Apple

inc.
A Research Study in Apple
Company.

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 I. Company Background

• Apple Computer Inc.

• Founded on April 1, 1976

• American multinational technology company

Steve Jobs and Steve Wozniak

MISSION
“To bring the best personal computing products and
support to students, educators, designers, scientists,
engineers, businesspersons, and consumers in over 140
countries around the world.”

VISION
“To make the best products on earth, and to leave the
world better than we found it.”

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 I. Company Background

OBJECTIVES ORGANIZATIONAL POLICIES

• To expand their sales to customers who have not yet own any • To conserve the environment and protects the safety and health
Apple’s products. of their employees.

• To produce hassle free products that provides service and • To not tolerate any violence in the workplace.
enjoyment for customers.

• Become the leading business in the mobile market

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 I. Company Background
In April 28, 2021, Apple announced financial results for
its fiscal 2021 second quarter ended March 27, 2021.
• The dividend is payable on May 13, 2021 to shareholders of
• March quarter record revenue of $89.6 billion, up 54 percent record as of the close of business on May 10, 2021.
year over year, and quarterly earnings per diluted share of $1.40.
• The board of directors has also authorized an increase of $90
• International sales accounted for 67 percent of the quarter’s billion to the existing share repurchase program.
revenue.

• A
‌ pple’s board of directors has declared a cash dividend of $0.22
per share of the Company’s common stock, an increase of 7
percent.
‌

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II. External Environment
1. Supplier Power 3. Competitive Rivalry
- suppliers have a weak bargaining power. - Apple faces a strong competitive rivalry force or strong
competition.
• Foxconn
• Wistron
• Pegatron
• Goertrek
• Luxshare

2. Buyer's Power
-Apple individual bargaining power is a weak force.

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II. External Environment
Threat of Substitute Threat of New Entrants

A few substitutes to Apple items are promptly The danger of new entrant to the commercial
accessible on the Market. center that could truly undermine Apple's
piece of the pie is generally low.

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III. Internal Environment
Apple’s primary competencies include important products, strong financial performances, and
innovation in mobile technology, robust marketing strategies, and quality customer service. It superior
capabilities include the capabilities to introduce new product lines with the use of the large assets base it
has and therefore ensures success in all the fields it engages in using these attributes of the company, the
company can benefit by introducing a new line of products such as health devices that would help from
the important products of the company, therefore, gaining prominence in the already available market.

• Marketing • Finance • Operation

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IV. Corporate Level Strategies
Stability Strategy
Growth Strategy
• The close-related diversification of Apple's products at
• Apple plans to engage a single company to provide moderate and high levels.
operating systems and hardware for its products.
Retrenchment strategy
• Apple's internationalization of production.
• Apple's main turnaround strategy is to rebuild the
• Apple create strategic alliances to take advantage of company around a profitable core business.
economies of scale, gain access to competitor expertise,
and share risks and costs.

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 V. Analysis of Strategic Factors
STRENGTHS OPPORTUNITIES

S O
• Globally Iconic
• Consistent Customer Growth
• Brand Identity
• Expansive Distribution Network
• Top Technology • Utilize Artificial intelligence
• Sustainability made Possible through Liam • Deliver Self-Driving Software Technology
• High profit margins

W T
WEAKNESSES THREATS
• High Price Product • Apple Bullied By Counterfeits
• Limited advertisement & promotions • Increasing Competition
• Entering into area of non-competency • Market Penetration
• Incompatibility With Other Software • China Tariffs
• Short Product Life • Tax scandals

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VI. Strategic Alternatives and Recommended Strategy
A. Directional Strategy
Stability Strategy Retrenchment Strategy
Growth Strategy
• Advantages • Advantages
• Advantages
— It's provide a performance satisfaction — Having a reduction costs within
— Small business could attain the bigger
— Having a least risks organization
entity into industries
— It's non-environmental analyses — Improvement of Efficiency
— Obtained a greater competitive advantage
— It is focal on regular work — Enhancement of the competitiveness
through size, more and etc.
• Disadvantages — Decreasing reliance on the Market
— Having a sustainable in the market.
— It has not useful to the Big Scale — Creating a strategy to surpass the
— Having four (4) effective growth strategy
Industries economic downturn
such as market penetration, market
— Inappropriate in Long Run • Disadvantages
development, product development and
— Lacking of Innovation — Less workforce
diversification.
— Having no changes in process — Decreasing of the productivity and
• Disadvantages
inability to attain the satisfaction of
— Having a economies of scale
customer demand
— Had a concentration of power
— Having a reduction in profits
— Enhancement of joint stock companies
— Having a growth decline
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VI. Strategic Alternatives and Recommended Strategy
B. Recommendation

Growth Strategies

The Apple's Incorporation has a intensive growth

Ansoff Matrix

• Product Development. Enhancement or

• Market Penetration. Company attempts to grow using

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VII. Management Lessons Learned
• The operations of Apple Inc. are organized geographically.

• The rationale behind Apple’s reorganization, focusing on the offshoring and outsourcing

• Apple Inc. relies on a structure that centers on functional expertise.

• Apple’s main target market :

- Middle to upper class people.

• Apple is in direct competition with other hardware and software suppliers such as Google, Microsoft
and Samsung.
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 VIII. Bibliography
Ferguson E. (2019) “Apple Inc. Five Forces Analysis (Porter’s Model)”Retrieved from http://panmore.com/apple-inc-five-forces-analysis-porters-model-case-study

Katzaman, Jim (2018) “Growth strategies build a competitive advantage” Retrieved from https://www.medium.datadriveninvestor.com/growth-strategies-build-competitive-advantage- Maverick J.B

(2019)“Analyzing Porter's 5 Forces on Apple (AAPL)” Retrieved from https://www.investopedia.com/articles/investing/111015/analyzing-porters-five-forces-apple.

Meyer, Pauline (2019) “Apple Inc.'s Generic Strategy & Intensive Growth Strategies” Retrieved from https://www.panmore.com/apple-inc-generic-strategy-intensive-growth-strategies Newsroom

(2021) “Apple Reports Second Quarter” Retrieved from Resultshttps://www.apple.com/newsroom/2021/04/apple-reports-second-quarter-results/

Panda I. (2019) “Business-Level and Corporate-Level Strategies in Apple” Retrieved from https://ivypanda.com/essays/business-level-and-corporate-level-strategies-in-apple/

Tanuja, A. (N.D) “External Growth Strategy: Causes, Metris and Limitations” Retrieved from https://www.businessmanagementideas.com/management/growth-strategies/external-growth- strategy-causes-

merits-and-limitations/4803

The keep it simple (2020) “Stability Strategy in Strategic Management - Meaning Reasons Example” Retrieved from https://www.thekeepitsimple.com/stability-in-strategic-management/ Visionary Team

(2021) “Apple Inc: Mission & Vision Statement Analysis 2021” Retrieved from https://visionarybusinessperson.com/apple-inc-mission-statement-vision-statement/

Writer, Staff (2020) “What are the Advantages and Disadvantages of Retrenchment” Retrieved from. https://www.reference.com/business-finance/advantages-disadvantages-retrenchement-

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