Apple Case Study
Executive summary, introduction, measuring capability performance, options, recommendations and implementations, list of references.
Since Apple was established in mid 1970s, its popularity has become immense especially in computer technology industry. Its full potential was realised when it shifted its focus from marketing and promotion of computer products to development of innovative industrial design in modern electronics, unique hardwares, operation system and application softwares and services. It provides customers with new products and solutions that are easy to use and seamless integration.
The relevant competitive models chosen for this assessment includes the Michael Porte’s five forces such as entry of competition, threats to substitutes, bargaining power, power of suppliers and rivalry, SWOT and Industrial analysis as well as micro analysis in order to assess Apple Inc. strategic capabilities and suggest future directions for the business. Apple assessment also analyses the results of a study presented to examine how it utilises customer satisfaction data obtained from formal feedback mechanism.
Apple was founded in 1970s by Steven Jobs who then became the company CEO. Apple first started as a computer company in 1976 and was fast recognised for its intuitive adaptation approach of graphical user interface that saw the adoption of the first mouse and first onscreen windows.
Steven Job innovative approach focused more on specialised products and by 2001, its full inventions came into play with the introduction of iPod, a product that ranked top in the market leader in music players. Eventually, iPhone came into play in 2008, followed by iMac, iPad and iTunes which have also been widely successful. This meant that electronic products combined with eminent good customer support throughout its product base were slowly becoming the company’s primary objectives.
Summary of Macro Analysis
Macro analysis also known as PESTLE is an analysis of the external macro environment in which a business operates. PESTEL analysis includes factors such as political, economic, social, technological, legal and environmental issues. For a detailed analysis, the following table illustrates the macro environment of Apple Inc:
Apple Case Analysis
Apple ranged top in customer satisfaction with phone-based technical support, feedback, face-to-face communication, email communication, and information exchange in the American Consumer Satisfaction index (ASCI) in the second quarter of 2009. These companies were credited for offering the best technical customer satisfaction service within the Personal Computers category with a base score of 77 on a 100 point scale and earned 83 points in the second quarter of 2006.
Business analysts have argued that the companies’ ability to focus on product innovation and customer satisfaction has won the company loyal customers compared to other PC vendors. Quality of customer service is always the determining factor for success of any company and not its products, and the three companies for this case have gained tremendously from such strategy.
Van Amburg, the managing director of the American Customer Satisfaction Index (ACSI) argues that customers from other service providers were very frustrated with company’s customer service despite the quality of its PC hence loss of loyal customers and the services continued to deteriorate as years went by (Moore & Knight 2010; Keizer 2009).
Personal information collected here is aimed at helping the company deliver higher customer service and provide convenient access to company’s products and services. Information collected from customer’s reviews also helps the company implement and post the latest product announcement on special offers, software and events (Apple 2010; Levitan 2004; Prasaad 2009).
Summary of Industry Analysis
Porter’s analysis focuses on the threat of new entrants, bargaining power of suppliers and buyers, power of substitutes and rivals on profitability in an industry.
The following table presents Porter’s five forces analysis of the micro environment of Apple Inc.
The industry analysis of our company in the market displays strong competition in the computer technologies and electronics. Apple maintained its competitive edge by progressively innovating product designs and operational execution.
Its product lines were also diversified and supplied its products to retail stores and eliminated third-party retailers. The company also opened up to 247 stores including 19 internal locations averaging to $29.9 million in sales revenues. The company has numbers of loyal, & the customer base reports the permanent growth (Keizer 2009).
Suppliers have helped Apple diversify their products. Apple entered into a multi year agreement requiring its major key components that included dynamic random access memory DRAM, LCD displays, NAND flash memory and microprocessors that included partners such as Hynix Semi-conductor, Intel Corporation, Samsung, Micron Technology and Toshiba Corporation. It also partnered with other corporations internationally to ensure final assembly of its products are concentrated on quality issues (Keizer 2009).
On market research aspect, Apple was reported to collect personal information on various occasions for market research purposes. This information is aimed at gaining better understanding of customers needs, improve products and determine how best to provide useful information (Apple 2010; Hewlett-Packard Development Company 2010).
Apple partnered with other service vendors such as MobileMe and iTunes stores to help in collection of information by requiring customers to customer’s to create an “phone company ID” before purchase of products.
The ID is strategy is designed to help customers have easier access to web services and saves them time since they don’t have to give their personal information when requesting for services. The procedure requires creation of personal profiles by adding the name, phone number, email address or credit card number together with a suitable password that will be used to access the profile.
Once the signing up procedure is completed, the customer is allocated personal ID and a password that the system generates automatically. Therefore next time the customer enters the website to re-purchases products is welcomed by personal greetings by mentioning his name and is able to access up to date information regarding the product purchased which can be used wherever the client goes (Apple 2010).
In order to survive in the competitive environment, company’s have to device a number strategies to beat their competitors like changing the price of the product-which is in fact a temporary solution, improving product features- key to success, creatively using channels of distribution and exploiting relationship with suppliers. When we look at these examples, brand recognition seemed to cut down costs of advertisements.
On this perspective, Apple diversified to digital consumer electronics such as iPod, iPhone, iMac among others widened its product markets. Apple dominated computer markets introducing itself a premier provider of technology solutions for educators, web designers and graphic artists, to digital entrainment company. The software iPod was later integrated into windows version of iTunes making it easier for everyone one to purchase and use (Keizer 2009).
Apple introduction of feedback system and outreach programs enabled customers to report on defective machines and the company to attend to problems before they occur. For example, one of the Company’s products “iMac” was widely reported for to be giving clients problems and the company responded by giving 15% refund bonuses to all faulty 27 inch iMac in the UK and was also reported to extend $300 apologies to all its aggrieved customers in the US.
In resolving the issue, the company responded quickly by offering free repairs to all the affected machines and launched a support page where it described how minor problems could be resolved and the resulting warranty extension for each affected machine. The company also reimbursed customers who used their own money to repair the faulty machines and advised them take their drives to official Apple repair channels (Moore & Knight 2010; O’Reilly & Anderson 1980).
On bargaining power of suppliers’ aspect, Apple’s primary segments included America, Europe, Africa, Japan and Middle East and other retail divisions Italy, Canada and the United Kingdom. It offered its customers wide range of products and invested heavily on R&D year after year. Apple’s products were distributed all over US retail stores where customers could easily access and report of defective devices (Mank & Nystrom 2000, p.504).
Summary of Internal Analysis
Internal Analysis also known as SWOT analysis determines company’s competitors and develops sales & marketing strategies for the company that allow it to achieve its marketing & strategic objectives.
The SWOT Analysis of the Apple Inc. position in the market is necessary for the development of the marketing plan.
Amidst the financial crisis, Apple continued to introduce strongest products lines, with most talented employees and best customers with sales revenue totalling to $10 billion in quarterly revenue of 2009 and $25 billion in cash safety bank with zero debt. Demographic & socio-economical factors like population distribution changes & increase/decrease in income levels of social group also affected the company to a considerable extent (Apple reports 2008; Hesseldahl 2009).
Dynamic Capability Analysis
Dynamic analysis refers to the innovative strategies a firm employs to gain competitive advantage over its competitors. In other words, what Apple is doing different that sets it apart from other companies. For instance, the company has progressively applied technological advancement and business diversification over the years.
Apple continues to diversify its product line from PCs inventions, to iPods, iPhones, iTunes and other peripherals. Also, the 2007 smart phone technology that saw the integration of wireless phone, music player, video player as well as internet browsing demonstrated how the company continues to diversify in our markets (Apple reports 2008).
Strategic Capability Analysis
Apple’s strategy to integrate Intel-based iMac desktop and the MacBook Pro portable softwares increased its company’s market share. Also, the introduction of feedback system and outreach programs that enabled customers to report on defective machines seemed to have gained the company a competitive edge over its competitors. The company also introduced support centre strategically designed to attend to software problems before they occur (Apple reports 2008).
Apple’s recent merger with software developers and leading voice-entry technology providers demonstrated its strong command and reputation in information technology. However, Apple should take adequate time in testing its products before rushing to introduce them to the markets like case for MacBook Air that left many customers disappointed (Apple reports 2008).
Gap analysis and assessment of current strategy
Gap analysis is a methodology that helps a company identify gaps and decide upon marketing strategies and tactics. The company has moved beyond personal computer industry to music, videos, movies, and television. Diversification is in it itself a good marketing strategy, but the company should concentrate on development of quality products to cut down on increased numbers of defective products and recalls.
Apples hiring John Sculley from PepsiCo spearheaded marketing and operations of the company while Steven Job focused on technology that lead to the introduction of more creative products like Macintosh in 1984. The new CEO enabled breakthrough in electronic products in terms of elegant design and easy use. The company should employ the same strategy in future to in employing competent workforce that will turn boost company sales revenues.
How does strategy match the macro environment?
For Apple, there is a large gap between product strategy and socio-economic and demographic changes. Keeping in pace with technology helped the company gain competitive advantage over its competitors and the uniqueness of goods and services offered facilitated the further strengthening of market position. However, its inability to adjust to socio-economic and demographic changes might undermine its market position in future.
How does strategy match the industry environment?
Apple engaged in a head to head competition with Dell in the computer markets with company CEO Steve Jobs claiming that market shares weren’t everything. This statement is in itself contradictory since company’s engage in business activities for profits. Dell was able to dominate the markets due to its efficient supply chain management although Apple outperformed it in inventions and other metrics. Apple should look into fixing sufficient price flexibility and adjustment to socio-economic changes.
Since compatible software were introduced in the markets, IBM prices dropped and Apples costs for R&D were higher industry costs since the company spend a considerable amount of its sales revenue on R&D. Scully innovative efforts were not enough to sustain the company’s poor performance. Apple could have taken time to study its markets demands before heavily investing in unprofitable deals. Since Michael Spindler came into play in 1993 introducing PowerMac, Apple moved to price-performance edge.
The new CEO’s strategy was to let other companies manufacture Mac clones, a strategy that saw many clones stealing 20% of the Macintosh unit sales. For this case, Apple should be seeking a CEO that upholds their key capabilities and strengths, whilst being able to improve in other areas that are deficient (Mank & Nystrom 2000, p.501).
Apple’s current strategy of launching more new products to expand the markets should be sustained. However, the company should also try to promote its products through media advertising and offering products at discounted price to increase the satisfaction level of the customers. Apple never seemed to experience intense competition since it had strong market power and had the ability to introduce new products.
Its strategies to beat the markets severely stretched its budgets that amounted to further losses. For example, when Macintosh was first introduced in the markets quickly became people’s favourite with large graphics but had slow performance and could not be integrated with many softwares in the markets. NeXT Computer introduced after Macintosh proved costly and did not yield the company any profits. For this case, Apple should incorporate through market analysis to avoid sipping in market shares.
Apple reports fourth quarter results, 2008. Quarterly results. Web.
Hesseldahl, A., 2009. Apple’s impressive quarterly numbers . BusinessWeek. Web.
Hewlett-Packard Development Company, 2010. Overcoming the no. 1 challenge in data center transformation . Web.
Keizer, G., 2009. Apple still can strive, sans Job. Computer World, 56 (2), pp.1-4.
Levitan, B., 2004. Improving customer loyalty through proactive communication. Consumer Interaction Solution . Web.
Mank, D. & Nystrom, H., 2000. The relationship between R&D spending and shareholder returns in the computer industry. Management of Society Proceeding , 20, pp.501-504.
Moore, C. & Knight, D., 2010. Apple Retains Lead in Customer Satisfaction, iMac Screen Problem Resolved, 64 GB for Mac Pro and More . Web.
O’Reilly, C. & Anderson, J., 1980. Trust and the Communication of Performance Appraisal Information: The Effect of Feedback on Performance and Satisfaction. Human Communication Research , 6, pp.290-298.
Prasaad, S., 2009. Establishing successful customer relationships through effective communication: An Indian perspective. Marketing and Management Communication , 64, pp.1-71.
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Apple Case Study
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The brand that owns the iPhone: Introduction
Apple is one of the most iconic brands globally, and its products are staples in every tech-savvy person's wardrobe.
From smartphones to tablets, Apple has always been at the forefront of innovation, and its products are well-known for their sleek design and high quality.
In this Apple case study, we explore the intricate details behind how Apple became one of the most successful brands in history, focusing on the company's emphasis on simplicity and user experience across all its platforms, including desktops and Macbooks. This case study has it all (Apple Reports Fourth Quarter Results, n.d.)!
Organizational behavior and global strategy are areas of study covering various topics, such as communication, decision-making, and coordination.
It is an important topic because it helps us understand how organizations function and interact with their environment.
By understanding these processes, we can improve the way that organizations operate. This case study will discuss five important things about organizational behavior and global strategy (Apple, Turning 30, Is Riding the Strength of the iPod, Mar. 29, 2006, n.d.).
One of the most highly valued and admired companies globally, Apple has stayed afloat for more than five decades thanks to its ingenious product design and marketing strategies, including product innovation and differentiation.
This case study provides an in-depth analysis of how Apple has survived and even prospered in an ever-competitive industry, gaining a loyal customer base compared to other PC vendors.
Examining the company’s early days to its new and exciting products, including the easy-to-use iMac, this report gives readers an in-depth look at how one company has been able to stay afloat for so long (Apple’s iCloud Apps, Books, and Backup, n.d.).
When analyzing an organization’s strategy, it is vital to understand its competitive environment and competitive advantage.
This can be done by analyzing their rivals, industry, and customers.
Once you have a good understanding of their competition, you can use a range of strategic content to help you understand their strategy and how you can best compete against them (Balmer & Gray, 2003).
One example would be using SWOT (strengths, weaknesses, opportunities, and threats) and PEST (political, economic, social, and technological) analysis.
This can help you understand the strengths and weaknesses of your selected organization, its opportunities and threats, and potential substitutes in the market.
Additionally, it can help you understand the political and economic factors that may affect their business (Bernroider, 2002).
When using strategy content, it is crucial to be mindful of what is relevant to your audience and what will help them better understand the organization’s strategy (Business Insider Intelligence, 2017).
Apple Inc. is a multinational company that designs, develops, manufactures, and sells smartphones, laptops, tablets, the Apple Watch, and other consumer electronics.
The company operates in three segments: products and services, iTunes Stores and Apps, and Apple Music.
In 2017, the company generated revenues of $233.3 billion, a net income of $128.5 billion, and a cash flow of $45.2 billion.
Steve Jobs, Steve Wozniak, and Ronald Wayne all co-founded the business. It is well-known for being innovative, as it kept producing innovations from the first Apple computer, establishing itself as a leading computer company in the personal computer industry.
Macintosh to the more recent iPhone and iPad series.
Double-click on the image to open a new tab.
PESTEL analysis is a management tool mainly used to understand external factors. Using it, we can learn how to adapt to the changing environment. Organizational behavior and global strategy are two crucial disciplines that often go hand in hand. PEST analysis, or political, economic, social, and technological analysis, is widely used to help organizations assess their environment and make informed strategic decisions. By learning about the risks and opportunities in your industry or market, you can adjust your strategies to fit the needs of your business (Fry & J. Peter Killing, 2004). Apple Inc.'s development characteristics and the present marketing environment were used to create a PEST study that demonstrates the company's strengths and problems. The results of Apple's PEST analysis are as follows:
Overall, a PEST analysis can help us determine the market's chances and risks and how to deal with them while analyzing Apple Inc.
Several significant events, challenges, transformations, and mergers and acquisitions have affected the organization in recent years.
The most important event may be the pandemic, which has substantially impacted the workforce and the organization’s ability to operate.
Other events that have significantly affected the organization include the global recession of 2008–2009, the rise of social media, and the technological advancement of cloud computing (H. John Bernardin & Russell, 2013).
The current landscape of the organization is also constantly changing as technology advances and new trends emerge.
This can challenge managers, as they must keep up with changes to remain competitive.
To overcome these challenges and thrive, the organization must have a strong culture that is responsive to change.
This means that managers need to learn how to be influential leaders so that the organization can move forward best for everyone (Is Apple Supply Chain the No. 1? 2019).
Organizational culture can be a formidable obstacle in any business, but it was particularly challenging for Apple Inc.
In the early 2000s, when the company was starting, rigid hierarchies and a lack of communication characterized its organizational culture.
This resulted in slow decision-making and stalled growth. As a young company, Apple had to overcome many challenges to reach its current level of success.
However, companies can achieve great things with an excellent organizational culture (Rowe, 1995).
First, it is crucial to recognize that culture is constantly evolving, so keeping up with the latest trends is essential.
In addition, your chosen “impact” or event may have significantly impacted the current culture.
Therefore, it is vital to understand the culture before undertaking your project (“Survey Shows Apple Has the Biggest Brand Impact,” 2008).
Finally, being aware of your biases and understanding how others might see your project is vital.
For example, if you are studying a culture you are not familiar with, be mindful of how you might view that culture.
Likewise, consider how your project might be interpreted if you are from a culture different from the one you are studying.
This will help ensure your project is accurately shown in the finished product ( The Relationship between Organizational Structure and Organizational Control , n.d.).
When Steve Jobs passed away in 2011, Apple Inc. was hit with a significant communication challenge. Jobs was not just the founder and CEO of the company but also the architect and visionary behind its sleek and user-friendly products. His absence left a gaping hole that his successor, Tim Cook, had to fill. Cook quickly realized that Jobs’ fingerprints were all over every aspect of Apple’s design and execution, from the company’s strategy to its product lines. Next, he had to make sure that the company’s flagship products-the iPhone, iPad, and Mac-continued to embody Jobs’s values and vision. Finally, he had to build a strong team of leaders who could carry on Jobs’s legacy (Muralidharan, 2004).
Organizational culture can be a formidable obstacle in any business , but it was particularly challenging for Apple Inc. In the early 2000s, when the company was just getting started, its organizational culture was characterized by rigid hierarchies and a lack of communication. The tables flip, however, when they are tasked with writing most of their economics homework helper . This resulted in slow decision-making and stalled growth. As a young company, Apple had to overcome many challenges to reach the level of success it has now. Also, we provide java assignment help at a reasonable price range for a great result. You could book your Cpm homework help if you are struggling with Cpm homework. We keep your details private from ghostwriters for dissertation writing services . If a writer has any doubts, he gets in touch with the support team's relationship manager. However, companies can achieve great things with an excellent organizational culture (Rowe, 1995).
First, it is crucial to recognize that culture is constantly evolving, so keeping up with the latest trends is essential. In addition, your chosen “impact” or event may have had a significant impact on the current culture. Therefore, it is vital to understand the culture before undertaking your project (“Survey Shows Apple Has Biggest Brand Impact,” 2008).
Finally, it is vital to be aware of your own biases and understand how others might see your project. For example, if you are studying a culture you are not from, be mindful of how you might view that culture. Likewise, if you are from a culture different from the one you are studying, consider how your project might be interpreted. This will help ensure that your project is accurately shown in the finished product ( The Relationship between Organizational Structure and Organizational Control , n.d.).
Impact of strategy on management
Maintaining a strategic focus is essential for any organization that wants to succeed. However, without a clear understanding of their goals and objectives, making informed decisions and implementing effective strategies is not easy. For example, the organization’s strategy in question was focused on increasing sales and market share. This was achieved by developing new products and expanding into new markets. However, the plan was hampered by a lack of focus on the customer experience and insufficient research into potential competitors. If you need someone to help you with your research paper , then Assignmentproxy can significantly help. Our experienced writers will take the time to study the topic and write an effective and engaging article. This ultimately led to poor decision-making and a lack of creativity in the marketing department (Business Insider Intelligence, 2017).
Impact of challenges on strategy
The impact of the challenge on the organization’s strategy can be divided into three main categories: changes to policies and procedures, changes in measures of retention, and new standards of retention (Bernroider, 2002).
Changes to policies and procedures can include changes to organized work, changed communication methods, or new HR policies. Differences in retention metrics can consist of changes in the number of employees, sales volume, or customer complaints. New retention measures can include changes in how the organization measures its success or performance (Balmer & Gray, 2003).
As you can imagine, the challenge that Apple faced has had a significant impact on the organization’s strategy. In particular, changes have been made to policies and procedures and measures of retention. For example, Apple has accelerated its efforts to hire new employees and has modified its recruiting processes to target skilled workers in specific areas. In addition, the company has also increased its focus on retention by developing new programs that are designed to keep employees happy and engaged ( Apple Reports Fourth Quarter Results , n.d.).
Overall, the challenge has significantly impacted the organization’s strategy and operations. However, Apple has adapted quickly and overcome the challenges posed by the incident ( Apple Reports Fourth Quarter Results , n.d.).
Overall, we found that Apple is an innovative company that is often the first to develop a new product line. However, they also face several challenges, namely their role in the international debt crisis and the exploitation of workers (Apple, 2020). The most exciting aspect of Apple, according to us, is that they are pioneers and early adopters of new technologies. Apple is frequently first to market with a new line of products. A risky strategy is working in Apple’s favor, at least according to the company. A TNC’s progress toward healthy behavior can significantly impact the public’s perception of globalization ( 30 Years of Apple: Assessing Apple’s Impact , n.d.).
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Apple, turning 30, is riding the strength of the iPod - Mar. 29, 2006 . (n.d.). Money.cnn.com. Retrieved April 4, 2022, from http://money.cnn.com/2006/03/29/technology/apple_anniversary/?cnn=yes
Apple’s iCloud Apps, Books, and Backup . (n.d.). Apple. Retrieved April 4, 2022, from http://www.apple.com/icloud/features/apps-books-backup.html
Balmer, J. M. T., & Gray, E. R. (2003). Corporate brands: what are they? What of them? European Journal of Marketing , 37 (7/8), 972–997. https://doi.org/10.1108/03090560310477627
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Business Insider Intelligence. (2017, February 17). Apple’s CFO explains the company’s $10 billion R&D budget - Business Insider . Business Insider; Business Insider. https://www.businessinsider.com/apples-cfo-explains-the-companys-10-billion-rd-budget-2017-2?IR=T
Cowley, S. (2013, January 29). The smartphone market’s radical shakeup . CNNMoney. http://money.cnn.com/gallery/technology/mobile/2013/01/29/smartphone-market-share/
Education . (2019). Apple. https://www.apple.com/education/
Fry, J. N., & J Peter Killing. (2004). Strategic Analysis and Action. Prentice-Hall.
Goldman, D. (n.d.). Apple’s $46 billion sales set a new tech record . CNNMoney. Retrieved April 4, 2022, from http://money.cnn.com/2012/01/24/technology/apple_earnings/index.htm
H John Bernardin, & Russell, J. E. A. (2013). Human resource management: an experiential approach . Mcgraw-Hill.
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Is Apple Supply Chain the No. 1? (2019)? Supplychainopz.com. https://www.supplychainopz.com/2013/01/is-apple-supply-chain-really-no-1-case.html
iTunes Store Tops Over Five Billion Songs Sold . (n.d.). Apple Newsroom. Retrieved April 4, 2022, from http://www.apple.com/pr/library/2008/06/19iTunes-Store-Tops-Over-Five-Billion-Songs-Sold.html
Muralidharan, R. (2004). A framework for designing strategy content controls. International Journal of Productivity and Performance Management , 53 (7), 590–601. https://doi.org/10.1108/17410400410561213
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Apple case study questions and answers
If you are preparing for a viva round with your professor, don't forget to look at these apple case study question and answers . And prepare the best answer according to the latest changes.
1. What made Apple a successful company?
2. How did the company come up with its iconic products?
3. How has Apple managed to stay competitive over the years?
4. Has Apple faced any difficulties in recent times? If so, what was the cause, and how was it overcome?
5. What are the significant challenges that Apple is likely to face in the future?
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Apple Inc. – Case Solution
This case study on Apple Inc. delves into the strengths of Apple as a company and as an organization. It discusses the company's competitors and how Apple can overcome its threats within the industry. It also looks into the weaknesses of the company and how it can get past the issues the company is facing.
Frank T. Rothaermel Harvard Business Review ( MH0027-PDF-ENG ) October 06, 2015
Case questions answered:
- Give an Overview of Apple Inc. as a company.
- Examine the problems, symptoms, and variables of Apple Inc.
- Give a proper SWOT analysis of Apple Inc.
Not the questions you were looking for? Submit your own questions & get answers .
Apple Inc. Case Answers
Abstract – apple inc..
Apple, Inc. was founded by Steve Jobs and Steve Wozniak. The company designs, produces, and markets a number of computer software, hardware, and individual computer products.
The company is dedicated to bringing a better private computing experience to scholars, educators, and customers across the globe through creative hardware and online offerings. One main advantage that Apple possesses is its system of operation, though it has failed to persuade the globe of its superiority.
Problems, issues, variables, and relationships related to Apple Inc. will be discussed throughout the case study. Symptoms and critical issues will also be examined.
Finally, a SWOT analysis, which is a strategic development tool to assess the organization’s strengths, flaws, chances, and threats to the company, will be analyzed.
Introduction – Apple Inc.
Apple Inc. is basically an American-centered organization that makes and sells computer software, electronic as well as online services. The corporation was established by Steve Jobs, Ronald Wayne, and Steve Wozniak in 1976.
Apple is the second-largest cell phone maker and the major information technology company across the globe. Apple’s most common products consist of their line of Macintosh private computers, iPod moveable media players, and the iPhone.
Apple Inc. sells its goods to specific clients, small and large-sized companies, educationalists, and customers in the enterprise, government, inventive, data technology, and methodical markets.
The company’s mission is to make sure that customers are rendered the preeminent experience by donation of easy use of software, inventive hardware, and smooth product design.
The corporation is driven by numerous goals and intentions. Among them is ensuring the ultimate user knowledge to all customers through its technologies and inventive products.
In addition, Apple Inc. aims to maximize sales volume by introducing new products, opening many stores, making use of smart market tactics, and reforming production.
Apple Inc. mainly has a ranked managerial edifice with prominent local features and a feeble functional matrix. There are a number of Apple’s key strategies that are rethinking the desire for advertising, avoiding price wars, and designing a good consumer experience.
Apple’s key players are investors, communities, competitors, customers, and staff. All the players are treated in the best way possible because they are accountable for the growth and accomplishment of the organization.
Apple’s key competitors include Google Inc., Amazon, Dell, Lenovo, Samsung, Sony, and Microsoft. The conceptual paper discusses problems, issues, variables, symptoms, and isolated critical issues. The paper analyses the SWOT analysis of Apple Inc.’s organization and recommendations.
Problems and Issues in Apple’s Organization
Apple’s stock has dropped in recent months owing to a combination of trade strains, iPhone reports, and more. The company has faced the biggest problems and issues, which include navigating trade uncertainty (Jinjin, 2013).
Tariffs are a possible thorn in Apple Company that has been kind to the organization’s stock. Two, the company was facing battles with QUALCOMM. Apple Inc. has been locked in a long and nasty legal spat with QUALCOMM that began over licensing rates and obvious fees.
Variables in Apple Inc.’s organization
There are many variables when estimating Apple’s iPhone’s three-monthly revenue. The biggest is the number sold; however, their average trading price and channel fill have an outcome.
Variable cost changes with output. The costs mainly include the cost of goods sold as well as other overhead expenses (Ferreira, 2019). The cost changes with production change.
The table below shows the variable cost of Apple Inc.
Symptoms for Apple Inc.
- The organizational culture is mainly for original innovation. Apple’s cultural types focus on enhancing a great level of creativity that comprises innovation and outlook, which tasks convections and morals (Onyusheva, 2018).
- It has top-notch excellence. The organization and employees are the best. It practices quality labor in the market.
- It has a weak functional matrix. This describes collaborative interactions among the different components of the organization. Through this symptom, the organization maintains powerful innovation processes that support the development of the brand and the utilization of premium pricing strategies (Lee, 2018).
Critical issues in Apple Inc.
Apple is currently facing three major issues:
First, the mobile phone market has become the PC marketplace. Customers stopped getting excited about the new laptops a long time ago, which is also occurring in the smartphone market. This has contributed to issues in the organization (Mas, 2018).
Second, introducing the next thing is difficult. Apple Inc. changed the world, particularly with the iPod and iPhone. Other products have also been successful in an absolute sense. If iPhone sales continue to slump, it will be very hard to come up with a new device.
Finally, services are not a panacea. The main issue for Apple Inc. will be substituting high-margin hardware with adequate service revenue to curb the further decline in profitability.
Apple’s SWOT analysis scans the organization’s relevant strengths, weaknesses, opportunities, and threats.
- Globally Iconic – Apple is a reliable organization, especially with individualized, innovative computers and cool technology strategies. The company has billions of consumers with stable growth.
- Top Technology – The organization was the first company to present some of the most groundbreaking goods that have transformed the realm (iPhones, iPads). It is still strong-minded to shape and skill better, more skilled expertise strategies.
- Brand of Choice – Apple Inc. is among one of the most needed brands in agencies. Apple has a comprehensive commerce page that offers the best quality technology responses for all other organizations (Jinjin, 2013).
- Proficient Exploration – Apple puts enthusiasm into its product strategies. A careful study is instigated, as further study is done to aid in understanding consumers and desires.
- Customer consideration – Apple consistently plans its items with an emphasis on purchasers while keeping their brains later on. They generally attempt to envision the things that even the customer has not envisioned at this point. According to Steve, occupations “on the off chance that you ask the customer what he needs when you give him something very similar, he will need something different.” This philosophy is the explanation of progress for Apple.
- Strong Media Content – With iTunes, Apple made a success story in recent years. This is due to the store where one can get music, videocassettes, short films, television displays, podcasts, audio records, and ebooks. They developed a unique place in the numerical market limited to Apple products.
- Loyal Client Base – The major Apple quality is its dedicated client base. These clients once in a while change to other portable brands. The primary explanation for Apple’s faithful client base is its one-of-a-kind client experience, effortlessness, and advancement. Apple has an outclass of about 88% brand dependability over the American and European nations.
- Advancement and Simplicity – Straightforwardness is the DNA of Apple. “Apple changed the matter of PCs, music, phones, and Tablets in light of the fact that everything spun around and looked for straightforwardness.” Apple items are basic and simple to utilize. Apple is constantly considered as…
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2012 Case Study: APPLE INC.
by Joshua Kim , Michael A. Natale
A 2012 case study of Apple, Inc., with various angles of analysis, in a world after Steve Jobs. Complete with recommendation of Buy/Sell/Hold.
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