Strategic Analysis of Apple Inc

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Strategic analysis of Apple inc
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* Table of contents
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1. History of Apple inc
2. Analysis of strategy
* 2.1 Applying Porter’s strategy framework to Apple Inc * 2.2 future strategies
3. Recommendations
4. Leadership/culture
5. Appendix
6. References
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* 1. History on Apple Inc
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Apple Inc. is an American corporation founded in 1976 that was one of the early pioneers of the PC and has recently been at the forefront of next-generation devices. In the past Apple was a pioneer in PC technology before losing out to the Microsoft and IBM driven PC industry. It has stepped into various different markets including the cellular and portable MP3 device markets to open up new opportunities and gain a competitive advantage over many of its competitors.

Central to Apple’s success and upswing is Steve Jobs and his strong leadership and vision based on continual technological innovation and intelligent marketing strategies. Apple has begun to change the computing and next-generation device industry and can sustain this growth only if they continue to utilize effective marketing coupled with innovative thinking. In regards with their marketing Apple must continue to focus on a diversification and cost effective strategy that continues its innovation into new technology based device markets. It must continue using its strong development background and move to explore new developing markets along with continuing to ‘open’ up their products to more universal use and working with corporate partners in unlocking their products’ full value for the customer.

Apple has three different but very unique and important revenue streams driven from their three main products, the iPhone, iPod and the Mac. In regards with this the company is subject to various different external and internal factors that shape their operating environment. The most important external factor is that of technology as Apple is in a technology-based industry.

The biggest issue that Apple has had to deal with was the ‘open’ format of other companies’ PCs (IBM and Microsoft) as compared to their own Macintosh computer.

Customer knowledge and assessment provides Apple with the learning and understanding to create desire for its products and provide value-added experiences to the users of its products. Knowing how customers think, what they want and how they make decisions provides the information to provide the customer with a value for money experience. The Apple brand must create a desire to own and reward the user with more than just the basic tangible product functionality. Good customer and product support enhances the value perception and experience for the user.

This customer focus enables Apple to create innovative products in early markets. Apple builds on its core-competency to integrate open standards or reinvent into a fit for purpose product with necessary proprietary protection. Research and development allows Apple to be innovative and not just imitate successful business solutions.

Good software solutions and ingenious peripheral interface products comes from an environment and a culture where management has created the necessary space for creativity to develop and succeed whilst maintaining a sense of urgency to deliver. By attending to some of these basic principles Apple has ensured its place as a strong competitor in the market.

Apple's current strategy in the PC market revolves around a business of software manufacturing that drives the hardware and retail categories. The official focus is on growth by concentric diversification into portable / mobility and wireless communications, the digital lifestyle and music, iPod, iPod mini and iTunes Music Store

* There is a full timeline in appendix of the history of Apple Inc.

* 2. Analysis of...
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