Apple Project - Paper

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Executive summary
The main purpose of this project is to perform a strategic and financial analysis. During the project we will also be able to exercise the financial and IT knowledge we acquired during the 4th semester.

The financial analysis reveals that Apple has been undergoing an impressing growth in the net sales for the past few years. Furthermore the financial analysis showed that a big part of the net sales is generated by complementary products which can be connected to the sales of Macs, iPhones and iPods.

The strategic analysis revealed that there is reason to expect continued redevelopment of products. An analysis of Apples core capabilities,competitors and the development in consumer behavior and disposable income further reveals that Apple will experience growth in net sales as the result of being one of the most innovative and differentiated companies in the world. Meanwhile the competition is expected to intensify in the coming years which will result in reduced gross margins. However, as a result of Apples differentiated products it is believed that Apple will be able to maintain a higher margin than its competitors.

As of May 2010, Apple became the world's most valuable technology company.This was due to its product development and its brand will be able to continue to increase its net sales through the existing Ansoff strategy. So far Apple has mastered the idea of penetrating new markets with a new product starting with iPod, iPhone and lately the iPad.

The project case that reveals one of Apples latest merger and acquisition exposes the fact that apple is not merging and acquiring large companies but rather smaller companies to gain control of productivity and hereby becoming more efficient when it comes to productions.

Contents
Problem description4
Problem formulation4
Delimitations4
Choice of models5
Apple’s History6
Ansoff Growth Strategy9
Presentation of products9
Macintosh computers9
iPod10
iPhone10
iPad10
Choice of segment and market12
PEST analysis12
Political factors12
Economic factors12
Social factors13
Technological factors13
Customer analysis14
Competitor Analysis17
Hewlett-Packard (HP)20
Microsoft20
Porter’s Five Forces Analysis20
Threat of new entrants20
Bargaining power of customers21
Bargaining Power of Suppliers21
Threats of Substitutes21
Analysis of core competencies and core resources22
Product Development22
Branding23
Apple stores23
SWOT Analysis24
Strengths24
Weakness24
Opportunity24
Threats24
Conclusion25
Trend analysis26
Apple´s Value Chain32
Inbound Logistics32
Operations32
Outbound logistics32
Marketing and Sales33
Services33
Analysis of the Balance sheet34
Analysis of Income statement38
Analysis of cash flow41
Ratio analysis46
Profitability46
Liquidity51
How efficiently assets are utilized54
Case project58
Merger and acquisition (M&A)58
History of Intrinsity59
General60
Apple Acquiring Intrinsity61
How is Apple coping with the financial crisis?62
Future prospects63
Overall conclusion65
List of references66

Problem description
The project this semester requires us to choose a certain multinational company and afterwards use our financial management and IT skills to analyze the different tactics behind the company that makes it more or less efficient. After a group discussion the American multinational company Apple Inc. was chosen because they have experienced great success over the past years and it would give us a chance to put our IT and financial skills to work. Thegreat successthat Apple had over the last years was the main reason for choosing this company; there is also a worldwide demand for IT and electronic products. All companies in this industry seem to be heading in the right direction and Apple Inc. is one of the “biggest players” in this industry. Hopefully, by the...
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