Business Analysis of Apple Company

Topics: Apple Inc., IPhone, IPhone OS Pages: 7 (1733 words) Published: June 16, 2013

Apple Inc is an American system company which combined with design and innovative technology, selling consumers electronic, computer software and personal computer. The Macintosh line of computer, ipod, iphone, and ipad are most well-known hardware products of this company. Software in this company is including Mac OS, itune, ilife, iwork, aperture, ios, final art studio, logical studio and safari. Apple as an admirable company with high revenue and high profit has been evaluated as a valuable company in the United State in 2008 by Fortune Magazine. The net profit and revenue in this company in 2011 was 25,922 million dollar and 108,249 million dollar respectively. The profit has increased by 85% compared with overall profits in 2010 (market line, 2011). Apple Inc has expanded its market to a large extent, although it experienced fail during its development. The success of Apple Inc in nowadays was a legend, which related to its brilliant strategies. I choose Apple Inc as my topic, because Apple Inc strategies’ shifting saved the company from failure to success could be a good lesson for business students.

Mission statement
"Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and internet offerings."

The PC Industry

In 1983, the market share of the Apple II drop to 8% while the PC had 26%. Market share of Macintosh reach at a peak which was more than 10% in the early 1990s and has since tapered to between 2-3%. The IBM PC and its clones became popular with huge market shares due to the success of the open nature of the PC. This allows product developers invent more new product to extent markets

The Smartphone Industry
[pic]According to the figure from…….. (2010), iphone occupied 24% market shares of overall smart phone which was 14% less than RIM (Blackberry), and Google (Android) occupied 20% of overall, was also a competitive rival to iphone. Apple Company in smartphone industries had pressures from Microsoft and others as well, which has certain market shares on this segment. Smartphone has big markets, and it is competitive in the meanwhile.

Strategy Shifting Based On Change Circumstance
With technology and information era, computer, handset, will become necessities for peoples’ daily life. There are lots of companies enter into this business. Competitions are in everywhere. What is a best way to root in this market or occupied certain shares is to differentiate your product to others. Apple Inc actually differentiates the product by high technologies with high price. It positioned their product to wealth people, innovator, people with good jobs and good lifestyle. Apple Inc product like Iphone, ipad, ipod, has already occupied huge market shares in the market. But maintaining a fixed market shares is significant for a company. According to recent sale, iproduct are affected by their competitors. It is the necessary for Apple company to promote their product to get more attention and extent their life cycle. BCG matrix is a well-known management portfolio to balance product portfolio.[pic]

According to BCG matrix above, Apple Company products like iphone, ipad, ipod, are belong to star, which with high growth and high market share. It is a leader in the business but if manager want to keep market shares, it needs to reduce price or promotion. As a result, it becomes a cash cow, which is in a position of high market share in a mature market. If a cash cows company achieved competitive advantages, it has high profit margins and generates a lot of cash flow. Therefore, lowing price strategy may extent market shares and achieved high profit margins.

New Strategy-Lowing the Product Price
In the past, Apple Inc was always seen as a company with high quality product at relative high price. But recent years, they reduce the product price to...
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