Analysis of Apple Inc.'s Strategy, Enterprise, and Innovation

This report provides a comprehensive analysis of Apple Inc.'s strategic approach to the market. It begins with an introduction to the company, highlighting its innovative nature and market position. The main body of the report comprises three key tasks. Task 1 critically analyzes Apple's internal resourc...Read More

Strategy, enterprise and
innovation

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
Critically analyse the internal resources and capabilities that give Apple competitive
advantage................................................................................................................................1
TASK 2............................................................................................................................................3
Discuss the key drivers of the changes in the external environment and then evaluate their
impact on the entrepreneurial activities of Apple...................................................................3
TASK 3............................................................................................................................................4
Evaluate the Porter's five model framework to analyse the impact of competitive forces that
are influencing the entrepreneurial activities and profitability within the mobile phone
industry...................................................................................................................................4
CONCLUSION................................................................................................................................5
References:.......................................................................................................................................6
Books and Journals.................................................................................................................6

INTRODUCTION
In this modern environment of the business every organisation is focusing on implementing
the most effective and efficient strategies that include the innovation in an enterprise in order to
create the higher market position in the particular industry and market. With the technology the
business environment it is also changing its working model incessantly to bring innovation and
commercialization its Business practices. Apple Inc. is the well-known American multinational
company that manufactures and designs luxurious and highly technologically adaptive electronic
appliances for the consumers (Hamutoglu and Basarmak, 2020). The company was founded by
Steve jobs in 1976. Apple is prominently known for its series of smart phones, computers, i-
pads with the iOS service and it's highly innovative marketing strategies for its goods and
services. Apple is considered as the one of the first personal computer company and the popular
of GUI. Apple is recognised for its innovations and high quality of products which are highly
safe and secure in terms of privacy and data security not only creates the market position but also
the brand image. The following report will analyse the internal resources and capabilities of the
Apple which help the company in gaining the competitive advantage in the market using the
swot analysis that will help in the organising the strengths and weaknesses of the organisation.
Further in the report the external analysis and its impact on the entrepreneurial activities of the
mobile phone industry is discussed at last using the porter's five force model company's
competitive forces and its influence over the entrepreneurial activities and profitability is
discussed in the report in context of Apple Inc (Bhatti and et. al., 2021).
MAIN BODY
TASK 1
Critically analyse the internal resources and capabilities that give Apple competitive advantage
To analyse the core competency of the Apple it is important to evaluate the internal resources
and the capabilities which can be done with the help of the SWOT analysis. SWOT analysis a
analytical framework in the field of management that benefits the organisation in analysing the
strengths and weaknesses and opportunities and threats using which companies evaluate their
competitive advantage and the develop the strategies. SWOT analysis of Apple Inc. Is discussed
below:
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Strengths
the top brand of the world has many strengths that make the outshine the market and create its
high market position. The strengths of Apple are:
Innovative product: the companies most valuable internal resources are its innovative product
line. This factor is considered as the key strength of the Apple Inc. As this has given the highest
competitive position in the market. The company has hit the market with the consistent
innovative products like MacBook, iWatch, ear pods, iPad that has ease the life of the consumers
thereby giving a company a huge market share.
Design and technology: the best internal resource and capability of the Apple is its use of
technology and its design which is the reason for the highest brand equity of the Apple in the
mobile and electronic industry. The design of the Apple products are not only unique but elegant
and suave with the use of latest technology. The company use most updated technology in its
models of phone, laptop, iWatch to make it more efficient, fast and secure.
Weaknesses
Incompatibility: one of the major issue with the Apple is the products are incompatible with the
third party software’s there by restricting the transfer of data easily. Therefore it analysed using
SWOT analysis that the once the consumer enters the world of Apple the one has to continue
with Apple this affects the decision making of the consumers.
High priced products: the products of the Apple are luxurious and priced very high which attracts
only high income customers and restrict the lower and middle class income people from entering
the apple universe which binds the apple with fix loyal customers which somewhere reduce the
sales of the Apple due to its poor pricing strategy and high margin.
Opportunities
Technological advancements: the updating technology is always the advantage and opportunity
for the Apple as the companies capabilities always try to meet the customers high expectations
with the new technological features that not only ease the functioning of the upcoming models
but also advance its performance. Hence, technology is always the advantage for the company to
gain the largest market share and to diversify it products for competitive advantage.
Increase cloud based service: the innovation of the upcoming iCloud based Apple TV is the
opportunity for the organisation to increase its revenue. As there is the high demand of Apple TV
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and iCloud services by the consumers. Apple can expand its market with this strategy thereby
creating competitiveness among the rival companies.
Threats
Market penetration: the major threat of the company is Android is eating the market share of the
company as company only operates in IOS. The companies facing the threat of other companies
as there are penetrating the market for the growth and success therefore the other android
smartphones are becoming most likely to the consumers. Hence this threat can risk the sales of
the Apple in the market and also reduce its competitive advantage.
Competition: the Apple is facing the real threat front he rival competitive companies like
Samsung, OnePlus, Google etc. As they are beating the Apple in terms of price, features, design,
camera quality, battery storage and other product line. Hence the upcoming competition is not
only declining the sales but also risking the competitive advantage of the company.
TASK 2
Discuss the key drivers of the changes in the external environment and then evaluate their impact
on the entrepreneurial activities of Apple
In order to analyse the key forces of external environment and their impact entrepreneurial
activities and profitability of Apple pestle analysis is conducted. Pestle analysis is a framework
that helps in recognising the various external environmental factors that influence the business
positively or negatively thereby provide opportunities and threats to the business.
Political factors: the improvisation in the free trade policies of the countries is the opportunity
for the Apple Inc. to penetrate the market and grow it entrepreneurship characteristics. This
factor will allow the company to distribute the product all over the globe and increase its
customer base. The dispute of china and USA is the major threat for the Apple as this can high
the rates of the tariff system and also there can be barriers in the import and export of
components of the products of the Apple Inc.
Economic Factors: the economy of developing country like USA is high and stable which
provides the company like Apple to grow its business in its home country. This economic factor
drives the rapid growth and innovation in the company as with this the disposable income of the
citizens also increases.
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Social factors: the increase in the use of the mobile phones, laptops and electronic devices
among the citizens has increased the sales of Apple and other organisations of the mobile phone
industry. This social factor is opportunity to Apple inc. to bring more innovative products that
ease the workload of the working people. The social behaviour of the people toward the IOS is a
threat to Apple as people seems to think that operating IOS device is tough and also
incompatible.
Technological: the rapid changes in the technology is always a opportunity for the Apple Inc. to
drive the innovation. The technology is growing the market of the electronics and increasing the
revenue of the organisations that are offering the electronic items like phones and laptops. The
technology is also bring new models of products that give the opportunity to diversify the
product line. But firms that are incapable to meet the technology has a threat for survival in this
industry.
TASK 3
Evaluate the Porter's five model framework to analyse the impact of competitive forces that are
influencing the entrepreneurial activities and profitability within the mobile phone industry
Porter’s five force model is the perfect model to analyse the influence of the competitive factors
that impact on the entrepreneurial activities and profitability. The porter’s five force model will
help the apple Inc. in developing the new strategies for the organisation to sustain the
competitive mobile phone industry.
PORTER’S FIVE FORCE MODEL
Competitive Rivalry (High): Apple Inc. and other mobile phone industry organisations operate
under the highly competitive environment. There is strong influence of the competitive firms on
each other’s models, design, features and even on the prices of the mobile phones. Big brands
like Samsung, One plus, Google are the competitor’s of the Apple Inc. due to changing
technology each company come with new innovative product line thereby creating the
competition in the market. This factor promotes the entrepreneurship in the organisation thereby
increasing productivity and profitability.
Bargaining power of buyers (high): the buyers have really strong and influential on the
organisation due to small customer base of the Apple due its highly expensive premium product
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series. In the mobile phone industry it is easy for customers to change the brand which enforce
the companies like Apple to maintain its customers by providing them more satisfaction.
Bargaining power of suppliers (low): the suppliers bargaining power is highly low as company
produce its own components and also the range of suppliers is large which give company a
power to access materials globally. The components and computer processors of the Apple are
highly competitive therefore Apple gain the power to freely choose it supplier from larger
numbers thereby increase the profitability of the organisation.
Threat of substitutes (low): Apple is the unique brand with IOS technology and premium range
mobile phones and other electronic devices which make company popular. There are no easy
substitutes available in the market against the Apple product. The company’s technology and
innovation is major factor that lower’s the substitution factor. The customer’s of Apple Inc. are
not only loyal to the brand but also are adaptable with ISO technology that they don’t easily
switch.
Threats of new entrants (Moderate): the mobile phone industry is expensive and also change its
trends rapidly therefore it is not easy for everyone to enter such industry where the risk of losing
is high due to existence of top popular and valuable brand like Apple. The threat of new entrants
is relatively low as mobile phone industry requires high investment for the brand development.
Hence this factor influences the entrepreneurial activities of the Apple Inc. and also the
profitability increases.
CONCLUSION
It is concluded from the above report content that it is very important for the organisations to
regularly analyse their internal resources and capabilities that might help in creating the
competitive advantage and strengthening their market position. Innovation and adoption of latest
technology are one of the key strengths in the mobile industry which also helps in gaining the
competitive advantage. The technological factors of the external environment have a positive
influence on the entrepreneurial activities of the company. It is analysed from the above report
environment and technology are one of the most essential external factors that drive the
innovation and sustainability in an organisation. Report concludes that the bargaining power of
suppliers is high in the mobile industry's along with that the organisations operating in highly
competitive environment in this industry. Therefore a perfect strategy and outstanding innovation
are the driving force to sustain and to grab the competitive advantage.
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References:
Books and Journals
Hamutoglu, N.B. and Basarmak, U., 2020. External and Internal Barriers in Technology
Integration: A Structural Regression Analysis. Journal of Information Technology
Education, 19.
Bhatti, S.H and et. al., 2021. Internal and external antecedents of open innovation adoption in IT
organisations: insights from an emerging market. Journal of Knowledge Management.
Amin, M.R. and Munsi, M., 2020. Motivational Techniques for Business Organization–A Case
Study of Apple Inc.
Lan, B., 2021, April. Analysis of Apple’s Marketing Strategy. In 2021 6th International
Conference on Social Sciences and Economic Development (ICSSED 2021) (pp. 128-
132). Atlantis Press.
Simões, E.N., 2020. A decision support system application module-for PESTLE analysis-
competitive intelligence algorithm (Doctoral dissertation).
Dalirazar, S. and Sabzi, Z., 2020. Strategic analysis of barriers and solutions to development of
sustainable buildings using PESTLE technique. International Journal of Construction
Management, pp.1-30.
Diderich, C., 2020. Understanding the Industry Environment and Its Implications to Strategy.
In Design Thinking for Strategy (pp. 79-92). Springer, Cham.
Anastasiu, L., Gavriş, O. and Maier, D., 2020. Is human capital ready for change? A strategic
approach adapting Porter’s five forces to human resources. Sustainability, 12(6), p.2300.
Shang, X.F., Choi, M.C. and Kan, Z.C., 2020. A study on the development model of ctrip.
Ford, J.B., 2020. 9 Competitive Advantage. The Routledge Companion to Strategic Marketing.
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