A Strategic Analysis of Apple

Topics: Apple Inc., Steve Jobs, IPhone Pages: 26 (6017 words) Published: April 20, 2015
A Strategic Analysis Of Apple:
A Review Of The Innovation And Internationalisation Strategies

Abstract:
This paper will critically analyse and evaluate the key strategies implemented by the American based software and electronics company Apple Inc. To identify the strategic position of the firm, models such as Porters’ 5 forces, SWOT and PESTLE analysis are undertaken. These consider both the internal and external factors affecting the future performance of Apple Inc. An analysis of the strategies adopted by Apple can then be conducted from the findings of this. We will conclude the research by making recommendations to both Apple and other firms in this market.

Contents
1. Introduction3
1.1 Background3
1.2 Research Aims4
2. Environment Analysis5
2.1 PESTEL Analysis5
2.2 Political5
2.3 Economic6
2.4 Socio- Cultural Factors7
2.5 Technological7
2.6 Environmental8
2.7 Legal9
3. Porter’s Five Forces10
3.1 Threats of New Entrants10
3.2 Threats of substitutes10
3.3 Supplier Power11
3.4 Buyer Power11
3.5 Rivalry between Competitors12
4. SWOT Analysis Apple13
4.1 Strengths14
4.2 Weaknesses15
4.3 Opportunities16
4.4 Threats17
5. Apple’s Strategies18
5.1 Innovation Strategy18
5.2 Internationalisation Strategy20
6. Conclusion22
6.1 Recommendation22
6.2 Conclude23
7. Bibliography24

1. Introduction
1.1 Background

Apple Inc. is an American based multinational corporation. It focuses on designing, selling and producing consumer electronics, software and personal computers. Its main product lines are; the iMac, iPhone, iPad and the iPod. Founded in 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne. Since then Apple Inc. has been one of the most innovative and competitive organisations in the technology industry. There have been significant ups and downs in the history of Apple. Throughout this, it kept its legacy of introducing new technology to the market. It is believed that over a hundred countries use Apple’s products. Boston Consulting Group (BCG) ranks the company as the most innovative company for the last 8 years running. It is important for an organisation like Apple to remain competitive in the industry for its survival. Apple has been working extensively to introduce new products and ideas since its inception.

Apple has transformed its business segment over the last decade. This began with the launch of the iPod in 2001, increasing profitability and creating growth. Apple further enhanced their profitability by expanding the operating segment, launching the iTunes store, and more recently through the acquisition of ‘Beats’. NPD Group (2012) found 63% of digital downloads run though Apple.

The major turnaround occurred in 2007 when the company launched an Internet enabled smartphone (The iPhone). This started the golden era of profitability and technological expansion for Apple. Apple has penetrated most of the developed countries, and even reached saturation point in Europe with its high end products including iPhone and iPad. It is yet to make a significant impact in the developing countries including China and India, which has around 36.8% of the worlds population. The research firm IDC (2013), found Apple’s market share for androids in China was only around 7%, below Samsung and Levono Group.

1.2 Research Aims

Alfred Chandler (1962) defined strategy as "The determination of the basic long-term goals of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out these goals.” In order to analyse the firms’ strategic position we will further this research into three sections. The first, looking at the impact of the environmental factors. This will be done using a PESTEL analysis, as well Porters’ Five Forces model. Secondly we will consider the strategic capability of Apple by using a SWOT analysis. Finally analysing Apple’s innovation and...

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