Apple Strategic Management

Apple, Inc.
Apple,
Inc.
Ghea Amalia
Now
Founded 1977
HQ Cupertino, Ca. The Mother
ship
Largest U.S. company ever
72,000 Employees
80% of revenue is from new
Competencies
products sold from Mid Sept
to
1.Simple,
Well
M/E Oct
Designed, User
34 Patent Applications in
friendly
October
2.Innovative
1
Culture of
Ghea Amalia
From Where Apple is Making

Money
Macintosh Computers ; 25%

iPod; 42%
Apple TV; 0%
iPad; 10%
iPhone; 23%
Ghea Amalia
iMac
Mac Book Air
iPod Nano
iPod
iPhone 4s
iPhone 5s
iPhone 5C
iPad
iPhone 6-6s
Mission
4
1. Mac, the best PCs in the world
2. Digital music revolution leader
3. Reinvented mobile
4. Defining mobile media & computing
devices future
Galdrin
Galdrin
VISION
Man is the creator of
change in this world. As
such he should be
above
systems
and
structures,
and
not
subordinate to them.
Galdrin
Key
Key Success
Success Factors
Factors
FreeBSD
Design
Miniaturization
Security
Ease of Use
Reliability
Marketing
V
A
L
U
E
Open
Systems
Improve +
Innovate
Closed Systems
+
+
+
$$
$
Cool! Secure
Reliable
Reduced Cost of
production
Improved Sales &

Margins
6
SWOT ANALYSIS...
Jessica F
Jessica F
Strengths
Well recognized ,product differentiation unique design, easy to use products
4th largest player in the global mobile phone market
Strong brand image, Brand stability ,High brand loyalty
Powerfully financial performance
Focused R&D driving innovation Holds 5% market share in mobile phone
market
18.5% market share of global smartphone market
Complete hardware/software package
Weaknes
ses
SWOT ANALYSIS
Jessica F
Jessica F
Opportunities
Strong growth in smartphone and tablet markets to boost Apples revenues
Robust outlook for mobile advertising market provides growth opportunity
Shipment of smartphones expected to be 850 million by the end of 2013
iPhone business continues to increases
Strongest player in mobile apps market (350,000 apps)
Mobile advertising market is forecast to reach approximately $25 billion by
2015
Increasing demand of online music and other like cloud based services.
SWOT ANALYSIS Cont...
Jessica F
Jessica F
Threats
Rising popularity of Google Android may affect its market share
350,000 Android smartphones are activated daily, 150,000 iPhone activated
daily
Steve Jobs was innovative and a visionary for Apple. His death has started
affecting further developments in Apple
Very reliant on specific suppliers and component providers
Intense competition
Highly dependent on consumer purchases
Political Factors
Rizky Perdana
It is reported that more than a half of sales

of their products come from countries other
than America.
Apple Inc manufactures a number of its
parts and products from outside the US, like
Czech Republic, Ireland, China, Korea and
Cork.
The bad political relations between US and
the other world have bad outcomes for the
company.
Rizky Perdana
Economic Factors
Inflation, recession and currency are three
important economic factors that Apple
noticed.
Since Apple Inc products were viewed as
luxury products, therefore customers started
spending less on them.
US dollar value keeps fluctuating, however
the company has purchased itself foreign
currencies and thus, the economic effects on
the company are minimized.
Rizky Perdana
Social Factors
As the world cannot be imagined without the gadgets,
thus Apple products have marked their presence on the
international market.
As the purchasing power of the common has risen in

various markets across the world the purchasing of
luxury products have gone up.
Possessing these items are considered as status

symbols in many societies which have also increased
the sales of Apple Inc products.
Rizky Perdana
Technological Factors
Technology has a short lifetime. That is why Apple
needs to upgrade their product more often so they
will outdo their competitors easily.
Apple Inc has invested largely in its product

research and development field and thus its
products are at the top of the new innovative
products ranking.
One of the most innovative and technologically

advanced products is the iPod which marked the
demise of walkman.
Rizky Perdana
Environmental Factors
From reporting the entire carbon footprint to
finding ways to reduce that footprint, Apple
takes a comprehensive approach to
environmental responsibility.
Apples commitment to the environment
includes properly disposing of electronic
equipment at the end of its useful life. It
responsibly recycle your computers and
displays.
On track towards achieving an ambitious goal:
to power every Apple facility entirely with
energy from renewable sources solar, wind,
hydro and geothermal.
Rizky Perdana
Legal Factors
Apple Inc has been a participant in various legal
proceedings and claims since it began operation.
In October 2009, Nokia Corporation sued Apple

for Apple's infringement of Nokia's patents
relating to wireless technology
Apple has been in a number of patent cases with

players like HTC and Samsung.
Porters Five Forces
Rizky Perdana
New Entrants
Global Demand
Existing Patents(i.e.
Googles 17000!)
Supply Costs
Buyers
Industry Competitors
Niche Market
INNOVATION
High Advertising
Budget
High Customer
Loyalty
High Demand
Uniqueness
Suppliers
Supply Shortages
Price Increases
Outsourcing Process
Substitutes
Patent Violations
China/others
Strong Brand
FAKE iPhone anyone?
17
Apples Sustainable Product

Differentiation
BARRIER TO ENTRY -
Cost of Apple Product
THREAT OF RIVALRY
Apple Pursues Niche

Market
THREAT OF SUBSTITUTES
Differentiation Strategy
Defensive
THREAT OF SUPPLIERS
THREAT OF BUYERS -
Pass Cost on to
Customers
Oligopoly Market
(Niche)
Fadhlan Imam
Fadhlan Imam
Competitive Analysis Future Goals

Porter
Android
- Samsung Current Strategy
Promote new Value for Core Networks
Segmentation
Targeting
Positioning
Industry
Partners
Employees
Expand Global Penetration (SW Asia)

VISION 2020
Promote Top Line Products
Inspire the World, Create

the Future
Assumptions
Company that goes after its goals
Change = Action
Same Threats as all Competition
Raw Material Pricing
Intense competition
Increasing regulations
(S)
Capabilities
New Technology
Innovative Products
Creative Solutions
Strong Market Position
Diversified Portfolio
Robust Top Line Growth
(W)
Fluctuating operating & net profits
Fadhlan Imam
Implementation
The recommended strategies are implemented as

follows:
Build long term organizational strength by implementing a
clearly thought out leadership development and selection
programmer that will be able to develop the special
leadership required for Apple.
Future leaders should be technically brilliant, innovative
pioneers with strong team working skills and high levels of
ethics.
Build specific products of high quality, but lesser prices, for
the huge populations of India and China that are passionate
about computers, mobile phones and music.
Continue and intensify the search for innovative, stylish and
useful products in its existing area of operations.
Make productive use of strong cash reserves
Fadhlan Imam
Recommended strategy supportive

policies:
Human Resources structured training programs

Rewarding plan for innovative ideas
Reward scheme for staff to increase their loyalty
Effective performance Management
Career planning and development
Recommendations
Compatibility with PCs
More Accessibility
Simply Mac
Price
Software-Word Templates, Downloads
Target Different Demographics
Fadhlan Imam
23
References
https://
www.strategicmanagementinsight.com/products/swot-analyses/appl
e-swot-analysis-2014.html
https://prezi.com/-_xnsi2hbzey/strategic-management-of-apple-inc/
http://research-methodology.net/apple-porters-five-forces-analysis/
http://strategicplanning13.weebly.com/five-forces-analysis.html

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Apple Strategic Management

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Apple, Inc.

From Where Apple is Making

Macintosh Computers ; 25%

Mac Book Air

Improved Sales &

SWOT ANALYSIS Cont...

It is reported that more than a half of sales

As the purchasing power of the common has risen in

Possessing these items are considered as status

Apple Inc has invested largely in its product

One of the most innovative and technologically

In October 2009, Nokia Corporation sued Apple

Apple has been in a number of patent cases with

Porters Five Forces

Apples Sustainable Product

Cost of Apple Product

Apple Pursues Niche

Competitive Analysis Future Goals

Promote new Value for Core Networks

Expand Global Penetration (SW Asia)

Inspire the World, Create

The recommended strategies are implemented as

Recommended strategy supportive

Human Resources structured training programs

Compatibility with PCs

Software-Word Templates, Downloads

Target Different Demographics

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