Strategic Plan of Apple Inc.: Achieving Competitive Advantage

This document presents a strategic plan for Apple Inc., focusing on achieving a competitive advantage within the technology industry. It begins with an overview of Apple's history, products, and operations, followed by its mission, vision, and corporate values. A SWOT analysis identifies the company's strengths, weaknesses, opportunities, and threats. The report examines Apple's competition, management team, and financial outlook, and proposes strategies for future growth. The analysis utilizes Porter's Five Forces model to assess the competitive intensity within the industry. The plan aims to align the company's values with functional-level strategies to enhance its market position. Desklib provides access to this document and other study resources for students.

RUNNING HEAD: STRATEGIC PLAN 0
Strategic Plan
Student’s Details-
MARCH 17, 2020

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Executive Summary
Strategic plan is crucial for the company as it records the mission, vision and goals which
are to be used for the action plans determined by the company. The aim of the research is to
determine the action plans which are to be decided through the ways of strategy for the earning
of the competitive advantage. The research is made from the journal articles and company’s
website sources. The results of the report is helpful in the determination of the functional level
strategies which fits with the values of the company and help in getting competitive advantage
over the competitors.

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Contents
Introduction......................................................................................................................................3
Overview and History of Apple.......................................................................................................3
Products and Operations..................................................................................................................3
Mission and Vision Statement.........................................................................................................4
Corporate Values and Culture.........................................................................................................4
SWOT Analysis...............................................................................................................................5
Competition.....................................................................................................................................6
Management Team and Leadership.................................................................................................7
Financial Outlook............................................................................................................................8
Strategies..........................................................................................................................................9
Recommendation...........................................................................................................................10
Conclusion.....................................................................................................................................10
References......................................................................................................................................11
Appendices....................................................................................................................................14

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Introduction
Strategic planning consists of the practice in which the company determines the mission,
vision and corporate values and makes the long-term strategic action which can lead to the
gaining of the objectives of the company (Nickols, 2016). Further, this requires the
implementation of the strategy which aims to make the strategic direction of the company which
supports the strategy. Here, the assignment has been made on the strategic plan of Apple which
is American technology company dealing in the range of electronic products. The plan has
considered the company’s goals and values and aligned them to achieve the objectives of the
company through the development of strategy which can be helpful in the earning of the
competitive advantage over the competitors. The plan has considered the internal strengths and
opportunities which can be used for the creation of competitive advantages which can be utilized
for the earning of the competitive advantage through the building of functional level strategies.
Overview and History of Apple
Apple Inc (AAPL) is the multinational American company which designs and
manufactures the electronic products, deals with computer software and the online services. The
company is regarded as the Big Four technology companies and is renowned for the increasing
innovation and the creativity within the concerned software industry. Apple was founded by
Steve Jobs and Ronald Wayne in April 1976. The company was engaged in selling personal
computers previously. The company had seen quick financial success in the 1980s (Rawinson,
2017). During 1990s, the personal computer evolved and the company earned lower market
share during the monopoly of Microsoft Windows. In January 2007, the company was renamed
as Apple Inc. and shifted their focus upon the consumer electronics and launched iPhone to get
the increasing financial success. In 2018, the company has earned the sufficient revenue within
the leadership of Tim Cook.
Products and Operations
Basically, the products of Apple can include the iPhone, iPad, iPod and Apple TV which
are extensively developed by the company. Also, the company makes the professional
applications and software. Apple Inc. designs, manufactures and mobile application and devices

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and personal and portable music player devices. The company’s operations can be seen from the
segments such as Europe, America, India and Japan (Reuters, 2020). Also, the rest of the Asia
Pacific regions are also included in the company’s operating segments.
Mission and Vision Statement
The mission statement of the company states that the company attempts to make good
user experiences which are to be attained by the innovative hardware and software solutions. The
corporate mission statement has changed over the time. The company has changed the business
landscape influencing the possibilities of the business can do (Apple, 2020). Besides, the
company’s vision is to bring the strategic management that persuades the decision making that
can be helpful in the reaching of future of leadership in various industries. Moreover, Tim Cook
has stated that the company has been constantly focusing upon innovating and the company
focus on the things which are meaningful for the company. Both mission and vision make the
strategic advantage which can make the employees motivated and also leading to strategic
advantages.
Corporate Values and Culture
The company’s values are guiding tenants and often provides the certain ways by which
the company can make the company dedicated to the target by supporting the company’s vision
and shapes the culture. The company’s values can consist of the think different perspective
which is often the marketing strategy of the company and is the core values of the company. The
values include the changing of the world through the passion. The company has focused upon the
selected products which can certainly help in innovating and develop in their own way. As a
result, in 2010, Apple has launched iPad which has killed the market even today. Thus, the
company has reflected the values through the development of the innovative products into the
market. Moreover, the company works seamlessly and also provides the best customer service.
Corporate culture is defined as values and beliefs which makes the effective interactions
between the people into the organization in which the way the company handles the business
transactions within the organization. Moreover, Apple’s corporate culture has certain
characteristics which are the basic factor for the success of the company. The company maintains
the corporate culture through the establishment of the beliefs, philosophy and related behaviors

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which can affect the success of the company that supports the various strategic initiatives.
Further, the company has aligned the cultural traits with the drive for innovation which shows
the major competitiveness in terms of technology. The company has made the diversity and
inclusion as an important part of corporate culture in which the company makes efforts for
attracting of the diverse employees which can help in the bringing of creativity and innovation
bringing perspective into the company (Apple, 2020).
SWOT Analysis
SWOT analysis consists of the strengths and opportunities for the avoiding of the threats
and overcoming of weaknesses of the company. The following is the analysis of the Apple
company’s SWOT:
Strength: Apple is seen as the most valuable brand and is ranked 1 in seven consecutive
years by Interband with USD 234.24B (Interband , 2019). Apart from this, the company’s
strengths can also be seen from the fact that it is the most reliable company having personalized
advanced computers and technology devices and has gained the trust of millions of customers.
Apple is the top technological company that has firstly introduced the innovative products like
iPhone and iPad and is still determined to make the faster and proficient technology devices.
Moreover, the company has successfully expanded the products and earned sufficient revenue
over the years.
Weakness: The weakness of Apple is that the products of the company are luxury and
are primarily afforded by the middle income and higher income people due to the premium
prices (TFL, 2018). Also, the company has been making little investments in the advertising and
promotion of the company’s products which can be the weakness of the company. Further, the
company has limited distribution network and the authorized list of sellers for the circulation of
their products. Thus, the weakness lies in the exclusivity of controlling of the distribution
channel that further creates the advantage for the company.
Opportunity: Apple has the dominant position in the technological industry through
their quality technology that increases the customer experience (McKeever, 2019). The company
has qualified pool of professionals that have experience in the product branding. Apple has an
opportunity to expand the distribution network due to the less of distribution network and the

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growth in the revenue and sales to reach more customers in the global market. Further, the
company has opportunity to use aggressive promotional techniques and increase the sales
volume through the selling of mobile products which are the most selling products of the
company.
Threats: One of the major threats faced by Apple is the increasing competition in which
the advancements made into the technology can affect the operations of the company. The
company like Samsung gives stiff competition to the company. Another threat that the company
faces is imitation in which the company faced threat of imitation made by the multinational firms
which may imitate the design and features of the products (Reisinger, 2013). Apart from this,
there are rising labor cost and which has reduced the profit margins.
Competition
Apple faces intense competition from other technological companies and can lose the
market share within the market. The company’s competitors consist of Microsoft, Samsung,
Sony and Google which have similar product offerings and can be affected by their products and
competitive stakes. The extent of competition and level of competitive efforts can be explained
from the Porter’s Five Forces Model which will determine the intensity of rivalry and the other
forces which are to be considered in the company’s strategic formulation. For the analysis, the
first factor is the bargaining power of customers. In case of Apple, the bargaining power of
customers are higher in which there is lower switching cost and the model can affect the
purchase decision and the perception against the products. Apple’s substantial efforts in research
and development and the development of unique products can certainly help the company to get
competitive advantage. Secondly, the bargaining power of suppliers is weak and the suppliers
may control the demand of supplies and which can affect the operations of Apple (Apple Inc.,
2020). Due to the large number of suppliers, there are difficulties for the company get the
affordable supplies.
Third force under the model is threat of substitute products. Apple faces the competitive
threat of substitute products from other companies. Some of the products of Apple can easily be
substituted such as iPhone and iPad as they can be replaced by digital cameras and landline
telephones. Relatively, the substitute products threat can be lower as this replacement can avail

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the lesser product capabilities that the company provides through their products. Fourthly, the
competitive analysis under the model consists of the threat of rival firms. As Apple has an
established brand name, it faced lower threat of new entrants. The factors which are responsible
for the higher entry barriers is the higher capitalization. For beating the company like Apple, new
entrants will require higher investments and strong financial capacity to compete against Apple
(Si Xue, 2016). The last factor is the level of competition between the competitors. This seeks to
determine the high aggressiveness of the Samsung and LG. Due to the lower product
differentiation, the product faces the competition. The intensity of competition can also be seen
from the lower switching cost of the products which can persuade the customer to switch to
another brand. For coping with the situation, the company makes the product unique and
affordable in order to stay ahead of the competing firms.
Management Team and Leadership
Management team and leadership are the important part of the success of the company.
This provides direction to the company and often leads to the strategic efforts of the company
(Zhang, Li, Ullrich, & van Dick, 2015). Effective leadership can lead to the more productivity of
the company as the leaders follow the mission and make efforts for the achievement of that
vision which can lead to the productivity of the company. Moreover, the management and
leadership team of Apple is highly efficient and creativity driven which strives to make quality
strategic decision making for the success of the company. It can be noted that Apple has Board
of Director which carefully overseas the Chief Executive Officer and senior management team
which helps them in ethical and competent decision making within the company (Apple.com,
2020). The senior management have set of standards in terms of responsibilities and roles which
are committed to business success. The success of the company can be seen from the co-founder
of company Steve Jobs who has used his creativity and influential personality for making the
electronic products in the history of Apple.
With the leadership of Tim Cook who is CEO of Apple has made the company to reach
the success in terms of bringing innovation and effective handling of operations and management
aspects (Apple Leadership, 2020). The leadership qualities of Tim Cook have led the company to
gain success and get the profitable results. Apart from being highly innovative, Apple’s CEO is
collaborative and humble towards the employees and motivates them to work harder and make

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the achievement of the goals (Lashinsky, 2015). Tim Cook is seen as an inspirational leader for
the company has led the company to success through the enormous support and futuristic
thinking.
The management team of Apple has been making significant contribution in the success
of the company. Schiller who is the Vice President in Worldwide marketing has been working
with Apple since 1997 (Smith, 2019). He is engaged in the marketing of beloved products of the
company which includes iMac and iTunes. Schiller’s contribution can be seen from the iPod
wherein he has given the idea of famous click wheel. Apart from him, John Giannandrea and
Johny Srouji also made effective contribution in the success of the company. Eddy Cue who is
the manager of software engineers and created the customer platforms such as Apple’s online
store and Apple’s iLife applications which are to be made for the higher customer satisfaction.
Moreover, he observes the software-based services which has led the company to grow and earn
revenue.
Financial Outlook
Apple has announced the financial results of the fiscal year 2019 which ended om
September 28. The company has posted the quarterly revenue of $64 billion which is seen as 2
percent increase. Further, earning per diluted share is 4 percent increase in terms of $3.03. The
international sales were accounted for 60 percent. The growth into the sales is due to the
wearables and iPad. Tim Cook has reported strong business performance which recorded Q4
EPS of $3.03 and Q4 operating cash flow of $19.9 billion. Further, the company has declared the
cash dividend of $0.77 per share in the company’s common stock (Newsroom, 2019). Also, the
guidance for the fiscal year of 2020 in which the company has declared the revenue between
$85.5 billion and $89.5 billion, margins between 37.5 percent and 38.5 percent. However, as per
the statement of the company, iPhone sales have gone downwards through 9 percent over the
year. Moreover, Apple’s total revenue has gone up by 18 percent due to the growth in Apple’s
business services which includes AppleCare Warranties and the subscription (Leswing, 2019).
The subscription has grown over the year which has shown that there are 450 million paid
subscription onto Apple’s platform.

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Strategies
Strategies are defined as the set of actions to be used for the earring of the competitive
advantage. These are an important component of strategic plan which aims to undertake the ways
by which the company can establish its name into the market (De Waal, Peters, & Broekhuizen,
2017). Apple can use the corporate level and functional level strategies for the earning of the
competitive advantage over the competitors. In the corporate or business level strategies which
are specifically adopted for the business expansion and growth, Apple can use stability strategy
and the growth strategy for making the business more expandable and attaining sustaining
growth. Cost leadership and differentiation strategy are the common strategies for the business
which can be used for the attaining of the growth of the company. When Apple adopts the cost
leadership strategy, the company can keep the prices of the products lower from the other
competitors which can be helpful for the company to make an increased sale of the company.
Apart from this, differentiation strategy is the most effective strategy in which the company will
make their product different and unique which can be helpful for the company to easily
differentiate the products (D. Banker, Mashruwala, & Tripathy, 2014).
Further, Apple can undertake functional level strategies for the success of the functional
departments of the company. Moreover, the functional level strategies are the actions and goals
which support the functional level and business level strategy. This can affect the daily
operations of the company (Johnson, 2016). Primarily, Apple can adopt the strategy in the
marketing area wherein the company can improve the brand identification in terms of making
sufficient investment in the marketing of the products through making investments in the
research and development. Further, the company can adopt the strategy for the functional area of
human resources in which the company will hie the skilled and employees and also make efforts
for the increasing efficiencies of the employees through the training of the employees. Also, the
company will adopt various ways for employee engagement which can lead the efficiency of the
operations (Nickols, 2016). Further, the strategic actions can also be seen from the production
department in which the company will make aim to make the production process efficient
through regular availability of supplies and make a change in the existing infrastructure which
can be helpful for the company to attain the competitive edge.

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Recommendation
This can be recommended that Apple can adopt the significant strategic plan which can
make the company to get competitive advantage. Further, the company can make the strategy
through the aligning of the vision with the company’s direction towards the success. The
company should be aware of their strengths and weaknesses in which the company will make the
company to gain the stronger position in the marketplace and avoid the threats of competitors by
making utilization of the opportunity. Apple is also recommended to make the functional level
strategies which can make the company gain the competitive advantage through the
improvements made into the functional departments of the company (Si Xue, 2016). The
company can make the efforts for the adoption of the strategic ways by which the company can
make the strategies which align with the core values of the company and help in increasing the
revenue for long term.
Conclusion
In whole, it can be said that strategic planning is an important aspect of the productivity
of the company which depends upon the internal goals and values. This seeks to evaluate the
company’s internal strengths which are the basis of the strategies adopted for the earning of the
sustainable competitive advantage. Here, the assignment has discussed the strategic plan of
Apple which the multinational technology company of America. The assignment is successful in
the identification of core values, culture, mission and vision of the company which will be
aligned with the certain functional level strategies. It has discussed the role of management team
and leadership and also make the recommendations for the future profitability of the company.

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References
Apple. (2020, January 1). Inclusion & Diversity. Retrieved March 17, 2020, from Apple:
https://www.apple.com/diversity/
Apple Inc. (2020, January 1). Apple and Procurement. Retrieved March 17, 2020, from Apple:
https://www.apple.com/procurement/
Apple Leadership. (2020, January 1). Apple Leadership. Retrieved March 18, 2020, from Apple:
https://www.apple.com/in/leadership/tim-cook/
Apple.com. (2020, January 1). Leadership and Governance. Retrieved March 18, 2020, from
Apple: https://investor.apple.com/leadership-and-governance/default.aspx
D. Banker, R., Mashruwala, R., & Tripathy, A. (2014). Does a differentiation strategy lead to
more sustainable financial performance than a cost leadership strategy? Management
Decision, 52(5), 872-896.
De Waal, A., Peters, L., & Broekhuizen, M. (2017). Do different generations look differently at
high performance organizations? Journal of Strategy and Management.
Interband . (2019, October 19). Interbrand Celebrates 20 Years of Best Global Brands Report,
Highlights Fastest Growing Sectors. Retrieved March 17, 2020, from Interband:
https://www.interbrand.com/newsroom/interbrand-releases-2019-best-global-brands-
report/
Johnson, G. (2016). Exploring strategy: text and cases. Pearson Education.
Lashinsky, A. (2015, March 26). Apple’s Tim Cook leads different. Retrieved March 18, 2020,
from Fortune: https://fortune.com/2015/03/26/tim-cook/
Leswing, K. (2019, October 30). Apple stock rises on earnings beat. Retrieved March 18, 2020,
from CNBC: https://www.cnbc.com/2019/10/30/apple-aapl-earnings-q4-2019.html
McKeever, V. (2019, September 25). Apple named UK’s top tech employer, US firms dominate
the list. Retrieved March 17, 2020, from CNBC: