Strategic Management Report: Apple Inc. Development and Strategy

This report provides a comprehensive analysis of Apple Inc.'s strategic management over the past five years. It begins with an introduction to strategic management and its application to Apple Inc., followed by an examination of the company's strategic direction and development. The report then delves into a detailed analysis of Apple Inc., including a SWOT analysis to assess its strengths, weaknesses, opportunities, and threats. An internal analysis tool is used to draw conclusions about the company's performance. Furthermore, the report explores potential strategies for Apple Inc. to defend its core business and offers recommendations for future actions. The analysis covers various aspects of Apple's operations, including product innovation, market capitalization, revenue trends, and competitive landscape, providing a holistic view of the company's strategic position and future prospects.

Strategic Management

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
TASK 1 ...........................................................................................................................................3
Strategic direction that company has followed in the past 5 years development of the
company. ....................................................................................................................................3
TASK 2 ...........................................................................................................................................5
Detailed analysis of the company. .............................................................................................5
TASK 3 ...........................................................................................................................................8
Relevant internal analysis tool to draw appropriate conclusions. ..............................................8
TASK 4 .........................................................................................................................................11
Possible strategies that company could follow to defend its core business..............................11
TASK 5 .........................................................................................................................................14
Recommendations that the company has to address.................................................................14
CONCLUSION.............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Strategic management is the foundation of the organization that allows the top level
managers to initiate plans and policies on the behalf of owners of the organization in order to
ensure its growth and development. It also analyzes the external and internal factors that affect
the working of the organization so that business can function its operations in the most effective
manner. It helps in providing overall direction to the organization to assess the strategies and
policies followed by them. Strategic management fundamentals are beneficial during the time of
uncertainty and complex situations that occurred in business. Apple Inc is one of the top leading
organization of the entire universe, it deals with various products that have very huge popularity
among each age group of the people. The main concentration of this report is upon the strategic
management of Apple Inc and the improvement that company can bring in its working.
TASK 1
Strategic direction that company has followed in the past 5 year’s development of the company
Strategic management is the policy that is being followed by the business organization in
order to increase their productivity and profitability. Management techniques of strategic
direction also affect the internal and external environment of firm. As per the views of Michael
Porter, strategic management of organization depends upon creating unique brand value, making
appropriate choices and conducting business as per customers’ requirements.
Apple Inc. is one of the top leading organization of the world. It is a multinational
company whose headquarter is in California. The industry deals in computer hardware and
software, electronics, digital equipment and mobile phones. As per the reports of 2017, the total
number of retail stores owned by Apple Inc. are 499. The company served in around each and
every part of the world. The brand awareness and the recognition of Apple Inc. is very strong
among each and every age group of people.
Whenever innovation and reinvention take place in organization, the most important
aspect is strategic business plan. It is the management tool that assists working of organization.
The strategic changes that occurred in the organization are due to the variations in the
environment factors.
Apple Inc. was developed by Steve Jobs in 1976. Company was later incorporated in the
year 1977. As per the reports of 2011, 2012, 2015 and 2017, company was the major seller of

computer electronics products. The sale of the software produced by the company is also very
high in 2016. After the demise of Steve JOBS IN 2011, the company was taken over by Tim
Cook who brought so much enhancement in thefirm in last past five years. As per the
development report of the 2014, the total number of permanent employees in the company were
70,000 and temporary employees were 3,000. As on May 2014, the market capital of Apple Inc.
was 547.20 billion approximately.
Market capitalization is the quantification of business utility which is based upon share
price and total number of out-standings. In last five years, company has seen major growth in its
sales, because of the innovation in iPhone. In the last five years, company has come up with
many variations in iPhone, (4s, 5s, 6, 6s, 7, 7s and iPhone 8). iPhone is one of the most
prominent and popular products of Apple Inc. in entire world.
Annual Revenue in million(Apple Inc) Year
$229,235.00 2017
$215.638.00 2016
$233.716.00 2015
$182,796.00 2014
$170,911.00 2013
Illustration 1: sales growth in Apple Inc.

TASK 2
Detailed analysis of the company.
Apple Inc., deal in industries like computer hardware, computer software, consumer
electronics and digital equipment etc. The organization is the leader of the industry, as they are
most dominant brand in electronic products.
SWOT Analysis of Apple : It is the tool which is used to examine the external factors which
effects the working of the business. Apple is one of the top leading organization, there are
number of factors which lay emphasis upon the working of the organization. In this report, to
examine the external environment of the Apple, application of SWOT analysis is being used
(Michaely, 2016).
Strengths of Apple Inc., :
 One of the major key strength of the Apple Inc., is that the company always come up
with innovative products, there are major numbers of hits products that are offered by the
company to there customers in last few years. For example iPhone 8 has many innovative
features in comparison to iPhone 7 and 7s.
 As per the information generated on the internet the company Apple Inc., was one of the
top leading organization of the world.
 The brand equity of Apple Inc., is very high as it is considered as a number 1 brand.
 The best thing about the products of the Apple Inc., is that they are very elegantly
designed which attract the attention of the customers.
 Due to high popularity and the awareness of the company the distribution channel for the
Apple Inc., was very large. It serves its product in almost each and every country of the
world.
 The products of the Apple Inc., was designed as per there targeted audience and this is
the major strength of the company.
Weaknesses of Apple Inc., :
 The major weakness of the company is high expectations of the company. As the
company is serving as a top leading organization since last so many years, so there fore

the expectations of the customers are very high, which sometimes turn out to be the
major weakness of the company.
 One major weakness identified by the Apple Inc., is that there products are incompatible
with various software.
 Sharing and receiving data is critical process in products served by the Apple Inc., which
sometimes create huge complexity for its users.
Opportunities to Apple Inc., :
 As per some reports by the year 2020, the company Apple Inc., is planing to introduce
new product in the form pf Apple car in the market.
 In the sectors where Apple Inc., deals is always a boom for technological advancements,
and this come up with huge opportunities for Apple Inc.,.
 Apple Inc., is one of the most prominent growing company, its revenues ad capitals are
incomparable to any other organization so there are number of opportunities that are
present for the organization in the market (Steinbach, 2017).
Threat of Apple Inc.,:
As an organization there are not any threat to the Apple, but the product which are being offered
by the company deals in the highly competitive market, there are number of similar products that
are segmenting in the market everyday, so it create a critical situation for the Apple Inc.,. the
competition is increasing at a rapid pace so it is very important for the company to come up with
some strategical variations in its operations.
Samsung and Nokia are one oTASK 2
Detailed analysis of company
Apple Inc. deals in industries like computer hardware and software, consumer electronics
and digital equipment, etc. The organization is the leader of the industry as they are most
dominant brand in electronic products.
SWOT Analysis of Apple: It is the tool which is used to examine the external factors which
affect the working of the business. Apple is one of the top leading organizations. There are
number of factors which lay emphasis upon the working of the organization. In this report, to
examine the external environment of the Apple, application of SWOT analysis is being used.
Strengths of Apple Inc.:

 One of the major key strengths of the Apple Inc. is that the company always come up
with innovative products. For example: iPhone 8 has many innovative features in
comparison to iPhone 7 and 7s.
 As per the information generated on the internet, the company Apple Inc. was one of the
top leading organizations of the world.
 The brand equity of Apple Inc. is very high as it is considered as a number 1 brand.
 The best thing about the products of the Apple Inc. is that they are very elegantly
designed which attract the attention of the customers.
 Due to high popularity and the awareness of the company, the distribution channel for the
Apple Inc. was very large. It serves its product in almost each and every country of the
world.
 The products of the Apple Inc. was designed as per there targeted audience and this is the
major strength of the company.
Weaknesses of Apple Inc.:
 The major weakness of the firm is high expectations of the company. As the oragnsiation
is serving as a top leading organization since last so many years, so, the expectations of
the customers are very high which sometimes turn out to be the major weakness of the
company.
 One major weakness identified by Apple Inc. is that their products are incompatible with
various software.
 Sharing and receiving data is a critical process in products served by Apple Inc. which
sometimes create a huge complexity for its users.
Opportunities to Apple Inc.:
 As per some reports by the year 2020, Apple Inc. is planning to introduce new products
in the form of Apple car in market.
 Advancements in technologies can prove to be very huge opportunity for Apple Inc.
 Apple Inc. is one of the most prominent growing company, its revenues and capital is
incomparable to any other organization, so it creates number of opportunities that are
present for the organization in the market.
Threat of Apple Inc.:

As an organization there are not any threat to the Apple, but the products which company
offered deals in the highly competitive market, there are number of similar products that are
segmenting in the market every day, so it create a critical situation for the Apple Inc.,. The
competition is increasing at a rapid pace so it is very important for the company to come up with
some strategic variations in their operations.
Samsung and Nokia are one of the major rivals of Apple Inc. The products offered by all
these organizations are quite similar to each other, so there is major competition that occurs
between these companies. But on the one hand the popularity and the services of the Apple Inc.,
is very prominent in comparison to any other organization. iPhone is very famous product in
comparison to any other mobile phone offered by the Samsung or Nokia.
The company is very famous in internal market and thus it helps in maintaining its
competitive advantage in comparison to the other industries. But on the other hand the products
provided by the Samsung and Nokia are quite reasonable in comparison to the products provided
by the Apple. Thus this factors creates a competitive edge for other countries. There are some
features like Apple's product does not easily connect with other products; create a huge
disadvantage for the company (Apple Inc.,).
The channels of distribution of Apple Inc. is very high over any other organization
present in the market thus it creates huge edge for the company, the supply chain used by the
organization is very large and highly distributed which creates a huge impact upon its growing
sales. In domestic market, the recognition of both; Samsung and Nokia is very high but in
international market, these companies are not as famous as Apple Inc. One of the major
advantages that is being seen by Apple Inc. is that recognition and awareness of its products are
high in both; domestic and international markets (Fritscher, 2015).
TASK 3
Relevant internal analysis tool to draw appropriate conclusions.
Apple Inc., is one of the top leading organization of the world, it is an multinational company
whose headquarters are in California. The industry deals in, computer hardware and software,
electronics, digital equipment and mobile phones. As per the reports of the 2017, the total

number of retail stores owned y the Apple Inc., is 499. the company served in around each and
every part of the world. The brand awareness and the recognition of Apple Inc., is very strong
among each and every age group of people. Strategic management is the policies that are being
followed by the business organization in order to increase there productivity and [profitability.
Management techniques of strategic direction also effect the internal and external environment
of the firm. As per the vies of Michael Porter, strategic management of the organization depends
upon, creating unique brand value; making appropriate choices and conducting business as per
customers requirements. In Apple Inc., strategic drift occurs due to the failure of iPhone 6s.
During that time the company was unable to meet the changes that are occurring in the
environment. As the competition is increasing in the market, there are number of innovation
occurring in the organizations. So it is very important for the Apple to come up with strategies
that are helpful in increasing drift situations in the company.
The employees of the Apple Inc., are highly dedicated towards there work, so the
organization always come-up with various kinds of innovations and variations in there products.
The main focus of each and every organization is to meet there mission with there vision. The
goals and objectives of Apple Inc., are well defined as thus it helps it in achieving the top
leading position in the market. The main focus of the company is to develop the products that
attract the attention of the customers. The recent introduction go I phone 8 is prove to be huge
success for the organization. Apple is top leading organization of the world also there market
demand is also very high, the channel of distribution of the company is very high as it helps it in
meeting its demand across the world. Apple Inc., serve there products in almost each and every
country of the world, there are number of stores that are owned by the company so demand and
supply is not the huge concern for the company as there are number of suppliers who are
available for the company. The mission of the Apple is to provide premium quality products to
there customers and there vision is sufficient enough in accomplishing there goals and
objectives. The company deals with in various kinds of products like iPad, mac-book, laptops,
iPhone, and various kinds of software. The sales and the growth of the company was
incomparable to any there organization. The brand recognition of Apple is very high as thus it
helps in increasing its popularity around the world. The major reason behind ,why the company
is able to meet its objectives are that they have product for each and every age group of people
and thus it always sufficient enough in attracting the attention for there customers towards there

offerings (Joyce, 2016). The mission statement of the company is used to define the current
plans and policies company wants to adopt while on the other hand the vision statement is use to
define the offerings which the company wants to make in future. The employees of the Apple
Inc., are highly dedicated towards there work, so the organization always come-up with various
kinds of innovations and variations in there products. The main focus of each and every
organization is to meet there mission with there vision. The goals and objectives of Apple Inc.,
are well defined as thus it helps it in achieving the top leading position in the market. The
mission of the Apple Inc., is to provide premium quality of laptops and phones to there users
while on the other hand there vision is to introduce Apple cars for there customers.
A Strategic Capability Analysis For Apple Inc.,
Apple Inc., is the first multinational company of the America, it was established in 1976.
The company deals in computer software, hardware and different kinds of mobile devices.
There are knowingly five segments where company deals it's business operations. As per the
information of 2010 the total number of retail stores owned by Apple Inc., is 317. According to
the analysis, the competitive advantage capabilities for Apple Inc., are its Unique design
capabilities; innovation capabilities and its power brand recognition.
The threshold capabilities of the organization are come under its tangible and intangible
assets, without its availability it is impossible for the organizations to maintain the sustainable
position in the market. The tangible resources of Apple Inc., are its designers, programmers,
suppliers etc. for having long run position in the market it is very important for the organizations
to have unique quality and identification in there products. Threshold capabilities does not
increase the competitive advantage of the firm, it helps in providing a secure and safe guard
position to the firm.
The design and the outlook of electronic products are same since very long period it is
important for the organizations like Apple Inc., to bring some kind of individuality into there
products in order to gain the attraction of the customers. As the competition is increasing at the
rapid speed it is becoming very essential for the firms to bring innovations in there working.
Apple Inc., is very innovative company they always come up with various kinds of innovation
into there working in order to maintain there top leading position in the market. The innovation
in I pod music player and i Tunes is prove to be very successful for the firm. The brand image of
the Apple Inc., is very strong that it helps it in maintaining its dominating position in the

consumer electronic industry. The brand value of Apple Inc., is very high as it is the fastest
growing company of the entire nation (Tan, 2017).
Business Canvas Model: This is the model which is used to develop new or enhance the old
business model. It is the chart which is used to describe the products of the firm, its value
proposition, customers and financiers. Business Canvas Model, is use to provide necessary
resources which are useful in creating value for the customers and the business organization.
Value proposition is the collection of the products and services a business provide to fulfill the
desires and the expectations of the consumers. The value proposition enhance the value of the
business through various means like performance up-gradation,branding status of the
organizations and etc. For achieving the prominent business model it is very important for the
organization to identify there targeted audience in order to work as per there requirements. The
company can deliver the there products to their targeted audience through various means of
channels. The Business Model of Apple Inc., lay very much emphasis upon the creating value
for there products and services in the market. The business canvas model of the organization
concentrates upon the, key partners, key activities, value propositions, customers relationship,
customers segments, key resources, channels, cost structure and revenue stream. The business
canvas model of Apple Inc., is more volatile, than comparison to any other organization. The
main aim of the business canvas model is to identify the area of development in new or existing
business model (Helfat, 2015).

TASK 4
Possible strategies that company could follow to defend its core business.
Differentiation Strategy is successfully used by the Apple Inc., in order to create the
individuality of there products in the market. There are number of measures which are used by
the company in order to create the competitive advantage: developing unique features and
characteristics, providing superior quality of the products, innovations and premium price of
there products.
Integration Strategy; Apple Inc., uses a vertically integrated strategy for controlling all
the major and crucial parts of the chain which s used to conduct supply fr there products.
Branding strategies are used by the firm in order to create the competitive edge in the
market, Apple Inc., deals in highly competitive market so it is very important for the company to
maintain there brand image in order to sustain the top leading position in the market. Apple Inc.,
is very famous organization, and it have very good relationship with its customers and also the
reputation of the company was very prominent in the market. The market share of the Apple is
very high in comparison to any other organization. The brand awareness and the recognition of
the Apple Inc., was very high across the whole world. Apple's product re also considered as the
symbol of status, so customers are ready to pay the high prices for there products.
Pricing Strategies, Apple follows the policies of premium pricing strategies , in to there
business. This is the component which lay emphasis upon how pricing is going to represent the
products of the company in different manner. In case of Apple Inc., the prices of the product are
very high in comparison to any other brand of the world. The cost of the products are very high
than there substitutes but due to the exclusive brand image the company is sufficient to ensure
the every growing profit share for there organization.