External Analysis of Apple Inc

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Running Head: EXTERNAL ANALYSIS OF APPLE, INC.

APPLE, INC.

External Analysis of Apple, Inc.
Aaron Nance, Jeanette Odetola, Zuaibar Rashid, and Rachel Rozo Strategic Management MGMT 4340
FALL 2012
Dr. Uche Nwaubeze
University of Houston, Victoria

TABLE OF CONTENTS

1. EXECUTIVE SUMMARY……………………………………………………………….. 3

2. COMPANY HISTORY…………………………………………………………………... 2.1 Background…………………………………………………………………………. 2.2 Purpose of this study ………………………………………………………………

3. EXTERNAL ANALYSIS ………………………………………………………………..
3.1 General Environmental Analysis ……………………………………………….. 3.1.1. Demographic Segment …………………………………………………… 3.1.2. Economic Segment ……………………………………………………….. 3.1.3. Political/Legal Segment …………………………………………………… 3.1.4. Socio-Cultural Segment ………………………………………………….. 3.1.5. Technological Segment…………………………………………………… 3.1.6. Global Segment …………………………………………………………… 3.1.7. Summary of General Environment Analysis……………………………. 3.1.8. Driving Forces ………………………………………………………………

3.2 Industry Analysis ………………………………………………………………… 3.2.1. Description of the Industry………………………………………………… 3.2.2. Industry Dominant Economic Features…………………………………. 3.2.3. Market Size ………………………………………………………………… 3.2.4. Market Growth Rate………………………………………………………. 3.2.5. Industry Trends……………………………………………………………. 3.2.6. Five Forces Analysis …………………………………………………….. 3.2.6.1. Threat of New Entrants……………………………………….... 3.2.6.2. Power of Suppliers …………………………............................. 3.2.6.3. Power of Buyers…..…………………………............................ 3.2.6.4. Power of Substitutes…………………………........................... 3.2.6.5. Intensity of Rivalry ………………………….............................. 3.2.7. Summary of Industry Analysis……………………….............................

3.3. Competition Analysis…………………………………………........................... 3.3.1. Industry Competitors …………………………………........................... 3.3.2. Rivals Anticipated Strategic Moves…………………........................... 3.3.3. Summary of Competitive Analysis……………………. ....................... 3.3.4. Key Success Issues…………………………………….......................

1. EXECUTIVE SUMMARY
In 1976, within a Palo Alto garage, Steve Wozniak and Steve Jobs founded Apple, and were among the first to pioneer the entire personal computer industry with its groundbreaking products and marketing strategy. Jobs truly believed that there was a separate market for small personal computers, and with a well-defined vision and user friendly product, Apple went public in 1980 and became the most successful initial public offering since Ford Motor Company which catapulted Apple to reach the Fortune 500 quicker than any corporation in previous history. This started to collapse as internal rapid development and strong outside rivalry from IBM and Microsoft throughout the 1980s nearly shoved Apple into economic failure by the mid-1990s. To stay above water, Apple was forced to revolutionize their PC product output and develop into the disjointed digital music industry only to flower into the industry leader, ready to carry on its influence on digital media through a varied set of distribution avenues. Over the last ten years, Apple has been blazing an amazingly smart business warpath that has left the industry on fire. Apple now invents, designs, produces, and markets personal computers with their very own distinctive applications and a line of iPods with associated iTunes software. Compelled to acquire a cutting-edge dissemination plan to compete with bigger businesses, Apple now markets its products globally through its retail and online stores, producing yearly incomes of over $21...
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