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Apple InC. (AAPL). Strategic Mgmt Dr. Jun Xia Chad Hyatt Dohhoon Yoon Joseph Ruzvidzo Khizer Javaid. SWOT Analysis. Porters 5 Forces. Financial Analysis. Product Life Cycle. Value Chain Analysis. VRIO Analysis. Company Strategies. BCG Portfolio Matrix & Recommendations. CONTENTS.
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Apple InC. (AAPL) Strategic Mgmt Dr. Jun Xia Chad Hyatt Dohhoon Yoon Joseph Ruzvidzo Khizer Javaid
SWOT Analysis Porters 5 Forces Financial Analysis Product Life Cycle Value Chain Analysis VRIO Analysis Company Strategies BCG Portfolio Matrix & Recommendations CONTENTS
Mission Statement "Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and has recently introduced iPad 2 which is defining the future of mobile media and computing devices."
Financial Analysis Compounded Annual Growth Rate 2008-2012
PLC- Product Life Cycle The Apple product life cycles indicates just how big the iPhone and the iPad will be over the next few years. It took the iPod five years to break the thirty million units per annum mark. The iPhone got there in four and the iPad made it in year two of launch. Either way for Apple, four years of strong growth are evident from products already in the lineup, both the iPhone and the iPad are set to hit the one hundred million units per annum mark in 2014. Despite the march of the Androids, the Apple growth story continues.
SWOT Strength • Software is Apple’ core OS X allow them to develop mobile device technology • Strong financial performance • Customers’ interest • Retail store Weakness • High Prices • Market share subsiding • Different CEO • Patent breaches • Flaws in new products • Inconsistency with variety of OS Opportunities • High demand - IPad and IPhone 5 • ITV launch • Emergence of the new provider of application processors • Advancement of tablets and smartphones markets • Protection of patent against the other companies Threats • Currents tax increase • Changes in technological rapidly • Key components - price pressure from Samsung • Foxconn Workers’ pay raise • Breaches IP rights • Android OS growth • Online music market
Company’s Strategies 1. Related Diversification Strategy Software and computer technology Digital music market with the launch of the iPod and iTunes Mobile devices iPhone, iPad App Store the digital contents market cf) Samsung Electronics, Samsung Card, Hotel Silla, Cheil Industries(fashion, apparel), Samsung Insurance 2. Product Extension (Line extension & Category extension) Mac - MacBook Air, MacBook Pro iPod – iPod Nano, Shuffle, Touch iPhone – iPhone 3G, iPhone4, 4S, iPhone 5 iPad – iPad 1,2,3,4 Apple TV, iTunes, iCloud
Company’s Strategies 3. Vertical Integration chip manufacturers, manufacturing, software standards, closed ecosystem, retail stores product optimization cheaper parts, higher efficiency cost savings, high margin Ex) To power the iPad, Apple has designed its own processor, called the A4. (Past: Intel chips for iMac and Macbook, Samsung chips for iPhone) 4. Three Generic Strategies – Differentiation · Powerful Ecosystem · Design Quality - iMac line was the first home computer to omit a floppy drive · Economies of Scale
BCG Matrix & Strategic Recommendation $ Large a. BCG Portfolio Matrix Synergy Market Share Cash Cow Star Dog Question mark ? Market Growth b. Strategic Alliances with Microsoft Small Low High
Recommendations: • Maturity stage, Apple should lower costs as volumes have increased. • Apple Inc. should continue its Global expansion through partnerships ex. China Mobile deal increased Apple’s 1st Q revenues by 29%. • Acquisitions and Mergers