Comprehensive Report: Business Strategy and Practice at Apple Inc.

This report provides a detailed analysis of Apple Inc.'s business strategy and practices. It begins with an introduction to business strategy and Apple's mission and vision. The main body of the report covers external consistency using PESTLE analysis, five forces model, and complementor analysis. It also includes an analysis of the BCG matrix to evaluate product growth and market share. Internal consistency is assessed through VRIO and value chain analyses. The report examines Apple's organizational structure and concludes with recommendations for improvement, an action plan, and an overview of current challenges and resistance to strategy implementation. Finally, it proposes a roadmap model to overcome challenges and improve strategy communication, along with a conclusion and references.

BUSINESS STRATEGY
&
PRACTICE

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
External consistency: ..................................................................................................................4
BCG (Boston Consulting Group) Matrix....................................................................................6
Internal consistency.....................................................................................................................9
The organization chart of the Company.....................................................................................11
Recommendation & Improvement ............................................................................................12
Action plan.................................................................................................................................13
Current challenges and resistance to strategy implementation..................................................13
Roadmap model to overcome the challenges and improve strategy communication................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Business Strategy refers the set of competitive organizations action and moves which
business uses to force customers, enable to take competitive advantages, strengthening
performance at workplace and accomplish objectives of organization. Strategy gives guidance to
runs out business so that organization accomplishes their objectives. Business strategy supports
to create vision and guidance for whole business (El-Masri and et.al., 2015). This strategy is
important for whole people within company because it gives vision and mission of company.
Employee follows business strategy by taking in practices. It also prevents organization to loss
sight of company's goals. To understand this strategy there is a good example Apple company. It
is multinational technology company. Headquarter of this company is California. This report
will cover organizations developed strategy and how it communicates and consume. In this
report will cover challenges and strategic implementation and improve strategy of
communication.
MAIN BODY
Vision & Mission: Main mission of Apple company is to carry the best customer experience
through with innovative hardware, software and services. The vision of Apple organization is to
offers innovative products along with best services to customers so that company reaches worlds
the best position and becomes dominant player in global market.
External consistency:
External consistency refers compatible along with components in different styles. It uses
for industry analysis. External consistency are PESTLE and Five forces with complementer.
PESTLE ANALYSIS:
Pestle analysis model applies by company to know about impact of external factor on
company. To communicate this model organization applies each factor on company and
understand its negative and positive impact on company performance. It can interpret below-
Political factors: Government stability, tax policy, trade control and competition regulation etc.
ate political factor. It gives impact on apple company. Apple is UK company where company
gets golden opportunity due to stable politics. In that state apple doesn't have to change their
product policies and doesn't have to pay extra tax (Ortiz‐de‐Mandojana and Bansal, 2016). Apple
gets negative impact on company because According to UK policies an organization can trade in
limited countries. In that state Apple company enables to trade their product in various countries.

Economic factors: Inflation, recession and foreign currency are economical factor. It gives
impact on apple company. Apple gets cost advantage in china because their side labour cost is
less. In that state Apple enables to manufactures large apple products in low cost. Thus apple
gets golden opportunity. While Apple gets negative impact because apple is famous and more
expensive brands therefore number of customer doesn't prefer to buy Apple product. Thus, Apple
unable to sell their product in non-developed countries.
Social factors: Demographical changes etc. are social factor. It gives impact on company where
organization gets positive impact on company because apple is famous brand. Now peoples
becomes luxuries addicted, in that state customers purchasing power enhances for Apple
products (Goggins, 2016). Thus, organization gets opportunity to trade their products in wide
scale. This demographical changes gives negative impact because continuous changes'
customer's demands regarding product enhances cost of products. Due to this number of
customers purchasing power reduces.
Technological factors: apple gets positive impact of this factor because apple always to do
changes in their products and enables to meet customers objectives. Through this satisfaction of
costumers, Apple gains trust of them and enhance values of brand.
Legal factor: Government focuses on privacy in digital products where Apple gets golden
opportunity because organization offers digital product along with strong privacy. Such kind
legal regulation gives threat to apple policies and practices (Gegenhuber and Dobusch, 2017)..
Due to this organization have to maintain valid document during manufacturing of products.
Environmental factor: Apple manufactures disposing products so that environment doesn't get
negative impact. In that state organization enables to promote their product in high scale. It gives
negative impact because it leads climate change which disturbs global warming. Such kind
disturbances give negative impact on Apple's supply chain.
On the basis of above factor can analyse this model gives positive and negative impact on
company such as technological factor supports company to give values of customer so that
organization gets economic benefit in company. Thus, organization communicate this model and
consumes by Apple Inc.
FIVE FORCES MODEL

Five force model applies by Apple to know about competition of business. This model
includes five parts which supports to analyse competition in business market. To communicate
this model organization interlink each model with company.
Rivalry competition: Competition level in global market is very high but Apple is famous brand
along with various product substitutes. In that state Apple gets positive impact on company. On
the basis of cost Samsung and google and amazon gives competition to Apple Inc company.
Bargaining power of suppliers: Bargaining power of supplier is weak for Apple's product. To
enhance bargaining power of supplier organization to do changes in their industry such as reduce
power of chip maker by manufacturing own chips (Farha 2016). Organization reduces the power
of supplies by offering apples product services direct through Apple store to retail stores.
bargaining power of buyers: Apple is famous but expensive product so individual customer
bargaining power is weak but collective market place bargaining power of buyer is high because
Apple always invest lots funds in R&D department so that organization enables to give the
various feature in a single product and meets customers objectives. Thus Apple company is most
successful in competition area.
Threats of substitutes products: Apple can get threat from other companies on the basis of cost
with unique features products. In that state another company can enable to replace iPhones and
MacBook.
Threats of new entrants: Apple is most successful brand in global market and famous for
innovation along with unique services. To compete with apple, new entrants have to offers
advance product along with reasonable prices (Woerner and Wixom, 2015). New entrant should
have strong brand image, In that state apple can get threat from substitute product.
On the basis of above model organization analyses that Apple gets good impact
through innovative products but other company also can threat for organization if Apple doesn't
communicate new feature in their products. Thus, apple consumes model and gain competitive
advantage.
Complementor: It refers some business who dells their products along with good services so
that customers gets values of their money (Leclercq-Vandelannoitte, 2015). For example Apple
Inc company always offers unique features in their Apple's products like iPhone x mobile is
launched by Apple, after some time Apple launches iPhone 11 along with high security. Thus,
apple enables to give more values of customers. Customer gives values to brand by enhancing

purchasing power. Beside of this there is another substitute of Apple products like iPad, Apple's
laptop etc.
BCG (Boston Consulting Group) Matrix
BCG refers a platform which analyses products on the basis of growth and market shares.
Apple implements this model on company to knowe about market share along with product
growth in business market. To communicate BCG matrix there are two companies example such
as Apple and Samsung company. BCG matrix are-
Stars: it refers organization units which has good market share along with generate cash. Apple
is American company which has good market share due to advance features of Apple's product.
Customers always looks for unique products. Thus, Apple enables to generate cash from
potential customers. Due to high cost of Apple products, customer unable to buy product in large
scale. While Samsung gets good advantage of BCG matrix because it is less expensive to Apple
and it also has strong brand in global market. Samsung also launches new product Samsung
galaxy Note 10 which has advance features. Customer like to prefer Samsung rather to Apple
products.
Cash cows: cash cow refers leader of the company leads marketplace generates more cash rather
than consumes. Apple company launches their products back-to-back along with advance
services such as iPhone 8, iPhone 10 and iPhone 11. While Samsung company unable to
launches the latest product in minimum time. In that state Apple gets competitive advantage due
generate more cash.
Dogs: it refers products which has low market share and low growth rate. Samsung is an amazon
company which is famous brand but less famous to Apple. Samsung is not high demanding in
global market rather Apple. In that state growth rate of Samsung is low in global market. While
Apple doesn't have high market share in India due to high cost. That why Apple demand is less
in Indian market which leads low growth rate.
Question Marks: this term refers business have high growth aspect but low market share in
global market. Apple invest lots of funds in R&D department and launches unique products.
Apple has high growth in business (Rastogi and Trivedi, 2016). Such kind investment enhances
cost of product. Thus market share of apple is low. While Samsung doesn't invest more funds in
R&D department so business growth is less but it is less expensive to Apple product. In that state
Samsung gets high market share.

On the basis of above comparison organization gets product growth and market share of apple in
business market. Thus, Apple Inc consumed this model.
Internal consistency
It refers measurement which is based on the correlation between product and it's
interference. To understand applies two models such as VRIO Analysis and Value chain
Analysis.
VRIO MODEL
Illustration 1: BCG Matrix
(Source: BCG Matrix, 2018)

Valuable: Apple is famous second largest company which is also known as information
technology company. Company has great revenue rather to other company like Samsung, Nokia.
Apple is the second largest customer listed business firm in the world on the basis of market
capitalization. Organization gives values to their employees by offering competitive employees'
compensation packager than other company employee's package. Through this strategy retains
highly skilled employees at workforce. Organization also gives values to customers by offering
different varietal product.
Rare: Apple Inc always invest funds on HR development so that they recruit more talent
employees and employees enables to innovate new products or services in existing features.
Beside of this Apple offers ecosystem of complementary products in global which is not possible
for another competitive company. Thus, organization keeps uniqueness in his products.
Inimitable: Apple uses product mix strategy where offers wide variety of products such as
mobile, iPad and laptop etc (Barik. and Kumar, 2018). thus type gives values to their customers.
Organization enables to focus customer information during selling and offers desired product to
them. Thus, organization gains trust of customers. While other company cant imitate such kind
strategy.
Organization: Apple is strong recognizable brand due to advance technology. Apple company
has wide scale global distribution along with sales network. Thus, organization enable to take
competitive advantage in global market rather other competitive company.
Value chain Analysis
It refers an analytical framework which supports to identify organization activity. On the
basis of activity can create values and enhances competitive advantage of organization. That why
organization applies this framework on organization activity. To communicate value chain of
analysis there are some facts-
Identify competitive advantage: the value chain analysis supports Apple company to take
competitive advantage. For example Apple unable to trade all process in the external market
where value chain analysis supports Apple to give suggestion that if all process is based on
economic rent. In that state organization enables to take competitive advantage.
Identify complex inter relationship and inter dependencies: Value chain approaches supports
Apple to identify various internal and external linkage which can get profit during trade. Internal
linkage refers relationship between ventures which interlink with organization. While external

link refers interrelation between organization units (Eskandari and et.al.,2015). Thus, such kind
interrelationship enables organization to take competitive advantage in global market.
Improved flow of material, information and finance: Value chain approaches assist Apple to
enhance brand value in global market so that organization gets vision of the company. It
encourages employees for innovative information so that organization enables to explore their
products on larger scale. It is effective implement chain of organization which supports to
improve the material and Apples product flow by developing demand and sales forecasting.
Inventory management of Apple also supports to develop Apple product which can minimize the
break by tracing activities through Apple supply chain.
After communicating this model organization gets new strategy to promote varieties of
product in global market so that Apple enables to take competitive advantage in Digital market.
Thus, Apple Inc consumes this model's part and gets profitability in company.
The organization chart of the Company

Recommendation & Improvement
 On the basis of above report there are some recommendation for Apple Inc
company is that Apple should be sharply contracted into new emerging market. It
will enhance more values of brand and organization enables to take more
competitive advantage for example Apple company should be expanded their
products in China by opening new Apple stores.
 Apple company should be kept different price strategy along with effective
product. This strategy will attract new emerging market to buy product in larger
scale. Thus, organization can communicate this strategy and can cover each type
of customers. Through this strategy organization enables to enhance purchasing
power of customers.
Illustration 2: ORGANIZATION CHART
Source: organization chart 2018

 Apple organization should be explored different retail channel for enhancing
potential sale. It will reduce risk of growing market and organization enables to
raise market share. Organization gets good communication in whole market.
 Emerging market is good opportunity for Apple because it will enhance business
growth along with market shares. Thus, Apple can establish brand reputation in
global market along with loyalty.
 To communicate this strategy on wide scale, organization should focus on
product features rather to version so that customer actually get values of their
money and organization get profitability in company rather to threat.
Action plan
Apple company uses various strategy to explore products in emerging market.
Organization keeps multiple policies so that political effect doesn't give any negative impact on
organization operations. Besides of this organization keeps different price strategy so that large
number of customers can buy products. Organization enables enhance values of brand. Five
force model also gives impact on organization (Zhao and et.al.,2016). To enhance bargaining
power of buyer organization launches different prices' product with effective features. Through
this strategy bargaining power of individual customer can enhance and organization enables to
growth in multiple market. Apple focuses on BCG matrix where organization market share was
less rather to Samsung company. To enhance market share along with cash flow organization
manufactures advance features' product so that customer comes to buy this product rather to
other brand. Organization uses retailer supply chain it can connect number of customers and
organization enables to promote their products in rural markets. Through this plan organization
can achieve vision of company. In emerging market organization selects potential supplier who
tells customer views regrading products and their services.
Current challenges and resistance to strategy implementation
 Apple company can faces tariff tax on iPhone which can enhance cost of iPhone.
In that state organization can unable to sell their product on large scale.
Organization have to pay large tax on manufacturing equipment which will
enhance cost of digital product. It causes organization unable to promote Apple's
product in emerging market.

 Apple can face second challenge where Samsung and Huawei are going to launch
5G enable device. It can give great threat Apple 5G model. Thus, organization
unable to enhance growth of business in emerging market.
 Another challenges are that smartphone can be declined in future because now
smartphone becomes common for customer. It available everywhere. In future
customer can require something unique product. Thus, Apple product value can
be weakened in the future.
Thus these challenges can prevent implementation of strategy in emerging market. Apples may
be enabled top promote their products in emerging market.
Roadmap model to overcome the challenges and improve strategy communication
Apple uses roadmap model to overcome challenges so that organization enables to
promote product in emerging market (Farha 2016). Some strategy also applies to take
competitive advantage in global market. To communicate products in emerging market there is a
roadmap structure-
 Apple vision is that to explore product in emerging market and gets number one position
in emerging market.
 To manufactures effective product along with differential price strategy So that number
of customers attract from brand and demanding power of customer enhances regarding
product.
 Organization has goal that innovate advance along wide variety Apple products so that
each type of customer enables to buy products. To overcome 5G model of Samsung and
Huawei organization also going to advance product so that customers retains with Apple
brand rather to other competitive brands.
 Now people become concern for health, and they want such kind product so that physical
and mental well-being present. Apple is going to launches eco-friendly product which
doesn't give negative impact on customers eyes.
 To overcome tariff tax organization builds a portfolio of product. It gives maintenance
and idea of product features.
 Organization invest more funds on R&D department so that organization innovate new
products rather to smartphone which will enhance values of brand in emerging market.