Apple Case Study: SWOT, Porter's Five Forces, and PESTEL Analysis

This case study analyzes Apple Inc., examining its mission and vision statements, and performing a SWOT analysis to identify strengths, weaknesses, opportunities, and threats. It applies Porter's Five Forces to assess the competitive landscape, and uses PESTEL analysis to evaluate the political, economic, social, technological, environmental, and legal factors affecting the company. The study also considers micro-environmental factors such as target customers, competitors, suppliers, employees, and the company itself. It highlights Apple's competitive advantages, including product design and brand image, and outlines aims and objectives. Finally, it proposes steps for constructing a market-alternative competitive position, including aggressive promotion, value provision, innovation, and outlet expansion. This comprehensive analysis provides a detailed overview of Apple's business strategy and market position.

Running head: APPLE CASE STUDY
Apple Case Study
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1APPLE CASE STUDY
1. Mission and Vision
- Mission
 Apple company designs Macs, the best personal computer in the world, along with the
iLife, OS X, professional software and iWork.
 It is leading the digital music revolution with the iTunes and iPods online stores
- Vision
 The company believes in a cross-pollination and deep collaboration of its groups that
allow it to transform and innovate in a manner, which other cannot.
 It is constantly focusing on innovation and innovating. It believes that it is on the face of
earth in order to make great products and that is not changing.
2. SWOT Analysis
- Strength
 Vertical integration
 Brand reputation and awareness
- Weakness
 Overdependence on the iPhone sales
 Incompatibility with the other OS
- Opportunities
 Wearable gadgets related to health could be introduced to market

2APPLE CASE STUDY
 Increasing mobile payment markets
- Threats
 Strong U.S dollars
 Risk in data breaches
3. Porter’s five forces
- Threats of new entrants
 Is Low
 There is a substantial dominance of the low cost large scale players such as HP, Dell etc
- Threats of substitute products and services
 Is Medium
 There is a hug network extremities for PCs
 The PCs represents about 90% of the total market
- Bargaining power of the buyers
 Is Medium
 The end-users are very loyal
 The cost of shifting to PC is very high
- Bargaining power of the suppliers
 no bargaining power of the suppliers
- Rivalry among the existing firms

3APPLE CASE STUDY
 Fierce
 In the field of desktop computing market, the company competes with the PCs running
OS like Asus, Acer and Dell
 The Apple iOS competes with the Google android that runs on the tablets phones of the
most of its competitors
4. PESTEL Analysis
- Political
 Increase in bond and partnerships with the other companies
 Design, develop and market various products and service lines
-Economical
 In 2012 August, Apple had 395 official stores globally
 Selling its products in the global market
- Social
 Huge fans
 Considered as the innovation of technology because of design and quality
- Technological
 New and latest technologies in the related sectors
-Environmental
 Improved and differentiated brand

4APPLE CASE STUDY
 Environment friendly products
-Legal
 Users using the illegal music and apps
5. Micro environmental factors
 Target customers- age groups between 18 to50 years, upper-middle class and upper class
 Competitors- Sony, Nokia, HP, Dell, Toshiba
 Suppliers- The supplier compete among themselves in order to gain exclusive contracts
with the Apple
 Employee- from diverse background
 Company- Reputed and with strong brand image
6. Competitive advantages
 Product design and user experience
 Potential to link the products and their contents through brand image and iTunes/iCloud.
7. Aims and objectives
 To check the acceptability of its products
8. Steps for constructing a market alternativeness competitive position for evaluating the
potential target market
 Conduct a more aggressive promotion
 Provide a value for the products that are offered
 Make maximum number of innovations

5APPLE CASE STUDY
 Open more outlets of Apple in several areas
 Provide price reduction offers to the customers
High standard promotional strategies will help in constructing market alternatives for the
company and maintain its competitive position in the market. For example, opening up of more
apple outlets will attract more local customers towards the brand. People opt out from buying
apple products mainly for its high price. Hence, the price reduction offers will encourage
customers to buy their products. With the same, new innovations will also attract the gadget
lovers towards the brand.