Case: Apple Inc

Case Background
Apple Inc. began its humble beginning by designing and selling personal computers, consumer
electronics and computer software. The iPod, iPad, Macintosh range of personal computers and
iPhone’s are among the company’s popular products. There are also a number of software Apple
produces such as iTune, media browser, video and music production known as Final cut studio,
Mac X operating system, professional photography software known as Aperture, music
production called Logic studio, among others. Apple also known globally as third biggest
handset production company. The corporation is the largest information technology company in
terms of its revenue. Established in 14 states with over 400 retail stores as it also has online
stores for music and software application for its devices. With market capitalization of US547.20
billion as of May 2014, the corporation is the biggest publicly traded company in the world as
reported by Reuters in 2014. Apple’s success is due to its dynamic and constant evolving
business strategic plans that it undertook. Apple’s management ability to change the company’s
business plan has resulted in the introduction of many different products. Beginning with Final
Cut Pro release, Apple went on to experiment with music players (mp3), iPhones and iPads. In
addition, Apple has few information technology companies that have created their own retail
shops that proved to be a big turning point for the corporation. This initiative of establishing its
own retail outlets was commenced when Apple realized that conventional retail outlets are not
providing the deserved returns. This move has given Apple the needed push in succeeding in the
mobile industry. Beside this, Apple has established businesses in many parts of Africa, and Asia.
This has consequently created new employment opportunities for developers of iPhone
application in those continents. Additionally, the corporation has hired individuals from diverse
fields, for instance employed artists, historians, musicians among others which enabled the
company to acquire an unique and different perspective from such individuals. In 2014, Apple
ventured into different areas in order to spur growth.

Vision and Mission Statement

Vision
Our company is dedicated to put a smile on customers face by providing them high end
products with great quality, customer service and unique products services all the time.
Mission
To create a better everyday life for the many people all over the world by providing high-
quality standard of products, innovative software, elegant designs and give excellent
service to all people around the world.

SWOT Analysis
Strengths
i. Leading innovators among electronics
brands
ii. Terrific sales growth with each passing year
iii. High brand recognition
iv. Strong and effective marketing team
v. High-quality customer experience
Weaknesses
i. High price
ii. Unsuccessful anticipation
iii. Incompatibility of different OS
iv. Apple iPhone market shares are declining
due to defect in its new product
v. Over dependence on iPad and iPhone
Opportunities
i. High demand of products
ii. Growth in communication devices market
iii. A vast unexplored market in
Commonwealth countries
iv. Increased Cloud-based services
Threats
i. The evolving environment of electronic
communication
ii. Reputation damage due to tax scandal
iii. Infringement of intellectual property (IP)
rights
iv. Android OS growth
IFE (Internal Factor Evaluation) of Apple Inc.
The IFE Matrix result of 2.97 suggests that Apple is responding above average to
the internal environment for maximising its strengths and to overcome weakness.
EFE (External Factor Evaluation) of Apple Inc
The EFE Matrix result of 3.04 suggests that Apple is responding above average to the
environment for exploiting opportunities and to overcome threats.

Interpretation of Analysis
After assessing all the factors in SWOT,,IFE,EFE analysis, it can be seen that Apple has more
opportunities and strengths compared to threats and weaknesses. Given the company’s current
leadership in the industry, Apple is in a position to enjoy these opportunities. But the company
should devise few strategies to address effectively the threats and weaknesses that it recently
developed or has chances of developing.

Recommendations
After reviewing the above analysis, it is clear that Apple has strengths in its capabilities and
resources. It also has a highly talented design teams, many patents, gifted design engineers and
an innovation driven approach.

the company operates within an industry subject to rapid changes as key competitors are
constantly introducing new and innovative products that integrate new designs and technology.
In order for Apple to grow and compete effectively in the next three years, the following
strategies based on the key findings of the analysis 28 must be included and implemented in its
strategic plan. Some of the areas in the analysis that must be addressed include Apple’s
competitors, infringement of its IP, decreasing market share and the company’s weakening
reputation and image due to legal suits and tarnishing publicity.

Conclusion
Ideologically as seen in the findings above, we can summarize that Apple Inc. is an operating
system and user interface company first, hardware company second. Apple hardware is simply a
vehicle for delivering its other creations like user interfaces, apps and services. Together these
components forms a power rich cross platform experiences that allow Apple users to keep their
myriad devices in sync and up to date while meeting and exceeding the lifestyle of the upper
class.