Comprehensive Report: Apple's Marketing and Management Strategies

This report offers a comprehensive analysis of Apple Inc.'s marketing and management strategies. It begins with an executive summary highlighting Apple's market dominance, particularly in the laptop and mobile industry, and emphasizes the importance of innovation and differentiation. The report then delves into Apple's key strategies, including its proprietary operating system, strong graphics-handling capabilities, and the success of products like the MacBook Air, iPod, and iPhone. It examines Apple's competitive advantages, its tangible and intangible resources, and its position in the computer, personal media player, and tablet markets. The report includes a detailed financial analysis, covering revenue, operating margins, net income, and key ratios from 2007 to 2013, demonstrating Apple's strong financial performance and growth. Finally, it provides recommendations for the company, including maintaining technological secrecy, collaborating with other industries, and offering cost-effective products. The report concludes by emphasizing Apple's potential for continued success through its current strategic direction.

Running head: Marketing and management
Marketing and
management

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Table of Contents
Executive Summary................................................................................................... 1
Answer 1.................................................................................................................... 1
Answer 2.................................................................................................................... 1
Answer 3.................................................................................................................... 2
Answer 4.................................................................................................................... 3
Answer 5.................................................................................................................... 3
Answer 6.................................................................................................................... 6
References................................................................................................................. 7

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Executive Summary
In the laptop and mobile industry, it is seen that Apple has achieved a large market share.
By taking into consideration competition level it is seen that every version has given good
competition to the competitors prevailing in the market. There are many competitors and many
are related to Android only. The drawback of iPhone is that it is related to AT&T as a service
provider. The company should avail Verizon as a service provider because it has a good
coverage in the US. Mac has also achieved popularity. Mac has only 4.2 % of the PC industry
and the profit margin is 40 %. It is essential to find a way so that with Microsoft office
compatibility can be maintained. In Us and Europe, iTunes is doing a great business but Asia is
the real market. It is important that iTunes requires having global content available and also
Apple should find a way to deal with artists in Asia to have availability of international movies
and music.

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Answer 1.
It is seen that one of the good strategy of Apple's is innovation. Macintosh was
established in 1984, Apple has also evaluated the internal and external issues. But company also
focused on innovation the products in the market as it secures the secrets behind its technology.
By considering innovation and differentiation strategy the company is able to compete in the
market. It is also seen that the strategy of the company is to continuously involve the technology
so that success can be achieved. Apple also competes with the competitors in a proper manner as
they have the technology to evolve. The emphasis was on the personal computers but they now
also grabbed the market in tablets, mobile phones and personal media players which consider a
strong confirmation of the strategy.
Answer 2.
Apple's personal computer strategies are its "proprietary operating system and strong
graphics-handling capabilities" (Gamble et al, 2012) that give differentiation of apple's Pc's from
that of the competitors. The recent computer launched in the market by Apple is MacBook Air.
It is seen that MacBook won acclaim for its design and for its usage and it is the only product
that has given success to the company.
In the sector of personal media players, Apple leverages its innovation, technical skill and
also the use to develop the iPod shuffle and iPod touch to achieve 73 Percent of the digital music
player market. The products of the Apple take into consideration differentiation from the
competitors and also assist Apple iTunes store. Only the iTunes store acts as a hindrance to enter
and compliments the media players of Apple's in the market (Gamble et al, 2012, pp. C-149 to
C-150).
In the sector of a mobile phone, Apple has distinguished itself with introducing iPhone
with a multi-touch screen, a camera, virtual keyboard, and media player that is equal to iPod
(Gamble et al, 2012, p. C-150). In the mobile sector, Apple has taken into consideration
Follower strategy as it is understood how it could leverage the graphical and touchscreen
capabilities created with the Mac and iPod and transfer those features to a mobile phone
platform. The iPhone is a great success that offers a new and innovative version for the
customers. The company also launched Apple store for the iPhone. The developers created the

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application with the help of App store for the iPhone and also offered for free. In January 2010,
there are 3 billion apps that have been uploaded by the users of iPhone and iPod touch.
Answer 3.
In the recent scenario, the Apple position is untouchable. The stock price of apple grows
and the products of the company are released with the latest technology. In the innovation
sector, the company is on top and look at the resources of the company in chapter 4. It is seen
that the company has both tangible and intangible resources so that competitive advantage can be
achieved. The tangible resources of the company are good technology, software and hardware
and their important asset would be Steve Jobs. In the computer industry, the asset of the
company has set the company competitive strength. I believe that the position of the company in
the personal media players and smartphones should grow more than the computer industry. In
the smartphones industry the company has many competitors and in the computer industry,
people are trying to settle the product at cheap prices. It is seen that they will proactively
maintain their place in all industries.
Answer 4.
I believe that it is perfect for the Apple to be a good competitor in the computer, personal
media players, and tablet computer industry. I believe that the activities of the value chain are
same and compatible as all the devices run on an iOS system and make easy for the customers to
have ease of use into the products of Apple. The company also has the good footprint in the
online music industry and also offers all the products that integrate with iTunes. The company is
also able to appeal the customers with various product lines in various industries.
Apple Inc value chain suggests that the organization is properly handling the activities in
an innovative and design leading to management. All the activities also offer a great competitive
advantage.
The procedure at Apple Inc can be described in the following manner:
As per the growth of the market and stock report, the iPhone makes 42.1 % of the total
revenue for the organization as iPad makes total revenue of 21.8%. The contribution of Mac is
18.9 % while iPod makes 7.3% of the revenue and other revenue services that are peripheral
contributes 9.8 %. From the overall information, it is stated that the market for smartphones and

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the share of the revenue is high. So, equal weight is given to all the segments so that competitive
advantage can be attained.
Answer 5.
These two charts highlight the financial analysis o the apple for the last three years 2010,
2009, & 2008 and update the financials to reflect the years 2011 to 2013.
Table 4
Financial Analysis – (Revenue, Operating Margin %, Net Income, Earnings per Share,
Dividends, Payout Ratio %)
Apple Inc.
Revenue
USD Mil
Operating
Margin %
Net Income
USD Mil
Earnings
Per Share
USD
Dividends
USD Payout
Ratio %
2013 $170,910 28.7% $37,037 $39.75 $11.40 28.7%
2012 $156,508 35.3% $41,733 $44.15 $2.65 6.0%
2011 $108,249 31.2% $25,922 $27.68 -- --
2010 $65,225 28.2% $14,013 $15.15 -- --

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2009 $42,905 27.4% $8,235 $9.08 -- --
2008 $32,479 19.3% $4,834 $5.36 -- --
2007 $24,006 18.4% $3,496 $3.93 -- --
In table 4, the revenue of CAGR (Compounded Annual Growth Rate) is 32.37% since
2007 and it shows the strong position of the company as it generates growth by considering
product portfolio. The organization has also enhanced its operating margins to a high of 35.3% in
2012, followed by a 28.7% in 2013. The margins related to operating shows pricing strength and
the capacity to control the expenditure of operating and other related operational costs. The net
income has enhanced to $37.0 billion and has a CAGR of 40.1% since 2007. EPS (Earnings per
Share) came in at $39.75 for 2013 and reflected a 39.18% CAGR. Another sign of good financial
strength shows in a first-time dividend in 2012 of $2.65, followed by an $11.40 dividend in
2013.
Table 5
Key Ratios – (Net Margin %, Asset Turnover (Average), Return on Assets %, Return on Equity
%, Return on Invested Capital %, Interest Coverage)
Apple Inc.
Net
Margin %
Asset
Turnover
(Average)
Return on
Assets %
(ROA)
Return on
Equity %
(ROE)
Return
on
Invested
Capital
%
Interest
Coverage
2013 21.67% 0.89 19.34% 30.64% 26.94% 369.79
2012 26.67% 1.07 28.54% 42.84% 42.84% --

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2011 23.95% 1.13 27.07% 41.67% 41.67% --
2010 21.48% 1.06 22.84% 35.28% 35.28% --
2009 19.19% 0.99 18.92% 31.27% 31.27% --
2008 14.88% 1.00 14.89% 27.19% 27.19% --
2007 14.56% 1.13 16.43 28.52% 28.52% --
In Table 5, it is seen that the company has leveraged its assets with a net margin that has
enhanced from the mid-teens to the low 20's and a high of 26.67% in 2012. The turnover asset
continues to close to 1, with a low of 89 in 2013. ROE has upgraded to 40+ percent in 2011 and
2012 and remains strong at 30.64% in 2013. It is seen that the financial ratios have a strong and
viable organization that offers strong returns to investors and finally good organization.
Answer 6.
I would suggest that the company should follow the current steps and to keep the
technology secret from the competitors. I would also recommend that the company should
consider collaboration with other industries so that the remaining customers can be attracted
towards the products of the company. I would also recommend that the company should see that
products that are cost-effective and maintain good quality products like iPhone 5c which has
fewer features but the price is affordable. I believe that the threat to the company is of pricing
scheme as compared to the competitors. So, it is seen that if company continue the direction then
it can guarantee a top spot for the company indefinite.

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References
Gamble, J. E., Peteraf, M. A., Strickland III, A. J., & Thompson, A. A. (2012). Crafting &
executing strategy. (18th. ed.), New York, NY: McGraw-Hill.