Internal Analysis Apple

Apple Incorporation is one of the largest organizations dealing into Information Technology. Apple has a host of products ranging from Laptops, Desktops, Mobile Phones and Multimedia Devices. The company has been extremely innovative in the field of multimedia and it owes it success to one of the greatest innovators, Steve Jobs. The company has always believed in innovation and that is the major reason why it has been so successful in the mobile phone segment. In recent years Apple is second only to Samsung in the Global Mobile Phone industry. However the operations have been largely based in the United States and in times of recession any organization needs to focus on economies of scale and thus focus on growth

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.

Apple is an American multinational corporation which designs, manufactures and markets a range of consumer electronics and software products (Apple Inc., 2008). At the end of last fiscal year, Apple’s worldwide annual sales amounted to $32.5 billion, an increase of 35% from 2007 (Apple Inc., 2008). Not surprisingly then, was Apple voted America’s most admired company, also topping the global survey (Fortune,

This additional elasticity in Apple’s business strategy shows its aspiration to conquer Dell, HP and Microsoft, done with a exceptional and groundbreaking mixture of digital media and personal computer creations.

Apple is a global company represented in many parts of the world, but born in the United States by computer wizards by the names of Steve Jobs and Steve Wozniak who founded the company back in 1976 (Capon, 2008). The organization deals with the design and sale of computer hardware, software and offers tech support to its customers. Examples of the hardware the company manufactures and sells include mobile phones, personal computers, iPads, tablets and iTunes with associated brands, like the MacBook and iPhones that represent Apple’s driving force towards its success. It is recognized as a brand leader in consumer electronics by the world in terms of quality and customer satisfaction and despite the wide product range, Apple manages each product in a distinct way that is a single business unit (Mittan, 2010).

Apple was established as an IT company dealing in exclusively in computers. However, competition in the technology sector forced the firm to focus on other consumer products. The diversification strategy has seen Apple’s sales grow tremendously in the last decade, earning the firm the No. 1 brand position at Forbes. The Apple brand is recognized on an international scale and enjoys a strong recognition thanks to its aggressiveness when it comes to creativity and innovation (Tar, 2013). It has a large number of loyal customers who would purchase the new products regardless of the market price, which guarantees profits from the new division.

Technology change has naturally been a major factor in Apple's success. The company played a major role in the shift to a mobile computing society, by developing the personal technology devices that would

Apple has prospered internally and it is necessary to consider both strengths and weaknesses. Apple has lots of strengths, the major of them being it’s impressive brand reputation, Apple managed to position the brand as “premium products” for “elite” people. Customers are loyal and tend to stay in Apple’s ecosystem. Apple’s self-reinforcing ecosystem, it has a diverse ecosystem which integrates various hardware and software products into one large interactive space. Status of top innovator, Apple is perceived as the leading innovator and its products are highly anticipated. Apple’s very strong financial performance, high profit margins and very high liquidity. It’s network of retail stores, high-quality customer service helps to create advanced user experience. A powerful marketing strategy, Apple’s team masterly uses various marketing techniques to create a hype for their products and to strengthen the brand.

Apple implemented the marketing concept by focusing on customers’ needs through imagination, design, and innovation creating an emotional brand for its customers. Even though Apple is a technological company it takes a humanistic approach to satisfying the needs of its customers far better than the competition.

Apple Inc. has been dedicated to innovation ever since the company was first formed. Apple's recent breakthroughs were a result of a new technologies convergence upon the "digital hub" strategy (Mortensen, 2010). This strategy has served Apple well; especially during the last few years. The iPad, iPod, and iPhone were all born from this strategy. Furthermore, producing these innovative, user friendly, and design oriented products has earned them a considerable amount of customer loyalty.

Apple has a vertically integrated business model, meaning that they are involved in nearly every step of the production process for Apple products. The hardware they produce can be accompanied by a variety of Apple brand accessory components consumers may wish to use with their Apple device. The most popular Apple devices include iPod, iPhone, iPad, MacBook and AppleTV. Apple products run on their own unique operating system, which sets them apart in the industry from other personal

Established in 1976, Apple ignited the personal computer revolution with the Apple II and the Macintosh. Today, Apple designs, manufactures and markets personal computers, portable digital music players and mobile communication devices as well as related software, services, peripherals and network solutions. Apple sells its products worldwide through its online stores, retail stores, direct sales forces and third party distributors to its core customers—consumers,

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.

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,

In 1996, Apple was losing money and had very little market share when it purchased former owner Steve Jobs' software company, NeXT. In 1997, Jobs become CEO of Apple and began restructuring the product line, placing greater emphasis on style and the use of proprietary operating systems, rather than systems it licensed from other designers. The transformation to focus on quality and innovation led to a return to prosperity. In 2011, Apple was the third most valuable company in America and its product spread widely in more than 100 countries.