...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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...conditions in the Unites States did not stop Apple Inc. to grow its profit and revenues in 2012. This growth came primarily from the sales increase of iPhone and iPads, while Mac computers contributed 7% increase of sales from the same period. The only decline was in iPod sales, decreasing 15% from the second quarter of 2011. [pic] Figure 3.1 Apple’s Net Sales by Operating Segment, Net Sales by Product, Unit Sales by Product, 2009-2011 (in millions) Source: Apply Inc. (2011) Not only the decline in iPod sales, the company also faced a serious competitive threat from the competitors, especially in the smartphone market. It is the growth in iPhone sales that sustain the company’s financial performance, by contributing $47.2 billion of total $108.1 billion revenue in 2011. The second largest contributor was iPad with sales more than $20.4 billion. Knowing the importance of smartphone market, Apple was forced to compete with its great competitors such as Samsung and Google. Samsung managed to leapfrog over Apple to become the largest seller of smartphones in 2011 and early 2012 by introducing Galaxy and other models that utilized Google’s Android operating system to beat Apple’s OS and other iPhone’s key features. Therefore, Android became the most widely used operating system platform for smartphones in Unites States with 50.9% share of market. Google also introduced its first hardware, Nexus 7 tablet computer in June 2012, followed by Dell, HP and other computer...
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...Apple Inc.’s current problems are summarized below in the order of their priority. 1) Apple’s market share is being challenged: This is Apple’s biggest and most immediate problem. With Macintosh revenues being less than 20% of Apple’s Sales in 2011 (Apple Inc. in 2012: Case Study, Yoffie/Rosanno, Page 1), its bottom line is being driven primarily by the sale of iPhones and iPads. A reduction in Apple’s market share will have an adverse effect on its revenues. The table below further illustrate the stiff competition Apple is facing: Smartphones (Global Share) Apple: 18.9% (2011) Android: 46.4% (2011) Tablets (Global Share) Apple is expected to fall from 76.1% to 54.7% in 2012 Android increases from 23.6% to 44.2% in 2012 Apps (Number of Apps) App Store: 585,000 Android: 450,000 (Apple Inc. in 2012: Case Study, Yoffie/Rosanno, Exhibit 7,8 and 9) 2) What’s next? No revolutionary product in the last 2 years: Apple’s next problem is the absence of a recent product that has had run away success like the iPod or the iPhone. This has resulted in more pressure on Apple’s existing product line, which is facing stiff competition. Their recent failures and challenges include : a) Mac Mini: A high price forced people to choose a Windows desktop with more functions and faster performance at a lower price. b) Apple TV: This consumers failed to have the desired effect on...
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...1. How attractive is the PC industry? Conduct an industry analysis on the PC industry (A) in its early stages, and (B) in its later stages. Comment on how the industry has evolved. In personal computer industry, we considered two different time periods. The early stage includes development from 1980s to the early 2000s, and the later stages starts from early 2000s to now. Threat of Entry Early Period PC industry has low entry barrier which is brought by IBM’s entry to the market. In 1980s, IBM adopts open architecture strategy which outsources its operating system (OS) and microprocessors to Microsoft and Intel respectively. This strategy also has several implications: (1) product design and feature information is also available to other potential competitors, (2) IBM does not possess any patents related to product design, which allows competitors to copy the product designs. For small companies, open architecture significantly reduces the risk of market entry as it significantly reduces capital investment for firms to develop their own OS and microprocessors. Another industry environment that sustains lowers entry barrier to 1990s is network effect, which is defined as increase in products’ value due to increase in its popularity among consumers. As IBM converts PC as the mainstream and adopts open architecture strategy, Microsoft and Intel collaboratively develops a new standard known as “Wintel”. Manufacturers, ranging from Dell to generic companies, are able to use...
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...models are available in many different configurations. All models since 1994 are based on the PowerPC microprocessor. They believed had a real advantage for consumers who were becoming entrenched in a digital lifestyle. Also, digital cameras, portable music players, and digital camcorders. That they though could be the preferred hub to control integrate, and add value to the devices. Also to control of both hardware and software.Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings. Apple's Mission Was to bring an easy-to use computer to market, which led release of the Apple II in 1978. Also, Apple is committed to protecting the environment, health and safety of their employees, customers and the global communities where they operate. They can offer technologically innovative products and...
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...Apple Inc. in 2012 case study Executive Summary According to the case “Apple Inc. in 2012”, it was clearly illustrate that Apple Inc. is one the largest computer manufacturer in the world. The Apple company has a perfect concept and operating systems of manufacturing new products in which launch to the customers. Also, there are some other companies try to imitate the Apple Inc., but some of them were failed. The main purpose of this report is to seek the problems of the Apple Inc. and give an efficient recommendation for the company to help them get better development in the future. 1. Introduction Apple company began as “Apple Computer” and best known for sell Macintosh personal computers in the 1980s and 1990s. (David B, Y, Rossano, P 2012) When Steve Jobs became CEO of Apple Inc. in 1997, the company had changed from near bankruptcy to one of the largest and most profitable companies in the world. Also there are a number of challenges while Jobs need to face his successor. After that, Tim Cook became the new CEO of Apple Inc., he was decided to choose different approach in which distinguish with Steve Jobs to develop the company perform well in the future. However, with the different period, Apple Inc. to change their management very often in these years, such as Sculley, or Spindler, Amelio were served in the company in different period. The liquid management should be an issue in which connected with Apple Inc.. Furthermore, Apple Inc. was using the market...
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...Apple Incorporated is a U.S. based computer and electronics firm that manufactures products such as the iPod, iPhone, Macintosh computer, iPad, and Apple Watch. Apple Incorporated was founded in 1976 by Steve Jobs and Steve Wozniak, who released the Apple II computer in 1977 (Apple Inc…, 2015). The next product launched by Apple Inc. was The Apple Lisa which was released in 1983 and was the first computer to have a mouse and a graphical user interface (Apple Inc…, 2015). The first Macintosh computer came in 1984 however it was not successful due to the lack of market share to compete with IBM (Apple Inc…, 2015). After several years of financial losses, Steve Jobs launched a product redesign in 1997 that led to the iMac in 1998 (Apple Inc…, 2015). During the 2000s, Apple began to focus on portal MP3 devices such as the iPod and mobile phones like the iPhone. Then Apple began a new line of business in the music industry with iTunes. Today, Apple Inc. is a major competitor within the computer and consumer electronics industry. Apple Inc. is headquartered in Cupertino, California and has 76,000 employee based in the United States. Apple Inc. has directly and indirectly created and supported 1.9 million jobs in the United States (Israel & Johnson, 2016). Apple Inc. has stores located in 18 countries including the United States (Apple Inc., 2016). After a brief overview and history of Apple Inc., this critical analysis will take a look at the industry in which it operates,...
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...HEAD: Apple, Inc. SWOT Analysis Apple, Inc. SWOT Analysis AIU – MGT680 Abstract As a senior manager of a computer company, this paper will discuss the company’s competitor, Apple, Inc. This paper will include five factors of strengthens, weaknesses, opportunities, and threats for Apple, Inc. It will explain why those factors are important for this company to know. The paper will also propose a strategy and product that will take advantage of Apple, Inc. vulnerabilities which will increase this company’s market share. Apple, Inc. SWOT Analysis Introduction Apple, Inc. is a major competitor for our company and by doing a SWOT analysis of Apple, Inc. means we can help our own strategies. A SWOT analysis looks at strengthens, weaknesses, opportunities, and threats factors of Apple, Inc. By knowing these factors about Apple, Inc. will be important to our company because it takes a look at our competitor. A strategy and product will also be proposed that will take advantage of Apple, Inc. vulnerabilities which will increase this company’s market share. SWOT Analysis Strengths Apple, Inc. has five great strengths that include innovation, brand, customer loyalty, retail stores and marketing, and cash flow abundance. Apple, Inc. innovation includes being the leader in technological innovation with the release of products such as the iPods, iPhone and more. The 2012 Global Innovation 1000 ranked Apple, Inc. number 1 for the 3rd year in a row. Apple, Inc.’s idea...
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... Dr. Yan Ling ASSIGNMENT 2 FIRM ANALYSIS REPORT: APPLE INC. ------------------------------------------------- GROUP # 4 Sonny Nguyen || Brittany Krammes Larisa Zenokhova || Bryan Berduo Table of Contents Page # SECTION I – INTRODUCTION3 SECTION II – BUSINESS LEVEL STRATEGY3 SECTION III – VRIO FRAMEWORK OF RESOURCES & CAPABILITIES4 SECTION IV – VALUE CHAIN ANALYSIS6 SECTION V- INTERNAL WEAKNESSES7 SECTION VI –STRATEGIC ACTION RECOMMENDATION 7 A. REFERENCES…………………………………………………………………………………………………………….8 B. EXHIBITS………………………………………………………………………………………………………..……….11 SECTION I – INTRODUCTION For this analysis, we chose Apple Inc. because of its impact on the smartphone industry in the United States. First, the report will identify the business level strategy that the company has pursued and key factors that attribute to its success. Next, the report will use the VRIO framework to analyze Apple Inc.’s tangible and intangible resources, and capabilities. Then, a value chain analysis is provided to evaluate how Apple Inc. creates value for their customers, followed by a brief explanation of three internal weaknesses. Finally, based on what our group knows about the mobile industry in the United States and Apple Inc., we recommended strategic actions the company should take in order to maintain its position in the industry. SECTION II-BUSINESS LEVEL STRATEGY Apple Inc.’s existing business-level strategy within the U.S. branded...
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...Marketing Plan of the Ipad 3 Apple Inc. Table of Contents 1. Executive Summary Apple Inc., founded in 1977 as Apple Computer Inc. with the introduction of the Apple II microcomputer, 14 is the undisputed leader of personal technology devices and supporting applications. They have continually been the frontrunner of groundbreaking technology. 5 Apple Inc. consistently markets and produces new products. They have been the engineers of many state-of-the-art devices and applications because they stand by their motto, “Think Differently”.6 Apple Inc. understands that spending R & D dollars, currently is an investment that is well worth the cost. When launching the IPad 3 in 2012, Apple Inc. instituted a tiered pricing system based on installed components. Although the company set prestige pricing for IPad 3, as it does for all of its products, because of mass customization, this marketing strategy has been very effective. Another product differentiation of the iPad 3 and Apple Inc. in general, is that the company offers an innumerable amount of complimentary downloads from the iTunes store as well as free training and support for all levels of users.8 Apple Inc. produces a host of electronic devices including the increasingly popular iPad tablet computer. Additional products include personal computers, monitors, all-in-one computers, laptops, software, cell phones, portable digital music players as well as peripheral devices and accessories along with their most...
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...Apple Case Study Paper Rhonda Ellis-Thomas MKT 571 November 27, 2012 Professor Linda Kulka View as single page Apple Case Study Paper Apple, Inc. was started by Steve Jobs, Steve Wozniak, and Ronald Wayne; Apple has stretched from computers to consumer electronics over the last 30 years, officially changing their name from Apple Computer, Inc. to Apple, Inc. in January 2007 (CrunchBase, 2012). Among the main contributions from Apple’s product line are: Pro line laptops (MacBook Pro) and desktops (Mac Pro), consumer line laptops (MacBook Air) and desktops (iMac), servers (Xserve), Apple TV, the Mac OS X and Mac OS X Server operating systems, the iPod, the iPhone (now available for sale in over 90 countries), and the iPad. The purpose of this paper is to consider both the environmental and internal pressures contributing to the changing market dynamics facing Apple, Inc., and use a problem-solving model, identify and define one specific problem Apple will need to address and apply a robust problem-solving process. The problem, according to the Forbes article “Will Apple Repeat The Most Dangerous Strategic Mistake Leaders of Fast Growing Corporation Can Make?” by Panos Mourdoukoutas, seems to involve the fact that Apple, Inc. may be taking their customers for granted. Is it a result of pressure from the competitors? Is it the economy? Could it possibly be from a mix of internal and external issues? Research will so what may be causing this problem throughout this document...
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...Apple Inc. Apple Inc. formerly Apple Computer, Inc., is an American multinational corporation headquartered in Cupertino, California that creates and retails consumer electronics, computer software, and personal computers. Apple’s mission and vision summarizes its committed efforts in bringing the best user experience to its customers through its advanced hardware, software, peripherals, and services along with a unique ability to design and develop its own operating system, hardware, application, software, and services, in order to provide its customers new products and solutions with superior case-of-use, seamless integration, an innovative design (“Apple Inc. Form 10-K Annual Report”, 1, 2012). Company’s mission and vision statements against the performance of the organization Apple’s mission and vision statements and objectives are neither interchangeable nor autonomous. Without objectives, the mission and vision statements are impractical. Without the mission and vision statement the objectives have no relevance. Both statements are too broad to be measurable, and the objectives are too definite to provide the big picture. When properly coordinated they strike a balance that helps to shape the business operations and service strategy. Apple Inc.'s mission statement is as follows - Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through innovative hardware, software and...
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...of Apple Marketing Strategy on Consumer Self-concept and How Various Products Appeal to the Different Types of Self In their marketing strategy, Apple Inc capitalizes on their consumer’s self-concept such as their beliefs, opinions, preferences, attitudes and what they think about the Apples brand (Schneiders, 2011). As explained by (Budnikas, 2010), Apple Inc marketing strategy focuses on the customer experience as it is fully aware that all aspects of the consumer experience are important to the success of their brands. Apple Inc develops products that are beautifully designed, innovative, ergonomically simple to use and user friendly interface. Additionally, Apple has also spent as much time and resources on the design of their products packaging as on their products hence they have created an experience among their customers that is impossible to match. Apple Inc also uses scarcity as its marketing strategy (Katie, 2013). The company stocks a limited number of their products. Due to the limited availability of the products, people perceive their products as high quality and of great value (McCormack, 2016). This creates very long queues which helps publicize their products and increase demand. Apple has also come up with Apple Genius. These are employees trained and certified to provide technical assistance to apple stores. This creates trust in their products and conveys their products as superior. Apple Inc products include Mac, iPod, iPad, iPhone and Apple stores...
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...COMPANY PROFILE Apple Inc. REFERENCE CODE: 5B0A0C20-9BB6-4284-A575-AC0F2261F45C PUBLICATION DATE: 29 May 2013 www.marketline.com COPYRIGHT MARKETLINE. THIS CONTENT IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED OR DISTRIBUTED. Apple Inc. TABLE OF CONTENTS TABLE OF CONTENTS Company Overview..............................................................................................3 Key Facts...............................................................................................................3 Business Description...........................................................................................4 History...................................................................................................................7 Key Employees...................................................................................................11 Key Employee Biographies................................................................................12 Major Products and Services............................................................................17 Revenue Analysis...............................................................................................18 SWOT Analysis...................................................................................................20 Top Competitors.................................................................................................27 Company View......................................................
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...External and Internal Environmental Analysis STR 581 August 27, 2012 Barbara Fuller External and Internal Environmental Analysis Apple Inc. was first launched into the technology market as a computer company. In 1976, Steve Jobs and Steve Wozniak launched Apple Inc. with the mission of reaching a diverse community globally to market its products. Since that time, there have been changes in the external environment of the company that has an impact on the decisions the organization makes. Apple Inc. has implemented frameworks to assess its external and internal environment. The company has identifies the specific domains that affect the operations of the company from the outside. These forces of the organization enable the operations of the company to be influenced. Apple Inc. considers the global market to be of high importance. Globalization is becoming a criterion for large organizations to excel above their competition. Apple Inc. needs managers and executives proactively understanding that if the company is not globalizing it can leave them behind of the competition. This can be a tough challenge for Apple because many U.S. companies have not been successful capturing many global markets. Apple never thought about capitalizing on its digital future globally until they made a change in their strategy. Apple had to realize just how much influence it would make by expanding its products and service to a global level. It would...
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