Premium Essay

Global Business Environment Analysis of Apple

In: Business and Management

Submitted By jnnygrnwd
Words 3744
Pages 15
1 The volatility and evolution of computer industry
Starting from 1976, Apple computer created the personal computer (PC). After IBM transformed the PC from proprietary systems into open structure, PC has been dominated by Wintel (Windows + Intel) structure. Apple insists in adopting proprietary and niche market strategies made them keep losing market share till less than 3% in 2001. However, its strategy with ignoring the market trends makes it lose the market after years.

1.1 Industrial changes: Apple lost PC market because of ignoring industrial changes
The PC industry has evolved in the past decades. There are 3 phases. Let’s take a look at these phases and Apple’s position in each phase.

Before 1981: Proprietary Systems.
Every PC producer had to develop self own hardware and software. It was proprietary. Most buyers were technical people. There were 2 main streams in the market: Apple style machine and IBM style machine. During this period, Apple was the leader. Its strong developing ability made the Apple II became a family commodity. However, Apple didn’t use patent or trade secret to protect its products. Many computer companies re-engineered Apple II and made cheaper similar products to compete in the market. For example, Acer copied Apple II and developed the Little Professor Series.

1981- 1997: Open structure.
IBM turned the PC into open structure. Compaq, HP and many other producers started to show in the market to produce IBM compatible PC. During this period, hardware can be separated into CPU, mother board, power, disk drive, and other peripheral businesses. Software can be separated into basic input output system (BIOS), operation system (DOS, Unix, Windows), tool systems (Norton doctor, Anti-virus), computer language (C, Basic, Clipper, FoxPro), office applications (spreadsheet, word process), graphic applications (Adobe,...

Similar Documents

Premium Essay

Strategy of Mobile Phone Industry

...The strategy of the mobile phone industry: A comparative analysis of Apple, Sony, Xiaomi The strategy of the mobile phone industry - a comparative analysis of Apple, Sony, Xiaomi I Executive summary The paper sheds lights on the strategy of three mobile phone industry and that task is to perform comparative analysis on Apple, Sony and Xiaomi. The author has first started with the analysis of the macro-environment using strategic analytic tool called PESTLE. The author has used tools such as Porter’s Five Forces and SWOT to analyze the micro-environment of a mobile phone industry and define Key Success Factors that are essential to be included in company’s strategy. Moreover the paper characterizes the comparative analysis such as objectives, strengths, weakness, financial analysis (quantitative), Vario analysis (Qualitative), merger and acquisitions, market share and competitive advantage strategy, of Apple, Sony and Xiaomi. At the end, the author of this assignment has given his recommendation to these three industries and concludes with a set of challenges being faced by mobile phone industry to create and maintain customer values and profit margins for present and future business successes. The strategy of the mobile phone industry - a comparative analysis of Apple, Sony, Xiaomi II Table of Contents LIST OF ABBREVIATION ..................................................................................................................

Words: 5929 - Pages: 24

Premium Essay

Apple Ipad Marketing Plan

...[Course Title] [Instructor Name] [Date] Apple iPad Marketing Plan Executive Summary To survive in the global and competitive business 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......

Words: 2636 - Pages: 11

Premium Essay

International Businesses

...Case Study on IB of Apple Inc. Introduction Apple Inc. is one of the world’s most successful multinational corporations engaged in researching, designing and producing electronic technology devices and solutions. The sensational success and tremendous profit of Apple Inc. are created through globalizing its businesses. According to Corteau and Milan (2011), globalization usually involves a series of interrelated activities such as internationalization of finance and trades. The company has realized significant globalization through extension in the global market. In the first half year of 2013, Apple’s revenue amounted to $98.115 billion. Only less than 35% of this revenue was generated in the US market. The global market was the source of over 65% of Apple’s revenue. This article intends to explain Apple’s globalization through analyzing one of Apple’s key creations: iPod. Special attention is given to the jobs and profits around the world generated by iPod, disparity in income and employment, and employee composition. Analysis of impacts of globalization on Apple Inc. since Jobs’ return Apple Inc. has undergone the golden time for business development and globalization from 2007 to 2011 under the leadership of Steve Jobs. The company was then on the verge of bankruptcy in 2007 when Steve Jobs returned to Apple. In order to save the company from bankruptcy, Steve Jobs took a series of restructuring and rebooting measures with a focus on innovation and......

Words: 2569 - Pages: 11

Free Essay

Apple

...Apple’s External Environment External environment is the environment or surroundings outside of the company such as economic component, demographic component, technological component, sociocultural component, political/legal component, and global component (Chapter 2, Management Environment, slide 5). As for Apple, they have their own factors which is P.E.S.T. (Political, Economic, Social, and Technological) factors that affect them to make a decision-making process. These are the explanation about PEST : 1. Political Factor Political factor is a factor by looking at federal, state, and local laws, as well as other countries’ laws and global laws, include a country’s political conditions and stability (Chp. 2 Management Environment, slide 5). Since 2007 until 2009 it is accounted for that more than a 50% of offers of their items originates from nations other than America. To decrease their working expense Apple likewise spread their item assembling to diverse organizations outside America. Cork, Ireland, Korea, China and Czech Republic are a percentage of alternate states where Apple put their organization. Awful universal relations, wars, terrorism, and general wellbeing issues between U.S. also, these states may give a negative effect that may harm the Apple Inc. notoriety and additionally their business process. Just like when there is political precariousness between to states where Apple works their business, a business postponement could be happen and subsequently...

Words: 541 - Pages: 3

Premium Essay

Strategic Quality Management and Customer Satisfaction

...employees. This paper illustrates Apple Inc.’s SWOTT analysis and how the company develops its vision, mission, and guiding principles based on this analysis. This paper also reviews how Apple’s strategic plans and objectives define quality as a core principle. Finally, an assessment of some tools Apple uses to measure customer satisfaction and how these measurements can enhance quality. Apple Inc. Apple designs, develops and markets personal computers, media devices, and portable digital music players. Founded in 1979 by Steve Wozniak and Steven Jobs, Apple has become a world leader in the personal electronic entertainment industry. Apple leads the digital music revolution with its iPods and iTunes online stores. The company reinvented the mobile phone with its revolutionary iPhone and application stores, and has recently introduced its magical iPad that is defining the future of mobile media and computing devices. The organization built this empire by sustaining the Four Basic Values establish from its conception. Honesty; Ensures Apple demonstrate honesty and high ethical standards in all business dealings. Respect; Treat customers, suppliers, employees, and others with respect and courtesy. Confidentiality; Protect the confidentiality of Apple’s information and the information of our customers, suppliers, and employees. Compliance; Ensure that business decisions comply with all applicable laws and regulations. These simple values have transformed Apple from a two...

Words: 1294 - Pages: 6

Premium Essay

Analysis of Apple Business Strategy

...Analysis of Apple Inc. business Strategic Unit (iPad unit) Contents Introduction .................................................................................................................................................. 2 1. Strategic position of Apple Inc .................................................................................................................. 2 1.1 Competitive strategic position ............................................................................................................ 2 1.2 Strategic group mapping ......................................................................................................................... 4 2. External drivers of change affecting Apple’s Strategic Business Unit ....................................................... 5 2.1 PEST Analysis ....................................................................................................................................... 5 2.1.1 Political and legal drivers ............................................................................................................. 5 2.1.2 Economic factors .......................................................................................................................... 5 2.1.3 Socio-cultural factors ................................................................................................................... 6 2.1.4 Technology .............................................................................

Words: 4560 - Pages: 19

Premium Essay

Management of Organization and Marketing

...“Experience the Difference” In the last years I was fascinated by the rapid success of international companies such as Apple, Starbucks, Facebook and I was trying to find answers for these business phenomena. I started to ask myself: why are people in developed countries suddenly buying overpriced coffee from Starbucks Coffee Shops? Why is a company like Apple experiencing a business comeback after many years of mediocre performance in the personal computer business? Why are people thrilled to share their personal information on a social media platform and how can a company like Facebook make money with it? My answers to those questions are manifold, however whether these successes are based on smart strategic decisions, excellent marketing management or new business models, I would like to understand in a more detailed and structured way how international businesses are set up and performing. In today's fast changing mobile society I believe a fundamental expertise of international business processes and company strategies are a compulsory knowledge for an effective global business manager and leader in the future. In the following I would like to constitute a more precise understanding of the marketers’ world based on contemplation of the organizations point of view and additionally through an examination of the different roles of customers and especially consumer behaviour. I hope to connect the dots between both manifolds topics and at the end I am going to......

Words: 6218 - Pages: 25

Premium Essay

Strategic Management; Apple and Nokia Case Analysis

...Strategic Management Apple & Nokia Case Analysis 1. Table of Contents 1.0 EXECUTIVE SUMMARY OF APPLE AND NOKIA CASE 2 2.0 QUESTION 1 3 2.1 Competitive analysis of Apple and Nokia – who is stronger? 3 2.1.1 Competitive Analysis 3 2.1.1.1 SWOT Analysis 5 1.1.1 Strengths of Apple 6 2.1.1.2 Value Chain Analysis 9 2.1.1.3 Resourced Base View Tool 11 3.0 QUESTION 2 14 3.1 PESTEL analysis tool 15 3.2 Porter’s Five Forces 17 3.3 The Implications for Strategic Development are; 21 4.0 QUESTION 3 21 4.1 Critical Analysis Lessons from Apple’s risky but profitable strategy 21 5.0 REFERENCE: 23 1.0 EXECUTIVE SUMMARY OF APPLE AND NOKIA CASE Apple chalked some initial success with its invention of the Macintosh (Mac) computer but with the introduction of the Windows 1.0 from its rival company (Microsoft), it was faced with a threat in the industry. Their earlier strategic decision of not cooperating with rivals in the industry was seen as a weakness which Microsoft capitalized on to make their software available to other computer manufacturers for a license fee. Apple, diversifying into a new market (mobile telephone industry) with the introduction of user friendly products sought industry cooperation when it came to the launch of subsequent products including the iPod and iPhone. This strategic decision was inspired by its......

Words: 6149 - Pages: 25

Premium Essay

Samsung Analysis

...Contents TABLE OC CONTENT 1.Introduction ……………………1 2.Current performance …………1 3.Market share………………………2and 3 4.Ansoff's Matrix - Planning for Growth…..4 5.PEST ANALYSIS………………………………………4 6.Marketing MIX………………………….6 7.Porter’s Five Forces…………………….7 8.Swot Analysis ……………………………9 9.Conclusion …. .………………………………..11 10.Recommandations………………………..11 11. References………………………………….12 The purpose of this paper The purpose of this paper is to outline the Samsung’s current situation, addressing where and how they currently operate, both in the home market and globally. Detailing such information as market share, product ranges, pricing strategies, competitor analysis, plus other key issues that are relevant to the company and products we are reviewing. We will present issues that will have an impact on the company’s future global strategy. 1.Introduction . Samsung electronics is South Korean global company, a part of the Samsung group established in 1938,employing approximately 206000 people in 197 offices across the 72 countries. The company sales is $ 143.1 billon in 2011 considerably 13% more than previous year(annual report of Samsung 2012).Samsung operates in intense competition from growing number of competitors .All of them have strong brand equity such as LG electronics ,Whirlpool ,Nokia ,Apple and Sony. Among its several products single galaxy s devises has been huge success for Samsung.It announces that it had sold 20 million units Galaxy S !!......

Words: 2459 - Pages: 10

Premium Essay

The Implementation of Effective Organisational Change: Apple Inc.

...The Implementation of Effective Organisational Change: Apple Inc. Simon Karuku Freelancing Table of contents Introduction…………………………………………………………………………………..4 SWOT Analysis ……………………………………...…………………………………… 5 i) Internal environment: Strengths……………………………………………………………..5 Ii) Internal Analysis: Weakness………………………………………………………………..5 iii) External Environment: Opportunities……………………………………………………....6 iv) External Environment: Threats……………………………………………………………..6 PESTL Analysis………………………………………………………………………………...7 i) Political factor analysis……………………………………………………………..7 ii) Economic factor analysis……………………………………………………………8 iii) Social factor analysis………………………………………………………………...8 iv) Technological factor analysis………………………………………………………..9 v) Environmental factor analysis………………………………………………………..9 vi) Legal factor analysis…………………………………………………………………10 Strategies used by Apple…………………………………………………………………………10 i) Diversification…..……………………………………………………………………10 ii) Research and Development…………………………………………………………..11 1. Brand positioning strategy………………………………………………………12 2. Product positioning strategy……………………………………………………..13 3. Pricing strategy…………………………………………………………………..14 Key Principles of Change Management needed by an organization……………………………14 1. Effective leadership……………………………………………………………..15 2. Effective Management…………………………………………………………..15 3. Stakeholder, Ethics and......

Words: 3899 - Pages: 16

Premium Essay

Apple Inc Strategic Recommendations for the Future

...Apple Inc Strategic Recommendations for the Future Apple Inc is a globally respected business organisation and is an acknowledged pioneer in its areas of operations in the technology sector. Primarily a manufacturer and marketer of personal computers and peripherals, software and networking solutions, the company’s product line includes the Macintosh range of desktop and notebook PCs, the Mac OS X operating system, the IPod digital music player, the ITunes music store, the IPhone, the IPad tablet, the X Serve G5 servers and X Serve storage products (Apple Computer Inc, 2011, p 1). The company sells its products through its chain of retail stores, third party wholesalers and online channels. The company’s main markets are in the Americas, Europe, the Middle East, Japan and South East Asia. It also has a growing presence in China and India (Apple Computer Inc, 2011, p 2). Apple’s vision statement is elaborated as “man is the creator of change in this world. As such he should be above systems and structures and not subordinate to them”. The company’s mission statement is as under: “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”. (Masi, 2009, p 2) 2. External Analysis 2.1. Environmental Analysis Apple Inc is one of the largest of global corporations in terms of market capitalisation and has important......

Words: 2916 - Pages: 12

Premium Essay

Enviornmental Scan

...with a multinational approach to get a competitive advantage over others in the global environment. Competitive analysis is an important component in environmental scanning. In this paper, the internal and external environments of three popular companies will be studied and contrast the ways in which companies analyze their internal as well as external environment and the strategies formed accordingly to get a competitive edge over others. Three popular companies selected in this paper are Coca Cola, Proctor, and Gamble (P&G), and Apple Inc. All three organizations are related to different industries and carry out different businesses. The competitive strategies and their measurement guidelines will evaluate their internal and external environmental perspective. Determine what competitive advantages each company has and what strategies each company is using. Coca Cola Company is known in the beverage industry, P&D is known in the consumer product industry and Apple Inc. is known for their technology. All three organizations are one of the top market giants in their respective industries and have competitive advantage over other firms in their relevant industries. Coca Cola strongest competitive rival in beverage industry is Pepsi. Both have competing efficiently in the market; however, Coca Cola has many competitive edges over others. Because of a competitive environment, Coca Cola has invested a large amount of effective competitive strategies in......

Words: 1255 - Pages: 6

Free Essay

Miss.Lin

...|Student Registration Number |: |1 | | | |5 | | | |0 | | | |1 | | | |3 | | | |3 | | | |1 | | | |1 | | | |7 | | | | ...

Words: 3602 - Pages: 15

Premium Essay

External and Internal Environmental Analysis

...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 help to......

Words: 1454 - Pages: 6

Premium Essay

Curency War Between Us and Chiina

...Powerpoint [pic][pic] Marketing Teacher: Home / The Marketing Environment The Marketing Environment [pic][pic][pic][pic][pic][pic][pic][pic] [pic][pic][pic][pic]The Marketing Environment What is the marketing environment? The marketing environment surrounds and impacts upon the organization. There are three key perspectives on the marketing environment, namely the 'macro-environment,' the 'micro-environment' and the 'internal environment'. [pic][pic][pic][pic][pic] The micro-environment This environment influences the organization directly. It includes suppliers that deal directly or indirectly, consumers and customers, and other local stakeholders. Micro tends to suggest small, but this can be misleading. In this context, micro describes the relationship between firms and the driving forces that control this relationship. It is a more local relationship, and the firm may exercise a degree of influence. The macro-environment This includes all factors that can influence and organization, but that are out of their direct control. A company does not generally influence any laws (although it is accepted that they could lobby or be part of a trade organization). It is continuously changing, and the company needs to be flexible to adapt. There may be aggressive competition and rivalry in a market. Globalization means that there is always the threat of substitute products and new entrants. The wider environment is also ever changing, and the marketer......

Words: 10461 - Pages: 42