Apple Inc.

Apple Inc was incorporated in 1977 by Steve Wozniak and Steve Jobs. As a startup company Apple Inc went through several management changes and conflicts which caused the company to lose some of its competitive advantage against companies like Dell, Gateway and Microsoft. The company designs and manufactures various products in the computer and music industry. Apple being strictly a personal computer company decided to venture into marketing other products like the iPod, a digital music player, and iTunes a website that lets their customers download music for a price. Apple continues to work on providing innovative products for its customers. (Apple Inc. 2015) My analysis of the case study will discuss the company’s economic, demographic, political and legal segments as well as their social culture and technical segments. The analysis will also cover Michael Porters five forces analysis in marketing. I will include the strengths and weaknesses of product development. Finally I will provide my recommendations that management can consider for strengthening their position within the computer and digital music industries.

Introduction The intention of presenting this report is to give a full strategic appraisal and evaluation of Apple Inc. In 1976, the company was founded in a garage in Santa Clara, California. The American multinational corporation mainly involves in designing and marketing consumer electronics, computer software and as well as personal computers. Differentiation is the current strategy position of Apple Inc. There are five main firms in the PC industry and among them; the world’s leading brand is Dell. Apple’s major target is to sustain their present strategic position and to take over the market position as a leader. The key stakeholders include Steve Jobs, employees, lenders and the government.

Apple the pursuit of perfect, it also led to the growth of its ups and downs. Jobs not willing to give up work and control anything, especially when it may affect the customer experience. But he was faced with a problem. There is a part of the process he does not control: in a store to

One of the major challenges facing Apple was to get the appropriate replacement of the company’s visionary Chief Executive Officer (CEO) Steve Jobs who died on October 2011. The CEO was responsible for turning Apple into what it is today. Apple is in this case challenged to purse the strategies employed by Steve, that propelled the company to new heights, and which saw the company become a

Steve Jobs is known to be eccentric when it comes to strategy and business because he strives to become a market leader by dominating the competitors in customer loyalty, distribution and coverage, perceived value, price, profit and promotional spending. This is evident when we compare Apple and Microsoft because when Microsoft shows profit by sheer quantity, Apple competes strongly with the quality of its products and services.

One key element of Apple’s strategy in computers, personal media players, tablet computers, and smart phones is product innovation, diversification and development. Over the years Apple has been very successful in integrating software and hardware in new developing products. Despite the struggling economy in recent years, Apple has been able to grow their market share and stay ahead of the game.

The repositioning of the company in 2007, from Apple Computer to Apple Inc, was a clear indication that the main focus was no longer attributed to the PC market. With this change in prioritization, one could imagine that Apple’s competitive position in regards to PC’s would be weakened, due to capital and R&D efforts being directed elsewhere. But this is not the case. In fact, Apple’s new broadened portfolio and “hub” strategy has only helped to fuel the PC sales even more. This development boils down to several factors, including a strengthened brand image that the new products have contributed to, and the success of the “ecosystem” that the company has created around its products. Although Apple is now making its profits in many new areas, the PCs still account for a great part of the total sales. The price for a MAC is relatively high compared to the competition, and Apple is able to keep the price at that level because their PCs serve the luxury end of the market. Many design conscious consumers prefer the MAC and this niche strategy contributes to securing Apple’s position. The company actually tried to introduce a cheaper PC version, but this was not a success.

Since 1976 Apple’s innovation has helped the company become a market leader in computer and mobile electronics. Through this time the company has faced a number of challenges either it be an internal power struggles or criticism from the media for certain aspects of their business model. This report covers five different issues that the company is facing or may face in the future.

Apple has done an excellent job of developing a very distinct strategy through industry leading innovation. This strategy has allowed them to be the frontrunners in new product introductions and the improvement of existing products. Apple has employed a differentiation strategy in an attempt to meet the needs of a global market by offering customers innovative new products and improved existing products. An important part of their strategy involves meeting the needs of the evolving digital electronics and computer markets. Apple has chosen to implement its strategy by designing and developing its

Nowadays, Apple has positioned itself to be an innovator in the personal computer industry and Apple has developed by offering modern products compared to its competitors. According to Apple’s mission statement last year, “Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App store, and is defining the future of mobile media and computing devices with iPad.” (Business Management,

Even though Apple has encountered many setbacks, it continues to bring new and improve products to the market. Apple’s competitive strategy has been innovation. They have made an extraordinary effort developing, implementing, and executing its very unique strategy through innovation which has resulted in new product, and the enrichment of the existing ones. More specifically, Apple attempts to meet and supply the needs of a global market, by offering eager and enthusiastic consumers with innovated and high-quality products and services. Apple has employed a differentiation strategy linked to innovation with its three core products (computers, personal media player, mobile phones, tablets and other accessories). A key piece of their strategy involves meeting the needs of the converging digital electronics and computer markets. Apple has elected to implement its strategy by designing and developing proprietary operating systems and software technologies, thus allowing for strict protection of its intellectual rights.

An Apple Inc. main competitive advantage over its competitors was differentiated products and services. Apple from its inception has worked out to keep competitive advantages over its competitors through continues innovation, made huge investment in Research and Development (R&D), in order to produce differentiated product. Apple devoted 9% of sales to research and development while IBM devoted only 5%. This allowed Apple Inc. to come up with new products welcomed by consumers.

It is beyond all doubt that Apple Inc is one of the most successful and well-known companied all over the world nowadays. What’s more, the company is considered to be the leader of the industry The Apple products are of high quality and in high demand on all the markets. Apple services and stores are the gold standards for all the followers and niche players of the industry. Moreover, the majority of Apple customers are extremely loyal to the brands. Once they started using its high-technical products they keep doing it. At the same time the market share of the company is increasing constantly. Probably all the competitors are questioning what is the key to Apple Company’s success. It is important to note that the whole strategy determines the success of the business and the strategic analysis of the company can help to identify the main criteria. Thus, the object of the research paper is to develop a strategic analysis of Apple Inc, including its internal and external environment.

Apple Inc. is the most revered corporation of the USA, both in terms of brand equity and market capitalization. The company’s international competitive strategy is focused on the innovative product development, which Apple controls through its eight business segments: Portables, Desktops, iPads, iPhones, Music related products and services, peripherals and hardware (Lam et al. 2005).

This paper presents a case study of Apple Inc. Apple Inc. is a technology based corporation with emphasis on computer software and hardware (MAC and Apps), tablets (IPad), smart phones (IPhone), and mp3 plays, (ITouch). Apple Inc. has grown tremendously over the years and ever since 2001 has expanded its brand and retail stores to over 375 stores/outlets globally. The business has seventy two thousand eight hundred employees in thirty eight countries. Apple Inc. has truly become one of the most efficacious corporations within its field behind or competing with Microsoft and Google Inc.