Business Strategy Report: Analysis and Recommendations for Apple Inc.

This report provides a comprehensive analysis of Apple Inc.'s business strategy. It begins with an introduction to Apple's mission, vision, objectives, and core competencies, emphasizing their role in strategic planning. The report then delves into factors crucial for formulating Apple's strategic plans, including competition, core competencies, employee skills, and future direction. It explores the effectiveness of the BCG and Ansoff matrices in developing strategic business plans. The analysis continues with an organizational audit using SWOT analysis and an environmental audit via PESTEL analysis, followed by an examination of the significance of stakeholder analysis. The report proposes a new strategy for Apple, considering alternative strategies like market entry and growth. The report concludes by outlining the roles, responsibilities, resource requirements, and the use of SMART targets for implementing the suggested strategic plan, offering a detailed overview of Apple's strategic landscape and providing recommendations for future growth and competitive advantage.

BUSINESS STRATEGY
(Apple, Inc.)

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
1.1 Business missions, visions, objectives, goals and core competencies inform strategic
planning of Apple........................................................................................................................4
1.2 Factors that have to be considered when formulating strategic plans for Apple...................5
1.3 Effectiveness of techniques used when developing strategic business plans........................6
TASK 2............................................................................................................................................8
2.1 Strategic positioning of Apple by carrying out an organisational audit for Apple................8
2.2 Environmental audit for Apple by doing a PESTEL analysis...............................................8
2.3 Significance of stakeholder analysis when formulating new strategy for Apple..................9
2.4 A new strategy for Apple.....................................................................................................10
TASK 3..........................................................................................................................................10
3.1 Appropriateness of alternative strategies relating to market entry, substantive growth,
limited growth or retrenchment for Apple.................................................................................10
3.2 Justification of the selection of a strategy for Apple...........................................................11
TASK 4..........................................................................................................................................11
4.1 Roles and responsibilities needed to implement the suggested future strategic plan in
Apple..........................................................................................................................................11
4.2 Estimated resource requirements for implementing a new strategy for Apple...................11
4.3 Contributions of SMART targets to the achievement of strategy implementation in Apple
...................................................................................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
Books and Journals....................................................................................................................13

LIST OF FIGURES
Figure 1BCG Matrix of Apple.........................................................................................................6
Figure 2Ansoff Matrix for Apple Inc..............................................................................................7

INTRODUCTION
In today’s highly globalized world organizations are planning to develop some of the best
strategies through which they are able to attain higher competitive advantage. For the same,
firms require to set their particular objectives as well as future directions. It is the most suitable
way to frame and develop better strategies for set path (Jones and Ratnatunga, 2012). In this
regards, the present study is taken into consideration which presents business strategy of Apple
Inc. It is American multinational technology company which develops consumer electronics as
per their desires and also provide them various online services. Further, this study gives brief
description about the factors that have to be considered when formulating strategic plans for
Apple. It also helps in analysing the strategic positioning of Apple by carrying out an
organisational audit for Apple. Moreover, this study gives proper description related to the
formulation of new business strategy for company as well as various approaches to strategy
evaluation.
TASK 1
1.1 Business missions, visions, objectives, goals and core competencies inform strategic
planning of Apple
By the way of setting its long term strategies organization can easily defined its long term
planned actions and activities. It can be easily achieved by the way of setting future directions
such as:
 Mission: Apple designs Macs as well as OS X, iLife, iWork and best personal computers
along with several professional software’s. Apple leads the revolution of its digital music
with its iPod and iTunes online stores (Massingham, 2004). The App store of company is
highly focused and it is defining the future of mobile media and computing devices.
 Vision: The current vision statement of Apple was introduced by CEO Tim Cook that
“We believe to make great products on earth that is not changing” We believe in deep
collaboration which allows us to innovate in a way that other cannot.
However, vision and mission statement of company are the main base of company’s success.
Due to this, company has recently changed its mission statement including changes in recent
times (Datson, 2014). Apple follows this statement just to maintain its competitive advantage.

The mission statement of company clearly presents all those actions that are needed to ensure
that company continuous in its success path.
 Objectives: The main objective of company is to deliver high quality services to their
customers such as per the changing and revolutionary world (Ferrell and Hartline, 2010).
Here, its latest and innovative application and products clearly presented its objective to
attain higher competitive edge in innovative mobile and electronics world.
 Core competencies: The major core competencies of Apple is its innovation in mobile
device technology as well as strong marketing teams with strong financial performance.
Due to its high quality customer Service Company is having strong brand image with all
its latest products such as Apple TV, Mac computer, iPod etc.
1.2 Factors that have to be considered when formulating strategic plans for Apple
In order to attain set future direction of company, Apple requires formulating its strategic
plan. By the way of developing better strategies they can easily enhance higher competitive
advantage and provides quality services to their customers.
At this time, they need to consider various factors through which they can better formulate
strategies such as:
Competition: One of the most important points needs to be noticed is its competitor’s
strategy. However, Apple has developed a strong brand presence all around the world. But still,
framing any new strategy requires them to review the competition within electronics industry as
well as its competitor’s strategies (Li and Solis, 2013). Through this, they are able to offer
quality services and develop higher competitive advantage as well.
Core Competencies: It is highly essential to review the core competencies of Apple so that
they can easily identify what they require to achieve. With this, they are able to ensure the
requirements of new strategy development and go through the better framework.
Skills of employees: Apple is one of the largest American multinational technology firm
which incorporate highly skilled employees within their business firms (Jackson, 2012). While
developing of formulating any new strategies they must identify their worker’s skills and
compatibility to complete the defined tasks.
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Future direction of company: Apple has set their future direction and in order to attain
that position it is essential for them to set their future direction with their target customers as
well.
1.3 Effectiveness of techniques used when developing strategic business plans
BCG Matric
It is one of the best tools used by majority of organizations in order to take appropriate
decisions regarding their strategic business plan. With the help of this technique Apple can easily
go through its current position such as:
Figure 1BCG Matrix of Apple
(Source: Murthy, 2014)
Star: Under this quadrant all those products are taken into consideration which covers
high growth and high market share of company. IPhone is one of the best examples of star
product that Apple has in its category.
Cash Cow: All those products are taken into consideration which is having low growth
and high market share. Apple iPod is one of the best examples of this category (Murthy, 2014).
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Dogs: This product covers low market share and low market growth. With the help of
this, company can easily decide whether products should be eliminated from portfolio of
company or not. Best example of dog is iPhone 3Gs when Apple released iPhone 4G.
Questions: All the newly launched products exist into this category. This type of
products covers the low market share but high market grown. Mac Computers is one of the best
examples of question mark.
Ansoff Matrix
This is another most effective technique Apple might use at the time of developing any
strategic business plan. With the help of this they can easily review their market growth and plan
their strategies accordingly (Platts, 2005). It is also regarded as a planning tool through which
company can easily evaluate the better growth strategies for their business and for the same there
are mainly four parts of this matrix i.e.
Market penetration
Market development
Product development
Diversification
Figure 2Ansoff Matrix for Apple Inc
(Source: Platts, 2005)
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With the help of both the above given techniques Apple can easily develop and set better
strategic plans for them. By the way of using BCG matrix marketing managers can plan their
product portfolio easily.
TASK 2
2.1 Strategic positioning of Apple by carrying out an organisational audit for Apple
With the help of using SWOT Analysis Company is able to identify its strength,
weaknesses, opportunities and threats. It helps them in identifying their future opportunities and
strategic positioning as well.
SWOT analysis of Apple
Strength
Strong brand image
Vigorous financial performance
Best and focused R&D
Excellent advertising and promotion
capabilities
Quality customer services
Weaknesses
Death of Steve Jobs
Patent infringement
High Price
Long term gross margin declining
Further changes in management
Threats
Rapid advancements in the field of technology
Rising pay level
Android OS growth
Dependence of specific supplier
Intense competition
Opportunities
Expansion of business in developing nations
such as: China and India
Development of new retail stores
Strong growth of tablets and laptops
2.2 Environmental audit for Apple by doing a PESTEL analysis
Political: There are various political external factors which affect the overall business
operations of company such as: Improving free trade policies, stable politics in developed
countries. Apple is one of the largest American technology companies which are heavily
dependent on the low cost manufacturers in China. Due to the social and political unrest in China
could increase the manufacturing cost in country (Nieuwenhuizen and Koch, 2007). Company’s
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close association in China might leads to become one of the greatest political issues in countries
like Japan and USA.
Economic factors: Due to the strong US dollar rate exchange rates might leads to
increase and it makes it more expensive for Apple to do business in key markets. In addition to
this, increased labour is another major cause of economic factor.
Social factors: There are various social factors which present the rising opportunity for
company due to the rising use of mobile access as well as social media.
Technological: Apple can utilize various technological advanced services in order to
make their customers happy. Cloud computing is becoming more popular among individuals as
well as organizations. Other increasing technologies are technological integration as well as
growing apps market (Rang, 2011). Apple can go with several opportunities in order to
continuously providing products that can be seamlessly connected to each other.
Environmental factors: Apple is incorporating various opportunities in order to maintain
its business sustainability. For the same, they are following various product energy efficiency
trends as well as recycling their products.
Legal factors: There is various privacy issues associated with the use of digital
technology. For the same, different privacy regulations imposed on electronic firms like Apple.
With this, they are able to maintain security and privacy into their business operations.
2.3 Significance of stakeholder analysis when formulating new strategy for Apple
Stakeholders are key part of any organization which helps them in smooth business
processing. Stakeholder analysis can be defined as a process of recognizing individuals as well
as groups that are likely to affect by any type of proposed actions. It can also be define as a
systematic way through which analysis can be made by their power and interest (Porter, 2004). It
is highly important to go with the appropriate stakeholder analysis at the time of formulating any
new strategy for Apple. Here, Lender, employees of Apple and their software developers are
regarded as most important stakeholders of company. Company has employed more than 75,000
employees worldwide and they plays a key role in the smooth business functioning. On the other
hand, developers of Apple make available resources to help software developers write software
for the Mac OS X and iOS platforms. Other most important stakeholders are its suppliers as
Apple requires each of its suppliers to meet the highest standards for all the goods and services.
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In this regards, it can be stated that it is highly important to go through the stakeholder analysis
as it helps in motivating more number of employees as well as developing better marketing plan
(Emerald, 2011). Through this, company can go through the regular updating of their strategy
and continuously review the needs of their entire stakeholder. These are some of the most
common importance due to which Apple needs to follow stakeholder analysis.
2.4 A new strategy for Apple
Forming a new strategy presents various opportunities for company. As per the above
discussion it has been founded that Apple is having positive brand image worldwide and in order
to maintain this they have adopted product differentiation as well as strategic alliance strategies
in the past years itself. Except these strategies another most suitable strategy for Apple can be
presented by Aggressive advertisement. It is regarded as a best way through which Apple can
attract more number of customer and keep its business grow. Under this, they can allow their
brand to solidify their image in the mind-set of customers and easily achieve immediate
recognition (Grant, 2010). By making various aggressive ads Apple can give its competition free
advertising. At the time when customers feel threatened by the marketing tactics they are more
likely to seek out the competition for a more suitable fit.
TASK 3
3.1 Appropriateness of alternative strategies relating to market entry, substantive growth, limited
growth or retrenchment for Apple
Market entry: It is highly effective strategy for Apple as it provides them several
opportunities to develop their brand identity in the other countries like China etc. For the same,
they go through the different strategies such as merger, acquisition, strategic alliance etc.
Substantive growth: Under this strategy Apple can easily enhance its competitive
advantage and current development growth by increasing their financial resources.
Limited growth: Here, Apple may use market penetration as well as development
strategies in order to achieve growth (Flor and Oltra, 2010). With the help of market penetration
they are able to sell their products in the countries of expansion. On the other hand, company can
sell its products internationally as per their market development.
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Retrenchment: According to this technique, they can maintain their sales with the help of
using better advertising and promotional tool.
3.2 Justification of the selection of a strategy for Apple
In today’s highly competitive environment one of the most common requirements of each
and every organization is to go through the better promotion and advertising of their products so
to attract more number of customers. Aggressive marketing is highly suitable strategy for Apple
as it provides them better opportunity to attract more number of customers (Datson, 2014). It
plays a most important role to convince people and show them a reality that what could happen if
they not listen to good advice. It is regarded as a best selection due to its previous strategies
adoption and company can easily strengthen its brand image with this.
TASK 4
4.1 Roles and responsibilities needed to implement the suggested future strategic plan in Apple
At the time of development of any new strategy Apple requires to assign appropriate
roles and responsibilities to all their customers.
CEO: He plays a most important role in Apple Corporation and took all the decisions
regarding the growth and strategic change in the company (Gilad, 2011). He is responsible for
taking all the management decisions regarding the appropriate implementation of strategy.
Finance department: At the time of implementing any new strategies company requires
appropriate budgeting and performance evaluation techniques. It is the only way through which
total performance and profit margin from the new strategy i.e. aggressive advertising can be
evaluated.
4.2 Estimated resource requirements for implementing a new strategy for Apple
Some of the most common resources for appropriate implementation of a new strategy
are financial resources, human resources, technological resources etc. Apple requires considering
its financial sources which is enable or not. Moreover, it requires to be supported by their future
activities. For the same Apple should set particular budget before planning for market expansion
strategy (Poulfelt, 2009). On the other hand, employees are the key asset as they develop better
growth opportunities for companies. In addition to this, due to the rapid advancements in
technology it is essential for company to incorporate proper technological resources so that they
can properly communicate with each other.
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4.3 Contributions of SMART targets to the achievement of strategy implementation in Apple
 Specific: Market expansion of their business in developing countries such as continents
of USA, China etc.
 Measurable: Company wants to set their standards and as well as they requires taking its
market share 15% increase by 2016.
 Attainable: Increasing distribution system for all its online and retail stores (Grant,
2010).
 Realistic: Accessing the fashion interest of its large following by increasing their product
line.
 Target: Achieving their 15% market share by the end of 2016!
CONCLUSION
From the above study it has been concluded that Apple can sustain its market position by
the way of adopting aggressive advertisement strategies. It has been identified that company is
having its strong brand identity in the market. It provides them high growth opportunities and
also helps them in maintaining better relations with customers through incorporating several
resources such as HR, technological. It helps them in better strategic implementation for the
company and achieving higher competitive advantage as well.
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