Marketing Strategy and Plan for Apple Inc

The report gives an overview of marketing strategy and plan of Apple Inc, a leading corporation based in California manufacturing consumer electronics and consumer software. The report commences with discussion about the business, its mission and its products. The report also puts forward a situation analysis with focus analyzing the macro and the microenvironment. Through the report, one can also put forward a SWOT analysis. Further, the report also discusses the problem faced by the company along with the identification of four alternative strategies using the Ansoff Matrix. The report also includes recommendations along with a rationale provided.

Running head: MARKETING STRATEGY AND PLAN
Marketing Strategy and Plan
Name of the Student:
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Executive Summary:
The report gives an overview of marketing strategy and plan of Apple Inc, a leading corporation
based in California manufacturing consumer electronics and consumer software. The report
commences with discussion about the business, its mission and its products. The report also puts
forward a situation analysis with focus analyzing the macro and the microenvironment. Through
the report, one can also put forward a SWOT analysis. Further, the report also discusses the
problem faced by the company along with the identification of four alternative strategies using
the Ansoff Matrix. The report also includes recommendations along with a rationale provided.

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Table of Contents
1. Introduction:................................................................................................................................3
1.1 About the Business:...................................................................................................................3
1.2 Mission Statement:....................................................................................................................3
1.3 Product.......................................................................................................................................4
2. Situation Analysis:.......................................................................................................................4
2.1 Macro Environment...................................................................................................................4
2.2 Micro Environment:...................................................................................................................6
3. SWOT Analysis of the Business..................................................................................................6
4. Problem Faced by the Company..................................................................................................7
5. Ansoff Matrix for Identification of Strategic Alternatives.........................................................8
6. Recommendations for the rationale.............................................................................................9
7. Four Items Support the Analysis:..............................................................................................10
Conclusion:....................................................................................................................................13
References:....................................................................................................................................14
Appendices:...................................................................................................................................16

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1. Introduction:
The report gives an overview of marketing strategy and plan of Apple Inc (apple.com
2018). The report commences with a description of the business, mission statement and the
products of the company. The report also put forward a comprehensive situation analysis of the
organization. The report further talks about the problem faced by the organization and
identification of the strategic alternatives for the future through using Ansoff’s Matrix. There are
also recommendations put forward along with a rationale.
1.1 About the Business:
Apple Inc represents a multinational technology based company headquartered in
California. Steve Wozniak and Steve Jobs found the company in the year 1976 (apple.com
2018). The company sold, developed and designed computer software, computer electronics and
online services.
1.2 Mission Statement:
Apple Inc believes in contributing to the world through manufacturing tools for mind that
helps in the advancement of humankind (Blodget 2013). The mission statement of the company
goes like Apple designs one of the best personal computers, Macs, across the world in addition
to iLife, iWork, Operating System(OS) X and the professional software. Apple with its iPods and
the online iTunes store is the leader in digital music revolution. Apple also rediscovered the
revolutionary iPhone and its App store. Through its iPad, it defines the future of the computing
devices and the mobile media.

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1.3 Product
The hardware products of the company includes iPhone, Mac personal computer, iPad
tablet computer, iPod, the portable media player, Apple Smartwatch, Apple smart speaker and
the digital media player (apple.com 2018). The software products of the company includes iOs
and macOS operating systems, web browser, iTunes media player, iWork, iLife, productivity
suites and the professional applications like Logic Pro, Final Cut Pro and Xcode.
2. Situation Analysis:
2.1 Macro Environment
The macro environment represents the political, economic, social, technological,
environmental and legal forces that have an influence on the business.
Political: Apple is the highest revenue earner facing the highest amount of corporate tax
in the United States. Therefore, any kind of political instability has a negative impact on the
position of the company (Khan, Alam and Alam 2015). Moreover, Apple is dependent on China
due to the lower cost of labor but the politically unsettled environment of China leads to the
disruption in the manufacturing facilities of Apple. In fact, the company is influenced by the
political bonds it has with Chinese government. Finding an alternative market will enhance the
cost of the company thereby leading to an increase in price of its products.
Economic: Recession, inflation and change in the currency value are the three economic
factors that influence the business of Apple. Most of the products offered by the company belong
to the luxury product category and so with inflation, consumers begin to spend lesser on the

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products. However, the fluctuation of the value of US dollar has minimal effects on the business
since Apple has purchased foreign currencies for itself.
Social: The products of Apple makes its presence felt in the global market. There has
been an increase in the purchasing power of the public across various markets that have led to
increased spending on the luxury products. People consider the possession of such items as
symbol of status across different societies. This phenomenon has led to the increase in the sales
of products put forward by Apple.
Technological: Technology has a shorter lifetime and hence it is necessary for Apple to
upgrade its products in a frequent manner so that it is able to outdo the competitors (Spence
2017). Apple has however made huge investment in the research and development which makes
its products rank at the top of the innovative product ranking.
Environmental: Apple follows a comprehensive environmental responsibility from
reporting carbon footprint to finding the ways for reducing the footprint. The company also
shows its commitment towards the environment through the proper disposal of the electronic
equipment. Apple also ensures powering every facility with the help of renewable energy sources
that includes either wind, hydro, solar and geothermal.
Legal: Apple since its inception has been part of numerous legal claims and proceedings.
In the year 2009, Apple was sued by Nokia based on the infringement of the patents of Nokia
related to the wireless technology. The company also has patent cases with Samsung and HTC

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2.2 Micro Environment:
Suppliers: The suppliers of Apple included the component providers, manufacturers and
the assemblers of the products available across the globe.
Marketing Intermediaries: Apple uses a direct marketing channel for selling its
products to the consumers. The direct channel for marketing does not have an intermediary level.
Customers: The target customers of Apple are the higher income group who are keen on
using a tablet, phone or personal computer (apple.com 2018).
Competitors: The products of Apple remain synonymous with sleek design, innovation
and the approachability. This has earned the company a fair share of the competitors
(nasdaq.com 2018). Given the fact that Apple has operations in the technology spaces that
include Smartphone, laptop and desktop computers, it faces competition from Lenovo, Dell,
Hewlett Packard, Microsoft, Sony and Samsung.
Publics: It includes the different businesses that use the products and services of the
company. It also includes the executives, students, computer purchasers, anyone using iTunes or
expressing interest in buying new phones (Newcomb and Ingram 2018). Thus, Apple constantly
tries to maintain contact with the communities including the present and future consumers for
better serving the environment.
3. SWOT Analysis of the Business
Strengths
1. It represents a market leader in terms of the
products and the services
Weakness
1. The products have competitive pricing
2. Have a narrower product range in

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2. Possess a stronger brand image
3. Have immense financial strength
4. Have highly sophisticated and innovative
supply chain
5. Have higher profit margins of the products
6. Have a loyal and large customer base
comparison to the competitors
3. Non-compatibility of the products and
services with competitor brands
Opportunities
1. Increasing demand for mobile technology
and various gadgets of the company
2. Diversification of products
3. Further scope for manufacturing compatible
products
Threats
1. Rise in intense competition amongst the
various competitors
2. Increasing cost of manufacturing
4. Problem Faced by the Company
The problems faced by Apple in recent times include:
1. Stagnancy in the Smartphone market: Although the Smartphone are improving
every year, but the modifications taking place are relatively smaller (Gershon 2013). The iPhone
7 that has been the best available Smartphone was able to offer little in terms of the compelling
features. Better graphics, faster processor, improved camera and the features of water resistance
have become common features. However, refined features of the iPhone 7 were unable to
enhance sales.

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2. Undertaking Further Innovation Seemed Difficult: The challenges of Apple in
introducing another device at par with iPhone was difficult since it brought about a revolution in
electronics industry (Mourdoukoutas 2013). The company has shown interest in introducing self-
driving cars works and working on augmented reality device or virtual reality. However, if there
were a continuous slump in the iPhone sales then it would become difficult in offsetting the
decline with sales of newer devices.
5. Ansoff Matrix for Identification of Strategic Alternatives
Existing Products New Products
Existing
Market
Market Penetration Product Development
New
Market
Market Development Diversification
Figure1: Tabular Representation of Ansoff Matrix
Source: (Proctor 2014)
There are four different growth strategies put forward by the Ansoff Matrix are as follows
(Morden 2016):
 Market Penetration: This growth strategy shows how a firm focuses at achieving
growth with the existing products in the present market segment with the aim of
increasing the market shares.

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 Market Development: Here the firm opts for growth through targeting existing products
into the newer segments of the market.
 Product Development: The firm develops newer products targeted towards the existing
segment of the market.
 Diversification: This strategy shows how the growth of the firm through diversification
into newer business by development of newer products for the newer markets
6. Recommendations for the rationale
Apple can adopt product development in solving the problems faced since this strategy
requires the company in offering attractive products for not only defining its performance but
also increasing the market share. This is because Apple not only implements the intensive
growth strategy by introducing innovation in the development and the research process but its
vision and mission statement focus on the product development. Besides products like the iPad,
iPhone and the Apple Watch, the company however brought in iPod shuffle for the existing iPod
customers as a portable and handy device.

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7. Four Items Support the Analysis:
1. A Copy of the Web Page
2. A Media Release of Apple

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3. Product or Packaging Information

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Apple Inc puts forward higher quality products with stylized packaging that ensures the
buyer with a sensory experience thereby strengthening the brand. The sensory experience
continues with the look and feel of the text and the images. The Mac Book and the iPhone come
in a white box packaging encrusted with glittering metallic fonts.
4. An Advertisement of iPhone X

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Conclusion:
On a concluding note, one can say that the adoption of the product development strategy
can help the company in resolving the problem that it currently faces. Apple has been able to
satisfy the customers by bringing in innovative products. This has been possible because of the
creative vision of the company and its employees who have always lived up to the expectation of
dynamic leader. Today, thus Apple represents as the epicenter of digitalization. In fact, Apple
has managed in sustaining the efforts of innovation through consistent and calculated increase in
research and development spending along with the launches of its upgraded and newer products.

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References:
apple.com 2018. [online] Available at: https://www.apple.com/ [Accessed 4 Sep. 2018].
apple.com 2018. [online] Available at: https://www.apple.com/apples-commitment-to-customer-
privacy/ [Accessed 4 Sep. 2018].
apple.com 2018. [online] Available at: https://www.apple.com/business/ [Accessed 4 Sep. 2018].
apple.com 2018. [online] Available at: https://www.apple.com/today/ [Accessed 4 Sep. 2018].
Blodget, H. 2013. Apple's New 'Mission Statement' Is Making People Worry That The Company
Has Gone To Hell. [online] Available at: https://www.businessinsider.in/Apples-New-Mission-
Statement-Is-Making-People-Worry-That-The-Company-Has-Gone-To-Hell/articleshow/
21581584.cms [Accessed 4 Sep. 2018].
Gershon, R.A., 2013. Digital media innovation and the Apple iPad: Three perspectives on the
future of computer tablets and news delivery. Journal of Media Business Studies, 10(1), pp.41-
61.
Khan, U.A., Alam, M.N. and Alam, S., 2015. A critical analysis of internal and external
environment of Apple Inc. International Journal of Economics, Commerce and
Management, 3(6), pp.955-961.
Morden, T., 2016. Principles of strategic management. Routledge.
Mourdoukoutas, P. 2013. Apple's four challenges. [online] Available at:
https://www.forbes.com/sites/panosmourdoukoutas/2011/10/05/apples-four-challenges/
#35807f6149e7 [Accessed 4 Sep. 2018].

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nasdaq.com 2018. Competitor Industry: Computer Manufacturing. [online] Available at:
https://www.nasdaq.com/symbol/aapl/competitors [Accessed 4 Sep. 2018].
Newcomb, A. and Ingram, D. 2018. Apple becomes first public U.S. company to reach $1 trillion
valuation. [online] Available at: https://www.nbcnews.com/tech/tech-news/apple-becomes-first-
public-u-s-company-reach-1-trillion-n896956 [Accessed 4 Sep. 2018].
Proctor, T., 2014. Strategic marketing: an introduction. Routledge.
Spence, E. 2017. Apple's Innovative Technology Will Redefine Its Hardware. [online] Available
at: https://www.forbes.com/sites/ewanspence/2017/04/06/macbook-pro-touch-bar-patent-imac-
macpro/#1ddc37852212 [Accessed 4 Sep. 2018].

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Appendices:
Appendix 1: Web Page
Appendix 2: Media Release of Apple Products
Appendix 3: Product or Packaging Information

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Appendix 4: Advertisement of iPhone X

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