Professional Documents
Culture Documents
CLASS – MMS
ROLL NO – 105
SUBJECT – STRATEGIC MANAGEMENT
CASE STUDY
APPLE Inc
D. SWOT APPLE
Strengths –
Market Share - Apple, Global Tech Giant, Growth and captured market in a very short span,
Market Share holding highest market share of 1.8 Billion devices in use in 2022.
Technology - Apple is highly advanced technologically compared to their competition,
Airdorp, Sire are the prominent features attracting consumers
Invention - Good quality camera in a mobile phone is initiated by Apple products, later it
was adopted by competitors, these kind of advancement in technology gives them upper
edge than competition
Diverse product range - Apple’s diverse product range filling market gaps in recent years and
they really worked on various product ranges as per user needs and wants
Initially the products were only computer related, later they diversified into iPods, iPhones,
Macbooks, Desktops, Smart watches, TV etc. Addition to this they have a wide product
range of electronic accessories like headphones, mobile cases etc.
Service - Apple after sales service is very efficient, their 19% revenue is generated from
Service vertical, Apple care, Apple Card, Apple TV+ etc are the products contributing to it
Design & Quality – Classy product design, e.g. iPhones simple structurs with no make over
but always carry grace and became a Status & Class
Uncompromised Quality of product – Major part of consumers don’t want to compromise
on Quality, SO Apple focused on High-Quality, Modern – Innovative techniques reduced
major share of customer complaints
Customer loyalty – They have a loyal customer base, They are known as “Once an Apple
user, Always an apple user” which is a correct statement in most of the cases. Apple users
don’t easily switch from this brand dur to privacy features to great extent makind users
more secured.
Weaknesses -
No company is perfect in the competitive world, they don’t do digital advertising and
marketing, less spend on advertising, no TV Ads compared to Samsung yet they manage
record sales every year
If they do Digital and Social media advertising, they will generate more revenues.
Limited designs in phones category, appearances, sizes, thickness, lack of variety
Very high inflated prices of their products, becomes unaffordable,
Tracking exact location of users is a allegation on Apple products, resulted in bad publicity.
Compatibility only with their software, Once bought apple product need to create Apple id.
Once that id is made, device only work through that Apple id. Not compatible with other
software is inconvenience to users.
Heavy reliance on iPhone product range for revenue generation, this can result ins serious
trouble for some reason
Opportunities -
Developing AI (Artificial Intelligence) new wave of AI, they can benefit from AI to make their
products more user-friendly, Also producing Eco-Friendly products for positive image of the
company
Use of virtual reality for marketing purposes,
Dependence on technology may provide opportunity to expand customer base,
Threats -
Present Russia-Ukraine War impact globally – It will incur losses in major customer base in
Russia, Ukraine also other part of the world,
US tariffs on China will increase apple’s production cost
Increasing Competition from Google, Huawei, Samsung giving tough time with their
Advanced Tech products, so they need to strive hard for maintaining leadership in
challenging scenario.
Rapid Technological change making existing Tech outdated, to maintain the position in
market, to adopt new technologies
Pandemic caused them huge losses in stock value due to delays in launch of new series
2. Summarise apple product segments and suggest where it can pursue growth
ANS - Apple’s diversified product segments are Inventive, High-Tech having a good global
market share, Due to Sales, Service, Design, Quality and loyal customer base.
To pursue the growth they need to do digital and social media advertising, changing designs
as per market trends, with affordable pricing, offering customer safety and security
They need to develop AI (Artificial Intelligence) & Virtual reality as a new wave of AI, User
friendly products,
They should get ready for the challenges from competition like google, Samsung, Huawei
advanced tech products to maintain leadership
By Adopting to new technology, staying updated of socio-political and economically updated
they can pursue growth
Also they can introduce affordable priced products for global customers. Be pandemic ready
will help them to retain the leadership position.
3. Identify top challenges that Tim Cook faces and he should address them
ANS - Tim cook taken over in August 2011 as a CEO, His style is democratic, compared to Mr
Steve Job’s autocratic. He lacked visionary style of Mr. Job. He has slower decision making,
he also lacks micromanagement skills.
He has faced manpower issues, Some he hired / recruited and some he fired swiftly
Apple stock prices dropped to Half, Grilled in congress for tax saving strategies, ugly legal
fight with shareholders.
Apple identity remains constant and maintain apple persona for outside world
ANS- Google
• Internet, Mobile opportunities were lost in recent years but Cloud computing
paradigm can be an opportunity for them, this can gain them leadership position
again
• Satya Nadella, CEO is in line with aggressive push towards Cloud computing as a
game changer for them, he can ride over the challenges and get success in next wave
• Having huge cash hoard, so they can still grow inorganically through Acquisitions of
smaller competitors
• Misreading internet in early stage, Hotmail gave some edge for few years before
Google personal email products.
Amazon
Diversification into new segments by maintaining consistent focus on core competencies
Zero margin business need to move towards revenue making business
Amazon online payment system (UPI) platform has a strong opportunity to scale up and
grow basis Security & Privacy in place, offering Own payment gateway
Instead of being third party products forwarding site, they need to roll our products under
their own brand to capitalize the markets,
Improving inventory management for millions of products, Stock pile up, can make them
strong and comfortable to enhance the revenues.
Opening more sites to cater the global market which will give them leading edge over
competitors
Apple
Developing AI (Artificial Intelligence) new wave of AI
By offering products more user-friendly, Also producing Eco-Friendly products for positive
image of the company
Use of virtual reality for marketing purposes,
Dependence on technology may provide opportunity to expand customer base,