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Apple Report: Global Strategy Analysis

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Apple Report: Global Strategy Analysis
Coursework Header Sheet199051-12 | |

Course | BUSI1271: Global Strategy: Analysis & Pr | Course School/Level | BU/PG | Coursework | Individual Report | Assessment Weight | 70.00% | Tutor | VJ Torlo | Submission Deadline | 11/12/2012 |

Coursework is receipted on the understanding that it is the student 's own work and that it has not, in whole or part, been presented elsewhere for assessment. Where material has been used from other sources it has been properly acknowledged in accordance with the University 's Regulations regarding Cheating and Plagiarism. |

000751375 Le xuan quy Hoang Tutor 's comments

|

Grade Awarded___________ | For Office Use Only__________ | Final Grade_________ | Moderation required: yes/no | Tutor______________________ | Date _______________ |

University of Greenwich
School of Business

APPLE’s STRATEGY ANALYSIS
APPLE’s STRATEGY ANALYSIS
BY
LE XUAN QUY HOANG

LONDON, UNITED KINGDOM
2012

Contents I. Introduction 2 II. External analysis 2 1. Macro-environmental analysis 2 2. Industry analysis 3 3. Opportunities and Threats 4 3.1 Opportunities 4 3.2 Threats 4 III. Internal analysis 4 1. Value chain 4 2. Resources and competencies 5 3. VRIO 5 4. Strength and Weakness 6 4.1 Strength 6 4.2 Weakness 6 IV. Issues and challenges 6 V. The selection of strategic options 7 1. Apple’s generic strategy 7 2. Strategic options 8 3. The resources needed to implement the strategy chosen 9 VI. Conclusion 9 References 11 Appendix A 13 Appendix B 14

I. Introduction
Apple, a small business set up by 2 friends in family garage, has become the world most profitable electronic device incorporation in 2011 since its revenue and profit are 108.249 billion US dollar and 25.922 billion US dollar respectively (Fortune, 2011). Apple and its subsidiaries



References: Apple, 2012. Annual Report, s.l.: Apple Inc.. Arthur, C., 2011. Apple insiders remember life working for Steve Jobs. The Guardian . Behravesh, N., 2011. Global Economic Impact of the Japanese Earthquake, Tsunami, and Nuclear Disaster, s.l.: IHS. Creusen, M. E., 2010. The importance of product aspects in choice: the influence of demographic. Journal of Consumer Marketing, 27(1), pp. 26 - 34. Duhigg, C. & Bradsher, K., 2012. How the U.S. Lost Out on iPhone Work. The New York Times. Fortune, 2011. Fortune 500. [Online] Available at: http://money.cnn.com/magazines/fortune/global500/2012/snapshots/2255.html Goodson, S., 2011. Is Brand Loyalty the Core to Apple 's Success?. Forbes. IDC, 2012. IDC. [Online] Available at: http://www.idc.com/getdoc.jsp?containerId=prUS23818212#.UMEU7INyF66 Ivcpost, 2012. IVC POST. [Online] Available at: http://www.ivcpost.com/articles/5978/20121009/apple-stock-price-down-10-percent-iphone.htm Marino, L., 2012. Apple Inc. in 2011: Can It Prosper Without Steve Jobs, s.l.: University of Alabama. MarketLine, 2012. Market line industry profile: Global Mobile Phones, s.l.: Market Line. Perez, S., 2012. IDC. [Online] Available at: http://techcrunch.com/2012/11/02/idc-android-market-share-reached-75-worldwide-in-q3-2012/ Pettey , C., 2011. Gartner. [Online] Available at: http://www.gartner.com/it/page.jsp?id=1622614 Savitz, E., 2012. Apple Tops Ranking Of World 's Most Valuable Brands. Forbes. The Telegraph, 2011. Apple iPhone users most brand loyal. The Telegraph. warc, 2011. warc. [Online] Available at: http://www.warc.com/Content/News/N29169_Smartphone_loyalty_levels_high_in_Germany.content?CID=N29169&ID=ab61a6a0-5c95-434c-a07b-3af92b29785d&q=smartphone&qr= Whitney, L., 2012. CNET. [Online] Available at: http://news.cnet.com/8301-10805_3-57484166-75/windows-7-poised-to-topple-xp-as-leading-os/ * Suppliers’ power There is not much choice for smartphone manufacturers in suppliers of some specific hardware, such as chipsets and integrated circuits, due to the requirement of exclusive technologies and patents (MarketLine, 2012) * Buyers’ power On one hand, there are only two main buyers in smartphone industry, mobile network operators and third party retailers (MarketLine, 2012) * Physical resources & competencies According to Apple’s 2012 annual report, the total net property, plant and equipment of Apple is $ 15,452 million, accounting for 8.77 % of total asset of Apple (Apple, 2012). * Financial resources & competencies For 7 consecutive years from 2005, Apple has ended its fiscal year without any long-term debt (Apple, 2012). In 2012, total working capital of Apple was $ 19,111 million, increased 12.3% compared to 2011 (Apple, 2012) * Intangible resources & competencies According to The New York Times, Apple is the most admired and most imitated on earth (Duhigg & Bradsher, 2012). Moreover, Apple’s brand, in 2012, is evaluated as a most valuable brand since its value accessed $ 182.5 billion (Savitz, 2012). Apple possesses numerous patents, trademarks, copyrights and licenses which are appraised at $4,224 million (Apple, 2012).

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