Strategic Consultancy Report on Apple Inc.

This report provides an overview of Apple Inc., its internal and external environment, and a SWOT analysis. It also includes key strategic objectives, strategic choices, and recommendations to make effective changes in the company.

REPORT
To: Managing Director, XYZ company
From:
Date:
Ref: Report on XYZ company`s entrepreneurial strategies and
recommendations

Executive summary
The purpose of this report is to provide information about
innovative organizations which are beneficial to provide new and
creative ideas for the customers. This report will explain the
major problems faced by these companies, an overview of the
organization, situation analysis , the key strategic options and
appropriate recommendations to make effective changes in the
company.

1. Introduction.......................................................................................................................................4
2. Overview of the organisation.............................................................................................................4
2.1 Background............................................................................................................................4
2.2 Problems................................................................................................................................4
3. Situational analysis (internal environment).......................................................................................5
3.1 Organisational current entrepreneurial and intrapreneurial strategies................................5
3.2 Financial analysis...................................................................................................................5
3.3 Business structure.................................................................................................................5
3.4 Marketing and sales/Digital marketing: ................................................................................5
3.5 HR policies:............................................................................................................................6
3.6 Product and pricing ...............................................................................................................6
3.7 Stakeholders’ analysis............................................................................................................7
4. Situational analysis (External Environment)......................................................................................7
4.1 PESTLE analysis......................................................................................................................7
4.2 Five forces analysis................................................................................................................8
4.3 Customer analysis..................................................................................................................9
4.4 BCG matrix analysis...............................................................................................................9
5. SWOT analysis....................................................................................................................................9
6. THE KEY STRATEGIC OBJECTIVES......................................................................................................10
7. STRATEGIC CHOICES........................................................................................................................11
8. IMPLEMENTING STRATEGIES...........................................................................................................11
9. RECOMMENDATIONS......................................................................................................................12
10. CONCLUSION.................................................................................................................................12
List of references.................................................................................................................................13

1. Introduction
Innovative organization are referred as the business corporations
which have a different style of conducting the business practices and is
concerned with the different types of competitive collaborations. These
organizations give major focus on taking serious risks which are crucial
for the overall management to increase their overall efficiency.
Innovation is a significant source of growth for these organizations which
is helpful in providing new and attractive products and services to
customers that is useful in order to gain competitive advantage. The
current report is based on Apple Inc. which is one of the most popular
technology organizations in the world. It is a multinational technology
organization which is specialized in providing electronics, software and
other different services to the customers.
2. Overview of the organisation
2.1 Background
Apple Inc. is the largest Information Technology by revenue in the
world, it is an American manufacturer of different digital devices
such as smartphones, computers, tablets etc.(Durana and et.al.,
2020) It was found by Steve Jobs and Seve Woziniak in 1976. It
has been one of the most popular companies which offers high
quality services to their customers in order to gain better
recognition from them (Akhmetshin and et.al., 2018). The
organization has been one of the market leaders in the industry
from several and it is concerned with the development of new and
innovative products on a regular basis for their customers.
2.2 Problems
The major issues that have a negative influence over the
organization are its competitors which may have contributed in

reducing the competitive advantage of the organization in the
industry. The market in which the organization operates is stiff and
various rivals which have a prominent market share. The
organization may face certain allegations about the unethical
business practices such as rash litigation, dubious tax tactics,
competitive behaviour, insufficient data security which may be a
concern for the management to address.
3. Situational analysis (internal environment)
3.1 Organisational current entrepreneurial and intrapreneurial strategies
The organization follows the product differentiation strategy in
order to develop innovative and creative products which are
attractive to the customers. The organization specializes in
technology and software and it tries to introduce advanced
products to their customers in order to increase their satisfaction.
This strategy of the organization is highly effective in increasing
the trust of the customers towards quality of the products offered
by the organization. It is useful for the business in order to gain
better recognition in the industry and improve their overall success
in the business.
3.2 Financial analysis
Apple Inc. is one of the most popular businesses in the world and it
has a total of has a lot of assets and liabilities which are crucial for
the business in order to achieve better recognition in the market.
The revenues of the organization increase by 10% according to
the reports in 26 March 2022. The company has a good market
share in the industry and it has experienced various developments
in their profits from a significant period (Prodanova and et.al.,
2019).
3.3 Business structure
The organization may have adopted a functional structure which
explains that organization focus upon different areas of the
business rather than the individual products. It is also referred as a
company structure which is useful for the business to gain better
advantage in the industry. This style of business structure is
effective in properly managing the various aspects of business.

3.4 Marketing and sales/Digital marketing:
The organization uses different digital marketing channels in order
to market their products among the customers. Facebook,
Instagram and Twitter are the social media platforms which are
used by the business in order to promote their products to the
customers (Botelho and et.al., 2021). These platforms are effective
for the business to increase their customer engagement and gain
better popularity in the market. With the use of these advanced
social media tools, the organization may develop better strategy
and target their potential customers in order to gain their trust
towards buying the products of the organization.
3.5 HR policies:
Apple Inc. have developed appropriate HR policies which
emphasizes investing in the human capital and increasing their
motivation levels by providing them with the due motivation. It
considers taking approval from the group members about the
crucial decisions which may be important for managing the
decision-making process.
The organization may focus upon motivating their employees by
providing various benefits and incentives which is beneficial in
order to increase their motivation towards the work. With the help
of these practices, the organization has been able to provide a
better working experience to their employees and improve their
efforts towards their job role (Durana and et.al., 2020). The
workforce at Apple is monitored by their superiors in order to
ensure accuracy in their work and increase the productivity of the
output that has been achieved by them. The company believes
that these policies are helpful for increasing the satisfaction levels
of the employees and provide them with a suitable working
environment.
3.6 Product and pricing
The organization may have a competitive pricing strategy which is
implemented by preparing perfect plans to change the process in
the future. It may provide their products at higher prices to the
customers in order to reflect a premium image of the products
among the consumers. This strategy may be useful fir the
organization in order to gain competitive advantage in a highly
dynamic environment (Huang and et.al., 2021). The customers are

loyal towards the brand and connect with their mentality which
effects upon their buying behaviour and has motivates them to
purchase products of the organization. The business may find
various complexities if their pricing is not prepared effectively.
3.7 Stakeholders’ analysis
The major stakeholders of the organization such as the Board of
Directors, employees, executives and shareholders which may
help Apple Inc. in taking crucial decisions of the company
effectively. The organization may get the valuable feedbacks from
these stakeholders in order to successfully increase the
organizational productivity. These stakeholders may assist the
business in getting the knowledge of the market and making
effective changes in their strategy in order to produce better quality
of output than the competitors. With the help of this aspect the
organization may improve their stability in the market and increase
its chances of attaining accuracy in their decision-making process.
4. Situational analysis (External Environment)
4.1 PESTLE analysis
Political Factors
The organization is highly dependent on the lower cost
manufacturing which is takes place in China, the disrupt in the
political environment in the country may cause several issues for
the organization in order to grow. This factor may have a negative
impact over the sustainability of the organization. The another
factor is the dominance of the government on the major decisions
of the industry which may create issues for the company for
appropriate expansion.
Economic Factors
The increased labour costs in the Chinese market may have a
negative impact on the cost advantage of the organization (López-
Nicolás, Ruiz-Nicolás and Mateo-Ortuño, 2021). This aspect may
reduce the chances of the organization to grow in the current
business environment and gain better advantage.

Social Factors
The products of Apple are considered as a status symbol for many
customers which has b been helpful in order to increase the overall
success of the organization. This is useful for the business to
increase their supply in the China market and develop better
market share.
Technological Factors
The organization may use advanced technology which is useful in
order to develop new and innovative products consistently and it is
useful in increasing the efficiency of the business.
Legal Factors
There are different laws and procedures in the different countries
in which Apple Inc. operates which may have a negative impact on
the overall success of the organization. The corporate law of the
country may not be suitable for the outside companies in order to
gain a significant market share.
Environmental Factors
The disposal of the electronic devices is a major issue which is
faced by the organization as the cost of disposal is high in the
industry. It may create pollution in the environment which may not
be useful for maintaining sustainability of the organization in the
industry.
4.2 Five forces analysis
Competitive Rivalry
This force has a strong threat on Apple as the competitors such as
Samsung and Xiomi of the industry has high aggressiveness of the
companies, the switching costs are low and there is low
differentiation of products.
Bargaining power of buyers
The power of buyers is high as the switching costs to other
companies is low, high buyer information is available which has a
negative influence over the business.
Bargaining power of suppliers

It is a weak force as there are moderate to high number of
suppliers in the industry and the organization may have availability
to a large pool of suppliers (Prodanova and et.al., 2019). The
China market has a lot of suppliers in the industry as it is the best
manufacturing capacity.
Threat of substitutes
The performance of the substitutes which are available for the
Apple Inc. products in the market is low which shows that it is a
weak force. The substitures are Ipods and Ipad which have a low
market share in the industry.
Threat of new entrants
This force has moderate power in the industry as there is high
capital required in order to establish a new business in this
industry and high cost of brand development may be incurred by
the new entrants.
4.3 Customer analysis
The target market of the organization are the consumers of 22-55
years. It is the convenient market of the organization. It may
fluctuate on the basis of the type of products that are offered by
the organization to the customers. The consumers from a lot of
countries and regions are targeted by the organization in order to
increase market share of the business in the industry. The customers
are excited to purchase the products of Apple on a regular basis which puts
the organization in a better position.
4.4 BCG matrix analysis
Dogs
The products which have high growth potential but are not
performing well in the market. IPods are referred as dogs as they
have lost their value in the market due to low customer demand.
Stars
The products with high market share and the best performance in
the industry are considered as stars of the company (Valdez-
Juárez, Castillo-Vergara and Ramos-Escobar, 2022). IPhones are
the stars of the organization ass they are highly popular in the
market and have better market share than another products of the
organization.

Cash Cows
The Apple Macbook and the Apple Itunes are considered as the
cash cows of the BCG matrix of Apple. These products have high
market share but a low growth in the market.
Question Mark
The Apple Smart TVs can become a question mark for the
organization in the industry and can become a star in the future if
some major issues are identified and corrected by the
management of the organization.
5. SWOT analysis
Strengths
The innovative and creative products that are regularly launched by the
organization are one of the major strengths of the organization as they
help in increasing the engagement of the customers towards the brand.
The organization has high brand equity among the industry.
Weaknesses
The brand may depend on few products that have a high market share in
the industry and it is a weakness of the organization. The incompatibility
of the Apple products with the third party software is a major issue with
their organization which has a negative impact on the business.
Opportunities
Apple is a growing organization which is slowly and gradually expanding
its market into various places. It is helpful for the organization to expand
in the developing countries and launch new and innovate products.
Threats
The market penetration in the smartphone industry is one of the major
issue with Apple which has a major threat in decreasing the overall
profitability of the organization in the market. It has a major impact on the
sustainability of the business as the competitors may reduce the
customer base of the organization by offering lower prices.

6. THE KEY STRATEGIC OBJECTIVES
Based on the situational analysis the following objectives are set:
SMART OBJECTIVES
Specific
To increase the user traffic on the official website and various
social medial platforms in order to boost the profits of the Apple
products by 25% in comparison with the previous models.
Measurable
Tracking the customer engagement with the help of various KPIs
in order to analyse the hashtag usage, customer satisfaction and
conversion rates etc. in order to analyse the customer matrix.
Attainable
To improve the corporate social responsibility of the organization in
order to promote an effective image of the brand among the customers
and increase their engagement towards the business activities.
Realistic
The company may set a got to increase their revenue by 15% over
the upcoming three years in order to enhance the stability of the
business in the market.
Time based
The popularity of the recently launched products may be evaluated
by controlling their impact in the industry and marking their success
within a definite time period such as 6 months in order to see enhanced
results.
7. STRATEGIC CHOICES
Apple may use the broad differentiation strategy as their generic
approach towards adding competitive advantage in their business. It
may define the goals of the business to lead in the market and gain

better productivity in their work. With the help of this generic strategy the
organization may be able to penetrate markets and increase their market
share significantly. This function of this strategy may increase its
chances to grow significantly.
8. IMPLEMENTING STRATEGIES
This strategy may be implemented by the organization in their business
environment by effectively communicating with the management and the
workforce. It may be useful in order to make them clear their
responsibilities and duties which are significant for them in order to gain
better advantage in the industry. The management may provide
employees with better guidelines in order to improve their current
working approach and develop better practices in order to introduce
innovative and creative products in the market.
9. RECOMMENDATIONS
Apple Inc. can increase their communication practice with their
customers in order to gain their appropriate trust which is crucial in order
to reduce their chances of shifting to the competitors. It can be helpful for
the company to improve the customer response and it can receive
valuable feedback from their customers. This feedback can be helpful for
the organization to make effective changes in their current strategy and
provide better products to the consumers. With the help of this aspect
the business can improve their current practices and increase their
productivity in the business. The organization may provide flexible
working conditions for the employees in order to increase their
productivity and enhance their quality of work in the industry.
10. CONCLUSION
According to the above report it has been concluded that the
organization has been able to gain benefit after conducting a situational
analysis and considering several internal and external factors which are
crucial for the development of the business. These factors have been
useful for the organization in order to develop a better understanding of
the business environment and prepare effective strategies for increasing
competitive advantage of the business in the industry. With the help of
different analytical tools, the organization have been able to increase

their opportunities to grow in the market and gain better recognition from
the customers.

List of references
Akhmetshin, E.M. and et.al., 2018. Motivation of personnel in an
innovative business climate.
Botelho, D.F. and et.al., 2021. Innovative business models as drivers for
prosumers integration-Enablers and barriers. Renewable and
Sustainable Energy Reviews. 144. p.111057.
Durana, P. and et.al., 2020. Disclosure of strategic managers’ factotum:
Behavioral incentives of innovative business. International Journal of
Financial Studies. 8(1). p.17.
Huang, Y. and et.al., 2021. Buy, lease, or share? Consumer preferences
for innovative business models in the market for electric
vehicles. Technological Forecasting and Social Change. 166. p.120639.
López-Nicolás, C., Ruiz-Nicolás, J. and Mateo-Ortuño, E., 2021.
Towards Sustainable Innovative Business Models. Sustainability. 13(11).
p.5804.
Prodanova, N. and et.al., 2019. Integrated corporate reporting as an
innovative business reporting model. International Journal of
Engineering and Advanced Technology. 8(5). pp.2075-2078.
Valdez-Juárez, L.E., Castillo-Vergara, M. and Ramos-Escobar, E.A.,
2022. Innovative Business Strategies in the Face of COVID-19: An
Approach to Open Innovation of SMEs in the Sonora Region of
Mexico. Journal of Open Innovation: Technology, Market, and
Complexity. 8(1). p.47.