GROUP 1

APPLE INC.
Think different.
 Problem & Solution

Executive Summary

Brief History

AGENDA Industry Analysis

Company Analysis
“Details matter, it’s worth
waiting to get it right.”
Co-Founder Steve Jobs Alternatives

Implementation
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 PROBLEM:
NOTE: Apple Inc. is arguably the most successful
company ever in many respects. But there are major
financial risks with being the premier “first mover”
in any industry. Rival firms across the globe are
getting better and better at quickly duplicating
successful Apple products and offering those newly
enhanced products at lower prices.

PROBLEM STATEMENT:

❑With this, how will Apple Inc. maintain its

competitive standing in the industry knowing
that other companies copy its product and
features and sell them at much lower prices?
 SOLUTION:
❑ Our group recommends Apple Inc. to integrate the Direct
Sales Approach into its system

❑ To open more physical stores around the globe

❑ To enhance their marketing strategies specially on

digital world

❑ To create fresh policies and programs for each distant

market as it enters new international marketplaces.

❑ To prevent the leakage of confidential information, we

proposed that Apple Inc. impose striker rules and
policies among its employees.

❑ To focus on hiring experienced and knowledgeable

personnel who provide product ideas, advice, service
and training
❑ BUSINESS INDUSTRY
EXECUTIVE SUMMARY
* Computer Hardware in Technology Sector
❑ VISION
* Apple is committed to bringing the best personal computing experience to students, educators,
creative professionals and consumers around the globe through its innovative hardware, software and
internet offerings.
❑ MISSION
* Apple is committed to protecting the environment, health and safety of their employees, customers
and global communities where they operate.
❑ MANAGEMENT
• * Led by Tim Cook (CEO)
❑ MARKETING
* Apple invest in marketing and promotional campaigns using direct mails, print media, TV
commercial, internet advertising, product placement and social networking websites.
❑ FINANCIAL PERFORMANCE
* Apple’s revenue increase by 52% and net income by 70% and has no long term debt in 2010-2011
*Apple generated sales more from Americas but generates greater profits from Europe.
❑ PRODUCT PERFORMANCE
* Apple reports results that the product that had the highest increase in sales was Iphone by 93%
and 38% of the total sales was derived from it and other related portable products
❑ COMPETITORS
* Apple’s competitors were Dell, Microsoft Corp. & HP
 Apple Inc.
(Brief History)

Apple Inc. is a multinational corporation that is established on April 1, 1976 in

California and incorporated on January 3, 1977 by Steve Jobs and Steve Wozniak,
who brought to the new company a vision of changing the way people viewed
computers. The company for 30 years was named as Apple Computer, Inc. but it
changed its name to Apple Inc. on January 9, 2007 since they wanted to expand
their market not only as consumer’s computer market but as consumer’s electronics
market. Jobs and Wozniak started out building the Apple I in Jobs' garage and sold
them without a monitor, keyboard, or casing (which they decided to add on in
1977). The Apple II revolutionized the computer industry with the introduction of
the first-ever color graphics. Sales jumped from $7.8 million in 1978 to $117
million in 1980, the year Apple went public.
 Apple designs, manufactures, and markets a range of computer software, hardware
products and personal computers such as the following:

Mac Hardware Products iPad Operational System

Software iPod iPhone

Displays and Apple TV Application Software iTunes

Peripheral Products
 Industry Analysis
Highlight trends in the Industry that pressure
the company in question.

• Redoubling digital transformation effort

• Reexamining where and how manufacturing happens

What created the Challenge you’re solving?

• Facing new pressures and constraints- One of the biggest

digital transformation challenges is a lack of well-defined
goals. The apple company are working to improve their agility
and flexibility, increase automation and move to real time
operations.
• The disruption made by the COVID-19 Pandemic- COVID-19
pandemic has laid bare vulnerabilities in many technology
companies' supply network like Apple Industry. Apple Inc.
continue exploring and look in improving their transparency,
flexibility, and resiliency while reducing the environmental
impact.
 What are disrupting or sustaining the industry.

Apple Inc. utilizes both disruptive and sustaining innovation

through producing net new products and services, while also
constantly improving upon and updating their existing ones.

Apple Inc. releases new phones which have incremental improvements

and often incorporating new technologies.
 PEST Analysis
Political Factors
This aspect of the PEST analysis model indicates the
influence of governments and related organizations on
businesses.

1.Improving free trade policies

2.Stable politics in developed countries
3.Trade disputes, especially between the U.S. and China

Apple can improve its performance by taking advantage

of political opportunities in its remote or macro-
environment, although caution is needed to ensure
stability despite trade disputes.
 PEST Analysis
Economic Factors

This aspect of the PEST analysis model indicates market and

industry conditions that impact firms.

1. Stable economies of developed countries

2. Rapid growth of developing countries
3. Increasing disposable incomes among target customers

Speed and effectiveness are critical in Apple Inc.’s growth

and expansion efforts because competitors also target these
same economic opportunities.
 PEST Analysis

Social/Sociocultural Factors

This aspect of the PEST analysis model points to the

social external factors that influence consumer behaviors
and expectations.

1. Rising use of mobile access

2. Increasing dependence on digital systems
3. International anti-Apple sentiments

These strategic concerns require that the company

continue improving its policies and practices, as well as
its approaches to technological innovation.
 PEST Analysis

Technological Factors
In this aspect of the PEST analysis framework, current
technologies and technological trends are evaluated based
on their effect on business conditions.

1. Growing cloud computing demand

2. Increasing technological integration in businesses
3. Growing mobile market
4. Growing technological capabilities of other firms
Porter’s Five Forces
 Porter’s Generic Strategies of
Apple Inc.
Broad Differentation Focused Differentation

Products are attractively Innovative products tailored

different from competitors and towards certain customer
cater towards a wide range of segments
customers
 KEY ISSUES OR
DECISION CRITERIA
• EFFECT OF GOVERNMENT REGULATIONS

Both local and global government regulations have influenced Apple’s

decisions and operational capabilities, especially in foreign markets.
Apple Inc. adopts a proactive strategy to practice sustainable business
activities. This approach has led to additional costs that are not
proportional to the productivity and profitability of the business.
However, abstinence from environmentally friendly production might lead
to censorship and probably termination of Apple’s operations by policy
regulators in some countries.

• PRODUCTION FUNCTION INPUTS

Apple’s operations are capital and labor intensive. Additionally, land

and associated natural resources also form crucial inputs for the
overall performance of the giant computer and telecommunication
multinational. The company subcontracts other mobile technology
companies, especially in China, to assemble and package some of its
product components to reduce the overall operational expenditures on
labor and space.
 APPLE’S COMPETITIVE ENVIRONMENT

Apple’s business faces international pricing forces that have

accompanied increased hardware and software competition.
Interminable advanced use of technology has profoundly condensed
product life as new-fangled technologies emerge even before the
exhaustion of the existing ones. This circumstance has led to
product transition challenges and indeterminate inflation of
component costs. The overall effect has resulted in competitive
pressures in product design, production, distribution channels, and
market share. Although Apple has made significant attempts to
guarantee product design and quality, many consumers have criticized
its competitively high prices. Aggressive exchange rates in the
international market have hindered the multinational company from
gaining a competitive advantage over its competitors such as Dell,
Hewlett-Packard, Xerox, NCR and IBM.
 --3 OPTIONS--
ALTERNATIVE COURSES
OF ACTION (ACA)
1. Launch new products with comparatively low
prices

2. Improve company’s competency which is more

focused on cutting the cost factor.

3. Leverage the unexploited business market of

the developing countries.
 KEY ISSUES RELATED SOLUTIONS

Effect of Government Apple Inc. should choose to comply with government regulations in
Regulations both local and global business localities to curtail risks and
future uncertainties.

By cutting the cost factor, it will provide potential access to a

Production Function Inputs wide variety of markets like Class C and Class D to Apple Inc.

Unnecessary expenses may be eliminated while increasing

efficiencies and streamlining the process.

Apple’s Competitive Boost the company’s platform to enable more people build business
Environment around Apple culture by launching multiple new products every
year.
The firm could improve its website and its associated elements.
Apple Inc. could also invest a lot in dealing with the customers
through online platforms. This will both improve the customer base
and even the brand image of the company.
Be customer-centric.
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