Internal & External Factors - Apple Inc.

Apple Inc, best known as Apple is an American based global company that designs and sells electronics, PCs and computer software. The company was established in 1976 by Steve Jobs and Steve Wozniak and was incorporated in 1977. Some of the Apple’s best-known products are the Macintosh range of personal computers, iPod, iPhone, and iPad. By 2012, Apple reported to have more than 300 retail stores located in more than 10 countries in the world and more than 60, 000 employees on permanent employment, and about 2,800 on temporal employment. Despite the success the company, Apple has faced hard competition from other electronics manufacturing companies. The objective of this paper is to develop a strategic plan that will enable Apple improve its position in the personal computer industry. The paper will use Michael Porter’s forces; key success factors, SWOT analysis and the competitive strength to point out specific, workable recommendations that will allow Apple stay afloat and improve its position in the personal computer industry (Gamble & Marino 2012).

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.

I have to admit that I am a fan of Apple Inc. products especially the iPhone. In fact, as I am writing this Individual Reflective Journal, I am waiting for the latest iPhone 7 which the critics claimed that rumours spread around the 2016 iPhone release will be on 12th September 2016. This phenomenon had caused a chaos to the fans and also technology lovers around the world who consistently update themselves with the product. This has got me thinking on the Positive & Negative Effect of Globalization on Apple Inc. specifically the iPhone.

Challenge of Globalization W. L. GORE & ASSOCIATE had been expending their business in more than 30 over country; there are Asia Pacific, Europe and the Middle East, Central America, North America and South America, leading manufacturer of thousands of advanced technology products for the electronics, industrial, fabrics and medical markets. With the employees of 9.500 people around the world, managing the people also bring along the trouble as well. With the diversity of culture, people, background, language and norms, challenges and problems occur within the company and beyond the boundaries of the company. This is the major problems that will occur when a company goes global and expanding to the world. This challenge of globalization

Apple has benefitted significantly from globalization and from technology change. For example, the company started primarily as an American company, but globalization has allowed Apple to become a multinational operation. The company only derives around one-third of sales form the Americas according to the annual report, a figure that includes Canada and all of Latin America in addition to the United States. The company therefore can be said to sell globally. Sales in Asia-Pacific were growing especially fast, and the company has numerous flagship stores in the region.

Apple is not only a known brand, but also a reliable one. Many consider them, to be an electrical giant. The fact that Apple decided to take its company global created both advantages and disadvantages, both local and overseas. Here are some of the pros that are associated with Apple's decision to go global. Apple created 700,000 jobs in overseas countries, decreased the overseas unemployment rate, decreased labor costs, increased profit margins, and productivity to meet high demands for their products. All of this was possible because they entered into a more flexible, diligent, and industrialized workforce in the overseas market.

Apple Inc. is in a transition period, after the demise of Steve Jobs, and seeking methods that will let the company to recover market share. This execution is mainly concerned with how to diversify the product offerings regains customer loyalty and a leader in the mobile marketplace. According to Implementation Plan (2014), an implementation plan is a detailed listing of activities, monetary values, expected difficulties, and dockets that needed to carry out the aims of the strategic plans. The program directs the following areas of concern: short-term goals, specific functional tactics, outsource nonessential functions and plan an effective reward.

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.

According to Dictionary.com, the definition of globalization is “to extend to other or all parts of the globe; make worldwide” (Dictionary.com, 2008). Globalization can have a huge impact on the four functions of management. In order to achieve success, a company must have a plan or goal set in action. Once a company decides to go global, it has to decide its market. For example, Disney has over 25

However, they may face the limitation on the firms’ development. Apple is based on a hybrid hierarchical structure (mixed with other organizational structures (Meyer, 2015). Meyer (2015) depicts that companies’ main framework is based on innovation and the leadership of Steve Jobs but for that type of leadership only works if the structure allows it to do so. Due to leadership change to Tim Cook, there are some changes made in the organizational structure in order to suit the market and its demands (Meyer, 2015). Despite the leadership change in Apple Inc. it may well enhance Apple’s capabilities will grow rapidly in creative and design (Meyer, 2015).

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,

This paper aims to highlight and discuss the major challenges and opportunities which Apple Inc. faces while bringing innovation in the four primary areas of its business operations; including product innovation, process innovation, marketing innovation, and organizational innovation. The major focus of the paper is towards discussing the combination of all these processes which this organization follows and the major challenges which it faces in the course of its innovation or change strategies. The paper concludes by summarizing the importance of innovation for Apple Inc. in the light of the whole discussion.

The world offers significant business opportunities for every company, however, opportunities are accompanied by significant challenges for managers. Managing global operations across diverse cultures and markets represents a big challenge and opportunity for companies. To compete in the global market and be successful, companies must learn the strategies, policies, norms and technology necessary to conduct international business. The opportunities for global expansion are numerous, and attaining success is a matter of developing the right strategy to win local markets and its consumers.

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).