ITECH2305 - A Strategic Analysis and Future State of Apple Inc.

This report provides a comprehensive strategic analysis of Apple Inc., a global technology giant. It begins by outlining the company's current state, including its revenue, operating income, net income, assets, and employee numbers. The analysis includes a SWOT analysis, identifying Apple's strengths, weaknesses, opportunities, and threats. A business model canvas is constructed to illustrate the company's key partners, activities, value propositions, customer relationships, customer segments, resources, channels, cost structure, and revenue streams. The report then proposes a future state for Apple, considering business expansion and financial projections, and identifies key performance indicators (KPIs). Stakeholders involved in the transition are listed, including manufacturers, developers, suppliers, phone companies, content creators, publishers, employees, and customers. Finally, a risk register is included to address potential challenges during the transition. The report concludes that Apple's focus on quality and innovation has driven its success and emphasizes the need for stakeholder support and innovative strategies to overcome future problems.

Running head: APPLE INC
APPLE INC
Name of the Student:
Name of the University:
Author Note:

1APPLE INC
Introduction:
The aim of this paper is to discuss the strategic plan of the global technology giant
Apple Inc. This paper will be discussing the current state of the selected organisation, analyse
SWOT, create business model canvas of the company so that the future state can be
predicted. It will also analyse the stakeholders involved in this future change process and
create a risk register for the transition.
Current state of the selected organisation:
Apple Inc. is an American multinational technology company that has its headquarter
in California. This company designs and develops the computer software and sells the
computer online service, consumer electronics and software. This company is considered to
be one of the four the companies along with Google, Facebook and Amazon. Currently, the
company has gained the revenue of 265.595 billion USD, the operating income is 70.898
billion USD, net income 59.531 billion USD, total assets 365.725 billion USD and total
equity is 107.147 billion USD. Currently the company has more than 130000 employees
working in different parts of the world. The company has strategized to focus on the quality
of the products and services that has made Apple to perform outstanding in the IT business of
the world. It has however faced problems in the current competitive business after the
intervention of Android operating system but through exclusive products and service Apple
has won the heart of their customers.
SWOT analysis:
Strengths Weaknesses
 Top quality technology
 Huge brand recognition
 Sustainability initiatives
 Low investment in marketing and
promotion
 Lack of competition

2APPLE INC
 Efficient research
 Global icon (Khan, Alam & Alam,
2015)
 Incompatibility with the other
software
Opportunities Threats
 Consistent increasing popularity
 Qualified employees
 Smart wearables
 Increased of artificial intelligence
 Expansive distribution networks
 Increasing competition
 Low market penetration
 Lawsuits against
 High price of products
Business Model Canvas:
Key Partners
 Manufactur
ers
 Apple store
developers
 The
technology
suppliers
 Phone
companies
 Content
creators
 Publishers
Key Activities
 Software
developme
nt
 Controllin
g quality
 Manufact
ure
 Designing
Value
Propositio
n

Thinki
ng
differe
nt
 Smoot
h
design
 Usabili
ty
 Brand
and
status
Customer
Relationships
 Knowledge
sales
 Customer
support
 Self
service
Custome
r
Segment
s
 Mass
mark
et
Key Resources
 Design
culture
Channels
 Apple.c
om
 Apple
Stores
 Third
party
retailer
s
Cost Structure
 Cost driven
 Economics of scale
Revenue Streams
 Product sales
 Media and licensing
 Subscription revenue

3APPLE INC
Proposed future state:
The company has stopped working in the largest market of China last year therefore need to
think about the business expansion rapidly so that the production process do not get harmed.
By the year 2020, the company may achieve revenue between $240 billion and $250 billion,
gross margin between 45.5 percent and 48.5 percent, operating expenses between $12.7
billion and $15.8 billion, other income or expense of $1000 million, tax rate of approximately
18.5 percent. This is the reason why the Budget will be 500,000 USD. KPI that the company
can use are Employee satisfaction, revenue and the supply chain management. In last few
years, the company has faced problem in manufacturing in China hence reduced employees.
This lead to reduced employee satisfaction. The revenue will be increased with the
production of new products and the new market where the company will enter will provide
new supply chain that it will manage properly (Noe et al., 2017).
Stakeholders involved:
In this transition, the company will be having many stakeholders involved with it.
These stakeholders are the manufacturers of hardware, Apple store developers, the
technology suppliers, other phone companies, the content creators and the publishers. In
addition to this, the employees of all the branches of the company and the loyal customers
who aim to support the products of this company in all possible manner are the stakeholders
of this transition of this company (Tan & Carrillo, 2017).
Risk Register for the transition:
Find the excel sheet

4APPLE INC
Conclusion:
Therefore, it can be concluded that Apple Inc. has been doing business successfully for
decades and the innovation of this company has effectively supported its growth. In addition
to this, the strategy to focus on the quality of the products and services is an important fact
that has made this company outstanding in the IT business. There are scope for performing
better in this industry therefore, the company needs the support of the stakeholders and
innovating strategies to overcome all the problems.
Link:
https://www.apple.com/newsroom/2019/07/apple-reports-third-quarter-results/

5APPLE INC
References:
Khan, U. A., Alam, M. N., & Alam, S. (2015). A critical analysis of internal and external
environment of Apple Inc. International Journal of Economics, Commerce and
Management, 3(6), 955-961.
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2017). Human resource
management: Gaining a competitive advantage. New York, NY: McGraw-Hill
Education.
Tan, Y., & Carrillo, J. E. (2017). Strategic analysis of the agency model for digital
goods. Production and Operations Management, 26(4), 724-741.