Strategic Management of Apple Inc.

This report aims to develop an understanding and analytical skills for the business strategy for a selected company, Apple Inc. The report analyzes the current strategic position of the company using different models and highlights potential issues. Suitable recommendations for improving the strategic position of Apple Inc are also mentioned.

Running Head: STRATEGIC MANAGEMENT
STRATEGIC MANAGEMENT
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Authors Note

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Executive summary
Apple Inc. is a technological company that designs produces and manufactures different
computer goods, music and telecommunication devices. The company is highly differentiated
in the market owing to its premium prices and devices. Based on the organisation the
subsequent report highlights the business strategy of Apple Inc is studied is detail in the form
of an individual strategic analysis report. After selecting the company for this report, the
choice of the company is justified followed by mentioning the background of the company.
This report also analyzes the current strategic position of the company, Apple Inc by using
different models. Potential issues are also highlighted in this report based on which suitable
recommendations for improving the strategic position of Apple Inc are also mentioned. Based
on the problems the company needs to focus on the development of the strategy and products.
Challenges such as increased competition and fluctuation of currency may influence the
productivity of the company. Therefore, the company has to be well aware of the problems
for sustaining its popularity in the market. The findings of the research are that Apple needs
to open retail store for customers so that physical evidence of the products sold by the
company can be gained. At the same time, application of strategic fit linking two products
can help Apple to reduce the prices of the products.

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Table of Contents
Introduction................................................................................................................................4
Analysis PESTLE Analysis........................................................................................................4
Political factors.......................................................................................................................4
Economic factors....................................................................................................................5
Social factors..........................................................................................................................5
Environmental factors............................................................................................................7
SWOT........................................................................................................................................8
Strength...................................................................................................................................9
Weakness..............................................................................................................................10
Opportunities........................................................................................................................10
Threats..................................................................................................................................10
Porter’s Generic strategy..........................................................................................................11
Bargaining power of the suppliers........................................................................................13
Bowman’s strategy Clock........................................................................................................13
Blue Ocean strategy.................................................................................................................14
The Apple mobile phone industries in the early decades.....................................................16
Apple’s Supply chain strategy.................................................................................................16
Competitive advantage of Apple..........................................................................................17
Operation strategy of Apple.................................................................................................17
Product line strategy of Apple..................................................................................................18
Product life cyles:.................................................................................................................18
Strategy of Pricing................................................................................................................19
Ansoff Matrix for Apple..........................................................................................................19
BCG Matrix for Apple.............................................................................................................20
Conclusion................................................................................................................................20

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Recommendations....................................................................................................................20
Reference list............................................................................................................................22
Appendices...............................................................................................................................26
Appendix 1: sale ratio...........................................................................................................26
Appendix 2: Turnover ratio..................................................................................................26
Appendix 3: Bowman’s Clock strategy................................................................................27
Appendix 4: Ansoff’s Matrix...............................................................................................27
Appendix 5: BCG matrix......................................................................................................28
Appendix 6: Porter’s value chain.........................................................................................28

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Introduction
This report aim towards developing an understanding and analytical skills for the
business strategy for a selected company. The company selected for this report is Apple Inc.
In this report the business strategy of Apple Inc is studied is detail in the form of an
individual strategic analysis report. After selecting the company for this report, the choice of
the company is justified followed by mentioning the background of the company. This report
also analyzes the current strategic position of the company, Apple Inc by using different
models. Potential issues are also highlighted in this report based on which suitable
recommendations for improving the strategic position of Apple Inc are also mentioned.
Apple Inc is multinational organisation, which is head-quartered in USA. It is one of
the third largest technology corporation and deal in the world and second largest smart phone
organisation. From the Reuters report it has been found that Apple Inc. has been founded in
the year 1977 incorporated with innovative designs, manufacturers and market of mobile
technologies, media devices, computer and portable digital players (Reuters 2018). Along
with this, the company sells different related software services and peripherals as well
networking services and applications.
The company at their initial stage was focused on developing and selling personal
computer along with other software products such as Apple Mac and apple products. These
are the major facts for Apple Success that can be calculated in the year 2016. However, after
Steve Jobs, Tim Cook has proved to be the worth of leadership strategy. Apple has turned in
to the market leader with an annual record of $176 billion of market profit in the year 2016
with a dramatic increase in their revenue that is 87% higher from the second place-leading
organisation Google (Apple United Kingdom 2018).
Analysis
PESTLE Analysis
Political factors
 Political difficulties will continue to haunt the company specifically, EU inclining on
taming the technological giant industry.
 In the August 2016, EU announced that Apple has $14.5 billion in terms to taxes that
is needed to be paid to Ireland.
 Apple tax conflict in EU may also pose as a threat to Australian and US relationship.
However, Apple is consistently feeling that they are being targeted in an unfair way.

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 In this context, Apple is one of the largest taxpayer and this kind of political issues
may highly influence on the revenue of the Company.
 Most of the sales contribution of Apple comes from the external sources that accounts
for almost $113.8 million whereas the revenue from the home country is almost $68.8
million. Therefore, any of the political surges in the countries may influence the sales
of the company in a negative way.
 EU has kept on targeting the large technological organization such as Amazon,
Google and Apple. Therefore, these might mean a large tax pressure and decline in
profits for the large technological giant.
Economic factors
 The importance of the Asian market has increased. Therefore, China and India both
have emerged as the significant market that is significant for the western brands.
 However, in case of Apple the products, they are originally renowned for its finest
process that means they are not suitable for low-end market.
 However, Zhang (2017) states that apart from the developed areas, consumer in
Australia is highly sensitive to price that may be a necessary factor influencing the
sales of Apple.
 Increase competition may also affect Apple that may lead to the loss of significant
share in the market such as Lenovo and Pc sales.
 Moreover, Australian Dollar has grown stronger from the period of recession that
shows that there may be loss of profit for the company in the international scenario.
Social factors
 Globalization has expanded the use of virtual world and the existing lifestyle are
limited factors that has left and huge effect on Apple.
 In this context, Apple has always been one of the leading organizations in the global
scenario.
 This activity however, has nothing to do with iPhone and IMac. As stated by Garcia-
Sanchez et al. (2015), they use the strategy for making their service and product
unique and innovative in design along with simplified marketing process of their
product.
 These, entire strategies make Apple in to a more desirable product for the customers.
Eventually the product has turned into a symbol of social status mainly due to is
extremely high prices that are limited for the high-class people.

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 In case potential market growth Apple have always seen growth in consumer
expenditure in their future decades in different third world countries such as Africa
where people have never been much aware of the products.
 The organization therefore, has the capability to penetrate the unexplored market and
has the ability to harbor new opportunities of obtaining shares (Luo, and Bu 2016).
 Moreover, in order to satisfy the demands made by the customers, the brand has made
several acquisitions such as Embark Prime sense, Tosy and several partnerships with
Sony, Motorola, and Phillips.
 In this way, the social background of the various brands has played a crucial role in
the organizational operations.
Technological factors
 The stakes of information technology has always remained higher in comparison to
the relative industries when it comes to the accomplishment of revenues.
 This organization has innovated themselves with the passage of time and has managed
to earn well-established profit.
 In this context, Apple has undoubtedly earned all of them. However, in the year 2013,
Apple has unveiled a strong deal with China for bringing IPhone products to the
customers in the market by dominating low cost android smartphones. Therefore,
these deals provided the company with a wider entry to the Chinese market.
 Moreover, Apple is known mostly for its stunning concept of design. In this aspect,
the company has created some of the finest and most eye catching designs for the
development of their products that the contemporary companies could not much.
 However, Vecchiato (2015) states that with gradual change in the technological
advancements consumers are increasingly giving more preferences for larger screens.
 Apple’s direct rivals such as Samsung and Google are now delivering the products
and services that has been a mark of Apple.
 Apple acquired almost less than a year for developing imbursement Google app for
just developing Apple pay. These activities made the product of the company unique
for Apple. However, their competitors increasingly showed the capability to imitate
its products that could threat Apple.
Legal factors

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 Apple has been operating globally that makes them vulnerable to several legal
regulations as well as litigation.
 In case of domestic stress Apple has been increasingly going through legal stress
within its homeland, America.
 For example, in the year 2012, the company managed to restore its imports of some of
their used part iPhone that was previously banned by the government of US.
 According to Kormishkina et al. (2015), government in various countries is
increasingly identifying the privacy issues that are highly connected to the use of
digital technology.
 Due to this, more regulations on privacy issues and products exportation are imposed
on the large business such as Apple.
 This growing factor has turned in to threat due to is innovative challenges in the
development of the products that involves with the sharing if confidential information.
 These factors may as well be the growing opportunity for the company while helping
them in enhancing the features of the product that will protect the privacy issues of
the customers (Thai and Turkina 2014).
 In addition to this government in various location are imposing stringent regulations
of telecommunication which are threat as they could significantly restrict the use of
Apple products.
Environmental factors
 As stated by Liddle (2014) there may be various environmental factors such as
disposal that may influence the revenue of the company as well as brands.
 However, Apple has tried to counter various massive problems of discarding
electronic junk device that are used in non-working position.
 The company may face huge problems related to discarding the electronic devices that
contains lithium batteries in it. It may cost the companies high expenses.
 However, Apple Inc. may be forced to incur the expenditures due to the
environmental issue associated with it. Apple is addressing the environmental issues
for maintaining the sustainability of business through the process of recycling and
associated programs. For example, waste disposal and sustainability of batteries. The
Recycling program by Apple Inc operates in 95% of the countries where they have
business and accepts old computers, e-wastes and monitors and printers free of

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charge. In addition to, Apple Inc use recycled tin in its phone, 35% post consumer
recycled plastic and 32% bio-based plastic for the frame around the cover glass.
 Moreover, the company consistently seeking for new technical solution for enhancing
energy effectiveness of Apple like enhanced batteries, processes that emits less
amount of here.
 On the contrary, Fleisher and Bensoussan (2015) states that trend of employment
rights may influence the global business arena.
SWOT
Strength
 Apple is one of the most valuable and
strongest companies in the world.
 The organisation also follows a
strategy of high prices such as
Bowman’s strategy clock.
 Invest a lot in the R&D that is higher
than their competitors.
 Effective process of innovation.
 Apple features are lying at the top of
Forbes most valuable list in the
world.
Weakness
 Provides pressure on the innovation
in product design as well as quality.
 High cost of product also leads to the
fall in market share.
 Major issues in their management
operations related to inaccurate
demand forecast, higher component
limitation, lower rate of production
and delay in last minute changes.
 Company has a limited portfolio in
comparison.

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Opportunities
 Opportunities to introduce new
products for increasing their size of
the product folio as well as market
share.
 They can establish more acquisition
for expanding their customer base and
their ecosystem.
 Opportunity to invest in sustainable
technology that are grown from
power and transport for seeking fast
growing popularity.
Threats
 Competition are high in the areas if
laptop and smart phone production.
 The company has not witnessed any
kind of sales like the top brands in the
recent year.
 Global increase in dollar has resulted
to reduction of profits for Apple.
 The legal compliances in the
technology have also added to the
operational cost of brands leading to
pressures and losses for the brand.
Strength
Apple is one of the most valuable and strongest companies in the world with a strong
brand image. This aspect of the company shows that they have the capability to introduce
new product in the market provided with high sales relying on the strong brand image. The
organisation also follows a strategy of high prices such as Bowman’s strategy clock that
offers them the opportunity to gain a high profit in the marketing depending in the different
consumers in the market. They invest a lot in the R&D that is higher than their competitors
are that helps them to gain competitive advantage in the market (Papachroni et al. 2015).
Bowman’s strategy clock

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The company is mostly known for their effective process of innovation that helps
them to stay up dated with the latest technologies thereby allowing them to ensure
competitive advantage. Apple features are lying at the top of Forbes most valuable list in the
world. In terms of strategic concepts, the company has almost 470 of its own subsidiaries
across 17 countries. Apart from these, they sell through their trade suppliers, online partners
and through its premium retailed subsidiary (Ansoff 1965). The company spends huge
financial resources on their research and development department that facilitates improving
the previous products of Apple Inc along with introducing new products in the market. This is
the reason Apple Inc launches new products at regular interval in the market. In addition to,
Apple Inc are also seen to incorporate new features to the existing products and make it
available to the market.
Weakness
Apple’s premium brand image also provides pressure on the innovation in product
design as well as quality. High cost of product also leads to the fall in market share for the
company thereby leading to challenges in terms of low economic activity. The company has
major issues in their management operations related to inaccurate demand forecast, higher
component limitation, lower rate of production and delay in last minute changes (King and
Baatartogtokh 2015).
Opportunities
Since, the company has limited product portfolio in comparison to their competitors,
they have the opportunities to introduce new products for increasing their size of the product
folio as well as market share. The company has developed many acquisitions in the long run
including Beats, Siri as well as Shazam (Agrawal et al. 2015). Apple has the opportunity to
invest in sustainable technology that are grown from power and transport for seeking fast
growing popularity.
Threats
Competition are high in the areas if laptop and smart phone production. The
competitive pressure of the company is high from PC brands such HP, Dell, Asus that is
intensively rising. In this context, the market share of HP is higher than the other entire PC
brands such as Lenovo and Dell. However, the launch of Mac Pro has enhanced the

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popularity of Apple Laptops again, but still the company has not witnessed any kind of sales
like the top brands in the recent year.
As stated by Chen et al. (2015), economic fluctuations in UK are influencing the sales
and profits of the company. Global increase in dollar has resulted to reduction of profits for
Apple. Moreover, the legal compliances in the technology have also added to the operational
cost of brands leading to pressures and losses for the brand.
Porter’s Generic strategy
Apple’s generic strategy is wide differentiation. This generic strategy of Apple
focuses on the major characteristics of the company along with its product in relevance to the
competitors. Through the wide strategy of differentiation, Apple Inc. manages to shine in the
market (Clarke and Boersma 2017). For instance, their emphasis is on the incredible design in
combination with the user friendly and high-end brand effectively differentiating the
organisation.
Therefore, to address this issue, Apple Inc is needed to behave in a service oriented
way other than behaving in product oriented way. They are required to understand the
essential needs of the customer rather than the products customer is buying. Moreover, the
company is needed to increase the cost of switching for the consumers.
Cost leadership
Apple by strategizing on cost efficiency has been able to manage the success and
sustainability of the organisation. They have done this by reducing the cost of production and
management, Apple Inc. has been offered with an opportunity for determining the price of the
product thereby improving their competitive advantage. However, Wang and Dass (2017)
stated that reduced cost production and distribution of product has helped them to apply
competitive prices on the product as well as by improving the gross profit margin of the
company (Porter 1985). Moreover, some of the activities implemented by the organisation
while executing the cost leadership process is through the reduction of the functional cost
thereby reducing the cost of distribution high control of employment cost that has been highly
implemented by Apple. Research and development strategies that are adopted by Apple help
the company to remain innovative and link its strategies with that of the demands of the
customers. For example, most of the times, the research and development strategies that are
adopted are based on the manufacturing of products such as IPad for the use of common men.

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Hence, cost on the research and development strategies adopted by Apple need to be
maintained so that the company can continue with its investment.
Differentiation Focus
As stated by Robbins et al. (2014), Apple has successfully differentiated its products
by focusing on the professional production of computers that are effectively tailored to meet
the requirement of the appropriate professionals. In this context, the computers designed for
the professional have complicated operations that meet the requirement of the existing world
(Porter 1980). A major context of the product differentiating strategy comes from the
premium design of the products that display a different visual style consisting of features that
could manage various tasks.
Focus strategy on cost
Apple has achieved the focus on cost strategy though the concentration on the
narrowed segment of market by offering the low cost of products, they have also done this by
offering IBook computers for providing service to the consumers. On the contrary, Coccia
(2018) states that Apple’s founder Steve Jobs have made an effort to create a top-notch
product with the prices that is proportionate with the quality while sustaining the high profit
margin in the market (appendix 6 for value chain analysis).

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Figure 1: Market share of smart phones in Global industry
(Source: Advertisingmarket24.com 2018)
Bargaining power of the suppliers
Figure 2: Different suppliers and their power of negotiating
(Source: Marketrealist.com 2018)
Bowman’s strategy Clock
Apple’s strategic position can be exclusively evaluated using the Bowman’s strategic
clock. The strategic clock helps the business executives and all the other business
shareholders of the company to think in a strategic way with an effort for ensuring that they
could obtain differentiated benefits, however, the strategic, model of clock is based on the
two major that are the concepts of price and perceived value of the products. However, the
strategic clock in classified in to four major quadrant and eight major intervals. In this the
eight major strategy includes no frills, low cost, hybrid, differentiation focused differentiation
and increasing process with low value strategy.
For instance, Apple launched the IPad, into different market so that it act as a more
portable version of their dimensions of personal computer that acts as intermediate in
between laptop and smartphones. Apple first launched its iPad into the market in the year
2010. Therefore, introducing its first product in the market; the company had to bring a well

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thought out marketing entry strategy. By doing so, Apple first implemented the strategy of
differentiation. According to Reeves et al. (2015), it was a smart way of establishing a string
market share specifically when the consumers perceive the quality of products in relation to
the reasonable pricing. The market entry strategy worked well for the organisation and
ensured that they have a secured potential market share through which they established
focused differentiating strategy. Through the focused strategy of differentiation, Apple
launched second generation IPad in the year 2011. However, one of the problems that arose
with the product was the fact that the prices were too high. Therefore, most of the customers
deemed the products as expensive. In this regard, recommendations can be provided that
highlights the importance of low value for the manufacturing cost of a product. Apple needs
to gain resources that are of low value so that strategies for improving the sale of IPad in the
future can be made. At the same time, low value may provide Apple with a disadvantage of
gaining fewer amounts for the materials that it purchases. (Refer to appendix 3).
Blue Ocean strategy
In the past period, Apple instead of collaborating up and down with the subscription
on the basis of music and the operations of free sharing of different channels the company
looked for differed strategic groups (Kim and Mauborgne 2014). Apple looked for un-tapped
demand for the legalized network of digital melody with a broad range of assortment at an
affordable amount that suits the demand of the impending customers.
Figure 3: Blue Ocean strategy Canvas of Apple ITunes music and processes
(Source: Kim and Mauborgne 2014)
Eliminate

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Apple eliminated the concerns of piracy and complicated method pricing. Moreover,
Apple eliminated the problems that were seen in case of problems while text messaging, that
has to be solved using keyboards.
Raise
They raised the standards of music quality with an increase in the selection of music.
Moreover, they increased the simplicity and ease in using music. Apart from these, Apple has
raised the quality of user interface as well provided with the improvement of navigation.
They have improved the applications, gaming systems, money management, news and the
use of wireless internet systems in phones (Reeves et al. 2015).
Reduce
Apple reduced the restrictions in using purchased music. They have reduced the
provision of carrying separate devices such as phone, Mp3 and PDA. They have reduced the
requirement of connecting with the PC, so that most of the work can be done within the
device itself. They have reduced the use of complicated user interface by making touch
screens.
Create
They created pay system for each song method with 3 seconds of free sampling
system along with automatic sync with the ITunes. This system helped in managing and
transferring of music to the Mp3 player. These new creation has not only helped in managing
the music system but has also increased the capability to hold more songs provided with
simplified system of use interface that requires no manual user.

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Figure 4: Strategy canvas of Apple iTunes functions
(Source: Reeves et al. 2015)
Therefore, by the end of the year 2010, Apple has already sold over 297 million of
iPod and managed more than 70% of the international share of the market. Their service has
enabled over 10 billion music, 450 million episodes of programs, 100 million movies and
more than 35 million books. All these, has been bought and installed, from the iTunes store
of music by more than 160 million active users, from almost 23 countries, across the
international boundaries.
The Apple mobile phone industries in the early decades
Most of the industries were involved in R&D activities with a weapons competition to
create more technically groundbreaking, value added as well as sustainable product. They
were more focused on equipped and more expensive formation of mobile (financialpost.com
2018). On the contrary, the carriers had to face downward pressures due to the pricing, and
slimmer profit margin on voice calls. All the activities were dictated to the handset
manufacturers for building and setting up the cost for the product.
Apple’s Supply chain strategy
As stated by Dormehl (2018), it is necessary to have a consistency in between
priorities of the customer provided with a competitive advantage strategy and capabilities of
supply chain that is usually known as strategic fit. However, a company may fail owing to the
lack of strategic fit to manage the balance in between two objectives, according to the view of
Khan and Bae (2017); the products of Apple fall in to categories of unique products.
Therefore, suitable supply chain strategy is responsively opposed from being efficient. Apple
has always practices a more sophisticates process of agile supply chain strategy that is
intended at behaving responsive and flexible in full filling the demands made by the customer
whereas the risks of supply chain insufficient is managed by additional capacity resources
and pooling system of inventory (edie.net. 2018). In fact, the strategies were empowered by
the combination of the responsive supply chain.
Concisely, Apple purchases the parts and resources from numerous dealers that gets
shift to the different accumulating plants in China. From China all, the products are being
transported directly to the customers who buy from Apple stores. However, for other

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frequencies of distribution like trade supplies and distributors Apple has different types of
products that they ship from various location.
Competitive advantage of Apple
Apple strategic vision and mission indicates the competitive strategy of Apple that
offers limited quantity of high-end state of the products and services thereby prioritizing the
profits over the market. The strategies adopted by Apple can be considered as effective only
if the company manages to abide by the demands of the customers and the capability that the
company possesses. For example, the application of the Porter’s generic strategy can help
Apple to continue with the development of the infrastructure of the organization as well as
the human resource management. Apple is significantly developed in terms of its
technological competence and any form of discrepancies within the company due to the rise
of technical error can be dealt with in a clinical manner. At the same time the blue ocean
strategy can help Apple to develop a systematic approach in terms of analyzing the
competition it faces in the market. Thus, this particular theory can help Apple to identify
process as well as opportunities to create innovative products. Research and development of
the company can also improve with the help of technology and by ensuring that proper
supply chain management is maintained for building relationship with the customers and the
investors. The research and development department of Apple can gain from the results
obtained from the blue ocean strategy and ensure that its reputation in the business market be
maintained. To be specific, Apple makes the effort to capture the demand made by the
customers by behaving different and innovative by developing unique products that are
attractive for the customers. According to Kozlenkova et al. (2015), Other than focusing on
the consumers’ willingness to pay more, the company has always tried to preserve a quality
charge for the products. They also have set up a simulated obstruction of emergence for the
rivals. This, in theory complies with the differentiation focus of the porter’s competitive
strategy. In addition to this Apple has managed to enhance its market prices by launching
new products to retain customer. The current products of Apple are IPod, IPhone 4g.
Usability and design of the products are the major trends and competitive focus of Apple. In
this the major element in the strategy of production are to identify the competitor’s strategy
of manufacturing.
Operation strategy of Apple
The operational process of Apple has always been limited, as they have gone through
several changes with the passage of time. As stated by Arthur (2018), the main operational

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component of the company is that their service is user friendly for the customer. Despite the
strengths of the company, Apple manages to lose a huge amount of product and share that
fluctuated from 8% to 3.4% from the year 1995 to 1998. The company also focused on the
educations sectors with 14% each year (Arthur 2018).
Product line strategy of Apple
After Apple Inc. launched its first generation of IPhone in the year 2007, the
organization’s product line strategy has been quite clear since then. They started designing
high-end smart phone in which the experience of the user is more essential than making a
slew of features accessible. However, Alhaddi (2016) states that similar to the product line of
other organization, Apple has not intended the variety of iPhone for attracting different
people from various levels of income in the smartphone industry. There are only limited
options obtainable for each of the generation in iPhone; these strategies have helped the
company to make considerable profit on the iPhone through its increase of share of the
complete mobile maneuver. Apple can offer its customers with the highest perceived value by
the application of the clock differentiation strategy. This can help the company to add high
quality product and improve the loyalty of the customers in terms of purchasing its products.
The high prices of the products need to be maintained so that danger of becoming too
expensive can be curbed. Apple can implement the product line strategy with the low value
that may have an impact on the development of resources in the company.
Product life cyles:
In the mid of the introduction of the first iPhone until the launching of IPhone 4s,
Apple developed a continuous product cycle for iPhone. As stated by Seifert et al. (2016)
this engages with a major redesign of the device in every two in every two years provided
with a mid-cycle upgrade in the mid of every redesign Palsule-Desai et al. (2015) stated.
Again, Apple introduced the iPhone 3G in the year 2008. It launched iPhone 3GS in the year
2009 that offered faster performance provided with better capabilities of Camera. Later in the
year 2012, Apple launched iPhone 4 that offered services such as video telecommunication
and enhanced central system unit. However, Apple launched a major iPhone advancement in
each of the year for convincing the existing users of iPhone who are applicable for using the
device upgraded from their phone transporter to buying a new mobile phone.

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Strategy of Pricing
The major way by which Apple pushes up their product line strategy is by their
pricing which the company utilises through their product lines. However, for example, the
unique iPhone product came with a price tag of $499 and $599 on the basis on the storage
capability (Grant 2016). Moreover, Apple has several times valued their iPod touch product,
which is a broadcasting player device that has parallel features such as IPhone without
competences of calling, more that iPhone.
Ansoff Matrix for Apple
Penetration in the market
It implies selling of increased number of products to the present customers of the
product. Apple has done this by heavily promoting the products and by reducing the process
in order to increase their sales. Apple released the new and upgraded version of IPhone every
12 months, adds variety of the existing product, and provides the customer with many choices
to choose. The competitor of the company being Samsung, it becomes difficult for the
company to win over (refer to appendix 4).
Development of the market
Introduction of the existing product and service to a complete new market, for
instance Apple’s iPad touch, which is the replica of IPhone apart from that the iPhone can
receive, calls. Therefore, it is appropriate for the global markets that they do not have cell
phone carrier that could manage IPhone (Balakrishnan, 2018).
Diversification
Diversification of the product involves with the low cost and risk which people are
usually not aware of specifically about the future results. For instance, Apple launched
iTunes. Due to its entry within the music industry the phone, enthusiasm was extremely risky.
Product development
Apple Inc. having an international presence within the major markets, the company
understands the customer’s requirement inside and out. Therefore, it effectively offers the
best business off in between risk and reward (Ansoff 1965). By introducing the IPad, iPhone
and operating systems to the customers, the company develop integrated relationship with the
customers thereby accessing across different platforms and creates a brand loyalty.

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BCG Matrix for Apple
Question mark: Apple TV make an average amount of money, yet it could not reach
the potential. Therefore, if Apple can solve little problems related to the ecosystems, they will
be able to own a TV space. There has been many rumors, which could dominate IPad, IPod
and IPhone (Dormehl 2018).
Rising star: The IPhone and IPad can be considered the rising starts. As the company
are able to make enough from them. These products are so successful in comparison to other
products the potential of these are not known yet.
Cash Cows: The Mac Book are the most portable choice options in the existing
period. Therefore, all in one IMac can be places in the Source of Income (Clarke and
Boersma 2017). This is because they make a lot of IMac, but computing is highly shifting to
the portable and mobile. Therefore, they can be placed in the section of dogs.
Dogs: The large multipurpose Desktop is fading away. However, the hard drive based
I pods peaked a bit, but there are so many competitors, that could create a simple product
such as IPod. Therefore, Apple’s Mac could be considered as Dogs since Apple is not the
market leader within the market segment as their rivals have the desktop market (refer to
appendix 5).
Conclusion
It can be concluded from the strategic controlling study of Apple Inc., technological
trades are never easy to contest with. They capitalise a lot for their technological
development and to proactively market with the competitors. As for Apple, they have been
trying to work well for the development of their competitive strategy, bargaining strategy and
product line strategy. They are trying to improve things for the development of their own
good. However, Apple is required to make faster changes, and do not necessity to delay for
other individuals to purchase their merchandises, but they are required to focus on the
customer support and need to enhance their areas of issues.
Recommendations
 The company needs to open computer retail store with only marginal and fittings for
the processers. Therefore, with the addition of hardware will help to produce
additional pointers on consciousness and help to utilise location that has already been
used. This will enhance the awareness about the originality of the products.

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 They can contact music spoke person to entice the future generations who are in high
school and universities. This would help them to raise a sense of elegance and relating
Apple with a characteristic and unforgettable product. This will help increasing the
consciousness and effect over the decision making of the customers.
 They are required to add more features to their products for increasing the
compatibility of the product, taking from iTunes software to the office programs that
are used in the PC. This will help in mitigating the macros and micro factors of the
environment.
 Strategic fit and strategic positioning can be implemented by the company in order to
understand the position which Apple holds in the market. Relation of the different
business can be made so that Apple can have a steady flow of profit. For example,
relation between the IPad and the ITunes can be made that can help to gain a proper
strategic fit so that development of the company in terms of reduced prices can take
place. Thus, Apple can gain a wide range of customers based on the application of
such a strategic development.


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Appendices
Appendix 1: sale ratio
Appendix 2: Turnover ratio

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Appendix 3: Bowman’s Clock strategy
Appendix 4: Ansoff’s Matrix

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Appendix 5: BCG matrix
Appendix 6: Porter’s value chain