Apple Inc. Study Essay Example for Free

orchard orchard apple tree tree Inc. Study Essay1. Executive summaryorchard apple tree Inc. is a engineering science federation, which designs, produces and sells goods of the Computer, Music and Mobile-ph single Industries. It is differentiated by its taint-perception and identification. Over the last couple of age, orchard apple tree has reverse a cult-brand, thanking its iLife, iTunes, QuickTime and iMac lines. apple Inc.s lilliputian-term deaths is currently increasing the gross salesof the just launched iPad (the around innovative web=browser in market). In the long-run, orchard apple tree aims for the top of the market, becoming the fig ane leader. apple Inc. has incorporated numerous features that argon unique and well known in the market today. We c everyplace that there atomic number 18 several orchard apple tree products with several appealing features such as iMac, iPod, iPhone and iPad. These products re generate a revolutionary era for the get downm ent of apple. By placing such products in the market, orchard apple tree Inc. has attracted a lot of clients in one way or an different. Highly advanced technology, simplicity and design, and the sense of luxury are the pregnant features integrated in these products. Moreover the comfort and convenience that these products leave are very crucial. Think unalikeOne of the main origins which inspired me to choose orchard apple tree Inc. is its unique, simple and luxurious image that orchard apple tree has created in the market over the years. Think differently which is an inspiring motto, made us believe that simplicity and creativeness combined with luxury apprise lead to a successful and profitable order, such as orchard apple tree. another(prenominal) component that we found to be ch each(prenominal)enging for us was to understand Apples goals, objectives and their secret of universe successful. A very important fact about Apple products today is that these products are g lobally spread. This has created among us the idea that Apple products are no longer luxuries unless real necessities due to the technological developments. Moreover, what has do us most to select Apple Inc., is the way we relate ourselves with its products. Each of us being an Apple consumer has build trustworthiness relationship with the products that this company offers. Owning an iPod or iPhone today definitely leave alone make your vivification easy and simple. As mentioned above, 2010 came with the launching of the iPad, which is a totally differentiated product in the market. It is a web-browser, which too drive out be used as laptop, and stack be useful in every facial expression of educational and professional areas. Its price, compared to regular Apple prices, is pretty affordable ($499), which is an incentive for to a greater extent buyers to purchase. This is the main goal of Apple in the current day.2. IntroductionAccording to (OPPapers, 2012).Apple Inc is an Am erican multinational presidential term located in 1 infinite loop, Cupertino, California 95014, in the middle of the Silicon Valley. It is focused on designing and growth the personal computers, other link up software products, and the electronic products such as MP3 players and iPods. Apple Incs main products are iMac, iPod, iPhone, and its latest advanced product is iPad, which is on the verge of creating another revolution after iPhone. Apple Inc was founded in 1976 and since then Apple Inc has been leading the way in innovating juvenile products, all the same it has encountered numerous ups and downs since then. Apple Inc produced the first ever extremely successful personal computer.It has been always on the forefront of innovating new products however it has often struggled to maintain the hold on the market distribute in the product line. Lately, Apple Inc has transform its image from an inventive computer manufacturer to a fully-fledged consumers electronic company. So me facts of its success can be calculated from its sales of $13.95 billion in the year 2005. In year 2005, Apple Inc had controlled 4.2% of the US market in PCs. Also, Apple iPods models had controlled 70% of the hard drive MP3 player market. Apple Inc enjoys the leading share in the handset market, generating over 71% of the industrys profit with 6.5% of the international handset market. Apple unveiled its first iPhone on 9th January, 2007. The most recent iPhone, is iPhone 4S, and it was announced on 4rth October, 2011 and was released 10 days later. 3. orchard apple tree Inc.According to (Scribd Inc., 2013) Apple has to be one of the greatest success stories of all time. The beginnings of Apple started with Wozniak assembling a simple built computer machine. It was in the summer of 1971 Wozniak 21 and Jobs 16 were introduced to each other by a mutual friend Bill Fernandez. Wozniak had shown Jobs his simple built computer machine and this impressed Jobs to the omen Jobs believed he could sell it for a profit. It was here they would form a strong friendship because they not solo shared a passion for computers, precisely because they were both known as outcasts and for the first time they had a great understanding, admiration and respect for each others abilities, personality and intellect. They would begin the Apple labor movement by selling some of their possessions Wozniaks HP scientific calculator and Jobs Volkswagen, they raised $1300 and assembled their first prototypes in Jobs bedroom. When the parturiency became too big for the bedroomthey moved the project into Jobs familys garage, it was on a huge wooden progress to bench that served as their first manufacturing base.The computers were hand built by Wozniak and first shown to the humankind at the photographic plate brew Computer club. After selling a number of the machines Apple was established on April 1, 1976 and went public on December 12, 1980. Apple has maintained its great success with its ability to understand what the consumer wants before the consumer in time knows what they want Apple effectively creates wants by their constant creative innovation and unique design which is stylish, user friendly and affordable. They stupefy too been able to create a brand in the high technology realism just as Chanel has in the fashion world. People can easily recognize an apple whether its the I-Pod, the I-Phone, the Mac Air or the I-Pad. It has become a product that defines ones identity in how they desire to be seen by society that is a person who is highly innovative, intelligent, stylish and isolated of the in crowd. This is pure marketing genius. This marketing genius of Apple has seen this company outperform beyond the railway line worlds expectations. While so legion(predicate) companies are struggling to break even in the current recession Apple is getting stronger by the day. Apples Most Successful Products and ServicesiPhone 4, iPadiPad 2, iPhone, iTunes, PowerBook G4, iPod, OS X, iMac, Quick time, Mac, Apple II. PRODUCTS and SERVICESApple Store, Mac, iPod, iPhone, iPad, iTunes.Other Products and ServicesDesktops, Xserve, Notebooks.4. Vision StatementIt is especially important for managers and executives in any organization to view as on the basic vision that the firm strives to achieve in the long term. A vision teaching should answer the basic question, What do we want to become? A clear vision provides the foundation for develop a comprehensive mission parameter (David, 2011) a. Vision Statement of orchard apple treeMan is the creator of win over in this world. As such he should be above systems andstructures, and not subordinate to them. i. Explanation of orchard apple trees visionAccording to (Hamilton, 2011) Apple lives this vision through the technologies it develops for consumers and corporations. It strives to make its customers masters of the products they moderate bought. Apple doesnt simply make a statement. It live s 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 introductory implemented strategies to fulfill these objectives and ensured that the right marketing, financial and operational structures are in place to apply the strategies. 5. commission StatementWhat is our business? is synonymous with asking the question What is our mission? An enduring statement of purpose that distinguishes one organization from other similar enterprises, the mission statement is a declaration of an organizations reason for being. It answers the pivotal question What our business? A clear mission statement is essential for effectively establishing objectives and formulating strategies (David, 2011). a. electric charge Statement of orchard apple treeApple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork, and professional s oftware. Apple leads the digital medication revolution with its iPods and iTunes online store. Apple reinvented the mobile phone with its revolutionary iPhone and App Store, and has recently introduced its magical iPad which is shaping the early of mobile media and computing devices.i. Mission Statement digest for orchard apple tree Inc.Apple is mainly snap at the fol meeking components of mission statement 1. Apple may not be important to boom on its concern for its employees or to thoroughly outline its customers and targeted market. Apple is a trendy technology company which prides its self in providing easy to use electronics and efficiently run software systems. Because of this it is most important for Apples mission statement to focus on components like company philosophy, self-concepts, and current technologies. These aspects of Apple are what make it popular and successful today. 2. Apple ignited the personal computer revolution in the mid-seventies with the Apple II an d reinvented the personal computer in the 1980s with the Macintosh.Today, Apple continues to lead the industry in innovation with its award-winning desktop and notebook computers, OS X operating system, and iLife and professional applications. Apple is also spearheading the digital music revolution with its iPod portable music players and iTunes online music store. 3. Apples mission statement only includes descriptions of products and services and past and present technologies. 4. The mission statement from Apple is somewhat unconventional. Its more of a brief history rather than a summary of the corporations general purpose. It does however paint a picture of where Apple came from, how far it has come, and where its continuing to go. But for such a popular company it may be beneficial divulge into points like its self-purpose and their concern for public image. 6. ValuesAs declared in (appleinvestor, 2012) Apple Values are the qualities, customs, standards, and principles that the company believes will back up it and its employees succeed. They are the basis for what they do and how they do it. Taken together, they identify Apple as a unique company. These are the values that manage Apples business conduct Empathy for Customers/UsersAggressiveness/AchievementPositive Social Contribution renewal/VisionIndividual PerformanceTeam SpiritQuality/ExcellenceIndividual Reward severe Management7. remote AuditThe purpose of an external audit is to develop a finite diagnose of opportunities that could benefit a firm and curses that should be avoided. a. External Analysis for APPLE Inc.External milieu determines the present situation of Apple Inc., and also helps find out the possible influences of the political, economical, andsocial and the technological factors on the organization. b. PESTL Analysis for Apple Inc.i. Political FactorsAs stated in (CNetnews 2012) Apple Inc. has reportedly obtained 52% of its business from foreign US in 2007. Due to the bad inter national relations, wars and terrorism might influence Apple Inc. in a huge way, and also the organization has no control over these factors. Apple Inc. manufactures a number of its parts and products from outside the US, like Czech Republic, Ireland, China, Korea and Cork. The bad political relations between US and the other world have bad outcomes for the Apple Inc. (CNetnews, 2012). ii. Economic FactorsBy the (Apple Inc., 2012) The global economic crisis had huge doctor on Apple Inc. The inflation rate went high and so did the unemployment rate in the country, and since Apple Inc. products were viewed as luxury products, the customers started pending less on them. US dollar value keeps fluctuating, and thus again which have a bad impact on Apple Inc. products, however the company has purchased itself foreign currencies and thus, the economic do on the company are minimized. Thus, Apple Inc. revenue has change magnitude in the global market.iii. Social Factors passim the histor y of Apple Inc., two factors have been on the forefront of Apple Inc. products, the quality and the design of the product. Thus, globalization plays a very important role in Apples products. As the world cannot be imagined without the gadgets, thus Apple products have marked their presence on the international market. Also, as the purchasing business office of the common has risen in various markets across the world the purchasing of luxury products have foregone up, for e.g. the iPhone, iPods and the latest technology iPad. Possessing these items is considered as status symbols in umteen societies which have also summationd the sales of Apple Inc. products. Another big social influence to Apple Inc. products is the rapid growth of the music industry, which have increased markets over the cyber s tread as well. The main virtual music store is the iTunes. Thus, in all Appleproducts have benefitted from the social factors as it has begun defining a modern individual life trend. iv . Technological FactorsApple Inc. has invested largely in its product research and development field and thus, Apple products are at the top of the new innovative products ranking. Apple Inc. has invested largely in its product research and development field and thus, Apple products are at the top of the new innovative products ranking. The technology has been fast changing in the world and the market for it has become gigantic, which has added to more and more competition and thus, as soon as technological budge are concerned the product life cycle has been shortened drastically, which the Apple Inc. takes the advantage of by introducing newer products in the market, which ultimately lead the market. v. Legal FactorsNokia has filed various lawsuits against Apple Inc., claiming the violation of 13 additional patents by iPhone, iPad and iPod touch, this apart from US complains covering 24 Nokia patents. Also, in China Apple Inc. has been fighting the battle for its right to the iPad trademark. 8. rig out summary for APPLE Inc.SWOT analysis stands for Strength, Weakness, Opportunity and Threat for a particular organization, which can help in formulating a strategy for its business and can also help in analyzing its internal environment (Strengths Weakness) and external environment (Opportunities Threats).a. StrengthsAccording to (Wharton, 2012) The first and foremost strength of Apple Inc. is its technological edge over its competitors. IPhone have turned out to be a great success and has been associated with status in many of the countries. ITunes has turned out to be a wonderful revenue generating source and since it also sells with its own cats-paw i.e. the iPod, thus, revenue has multiplied for Apple Inc. Another strength for the organization is that for every software that Apple Inc. produces, it introduces its computer hardware with it too, which leads to its expertise in both the industries. Apple Inc. products are classified as luxury items, thus i ts products provide enough room for it, sothat the competitor products are no longer a competition. The another strikingly advantage over competitors products, is the design of the Apple products, and which are also simple to use. The brand loyalty of its product and its super dedicated research and development department are also its major(ip) strengths. b. WeaknessesWeaknesses are the disadvantages that are hindrance in obtaining the business goals for the organization. The poor relationship with the market than Microsoft is surely a disadvantage to Apple Inc. Another point could be that the products introduced by Apple Inc. have very short life cycle, which concludes that the research and development department has to be constantly maintained, which requires huge capital. Apple Inc. has very low presence in the advertisements, and also it has very small market occupation as compared to its main equal Microsoft. Thus, all this leads to the fact that Apple Inc. gets very less busi ness from its home country US, and major of its business is from outside the US. c. OpportunitiesAccording to (Marketingteacher, 2012).Opportunities can affect both the present as well as the future condition of an organization. Apple Inc. opportunities are the introduction of more and more PC viruses, on which Apple Inc. can capitalize on. The second opportunity is the population of the world is growing at a rapid pace and thus, this opens the front for many new markets, also the purchasing power of a common man has increased drastically, who can be pursued or impressed to buy the luxury Apple products. The online sales of the organization are increasing and also, the bonds and the partnership with the other organizations have been on the rise in the past fewer years. Products such as iPhone have create a new set of potential customers altogether which can be targeted in the future i.e. the young population who have a craze for any new technology gadget (MarketingTeacher.com 2012) .d. ThreatsIn the past few years, many competitors have come up for Apple Inc., especially in the field of laptops, like dingle, Sony, HP, and Toshiba. Another threat could be that many of the customers have started downloadingthe music for free instead of purchasing at iTunes. The product expensiveness is itself a threat to the product, as substitutes at a lower price are always available. Long lasting recession could also be a threat to its products. windows 7 software is gaining more market place after vista flopped and last but not the least, the technological advances that have been taking place every single day, is a big threat to Apple Inc. 9. Porters Five Forces ModelPorters Five-Forces Model of competitive analysis is a widely used approach for developing strategies in many industries. The intensity of competition among firms varies widely across industries (David, 2011). a. Porters Five Forces Model for APPLE Inc.Porters Five force Model is a very powerful tool to under stand the core of the power in a business or in a company. The Porter Five Force Model for Apple Inc. is shown belowModel 1 Showing Porters Five Forces Model at APPLE Inc.10. External AuditAn External Factor evaluation (EFE) matrix allows strategists to summarize and evaluate economic, social, cultural, demographic, environmental, political, governmental, legal, technological, and competitive information (David, 2011). a. Factors Evaluation (EFE) for AppleEFE ground substanceModel 2 Showing EFE matrix for APPLE Inc.11. Competitive compose intercellular substanceThe Competitive Profile intercellular substance (CPM) identifies a firms major competitors and its particular strengths and weaknesses in relation to a prototype firms strategic range (David, 2011). a. CPM for APPLE Inc.Model 3 Showing CPM for APPLE Inc.12. knowledgeable AuditAll organizations have strengths and weaknesses in the functional areas of business. No enterprise is equally strong or weak in all areas (David, 2011). a. Internal Audit for APPLE Inc.i. Internal EnvironmentVRIO materialThe VRIO framework can be stated as the value, rarity, imitablity, and organization as a whole. VRIO framework is extremely important for the internal analysis of Apple Inc organization. Resources and Competencies14. SWOT MatrixThe Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix is an important matching tool that helps managers develop quaternity types of strategies SO (strengths-opportunities) Strategies, WO (weaknesses-opportunities) Strategies, ST (strengths-threats) Strategies, and WT (weaknesses-threats) Strategies (David, 2011). a. SWOT Matrix for APPLES-O StrategiesIncrease awareness through the web of the op bunk of Mac products to worms and viruses. (S5, O1) Advertise using individuals that will link Generation X Y to the iTunes and other related products. (S1, O2, O4, O5, O6) Using movies and music groups that are geared towards Gen X and Y to promote computers and laptops. (S3, S5, O2 , O5, O6) S-T StrategiesIncrease and promote the compatibility to Window operating system. (S5,T1) Promote the originality of Apple computers and the different style and stable system that is slightly more but worth the price difference in style, stability and speed. (S2, S5, T2, T4, T5) W-O StrategiesIncrease ties with Microsoft and Intel and their products.(W1, W2, W4 O2, O3)Promote to business the safety of having a worm and virus free computer by using Mac. (W2, W4, O1, O5, O6) W-T StrategiesImprove relationship with Microsoft and Intel so that companies will see them as congenial. (W1, W2 T1) Increase productivity and turn around of high demand products to compete with Dell and HP (W5, T2)15. The strategical Position and Action Evaluation ( put) Matrix The Strategic Position and Action Evaluation (SPACE) Matrix is four-quadrant framework indicates whether aggressive, conservative, defensive, or competitive strategies are most appropriate for a given organization. The axes of the SPACE Matrix represent two internal dimensions (financial position FP and competitive position CP) and two external dimensions (stability position SP and industry position IP). These four factors are perhaps the most important determinants of an organizations overall strategic position (David, 2011). 15.1 SPACE Matrix for APPLEModel 6 Showing SPACE Matrix for APPLE Inc.16. BCG MatrixWhen a firms divisions compete in different industries, a ruin strategy often must be developed for each business. The Boston Consulting Group (BCG) Matrix is knowing specifically to enhance a multidivisional firms efforts to formulate strategies (David, 2011). a. BCG Matrix for APPLEModel 7 Showing BCG Matrix for APPLE Inc.17. Internal External MatrixThe IE Matrix is similar to the BCG Matrix in that both tools involve plotting organization divisions in a schematic diagram this is why they are both called portfolio matrices. (David, 2011). a. IE Matrix for APPLEModel 8 Showing IE Matrix for APPLE Inc.18. Grand MatrixThe Grand Strategy Matrix has become a popular tool for formulatingchoice strategies. All organizations can be positioned in one of the Grand Strategy Matrixs four strategy quadrants. A firms divisions likewise could be positioned (David, 2011).19. The Quantitative Strategic Planning Matrix (QSPM)The Quantitative Strategic Planning Matrix (QSPM), which comprises Stage 3 of the strategy-formulation analytical framework. This technique objectively indicates which preference strategies are best (David, 2011). a. QSPM for APPLEModel 9 Showing QSPM for APPLE Inc.20. Finance/ Accounting pecuniary condition is often considered the single best measure of a firms competitive position and overall attractiveness to investors. Determining an organizations financial strengths and weaknesses is essential to effectively formulating strategies.a. Financial Ratios for APPLESale RatioModel 10 Showing sales ratio for APPLE Inc.Asset upset RatioModel 11 Showing Asset overturn rat io for APPLE Inc.Inventory Turnover RatioModel 12 Showing Inventory Turnover ratio for APPLE Inc.Gross boodle Margin RatioModel 13 Showing Gross Profit Margin ratio for APPLE Inc.21. ConclusionIt is concluded from the strategic management analysis at APPLE Inc. that technological industries are neer easy to compete with. They have a lotinvest at RD and have to be proactive in order to compete with their competitors in the industry. As for APPLE is concerned they have been working so well as it is shown form their products. As Apple Inc. is increasing also, those other businesses are increasing and nerve-wracking to do something interesting for their own good. APPLE unavoidablenesss to make a drastic change. They dont need to wait for people buy their products only when they are on sale but they need to focus more on the customer support and improve the areas they already have problems.22. RecommendationsStrategy 1Open six computer retail stores (not just peripheral and accessori es). Apple currently has stores opened end-to-end the United States with only peripheral and accessories for their computers. Adding the hardware should generate more hands-on awareness and use already established locations. This will increase product accessibility for those who wish to view items other than just accessories and increase awareness of the originality of Apples products. 2 percent increase over the next 2 years in sales representatives for the computer hardware. Strategy 2Contract music spokesperson to attract the upcoming generation who are attending high school and college. This will invoke a sense of style and linking apple with a distinctive and memorable top 10 hit. This will stay in the customers awareness and influence future purchase decisions. Contracting one music spokesperson estimated $6 million. Strategy 3Add more features to current products for greater Wintel compatibility. Features such as iTune software compatible with windows based computers, Offic e programs loadable from PC installation disk (This would require a software agreement with Microsoft). In late October 2003 Apple released an iTune software package that is PC ready. It will increase the United States market share at least 30 percent for the next 2-3 years. $50 million is the estimated cost for Research and Development.23. References1. David, F, Strategic Management Concepts 13 edition, Pearsons, 2011. 2. http//alvinalexander.com/blog/post/mac-os-x/apple-business-philosophy-mission-statement 3. http//writepass.co.uk/journal/2012/12/strategic-analysis-swot-and-bcg-matrix-of-apple-inc/ 4. http//blogs.hbr.org/fox/2013/01/apple-versus-the-strategy-prof.html 5. http//www.strategicmanagementinsight.com/swot-analyses/apple-swot-analysis.html 6. http//investor.apple.com/secfiling.cfm?filingID=1193125-12-444068 7. http//tech.fortune.cnn.com/2012/11/01/by-the-numbers-apples-fiscal-2012-annual-report/ 8. http//www.apple.com/supplierresponsibility/pdf/Supplier_Code_of_Conduct_ V3_1.pdf 9. http//myassignmenthelp.info/assignments/marketing-assignment-essay-writing-analysis-review-online-apple-swot-pestle-analysis/