HISTORY

Founded in 1976 by Steve Jobs and Steve Wozniak, Apple began as a personal computer
company providing desktop computers for businesses and the home. The first computer, the
Apple 1, was hand built by Wozniak and did not come with a keyboard or an outer case to
protect the computer. The products were considered a kit, and users had to supply extra parts
themselves.
The Apple 1 sold for the interesting price of $666.66, or around $2,800 adjusted for inflation.
Apple was incorporated in 1977 after Wozniak sold his share for $800. The Apple II was first
sold in 1977 and had the first major piece of business software, VisiCalc, a spreadsheet product.
Apple went public in 1980 for $22 a share and generated more money on its IPO than any
firm since Ford Motor Company 25 years earlier. Following a dispute with the Board, Steve
Jobs resigned from Apple in 1985 and started a new firm. With Jobs unaffiliated with Apple
for the next 15 years, Apple experimented with various other products, including CD players,
digital cameras, speakers, and others. Throughout the 1990s, Apple experimented with several
different product lines of personal computers, with limited success. Apple’s products were
generally significantly more expensive than that of competitors, not compatible with much of
the leading software or with the more popular Windows machines, and also were not able to
multitask as well as Windows-based machines.
By 1996, Apple was struggling immensely and the firm acquired Steve Jobs’ firm, NeXT.
After the Board fired the existing CEO in 1997, Jobs was back, acting as interim CEO of Apple.
In the same year, Jobs identified Jonathan I have, and the two started working to rebuild
Apple’s products and brand name. I have is currently the Senior VP of Design. After several
Mac upgrades and new software products such as iMovie, in 2001, Apple introduced the iPod
and the firm sold 100 million units in 6 years. The year 2003 brought about the iTunes store,
which synced $0.99 downloads to iPods and remains an industry leader. Apple launched the
iPhone in 2008 and the iPad in 2010. In 2011, Steve Jobs passed away and current CEO Tim
Cook now leads Apple.

GLOBAL MARKET SHARE OF LAPTOPS

We can see that the report above shows a decline of 2.5% units shipment of the laptops and
desktop of apple computers in quarter 1 of 2019. It’s market share is 6.6% when we compare
this to the market leader which is HP Inc. it is 14.1% less. The market share data is for quarter
1 of 2018.

CURRENT BUSINESS STRATEGY

 Apple’s Generic Strategy (Porter’s Model) & Objectives:-
Apple Inc.’s generic strategy is broad differentiation. This generic strategy focuses on key
features that differentiate the company and its information technology products from
competitors. Through the broad differentiation generic strategy, Apple stands out in the market.
For example, elegant design and user-friendliness of products, combined with high-end
branding, effectively differentiate the technology business. This generic strategy means that
Apple always aims to set itself apart from competitors not by price but by competitive
advantages based on product design that attracts customers. Such design includes seamless
connectivity among devices and cutting-edge aesthetics. Even though this generic strategy
makes Apple different, the company still broadly reaches various segments of the market. The
firm’s products are designed for everyone, thereby supporting a broad market reach. For
example, Apple targets individuals and business organizations through the MacBook product
line. In this way, the generic strategy of broad differentiation supports the company in
maintaining its competitive advantage, leadership, and position as a high-end and high-value
technology business.

The broad differentiation generic strategy has significant implications on Apple’s strategic
objectives. For example, to apply this strategy, the company must continue emphasizing
innovation through research and development. Apple must keep developing innovative
products so that the business maintains its competitive advantage. Competitors eventually catch
up with new technologies and new products, so the broad differentiation generic strategy
compels the company to continuously innovate to keep itself always ahead of the competition.
Thus, continuous innovation is one of Apple’s strategic objectives based on the broad
differentiation generic competitive strategy. In addition, to maintain business growth, the
company must keep growing its market reach, such as in the global consumer electronics
market. In its generic strategy for competitive advantage, Apple does not focus on any specific
market segment. Instead, the company competes by selling various goods and services that suit
the various segments of the consumer electronics and information technology services
industries. Thus, another of Apple’s strategic objectives based on its generic strategy is to
penetrate markets to ensure a broad reach. Such expansion and business growth are achieved
through intensive strategies for growth.

 Apple’s Intensive Growth Strategies (Ansoff Matrix):-

Product Development. Apple uses product development as its main intensive strategy for
growth. Product development requires that the company develop attractive and profitable
technology products to grow its market share and business performance. Apple implements
this intensive growth strategy through innovation in its research and development processes.
Through product development, the company uses innovation as a critical success factor and
competitive advantage. For example, the business continues to innovate products like the
iPhone, iPad, and Apple Watch. In this intensive growth strategy, the company grows because
new products allow the business to generate more revenues, such as through the sale of new
iPhone models. The company’s generic strategy agrees with this intensive growth strategy by
focusing on technological innovation to increase competitive advantage and profits. Apple
Inc.’s organizational structure supports this growth strategy. The structure’s product-based
divisions enable strategic management specific to product development. Also, Apple Inc.’s
organizational culture emphasizes innovation that supports product development.

 Market Penetration:-
Apple Inc. uses market penetration as its second most significant intensive strategy for growth.
Market penetration involves gaining a larger share of the current market by selling more of the
company’s current products. For example, Apple applies this growth strategy by selling more
iPhones and iPads to its current markets in North America. Also, the company achieves more
sales by adding more authorized sellers to boost competitive advantages in its current markets.
This approach penetrates markets where Apple has not yet achieved a significant position. In
relation, under the market penetration intensive growth strategy, the company uses promotion
through various websites and media outlets. Advertisements encourage more people to buy
Apple products. This intensive growth strategy agrees with the company’s broad differentiation
generic strategy by addressing the need to broadly capture the market through the sale of more
technological products to more customers. Apple Inc.’s marketing mix or 4P influences the
effectiveness of the organization’s competitive advantage and this intensive growth strategy.

 Market Development:-
Apple uses market development as a low-priority intensive strategy for growth. Using the
company’s competitive advantages, market development involves selling existing products in
new markets. For example, Apple Inc. applies this intensive growth strategy by authorizing
new sellers in markets where the company does not have any presence yet. This growth strategy
agrees with the generic strategy of broad differentiation by expanding the company’s market
reach, such as by introducing its current consumer electronics to new overseas markets. This
generic strategy for competitive advantage also requires offering products to different market
segments, which Apple satisfies via market development. Through its various product models
of consumer electronics and other goods and services, the company fulfils this strategic
requirement. In relation, the business strengths discussed in the SWOT analysis of Apple Inc.
facilitate the implementation of market development.

CONCLUSION
 Strategic Analysis and Recommendations for Apple Inc.:-
Apple’s generic strategy of broad differentiation adds competitive advantage by making the
business stand out. Differentiation in product function and design supports the firm’s goal of
leading the market through technological innovation. Innovation is at the heart of Apple Inc.’s
business. However, to improve its application of this generic strategy for competitive
advantage, the company must aggressively penetrate markets. This recommendation is
especially applicable in developing countries where the corporation has limited market reach
for its information technology goods and services.

 Apple Inc.’s main intensive growth strategy is product development.:-

Market penetration and market development have lower priority in this technology enterprise.
These intensive growth strategies agree with and support Apple’s generic strategy. The
company is strong in product development through innovation. However, to improve
performance, Apple needs to emphasize more on market penetration and market development.
These two intensive growth strategies can improve the company’s resilience against aggressive
competitors like Samsung. Also, Apple Inc.’s operations management can optimize the
effectiveness of these growth strategies and the broad differentiation generic strategy for
competitive advantage.
HISTORY
MSI's five founders Joseph Hsu, Jeans Huang, Frank Lin, Kenny Yu and Henry Lu all worked
for electronics company Sony before establishing MSI. Sony's corporate downsizing in 1985
brought them together. With the engineering background working for Sony, they established
Micro Star International together in August 1986. In 1997, MSI inaugurated its Plant I in Jung-
He city; in 2000, it inaugurated its Plant III in Jung-He city. In 1998, it became a public
company with an IPO (Initial Public Offering) on the Taipei Stock Exchange (TAIEX). In
2000, MSI Computer (Shenzhen) Co., Ltd. was founded, and in 2001, MSI Electronics
(Kunshan) Co., Ltd. In 2002, MSI set up its European logistics center in the Netherlands.
In 2008, MSI was ranked among the Top 20 Taiwan Global Brands. In 2011, the firm was
named one of the Top 100 Taiwan Brands, distinguished among 500 brands. By 2013, MSI has
been awarded from Taiwan Excellence for 15 consecutive years. In 2015, MSI was ranked the
fourth-best laptop brand of 2015 by Laptop magazine. According to research, MSI was the
largest gaming laptop supplier worldwide in 2016.
MSI launched "Join the Dragon" team sponsorship program in April 2017 to discover talented
eSports teams. Also in April 2017, MSI names certified partners for the creation of an RGB
ecosystem with MSI Mystic Light Sync which includes CORSAIR, SteelSeries, G.SKILL,
Cooler Master, in Win, Phanteks and others. Mustek and MSI sign laptop distribution deal in
2017.
ESL has partnered with MSI for upcoming ESL One events in 2018. MSI was the official
partner of ESL One Cologne 2018, one of the biggest events on the CS:GO calendar.
In August 2018, MSI was rated the Best Gaming Laptop Brand of 2018 by Laptop Mag. New
designs of its GS65 Stealth Thin and GE63 Raider RGB laptops earned the company a stellar
84 out of 100 and put it on the top spot.
In April 2019, MSI was rated the worst in customer service compared to other laptop brands
by Laptop Mag. The magazine noted that while MSI's web and social support haven't improved
the company's phone support has gone downhill.

MSI INCOME STATEMENT

The revenue for company in 2018 was 118,527.27 million TWD. It had a profit margin of
5.10% in the same year. The net income generated was 6041.13 million TWD.
CURRENT BUSINESS STRATEGY
 Micro-Star is an old company which has famous and well-reputed brand name. It has
skilled workers and highly qualified leaders who understands the market. This has an
added advantage of loyalty from consumers.
 Product-innovation Strategy:- It has won International Innovations Design and
Engineering Awards in 2012 for its gaming notebook which has contributed to its good
reputation. This has created a high brand value for the company and generated high
level of trust among consumers.
 Its manufacturing plants of Micro-Star are based in Taiwan and Mainland China where
cost of labour is comparatively low as compared to USA or Europe.
 Distribution-innovation Strategy:-MSI has an across-the-board and wide-ranging
sales and distribution network. This enables MSI to cover a huge number of clients all
over the world. Considering all these advantages of MSI, it can be said that company is
in a very good position to catch new opportunities.
 Intensive Advertising and Promotion:-Apart from years of dedication to top-end
gaming hardware, MSI has sponsored more than 20 eSports teams worldwide and is the
host of world-renowned gaming tournament MSI MGA (Masters Gaming Arena). MSI
seizes every opportunity for face-to-face interactions with global gamers and fans.
Gaming is the universal language MSI and gamers share and MSI has tapped this
potential which has further strengthen its brand image.

CONCLUSION
 World is getting more and more digital and people are switching to advanced
computers, laptops, and other electronic devices. MSI is a well reputed brand and it can
fulfil the needs of the customers. If it continues to launch new products which are
according to the needs of clients then business of MSI will surely continue to prosper.
 Gaming industry has become a huge market. A significant portion of products of MSI
is related with gaming industry. As we know, gaming industry is expanding day by day.
If MSI continues to focus on gaming industry then it is most likely that it will grab the
maximum share in gaming industry. Nowadays, new games require highly advanced
pcs, graphic cards and similar accessories. MSI must continue to hold the firm grip in
producing quality products which are required in gaming industry.
 Lack of investment in research and modern technologies is a weakness of MSI. It was
observed that company wasn’t investing much in this area as compare to its
competitors. It is necessary that MSI spends enough in this area which will keep it ahead
of its rivals.
 MSI is facing a problem from tough competitors and narrow market. MSI needs to use
its extensive distribution and sales network to compete with competitors.
 MSI’s need to work on newer technologies and launch more advanced products to
capture the market which comprises consumer with more advance requirement.
 MSI should make full use of friendly tax structure and economical labour to counter
any kind of economic threat in future. These can also help it increase its profit margin.
 The competition in industry is very high and profit margin is very low. MSI needs to
expand its products which will give it an edge over its rivals.
 The most important thing MSI must do is spend more on research. It will help the
company a lot in expanding its business.
REFERENCES
 http://panmore.com/apple-inc-generic-strategy-intensive-growth-strategies
 https://in.msi.com/about/profile/
 https://in.msi.com/about/brand-story/
 https://bohatala.com/micro-star-international-msi-swot-analysis/
 http://www.cta.tech/i3/VisionArchiveList/VisionArchive/2012/January/Innovations-2012-
Design-and-Engineering-Awards.aspx
 https://www.bloomberg.com/quote/2377:TT