CEO Tim few years Apple's brand value has increased
Cook, is “at Apple, we are constantly innovating in significantly thanks to its differentiation and
the technology we make and in how we make it with diversification across its hardware, software, and
respect for people’s rights, for their health, and for services portfolio. This testament to the trust
the planet we share” (Apple.com, 2022). This millions of people worldwide have in the company,
statement reflects the company's commitment to which is committed to delivering innovative
innovation, excellence, and market specialization, as products that meet the needs of its customers.
well as its global presence and focuses on Another strength that sets Apple apart is its iconic
collaboration and client-centred solutions. global presence. The company has a massive
In addition to its commitment to innovation, Apple following worldwide, with millions of loyal
also strongly emphasizes ethical and responsible customers who rely on the brand's technology
business practices. The inclusion of the phrase "with solutions. Apple's innovative technology is another
respect for people’s rights, for their health, and for significant strength that has enabled the company to
the planet we share" in Tim Cook's vision statement maintain its market position. The company was the
demonstrates the company's commitment to creating first to introduce revolutionary products such as the
products and services that not only enhance the iPhone, iPad, and AirPods, which have become
personal computing experience for its customers but household names globally. Apple's commitment to
also have a positive impact on society and the innovation is unwavering, and the company is
environment. Apple has a history of prioritizing continually working to improve and develop more
sustainability and social responsibility and efficient technology solutions. Efficiency is difficult
implemented several initiatives and programs to to measure, but indicators can be used to measure it
reduce its environmental impact and support the at different levels (national, regional, social,
well-being of its employees and communities corporate, complex, and partial) (Nábrádi et al.,
around the world. Apple's vision also includes a 2008). CEO Tim Cook has stated that innovation is
focus on integration and excellence, as the company in Apple's DNA and that they are dedicated to
believes in the power of collaboration in such a creating products that enrich people's lives and
competitive era to stay ahead of the rest and empower them to do amazing things. The brand is
stimulate its employees with the best innovative also a top choice for professionals in corporate
resources that are also client-focused. To achieve offices, especially among creative professionals.
this, Apple targets its resources in areas where it can Apple's products, such as the Mac Pro and iMacs,
have maximum quality impacts and achieve market are designed for high-performance tasks such as
specialization. visual design, animation, and video production. This
We can easily identify the marketing goals of Apple makes it a brand of choice for professionals who
by analysing the company's mission statement and require top-quality technology solutions for their
studying market analysis. Position Apple as a work. Apple's proficiency in research and
premium brand; Achieve 100% carbon neutrality for development is another critical strength that sets the
its supply chain and products by 2030; Increase company apart. The company invests heavily in
brand value and market share through unique and research and development, with a commitment to
Network Intelligence Studies
Year (Volume) XI, Issue 21 (1 / 2023) pg. 65

understanding customer needs and market trends. In Indonesia might be a problem. These markets have
2022, Apple spent $26.25 billion on research and sizable populations, expanding economies, and
development, which is about 6-7% of its revenue rising demand for smartphones and other consumer
(Apple.com, 2023). This investment has enabled the gadgets. However, Apple confronts several
company to develop innovative products that meet obstacles in entering these regions, including high
the changing needs of its customers. Apple's costs that make their devices too expensive for many
commitment to sustainability is also a notable customers with lesser incomes and purchasing
strength. Its recycling robot, Liam, breaks down and power. Furthermore, Apple has a poor market share
dissects iPhones, separating reusable parts for new in emerging nations compared to competitors such
manufacturing, reducing waste and conserving as Samsung, Xiaomi, and Huawei, which provide
resources. Apple's manufacturing processes are cheaper and more localized goods.
powered by 100% renewable energy, including wind
and solar power, further minimizing its Opportunities
environmental impact (Apple.com, 2020). Finally, Apple has positioned itself as the world's leading
Apple's diversification in services is a strength that technology brand. However, there are still
has helped the company to grow and maintain its undiscovered countries in Asia, Africa, and South
market position. America where Apple may expand its company.
In conclusion, Apple's strengths are many and Apple may collaborate with local companies and
diverse, enabling the company to maintain its governments to develop goods and services that are
position as a leader in the technology industry. tailored to the requirements and tastes of these
Apple's strong brand value, iconic global presence, locations. Apple might broaden its product line by
commitment to innovation, a brand of choice for entering the automobile business, which is
professionals, proficiency in research and experiencing a revolution due to the rise of self-
development, commitment to sustainability, and driving cars and electric vehicles. Apple already has
diversification in services make it a company that is a foothold in the automotive sector with its widely
well-positioned for future growth and success. used CarPlay software, which allows drivers to
access iPhone capabilities through the car's
Weaknesses infotainment system. Apple's CarPlay platform
One of the possible weaknesses of Apple as a might be used as a foundation to provide more
company is its dependence on its product lines, services and functions to automobile customers,
namely the iPhone, to generate the majority of its such as navigation, entertainment, security, and
revenue. Moreover, iPhone faces intense maintenance. Furthermore, Apple's competence in
competition from other smartphone companies, such hardware, software, and battery technology would
as Samsung, Huawei, and Xiaomi, who offer similar allow it to produce a unique and competitive
or better features at lower prices. The company's automotive product that would set it apart from other
heavy reliance on one product line makes it car manufacturers. Apple is a global leader in
vulnerable to market fluctuations or shifts in wearable technology, with increasing demand for
consumer preferences, emphasizing the importance products such as the Apple Watch and AirPods.
of diversifying its product offerings. Apple's Apple can continue to innovate and improve its
premium price approach in comparison to its existing goods while also developing new ones, such
competitors is viewed as a potential weakness, since as the recently introduced Fitness+ subscription
it may limit the company's market reach and program. Apple might potentially work with health
penetration, particularly in emerging regions where and wellness firms to broaden its services. Apple has
internet purchasing is not as widespread. Other the opportunity to form strategic partnerships and
smartphone manufacturers, such as Samsung, make acquisitions in various industries to enhance
Huawei, and Xiaomi, compete with equal or its product and service offerings. In the healthcare
superior features at cheaper prices. Apple's heavy market, Apple might purchase Fitbit or Peloton to
reliance on Chinese manufacturing for its products merge their health and wellness products with
is another possible weakness. Apple's reliance on Apple's gadgets and services. In the field of
third-party suppliers for components, materials, and education, Apple may collaborate with firms such as
services is one of its weaknesses. Apple's limited Coursera or Duolingo to provide online learning and
presence in emerging markets like India, Brazil, and language classes. Finally, in the media and
Network Intelligence Studies
Year (Volume) XI, Issue 21 (1 / 2023) pg. 66

entertainment space, Apple might purchase firms TOWS Matrix, the strategies are classified based on
like Netflix or Spotify to expand its content and the relationship between the internal factors
streaming choices, as well as leverage its Apple TV+ (strengths and weaknesses) and external factors
service to create original and exclusive shows and (opportunities and threats). Each quadrant represents
movies. Furthermore, by introducing more smart a unique combination of strategies:
home devices that can be controlled by Siri or SO Strategy (Strengths-Opportunities): These
HomeKit, such as lighting systems, security strategies focus on leveraging the company's
cameras, thermostats, or air purifiers, Apple can strengths to capitalize on available opportunities. ST
enhance its customers' work-life Strategy (Strengths-Threats): These strategies aim to
balance and well-being. To remain competitive, use the company's strengths to mitigate or neutralize
Apple needs to expand its trade-in program to more the threats in the market. WO Strategy (Weaknesses-
countries and offer more prices that are attractive. Opportunities): These strategies concentrate on
Doing so will help it retain existing customers, overcoming the company's weaknesses by
increase its customer base, and strengthen its market capitalizing on available opportunities. WT Strategy
share and revenue. (Weaknesses-Threats): These strategies aim to
mitigate or neutralize Apple's weaknesses and
Threats address the threats in the market. This detailed
Apple faces fierce competition in the smartphone TOWS Matrix will help Apple create effective
market from rivals such as Samsung, Huawei, strategies for growth and competitiveness by
Xiaomi, Oppo, and Vivo. These competitors offer considering the relationships between strengths,
diverse devices with varying features, prices, and weaknesses, opportunities, and threats. In
operating systems. Another threat to Apple's conclusion, the TOWS matrix analysis for Apple's
dominance is the prevalence of low-cost imitations marketing plan highlights several key strategies that
in the market. Many companies, particularly in Asia, the company can implement to maximize its
produce affordable alternatives to Apple's products, strengths and opportunities while mitigating its
which can potentially undermine the company's weaknesses and threats.
pricing strategy. By offering similar functionalities
at a fraction of the cost, these competitors can attract Internal Factor Evaluation Matrix (IFE)
price-sensitive customers away from Apple. Apple's Apple's IFE matrix (Table 3.) is a method used to
low labour costs, primarily from Chinese production assess its internal strengths and weaknesses. Apple
facilities, are being challenged by increasing wages. has a strong brand name, innovative design and
With higher labour costs, Apple might have to raise technology, a diverse product line, and a competent
product prices or compromise profit margins. staff, all of which contribute to the company's
Cybersecurity remains a crucial aspect of Apple's overall success. Yet, Apple has weaknesses such as
its reliance on China production, dependency on
operations and reputation. As the smartphone
third-party suppliers, and failure to adjust rapidly to
market matures and innovation slows down, Apple
shifting market trends.
must confront the challenges of market saturation The total weighted score for Apple is 3.35,
and consumer apathy. Apple faces significant indicating that the company has a strong internal
challenges due to geopolitical tensions and trade position. Apple's strengths such as strong brand
wars, which can disrupt the company's supply chain, recognition, innovative design and technology, and
inflate production costs, and impact sales in affected a strong retail store presence contribute significantly
regions. To tackle this threat, Apple should focus on to its high score. However, the company's
diversifying its supply chain, forging strategic weaknesses such as dependence on product lines and
partnerships, monitoring regulatory shifts, and high prices compared to competitors could be
managing currency risk to address these challenges addressed to improve its overall internal position.
and maintain a strong global market position.
External Factor Evaluation Matrix (EFE)
TOWS matrix (Table 2.) The EFE matrix for Apple (Table 4.) comes up with
an interesting revelation. It shows various
In this matrix, we will focus how can Apple Inc.
possibilities for the corporation to improve its
leverage its strengths, mitigate its weaknesses, market performance and competitiveness.
capitalize on opportunities, and neutralize threats in Expansion into developing countries, diversification
the competitive technology market. In this detailed of product portfolio, rising demand for wearable
Network Intelligence Studies
Year (Volume) XI, Issue 21 (1 / 2023) pg. 67

technology, strategic alliances and acquisitions, open to turmoil within China. Apple's policy may be
rising demand for home and remote office solutions, influenced by government changes, which could
and growth of trade-in programs and offer are affect all stakeholders. Meanwhile, Apple's global
among the potential. Apple can capitalize on these operations and marketing strategy may be affected
possibilities by creating new products, extending its by AI legislation and the growing advancements in
footprint in emerging regions, and collaborating AI.
with other firms to promote innovation. The EFE
2. Economic Aspects: Apple has had significant
matrix also identifies several threats that Apple must
expansion and development in developing nations,
be aware of and handle to preserve its market
position. which has resulted in increased profitability. Yet,
In the Apple’s IE matrix (Table 5.) based on the IFE rising labour costs in some nations where Apple
score of 3.35 and EFE score of 2.53, Apple falls into makes its goods have harmed the company's profits.
the IE matrix's Quadrant II, "Grow and Build," The worldwide slump that followed the epidemic
indicating that the corporation has an internal has also reduced Apple's revenue. Apple's premium
strength position but confronts external challenges. price approach makes it difficult to expand sales in
The suggested strategy in this quadrant is to hold and Asian nations with poor to middle-income
preserve the present position while employing populations. Furthermore, the rapid economic
selected techniques to counter external threats. growth and GDP levels in Asian countries make it
As a result, Apple should concentrate on leveraging simple for Apple to expand further into these
its internal strengths, such as strong brand regions. Recent years the Covid-19 epidemic
recognition, innovative design and technology, and changed our lives, bringing with it many new
a strong retail store presence, while addressing restrictions and regulations, the effects of which are
external threats such as fierce competition from still felt today, affecting our everyday lives (Vida
smartphone giants, the threat of low-cost knockoffs, and Popovics, 2020). Current wars and economic
and regulatory scrutiny and legal issues. Apple can inflation may potentially have an adverse effect on
achieve this by investing in R&D to foster Apple's profitability.
innovation, improving its cybersecurity safeguards, 3. Social Aspects: Cultural implications and
and staying on top of legislative developments. demographic changes have a significant impact on
Additionally, Apple can extend its product portfolio Apple's sales. For example, in certain countries such
and collaborate with other firms to promote as India, Apple's goods are seen as a status symbol,
innovation, expand its footprint in emerging regions, allowing the business to increase income by
and offer trade-in programs and promotions to launching additional items. Yet, ethical issues
maintain its competitive position in the market. regarding Apple's Chinese manufacturing, including
human rights violations and low salaries, have a
PESTEL analysis detrimental influence on the company's brand
Several external factors have the potential to image. On the other side, the growing global
influence the business operations and marketing popularity of mobile and social media gives a chance
strategies of Apple Inc. as it operates in a highly for Apple to reach more people and efficiently sell
dynamic business environment. Our PESTLE its goods. Changing societal trends, such as
analysis will examine the future implications of generational transition, can have a substantial
these factors on Apple's business operations and influence on Apple's company.
marketing strategies. 4. Technical Considerations: To remain
1. Political Issues: Apple's marketing strategy and competitive, Apple must keep up with the newest
corporate operations are greatly affected by the technological breakthroughs. The company's
political climate of the countries where they products are well-known for their security and
distribute their products. The upswing of trade utilization of cutting-edge technological advances,
policies between the USA and other nations is an making them a popular option among many clients.
opportunity for Apple, while the ongoing trade war Yet, the AppStore's restricted reach because of the
with China has had negative implications on their inability to install many programs has a detrimental
market standing in the country. Worldwide political influence on Apple's company. Numerous Apple
instability could prove disastrous for Apple's rivals provide comparable technical items at lower
operations, particularly since their dependency on prices, which harms Apple's brand. To keep ahead
inexpensive Chinese manufacturing has left them of the competition, the organization must continue
Network Intelligence Studies
Year (Volume) XI, Issue 21 (1 / 2023) pg. 68

to innovate while remaining committed to its goals. expenses are all barriers to entry into the business.
The rise of AI may potentially influence Apple's While new firms can enter the market, competing
technology approach. with established giants like Apple, which has a large
5. Legal Aspects: Apple is required to follow a customer base, broad distribution networks, and
variety of laws and regulations in the countries in cutting-edge technology, is difficult.
which it operates, including health and safety rules, 2. Bargaining Power of Suppliers: Moderate
consumer rights legislation, and producer laws. Because Apple relies on several vendors for crucial
Noncompliance with legal regulations can result in components and production, it has little negotiating
a terrible brand image as well as expensive legal advantage with its suppliers. Apple's large demand
fights. Apple's rising data privacy standards impede for parts gives it negotiating power with its
business activity and make it difficult for the suppliers. Nonetheless, suppliers may have
corporation to verify compliance with all legal bargaining leverage if particular components, such
obligations. The corporation must responsibly as OLED displays or microprocessors, are in short
source, test, and trade its products while prioritizing supply. Apple's continual attempts to diversify its
consumer happiness. supply chain and invest in in-house component
6. Environmental Considerations: Apple has development aid in reducing suppliers' negotiating
made various initiatives to improve its strength.
sustainability, including recycling non-working 3. Bargaining Power of Buyers: Moderate
electric devices and supplying upgraded batteries Apple's consumers have limited bargaining
with fewer heat emissions. Yet, the growing global advantage. Customers of Apple include both
temperature is having an impact on Apple's supply individual consumers and companies. Customers
chain, and the company relies heavily on internet value Apple's products because of their strong brand
infrastructure, which raises its power expenses. The loyalty, innovative product portfolio, and distinctive
growing environmental consequences in China are user experience. Yet, the availability of lower-cost
driving up regulatory and production costs for alternatives, as well as the expanding number of
businesses. tech-savvy customers, gives purchasers more
As a result, understanding the impact of these negotiating power. To combat this, Apple places a
PESTLE factors is crucial for developing a premium on creating an amazing user experience,
successful marketing plan for Apple. To be providing value-added services, and maintaining a
competitive in the evolving electronics sector, the high level of customer happiness.
company must prioritize innovation, compliance, 4. Threat of Substitute Products or Services:
sustainability, and customer satisfaction. Apple High
assesses the challenges and opportunities presented Because of the swift pace of scientific advancement
by political uncertainty, economic recession, social and the presence of several rivals, Apple faces a
trends, technological innovations, regulatory considerable risk of alternative products. Customers
compliance, and environmental sustainability. have options from firms such as Samsung, Huawei,
and Xiaomi, which provide identical functionality at
Porter Five Forces Model different price ranges. Nevertheless, technological
In 1980, Michael Porter introduced the competitive developments may render old items outdated.
strategy model to explain the position of an industry Tablets and smartphones, for example, have had a
in a complex strategic environment. The five forces considerable influence on laptop sales. To be
described in the model are supplier power, buyer competitive, Apple must consistently spend on
power, barriers to entry, threat of substitution, and R&D, distinguish its products, and retain strong
degree of rivalry. (Porter, 1997; Porter, 2008). This brand loyalty.
model establishes each industry's competitiveness 5. Competitive Rivalry within the Industry:
and explains why different industries can achieve High
and maintain varying levels of profitability. The competition in the technology business is fierce,
1. Threat of New Entrants: Low particularly in the smartphone and personal
The threat of new entrants in the technology computing areas. Apple's primary rivals, including
business is quite modest, especially for a market Samsung, Huawei, and Xiaomi, are constantly
leader like Apple. High capital investments, strong developing and releasing new products to threaten
brand loyalty, economies of scale, and large R&D Apple's supremacy. Furthermore, these businesses
Network Intelligence Studies
Year (Volume) XI, Issue 21 (1 / 2023) pg. 69

have significant R&D skills and provide gadgets at CONCLUSIONS

various pricing ranges, catering to a larger audience.
Apple must continue to distinguish its products, In conclusion, Apple Inc., a leading technology
increase brand loyalty, and grow its worldwide company with a market capitalization of over $2
footprint to preserve its competitive edge. trillion, has consistently demonstrated its ability to
The results of Porter's Five Forces analysis of Apple dominate the personal computing and electronics
industry by aligning its marketing strategies with its
Inc. demonstrate that the company works in a highly
core values and objectives. Our research on Apple's
competitive market, where alternative goods and
marketing plan offers a compelling case study on the
rivals provide challenges, and buyers and suppliers power of creating and executing an effective
have little bargaining power with suppliers. Apple's marketing plan rooted in the organization's mission,
strong brand, innovative product lineup, and loyal vision, and values.
customer base, on the other hand, give a secure As the world's technology landscape continues to
platform for long-term growth and success. Apple evolve rapidly, Apple has managed to stay ahead of
can maintain its position as a global technological the curve, delivering innovative and high-quality
leader by focusing on research and development, products to a global audience. With over 1.65 billion
differentiation, and user expectations. active devices worldwide, the company's relentless
focus on providing exceptional user experiences,
CPM Matrix coupled with its dedication to ethical business
We use Samsung and Xiaomi as the two competitors practices and sustainability, has set it apart from its
competitors and cemented its status as a premium
to develop a CPM Matrix for Apple. It should be
brand.
noted that the weights for the important success To ensure continued growth and success in the
variables should add up to 1.00. The CPM Matrix future, Apple must maintain its commitment to
with fictitious weights and ratings is shown in Table innovation and excellence, while simultaneously
6. This CPM analysis emphasizes Apple's expanding its global presence and reach. The
outstanding achievement in foreign market company should invest heavily in research and
penetration and financial profit, with a rating of 5 in development, allocating a significant portion of its
each area. Apple also receives good scores for $24.5 billion R&D budget to continue introducing
product quality (a rating of 5) and product diversity groundbreaking technologies that cater to the ever-
(a score of 4). In comparison, Samsung and Xiaomi changing needs and preferences of its customers.
score lower in these categories, showing room for Furthermore, Apple must continue to build and
development. However, there are still areas where nurture strong relationships with its target audience,
including educators, creative professionals, and
Apple can improve its performance. While Apple's
tech-savvy consumers.
product quality and variety are highly recognized,
In addition to the points mentioned above, we
they might perhaps focus on increasing their product recommend Apple:
portfolio and delivering more different items to 1. Leverage Artificial Intelligence (AI) and Big
appeal to broader client base. Data to design targeted marketing campaigns and
Apple earns a lower score than Samsung in terms of enhance personalization, delivering highly relevant
advertising and domestic market penetration, experiences for its over 1 billion iPhone users.
indicating that Samsung may have an advantage in 2. Collaborate with metaverse platforms to
these areas. This is because Apple normally spends establish a virtual presence, engaging audiences in
less on advertising than competitors do, and their new, immersive ways and opening up innovative
goods are often regarded as premium, which may revenue streams.
limit their domestic market penetration to some 3. Invest in sustainable and circular economy
extent. As a result, while Apple's brand recognition initiatives, actively promoting them through
and customer loyalty compensate for their lower marketing campaigns to reinforce Apple's
ratings in these categories, there may still be room commitment to environmental responsibility, which
for growth in these areas to increase client reach and includes reaching 100% carbon neutrality by 2030.
acquisition. This might include experimenting with 4. Foster technological partnerships for smart city
new marketing channels and methods, as well as solutions, highlighting real-world applications of
discovering new consumer segments to target. Apple's technologies and expanding into new
market segments.
Network Intelligence Studies
Year (Volume) XI, Issue 21 (1 / 2023) pg. 70

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Network Intelligence Studies
Year (Volume) XI, Issue 21 (1 / 2023) pg. 72

LIST OF TABLES

Table 1.
Apple’s SWOT matrix
Strengths Weaknesses
S1: Strong Brand Value W1: Dependence on Product Line
S2: Iconic Global Presence W2: High Prices Compared to Competitors
S3: Innovative Technology W3: Heavy Reliance on Chinese Manufacturing
S4: Brand of Choice for Professionals W4: Dependence on Third-Party Suppliers
S5: Proficiency in R&D W5: Lack of Presence in Emerging Markets
S6: Commitment to Sustainability W6: Inability to Quickly Adapt to Market Trends
S7: Diversification in Services
Opportunities Threats
O1: Expansion into emerging markets T1: Fierce Competition from Smartphone Giants
O2: Diversification of product portfolio T2: Low-cost Imitations Threat
O3: Growing demand for wearable technology T3: Rising Labor Costs Challenge
O4: Strategic partnerships and acquisitions T4: Regulatory Scrutiny and Legal Issues
O5: Growing demand for home and remote office products T5: Cybersecurity Risks and Vulnerabilities
O6: Expansion of the trade-in program and offer T6: Market Saturation and Stagnant Innovation
T7: Geopolitical tensions and trade wars
Source: Based on own analysis, 2023

Table 2.
Apple’s TOWS matrix
EXTERNAL FACTORS

Opportunities (O) Threats (T)

Strength SO Strategy ST Strategy
(S) Expand retail store presence into emerging Enhance security features to protect
markets (S7, O1) against cyber threats (S4, T5)
Develop and promote wearable technology Maintain a premium pricing strategy
products (S4, 05) with a focus on differentiation (S2, T1)
INTERNAL FACTORS

Leverage large cash reserves for strategic Employ CSR initiatives to counteract
partnerships and acquisitions (S5, O4) negative public perception (S1, T4)
Weaknesses WO Strategy WT Strategy
(W) Expand product portfolio to reduce Diversify manufacturing to mitigate
dependence on a single product line (W1, reliance on Chinese production (W3, T7)
O2)
Explore opportunities in remote office Invest in cybersecurity to combat low-
products to penetrate emerging markets (W5, cost imitations (W2, T2)
O3)
Utilize strategic partnerships to enhance the Improve responsiveness to market trends
supply chain and reduce dependence on to counteract competition (W6, T6)
third-party suppliers (W4, O4)
Source: Based on own calculations & assumptions, 2023
Network Intelligence Studies
Year (Volume) XI, Issue 21 (1 / 2023) pg. 73

Table 3.
Apple’s IFE matrix
Key Internal Factors Weight Rating Weighted Score
Strength
Strong brand recognition 0.15 4 0.60
High-profit margins 0.10 4 0.40
Diversified product portfolio 0.10 3 0.30
Innovative design and technology 0.10 4 0.40
Large cash reserves 0.10 3 0.30
Skilled and qualified professionals 0.10 3 0.30
Strong retail store presence 0.10 3 0.30
Weaknesses
Dependence on product line 0.10 2 0.20
High prices compared to competitors 0.05 2 0.10
Heavy reliance on Chinese manufacturing 0.05 2 0.10
Lack of presence in emerging markets 0.05 1 0.05
Dependence on third-party suppliers 0.05 2 0.10
Inability to quickly adapt to changing market trends 0.10 2 0.20
Total 1 3.35
Source: Based on own calculations & assumptions, 2023

Table 4.
Apple’s External Factor Evaluation Matrix
External Factors Weight Rating Weighted Score
Opportunities
Expansion into emerging markets 0.1 4 0.4
Diversification of product portfolio 0.08 4 0.32
Growing demand for wearable technology 0.07 4 0.28
Strategic partnerships and acquisitions 0.08 3 0.24
Growing demand for home and remote office 0.07 3 0.21
products
Expansion of the trade-in program and offer 0.07 3 0.21
Threats
Fierce competition from smartphone giants 0.10 2 0.20
Low-cost imitations threat 0.09 2 0.18
Rising labour costs challenge 0.07 2 0.14
Regulatory scrutiny and legal issues 0.07 2 0.14
Cybersecurity risks and vulnerabilities 0.07 1 0.07
Market saturation and stagnant innovation 0.07 2 0.14
Geopolitical tensions and trade wars 0.07 1 0.07
Total 1 2.53
Source: Based on own calculations & assumptions, 2023
Network Intelligence Studies
Year (Volume) XI, Issue 21 (1 / 2023) pg. 74

Table 5.
Apple’s IE Matrix
IE Factors / EFE High (3.0-4.0) Medium (2.0-2.99) Low (1.0-1.99)
Matrix
Strong (3.5) Grow and build Grow and build Hold and maintain
Average (2.7) Grow and build Hold and maintain Harvest or divest
Weak (1.5) Hold and maintain Harvest or divest Harvest or divest
Source: Based on own calculations & assumptions, 2023

Table 6.
Apple’s CPM Matrix
Critical Success Weight Apple Apple Samsung Samsung Xiaomi Xiaomi
Factors Rating Score Rating Score Rating Score
Advertising 0.10 2 0.20 3 0.30 3 0.30
Domestic Market 0.10 2 0.20 3 0.30 3 0.30
Penetration
Customer Service 0.10 4 0.40 3 0.30 3 0.30
Product Variety 0.05 4 0.20 3 0.15 4 0.20
International Market 0.10 5 0.50 4 0.40 4 0.40
Penetration
Employee Dedication 0.05 4 0.20 3 0.15 3 0.15
Financial Profit 0.10 5 0.50 4 0.40 4 0.40
Customer Loyalty 0.10 4 0.40 3 0.30 3 0.30
Market Share 0.10 4 0.40 3 0.30 3 0.30
Product Quality 0.10 5 0.50 4 0.40 4 0.40
Top Management 0.05 4 0.20 3 0.15 3 0.15
Price Competitiveness 0.05 3 0.15 4 0.20 4 0.20
Totals 1.00 3.85 3.25 3.20
Source: Based on own calculations & assumptions, 2023