Strategic Appraisal of Apple Inc.

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Strategic Appraisal of Apple Inc.

Introduction The intention of presenting this report is to give a full strategic appraisal and evaluation of Apple Inc. In 1976, the company was founded in a garage in Santa Clara, California. The American multinational corporation mainly involves in designing and marketing consumer electronics, computer software and as well as personal computers. Differentiation is the current strategy position of Apple Inc. There are five main firms in the PC industry and among them; the world’s leading brand is Dell. Apple’s major target is to sustain their present strategic position and to take over the market position as a leader. The key stakeholders include Steve Jobs, employees, lenders and the government. Apple markets Apple’s industries  Person computers  Person media   Africa  North/South America   Desktops IPad I phone  Apples markets  Asia and Middle east  Europe  IPod Apple store  Notebooks Apple services  iTunes Apple’s products  Laptops

Mission statement Apple’s mission statement is to become a leader in providing simple, powerful, high-quality information products and service for people who learn, communicate, and create. External and internal analysis In order to identify the major threats and opportunities faced by Apple, conducting an external analysis is very important. The models that are going

to be used include; PESTEL analysis, Porter's 5 forces and SWOT analysis (opportunities and threats). And the internal analysis analyses the factors that give an organization certain advantages and disadvantages in order to fulfill the needs of its target market. The models which are going to be used for internal analysis are - the value chain, Vrio, Tows matrix, BCG and Ansoff matrix’s. Macro environmental analysis PESTEL analysis is the best tool to use when analysing a company’s macroenvironment (see appendix 4). The PESTEL analysis discuss about the factors from the external environment that affect the consumer electronics sector. Changes in the government policies are mainly include in the political factors. This includes many issues such as tax issues, the political stability of an individual city and the county or region’s friendliness or hostility towards Apple’s in penetrating that certain country and so on. The economical factors are also very important; these issues include exchange rates and effects of recession. The exchange rates are a major factor to consider for the electronic industry as it will affect export concentration and import infiltration as well as worldwide ownership and direct foreign investment. In 2008, the electronic industry has declined by 4 percent because of the effect of recession; globalisation is also vital to this industry as operational internationally and as such need to remain aware of how globalisation is changing the face of the business environment. The trend of competitor and demographic changes is the success of the industry which is crucial for the social factor; In order to make decisions regarding what strategic choices to undertake and demographic such as the aging populations mean that this industry can focus more on adding value to products and services by the help of the recent trends. The technological factors that would affect this industry are primarily the continuous advancement of technology, which is need since innovation is the major contributor to this industry success. The environment factors embrace issues such as waste recycling, within the electronic industry there are regulations, regarding emissions and waste management and as such will require the electronic industry to comply appropriately. The legal issues include copyright, patents as well as changing regulations of different

countries regarding business policies which are more to do with the intellectual property and this will require legal protection to avoid development from other company within the industry.

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