...CANO, Russel Paul EDER, Greniel Ann PEREZ, Jessamae DATE: February 20, 2012 TO: Apple Computer and Steve P. Jobs (2006): Pixar Animation and Walt Disney Company FROM: Accounting Students Consulting Team, UMAK Chapter RE: Analysis of Apple Company’s future and its competitive advantage BRIEF SUMMARY: This report aims to evaluate Apple Computer • past and present performance in order to most importantly stipulates the future position of this largely successful company. Being that the company’s objective centers on increasing profits, increasing market share, and maintaining brand image., this report tries to identify strategies that make their company more competitive. The analysis uses SWOT, IFAS, EFAS and other similar evaluative tools to reach an understandable and valid generalization. SITUATION DEFINITON: • CURRENT PERFORMANCE Today Apple’s operations are as diversified as they were never before. With its currently 13,599 employees worldwide it generated revenue of $63 million in the last quarter. It holds cash reserves of over %4.5 billion and has a ROIC of 3.05%. Apple’s operations are spread around the PC industry, computer peripherals and the software and service industry. In the overall PC industry Apple’s market share has diminished to a skinny 2.1%. Apple itself doesn’t look itself at the overall PC market, as it has defined 4 specific markets on which it currently focuses on. The market shares in these sectors are to some extent more significant...
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...King Graduate School, Monroe College Master in Business Administration MG 800: Strategic Management Title: Apple Inc. in 2012 Case Study 10/03/2015 Table of contents 1. Introduction…………………………………………………………………………03 2. The Mission, Vision, and Values of Apple, Inc……………………………………03 3. External Analysis……………………………………………………………………03 4. Internal Analysis……………………………………………………………………03 5. Strategy Analysis……………………………………………………………………08 6. Conclusion………………………………………………………………………….12 7. Recommendations………………………………………………………………….12 References………………………………………………………………………….14 Introduction According to Mahsmr (2012), Apple Inc. started in 1976 as an American manufacturer of personal computers, computer software and peripherals. Originally, it was Apple Computer Inc. for 30 years, and its principal office is based in Cupertino, California. It is the very first thriving personal computer firm that has started the popularized usage of the graphical interface. During its starting years, Steve Jobs and Wozniak were responsible for the introduction of the company first innovation that was put on sale. The first personal computer product was sold then, after which, the two founders continued to produce more and more innovative personal computers. However, not all years were lucky years for Apple Inc, there were also times that the company experienced some financial struggles that led to several changes in the management. In 1997, Steve Jobs took over the...
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...Strategic Analysis of Apple Computer Inc. & Recommendations for the Future Direction TAN Jinjin[a],* [a] “Think Different” (continuous innovation spirit), direct sale business model, customer-focused services and Apple brand power. With “Think Different” spirit, Apple innovates and upgrades its products inexhaustibly. As a successful imitation, Apple sells the products directly to customers over the web, by phone, and Apple stores in an endless stream. Implementing the customer-focused services and “Switcher” campaign, the population of Apple World and even People’s Republic of Mac (Feng, 2009) is proliferating day after day. Apple is not only an illustrious innovator and inventor, but also a successful imitator and strategist. School of Foreign Language, Shandong International University, Jinan, China. * Corresponding author. Received 11 April 2013; accepted 23 May 2013 Abstract Apple® today announced financial results for its fiscal 2012 fourth quarter ended September 28, 2012. For the quarter, the Company posted a net profit of US$45 million or US$0.13 per share. These results compare to a net profit of US$66 million, or US$0.19 per diluted share, in the year-ago quarter (Bryan Chaffin, 2012). Apple is ranked number six among the main computer makers, with a market share of 3.48 percent, and worldwide, it is in ninth place with only 2.4 percent market shares for the first quarter of the year 2012. As one of the computer giants, Apple’s predominance...
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...Table of Content |No |Section |Page | | |Executive Summary | | |1 | |2 | | | | | |2 |External Analysis – Potter’s Five Forces Analysis |3 | | |Internal Analysis – SWOT Analysis | | |3 | |6 | | |Problem Statement | | |4 | |8 | | | | | |5 |Criteria for evaluating strategic alternatives | | | | ...
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...best to maintain the standards that it has set. Over the last few years, the consumer electronics market has become heavily commoditized which as a result has seen intense completion from competing firms in the industry where price has become the main aspect of the competition. By making use of the talented research and development team, Apple has been able to position its products as the best in terms of innovativeness, performance and reliability while compared to similar products in the market. However, Apple needs to continuously review its strategies to make sure that the company maintains its position in the industry for many years. This strategic plan review Apple’s performance and environment from various perspectives before strategic recommendations are made on the conclusion section. Among others the Internal Factor Matrix, External Factor Matrix, SWOT strategies and SPACE matrix have all been used in order to establish Apple’s current position in the market. In order for Apple to retain its position, the report recommends that the company increases its presence in markets where it is yet to have any presence, increase its social corporate responsibility initiatives and spend a lot of money in research and development so that new products with unique features can continue been developed. 2 Table of Contents Overview of...
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...Name Course Instructor Date Situation Analysis 1 Key objectives 1 Competition 2 Current performance 2 Cultural and structural issues 2 Organizational resources 3 Environmental analysis 3 Political Analysis 3 Economic Analysis 3 Social Analysis 3 Technological Analysis 4 SWOT Analysis 4 Strengths 4 Weaknesses 4 Opportunities 5 Threats 5 Marketing process 5 Marketing mix 5 Products 5 Distribution Strategy 6 Promotion Strategy 6 Integrated Marketing Strategies 7 Situation Analysis Key objectives Apple was voted the general victor of the 2012 CMO Survey Award for Marketing Excellence. Apple has been chosen as the victor or co-champ for five back to back years by the example of top advertisers. Apple's unique points: 1. Empathy – Apple comprehends the needs of their customer superior to other organizations. 2. Focus – keeping in mind the end goal to benefit a vocation of the things the company chooses to do, Apple pans to dispose of the majority of the irrelevant opportunities 3. Impute –Apple may have the best item, the most elevated quality, the most helpful programming, and so forth; the company displays its product in an imaginative, proficient way to ascribe the coveted qualities ("Corporate Goals And Objectives For Global Final Paper- Apple Inc."). Competition Apple is being led by Samsung as purchasers are requesting telephones with bigger screens at less expensive costs. Indeed, even with the presentation of iPhone...
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...founded Apple Computer. Working out of the Jobs family garage they built a computer circuit board that they named the Apple I. Jobs made it Apple’s mission to bring an easy to use computer to market and in 1978 introduced the Apple II, which was a relatively simple machine that people could use out of the box. Apple quickly became the industry leader, until IBM entered the PC market in 1981, which lead to Apple fundamentally changing their competitive position. Apple was still considered aesthetically pleasing compared to the bland IBM PC, but lacked the “open” system that other producers could clone from the IBM PC. In contrast, Apple relied on proprietary designs that only Apple could produce. In 1984, Apple introduced the Macintosh, marking a breakthrough in ease of use, industrial design, and technical elegance from a PC, but it still lacked a microprocessor with speed and compatible software. In 1985, Jobs was removed from his operational role and eventually left the company to start up a new company called NeXT. After this Apple struggled with establishing a sustainable strategy and suffered an up and down history. Finally, when Steve Jobs returned and was made CEO of Apple in 1997, Apple finally saw the turnaround it needed. He quickly shook things up and established relationships with Microsoft and Intel, which would take Apple’s PC to new heights. In January 2007, three decades after its incorporation, Apple Computer shed the second word in its name and became Apple Inc...
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...best to maintain the standards that it has set. Over the last few years, the consumer electronics market has become heavily commoditized which as a result has seen intense completion from competing firms in the industry where price has become the main aspect of the competition. By making use of the talented research and development team, Apple has been able to position its products as the best in terms of innovativeness, performance and reliability while compared to similar products in the market. However, Apple needs to continuously review its strategies to make sure that the company maintains its position in the industry for many years. This strategic plan review Apple’s performance and environment from various perspectives before strategic recommendations are made on the conclusion section. Among others the Internal Factor Matrix, External Factor Matrix, SWOT strategies and SPACE matrix have all been used in order to establish Apple’s current position in the market. In order for Apple to retain its position, the report recommends that the company increases its presence in markets where it is yet to have any presence, increase its social corporate responsibility initiatives and spend a lot of money in research and development so that new products with...
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...APPLE COMPUTER, INC.: A CASE ANALYSIS SWOT analysis and recommendation -------------------- INTRODUCTION According to Apple Computer's 2007 10-K Annual Report, "The Company is committed to bringing the best personal computing, portable digital music and mobile communication experience to students, educators, creative professionals, businesses, government agencies, and consumers through its innovative hardware, software, peripherals, services, and Internet offerings." The company's 2005 Mission Statement reads: Apple Computer is committed to protecting the environment, health and safety of our employees, customers and the global communities where we operate. We recognize that by integrating sound environmental, health and safety management practices into all aspects of our business, we can offer technologically innovative products and services while conserving and enhancing resources for future generations. Apple strives for continuous improvement in our environmental, health and safety management systems and in the environmental quality of our products, processes and services. In recognition of current market trends, Steve Jobs has claimed that he wants to transform the company by making the Mac the hub of the consumers' digital lifestyle. Despite Apple Computer's recent successes, the company is facing an ever-changing competitive environment on multiple fronts. 1. What are the key strategic challenges facing Apple Computer? 2. What are some of the dimensions...
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...Breakeven for Microsoft and Apple The main purpose for this communication is to address the breakeven for Microsoft and Apple when they develop a new computer operating system. It will also expound on the various challenges that this breakeven rise for Apple, how Apple can overcome these challenges and the sources of Apple’s competitive advantage. Additionally, this memo will address how Apple’s financial performance compares to its rivals, what a DuPont formula analysis explains and challenges that Apple faces moving forward. It will also discuss the moves that Apple should consider moving forward. Subsequently, it will also discuss the stock performance of Apple and how Apple’s retail strategy supports its overall approach to competitive strategy. Lastly, this memo will articulate how important Steve Jobs was to Apple’s future. Breakeven for Microsoft when they develop a new computer operating system The breakeven for Microsoft when they develop a new computer operating system mostly depends on the product being developed since each on them varies. However, Microsoft has ensured that it maintains a breakeven of about 50% for most of its new computer operating system that ensures that Microsoft can cover its expenses prior for it attaining a profit. Microsoft also sets the breakeven quantity in terms of quantity, and the number of months it has to sell so that it can recoup the expenses incurred while developing the new operating system. For example, it had to sell 17...
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...Apple’s Business Models Analysis and Suggestion with Web 2.0 Strategy Contents 1. Abstract 3 2. Apple’s Business Model 4 2.1. Elements of successful business model 4 2.2. Apple’s innovation on its business model 4 2.2.1. Customer Value Innovation 4 2.2.2. Profit Pattern Innovation 5 3. Challenges Analysis 6 3.1. Apple’s challenges 6 3.2. Porter’s Five Force Model analysis 6 3.2.1. Threat of new entrants 7 3.2.2. Threat of substitute products or services 7 3.2.3. Bargaining power of customers (buyers) 7 3.2.4. Bargaining power of suppliers 8 3.2.5. Intensity of competitive rivalry 8 3.3. Innovation Matrix 9 4. Suggestion and action plan 10 4.1. Apple’s Fishbone Diagram 10 4.2. Monetizing for Apple with Web 2.0 strategy 11 4.2.1. N-sided platform 11 4.2.2. Multiple revenue stream 11 4.3. Platform Innovation 11 4.3.1. Production 11 4.3.2. Creative and Media 11 4.3.3. Accessories 11 4.4. Online Promotion 12 4.4.1. Action Plan: 12 4.5. Sustainable Competitive Advantage 12 4.5.1. R&D input 12 4.5.2. Better customer value 12 4.5.3. Sustainable profit pattern 12 5. Business Model Canvas 13 Conclusion 14 Reference: 15 1. Abstract Apple’s huge success set off a global widely discussion on its secret. According to this essay, it is not difficult to find its success story was attributed to its unprecedentedly innovative business model, which was not rare in the typical case analysis...
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...Apple Corporation: Strategy Analysis Executive summary Apple Corporation continues to be the worlds most admired company because of its huge financial base, ability to attract and retain customers, ability to innovate and to produce technologically superior products. The company’s strategy as found in this report is built around creativity and innovation. Its capabilities in terms of resources and technology have made the company to produce technologically advanced products. Despite the huge influence of the external factors such as regulations, the economy and changes in technology, Apple is still strong and able to leverage its capabilities to achieve success. Apple is thus strategically positioned to achieve its objectives despite a few challenges that were identified that pose a threat to the company. Overall, its future direction should be guided by innovation and its ability to diversify its activities and products in order to extend its product line in order to survive. Introduction The 21st century has witnessed a rapid change in the way companies do business and the rationale for this is the cut throat competition among firms. The need to make profits and to gain market share has driven these companies to enact strategies that have led them to perform better (Vernon, 2001). This is not always the same with all companies as performance varies across these companies and this could be explained by the different strategies that they have adopted (Francis, 2010)...
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...Change Analysis of Apple’s Company Executive Summary The essay aims to deliver a strategic management change analysis report for Apple’s company operation model due to Jobs times management strategic and the one in Tim’s management modes. It first covers a deeply demonstration of company’s background and development introductions. And then it analysis’s the enterprise’s environment analysis models especially in external and internal ways to demonstrate how it works in the company. Finally, the essay discusses about the enterprise SWOT analysis methods, and according to all statements discussed, it gives some useful suggestions to the company in future. Strategic management analyses, decisions, and actions an organization undertakes in order to create and sustain competitive advantages. What kind of strategy a firm undertakes will influence the company development. Apple is the giant in computer industry, and how the company can achieve so great success, it is inseparable with their suitable strategy. Through analyses Apple’s products, market and strength or weakness, to see the strategy of the two companies, it will be a reference to other firms. Table of contents Strategic Management Change Analysis of Apple’s Company 1 Executive Summary 1 1. Introduction and background of the Apple’s company 4 1.1 Apple’s developing Profile 4 1.2 Apple’s kernel...
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...environment, it is essential for a company’s to conduct extensive research so that they can develop a strong brand image from the initial stage as it leads to greater financial benefits for the company. The marketing plan of Apple’s iPad is the topic where an effective marketing strategy is developed to ensure its success in the global competitive market where major plays such as Sony, Compaq and Dell have a significant impact upon Apple’s strategies. Apple’s latest ipad is the revolutionary product which is a portable mini device used as a pc anywhere with its wide range of options and innovative design. Apple’s marketing strategy will be focusing upon the product design, brand positioning, price and promotion of iPad in the global market. This will be linked to the research and analysis of the environmental forces and SWOT analysis to understand the company’s position. Apple’s market strategy will be incorporated with the generic business strategy which is towards growth and maintaining a strong position in the market through its innovative products. Apple will use competitive marketing strategy for its iPad where two such strategies can be developed which are differentiation and Focus to make iPad a success in the global market. Marketing planning and strategies can become highly effective if Apple focuses upon its strategic human resource management and make continuous efforts to redesign its marketing plan to survive successfully. Company Description Apple Corporation is...
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...environment, it is essential for a company’s to conduct extensive research so that they can develop a strong brand image from the initial stage as it leads to greater financial benefits for the company. The marketing plan of Apple’s iPad is the topic where an effective marketing strategy is developed to ensure its success in the global competitive market where major plays such as Sony, Compaq and Dell have a significant impact upon Apple’s strategies. Apple’s latest ipad is the revolutionary product which is a portable mini device used as a pc anywhere with its wide range of options and innovative design. Apple’s marketing strategy will be focusing upon the product design, brand positioning, price and promotion of iPad in the global market. This will be linked to the research and analysis of the environmental forces and SWOT analysis to understand the company’s position. Apple’s market strategy will be incorporated with the generic business strategy which is towards growth and maintaining a strong position in the market through its innovative products. Apple will use competitive marketing strategy for its iPad where two such strategies can be developed which are differentiation and Focus to make iPad a success in the global market. Marketing planning and strategies can become highly effective if Apple focuses upon its strategic human resource management and make continuous efforts to redesign its marketing plan to survive successfully. Company Description Apple Corporation is a...
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