This document provides an overview of Apple Inc.'s business strategy presentation from February 2012. It discusses the importance of strategy, Apple's mission and vision, an analysis of Apple's external environment, industry, SWOT analysis, value chain, and long-term objectives. Apple's mission is to bring the best personal computing experience to users through innovative hardware, software and offerings, with a vision of being a leading innovator of new technologies that change daily life.
2. Is Strategy Important ?
Without a strategy, an organization is like a
ship without a rudder, going around in
circles. It’s like a tramp; it has no place to
go.
- Joel Ross and Michael Kami
6. Apple Profile
Products: Mac and Industry:
accessories, Apple Key Players:
TV, Software, iPad, Dell, HP
iPod, iPhone Samsung, BlackBerry
Microsoft
Markets: High-end,
technology-savvy Keys to success:
users Innovation
Revenue: $108.3 Quality support services
billion in 2011
7. Apple’s Mission & Vision
Mission: Apple is Vision: To be a
committed to bringing the leading innovator of
best personal computing
new technologies that
experience to students,
educators, creative change the way people
professionals and go about their daily
consumers globally Life
through innovative
hardware, software and
internet offerings.
8. Mission Statement Evaluation Matrix
Concern for
Survival,
Products Growth,
Organization Customers Services Markets Profitability Technology
Apple Inc Yes Yes Yes No Yes
Self- Concern for Concern for
Philosophy Concept Public Image Employees
No Yes No No
13. EXISTING RIVALRY
Windows OS and media player for playing
music and video ( Microsoft)
Competition to Mac OS X (Linux)
Alternate sources of computer hardware
(Dell, HP, Lenovo)
Small stylish MP3 players (Creative,
Samsung)
Phones (Samsung, BlackBerry)
14. THREAT OF NEW ENTRANTS
Software for mobile devices (Google,
Microsoft)
Streaming audio and video with v-cast
(Verizon)
On demand online services (similar to i-
tunes)
New entrants with disruptive technology
(Boxee)
15. BARGAINING POWER OF SUPPLIERS
Suppliers of processors and computer
memory(Motorola, IBM, Intel)
Strategic alliance/supplier of Mac
(Microsoft)
Supplier of TV and movies (Disney, ABC,
Fox, Sony)
Flash Memory for iPhone & iPad
(Samsung)
16. BARGAINING POWER OF CUSTOMERS
Customers share music using peer-to-peer
networks without paying for music (Ares,
Limewire)
Retailers may pressure for lower prices or
better terms(Distributors)
Consumers/Businesses may reduce
spending on computers if they fear
economic downturns (Consumer Attitudes
& Behaviors)
17. THREAT FROM SUBSTITUTES
Satellite radio for music (XM, Sirius)
Entertainment media, media and music
(XBOX, PS2)
Alternative means to acquire music (Music
CDs, DVDs, free download)
Alternative to Mac, iPhones (Tablet)
19. Strengths
54% of Apple Profits are in foreign markets
High Quality Products
Brand Name
Innovation
Product Diversification
Easy use product (‡Attractive, Small, Light)
Control over the product by manufacturing
both hardware and their OS
20. Weaknesses
High Price
Poor leadership
Internal engineering focus rather than a
market focus
No Dividends
The product life cycle are very small for
that reasons revenues are more depend on
launch of new products and services.
21. Opportunity
Enlarge target market with new product
Integration with other products
Strategic Alliances with leading
communication firms
The use of Intel chips
Good relationship with other companies for
joint ventures
22. Threats
‡ High level of competition in the
technology market
High product substitution effects
The switching in technology is very fast.
Forward integration
24. Value Chain Analysis
Primary Activities:
Technology Development
Research & development leading to product and process
innovations, timeliness of technology developments,
encourage creativity
Operations
Product design, productivity of equipment, effective
quality control systems
Marketing and Sales
Identify customer segments, innovate sales &
advertising, image of quality, favorable reputation, brand
loyalty
Service
Ability to provide replacement parts or tech support,
warranty/guarantee, quality of customer education &
training
25. Value Chain Analysis
Supporting Activities:
General Administration:
Identify new-product market opportunities &
environmental threats, public image & corporate
citizenship
Human Resource Management
Recruit, train, motivate, challenge, and promote the
most talented employees
Procurement
Good relationship with suppliers,
27. Long Term Objective
Technological Leadership
Product Development
Quality Support Services
Innovation
Grand Strategies
Concentrated Growth
Concentric Diversification
Strategic Alliances
Apple after Steve