The company is Apple Inc

1. Provide a brief introduction on the company. This should include identify the company by name, location, year started, type of business/services, number of employees, number of key competitors, vision statement, mission statement. It should also include the following:

prepare a thorough Strategy-Formulation Analytical Framework and discuss which direction you think is feasible for this company to take. This framework should encompass various analytical tools that you have used throughout the semester thus far. The Strategy-Formulation Analytical Framework is comprised as follows: Input Stage – IFE Matrix/Competitive Profile Matrix; EFE Matrix Matching Stage - SWOT Matrix; SPACE Matrix; BCG Matrix; Internal-External Matrix; Grand Strategy Matrix Decision Stage – Quantitative Strategic Planning Matrix (QSPM)

2. Using your strategic leadership, what strategy(ies) would you implement and why? Based on your analysis for the Decision Stage /QSPM, what strategy(ies) would you really implement and Why?

3. What contingency plans would you put in place to protect these strategies? Based on your previous response, what contingency plans would you put in place to protect these strategies?

View comments (1) 

Expert Answer

• 
  Xigmapro answered this

  Was this answer helpful?

  546 answers

  1.

  History Apple Inc:-

  Apple Inc was formerly known as Apple Computer Inc which provides corporate Server, MAC OS Systems, and Operating System. Apple core product lines are the iPhone, iPod, and Macintosh System. Steve Jobs and Steve Wozniak, The founder of Apple has created the Apple Computer on 1^st April 1976 and integrated with the company on 3^rd January 1977, in Cupertino California. It has driven the Computer manufacturing market for more than two decades. Mr. Steve Jobs who was expelled in 1985 was returned as CEO of the Apple Inc in 1996 with new Ideas and corporate philosophy. With the introduction of successful iPod Player into 2001 Apple has again proved itself as a Market leader in consumer electronics. Latest era of the extraordinary success of the company is in iOS-based Apple products like I Phone, iPod slim, I Pad and now I Pad 2. Now a day’s Apple is the biggest technology corporation on the planet with the profits of more than $65 billion. It has about 49,400 employs all over the world. Fortune Magazine Most Admired company in United State in 2008 and in the world in 2008, 2009 and 2010.

  Apple has over 240 Store all over the world and the bifurcation of these store in different countries are as below.

  Vision Statement of Apple:-

  “Man is the creator of change in this world. As such he should be above systems and structures, and not subordinate to them.”

  Explanation of Vision Statement:-

  Apple lives this vision through the technologies it develops for consumers and corporations. It strives to make its customers masters of the products they have bought. Apple doesn’t simply make a statement. It lives it by ensuring that its employees understand the vision and strive to reach it. It has put systems in place to enable smooth customer interaction. It has put objectives in place to continuously move forward; implement strategies to fulfill these objectives; and ensured that the right marketing, financial and operational structures are in place to apply the strategies.

  Mission Statement of Apple:-

  “Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. 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.”

  SWOT Analysis of Apple Inc:

  Although participation in such activities may add value, they may not be a source of competitive advantage. Ultimately, the value, rarity, inimitability, and/or organization (VRIO) of an activity or resource determine its sustainability as a source of competitive advantage. Within this context, we can identify a firm’s strengths, weaknesses, opportunities, and threats (SWOT).

  In SWOT analysis Strength and Weaknesses are depended on Internal factors and Opportunities and Threats Depends on External Factors of and Organization. SWOT analysis is useful in decision making about the organization going for any new or existing project.

  Apple SWOT Analysis

  Strength:

  • iTunes Music Store is an excellent source of revenue, especially with the iPod and the accessibility on Windows platform.
  • Apple Computer is expert in Developing own software and hardware.
  • Apple’s niche audience provides the company with some lagging from the direct price competition.
  • Giving a face-lift to desktop and notebook lines.
  • technology can be used to improve product awareness and sales.
  • Low debt—more maneuverable.
  • Apple Computers have good brand loyalty.
  • Partnership with Intel Computers in 2006 – Present.
  • Strong Research & Development Department.

  Weaknesses:

  • Weak relationship with Intel and Microsoft.
  • Weak presence in the business arena.
  • The product lifecycle of Apple products is very small for that reasons revenues are more dependent on the launch of new products and services.
  • Weak presence in markets other than education and publishing.
  • Slow turn around on high demand products.
  • Apple market share is far behind from major competitor Microsoft.
  • In past, the relationship between Steve jobs and employee were not good which result in reputation loss.

  Opportunities:

  • Increase in worms and viruses on PCs so the antivirus solution can be developed by Apple
  • The large population (Gen X&Y) which are extremely individualistic and name brand conscious.
  • The ties of apple other companies are weak, Apple can develop a good relationship with joint ventures
  • Downloadable music and MP3 players are highly marketable.
  • The online sales of the computer are increasing with rapid speed.
  • The laptop market growth is high; Apple Computers should focus to develop new models to cater the need of customers.

  Threats:

  • Companies not seeing Apple as compatible with their software.
  • Apple facing strong competition from Dell, HP, Sony, and Toshiba in laptop segment.
  • Downloading free music from other online sources without paying cost is common it may impact the iTunes sales.
  • Apple software, Cell phone, and hardware are expensive as compared to other competitors such as Dell.
  • The long-lasting recession may impact the sales of the company due to higher prices of the products and services
  • Microsoft launched Microsoft Vista, Windows 7 which is gaining market share.
  • The switching in technology is very fast

  BCG Model:

  Boston Consulting Group (BCG) model is a technique developed by BRUCE HENDERSON of the Boston Consulting Group in early 1970’s. According to this technique business or products are classified as low or high performers depending upon their market growth rate and relative market share. It is a very useful tool to identify the product line of an organization.

  2.

  As per my analysis, the strategies should be implemented like -

  I> Try to make good relationship with other big companies and a good presence in the business area.

  II> Make a good relationship with employees and fulfill their expectations to gain more reputation.  

  III> Make a product which will be compatible with any company software

  IV> Take a time to build a new technology. It will help to explore the market with previous technology.

  V> Try to make some free music downloadable option in iTunes music store.

  3.

  Contingency plans:-

  FOR COMPANY:

  Lowering the cost of products and maintaining the same quality standards

  Can form joint – ventures
  Knowledge Management

  Number of retail stores for easy access
  Continuous innovation to expand

  FOR OTHERS:

  Does not compromise on price for the quality

  Choose the products based on individual needs

  Be unique and different

  View comments (1)