Apple iPad Case Study: Business Strategies and Environmental Analysis

This report presents a comprehensive analysis of the Apple iPad's business strategy, examining its macro and internal environments. It begins with an introduction to business strategy and then delves into the application of various frameworks, including PESTEL analysis, to understand the external factors impacting Apple. The report further analyzes the internal environment and capabilities of the organization, utilizing models such as the McKinsey 7-S model and the resource-based view (RBV) to assess Apple's strengths and weaknesses. Porter's Five Forces model is used to evaluate the competitive forces within the market sector. Strategic planning is interpreted and devised using the Ansoff Matrix. The report provides an in-depth understanding of Apple's strategic approach, its competitive position, and the factors that influence its business decisions.

Business Strategies

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Appropriate frameworks to analyse the macro environment................................................1
M1...............................................................................................................................................2
TASK 2............................................................................................................................................4
P2 Analyse the internal environment and capabilities organisation...........................................4
M2...............................................................................................................................................6
TASK 3............................................................................................................................................6
P3 Porter’s Five Forces model to evaluate the competitive forces of a given market sector.....6
M3...............................................................................................................................................8
TASK 4............................................................................................................................................8
P4 Applying a range of theories, concepts and models, interpret and devise strategic planning
.....................................................................................................................................................8
M4...............................................................................................................................................9
D1..............................................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business strategy is that which involves implementation and formulation of goals and
objectives which is decided by top level management on the behalf of owner. This is the frame
work which is important for enterprise in accomplishing their day to day work and targets of
every individual person (Amit and Zott ,2012). Such strategies shows their success when it leads
to business growth, competitive position in market and strong financial position. This assignment
is based on the case study of Apple iPad and as per the data of BBC News 2015, the same
organisation is world's largest publicly traded enterprise Apple is leading entire world in term of
technology and their main competitor is Microsoft.
Below mention project shows impact of macro environment factors on organisation and
its business strategy. Along with this internal environmental factors are analysed and also
capabilities of enterprise. For all these several models and theories are used such as Porter's Five
Force Model, PESTEL and SWOT analysis, Ansoff Matrix etc.
TASK 1
P1 Appropriate frameworks to analyse the macro environment
Business strategy :- Business strategy is the process through which industry's high level
policy converting in to business goals. With the help of good strategic planing firms achieve
success, building strong financial framework, and compete competitors in market. In many cases
strategy of business fails manger's converting this into achievable form .
Macro environment :- In business external environment refer some unmanageable factors that
affected an industrial performance , decision making and planing. It is large environment many
elements like demographic, legal, political, social, technological, natural are some factors of
macro environment affected business.
Ansoff Matrix :- This was invented in 1965 by Igor Ansoff and model utilised in
organisation for strategic marketing planning and it is applied for looking at the opportunities
for generating more and more revenue by introducing new products and services or also by
bringing into new market (Azar, 2011). Sometimes Ansoff Matrix is also known as Product
Market Matrix. When Apple is implementing this strategy in their working then main motive is

to bring new product in market area. Moreover, it is one of the popular and most using tool in
market area because it mainly focus on growth. The same is utilised to evaluate opportunities for
firms to enhance their sales by showing their alternative combinations for new market. There are
mainly four strategies included in this which is mention below :-
 Market Penetration – This state that how an organisation sell their existing goods and
services more in present market to the current customers (Buckley and Ghauri,20151).
For this Apple can utilise several tools such as can reduce their ordering process so their
time of their buyers will save and can feel easy while purchasing. Their is an another
technique also which can be used by Apple is that they can show their products portfolio
to customers which can attract them and also provide satisfaction also showing their past
results.
 Market Development – It refers that how an enterprise come in new market with their
existing goods and services. Their are some countries in which Apple is not serving their
products through market development tools they can sell their existing goods in new
market. But for this proper research is important which must be conducted by Apple so
they can identify current market trend with taste and preferences of the target market.
 Product and Development – This states that how existing products and services can be
developed. Apple have brand image and reputation in market but in some situations
customers get dissatisfied for this they have to take reviews and feedbacks so the same
mistake never been repeat. They continue bringing new products in market area and then
decreasing prices of old this is the technique of attracting customers in large amount.
 Diversification – It means that how an enterprise can move in new market with latest
products and services or can increase sales with existing customers. Apple can enter in
new market by expanding their business only as well latest technology can easily attract
customers (Davis,2012). Apple iPad is the product which grab many people and also
using by them.
M1
PESTLE Analysis of Apple :-
Political Analysis :- Apple is number one American technological industry's paying
corporate income tax in united authorities at this level income inequality become a major
problem. This company is largely depend on low manufacturing cost of china it also create

problem to increase industries product price. Objectives of APPLE to growing national or
Americanism in china it also decrees its market shares. Many other political factors like
governments rules and regulation are affected apples distribution or sales in worldwide market.
Economic Analysis :- APPLE is growing company at many levels like local, regional,
national, international markets number of economic factors affected the brand, tax revenue,
earnings and performance of industry's. Competitors product like Lenovo's laptop personal
computers are affected market share of apple and it face tough competition in business. In
environment stability of economic factors of developing nation for industries like apple to
expanding their business. Many countries economic growth rate are good opportunity for apple
to increase sales in foreign market.
Sociocultural Analysis :- In market many social factors are like increasing utilisation of
mobile device and social media by consumers (Dittmann, 2013). It is an opportunity for apple
to providing effective use of mobile phone and accomplishing these opportunity launching
different kind of product like iPhone, iPad,Laptop, watch etc. in market. At a time changing in
tastes and preference of consumers and lifestyle are it creates a problem for selling particular
goods. In many cease some feature of apple product not satisfying buyers need.
Technological Analysis :- There are numbers of competitors like Samsung, Lenovo,
Google offering modern or new technological product at lower price in market it is a problem
that affected sales and profit of volume apple's goods. Competitors of apple rising largely in
market and they providing best services to customers at reasonable cost.
Environment Analysis :- Natural factors create a problem of industry's image and popularity in
worldwide market. In manufacturing process of goods E-west are dangerous because it not
recycle a reason contain harmful chemicals lead or arsenic, its create environmental population
without rightly disposed.
Legal analysis :- company face many laws, rules, regulation, before business,it not
related to goods tax but they needed to adopting employment or environmental law.
Intellectual property right, patent, trademark regulation are challenge for participant in market,
design related problem are faced by apple. Firms focus on right privacy policy in all forms of
product at world wide market.

TASK 2
P2 Analyse the internal environment and capabilities organisation
Internal Environment – It is the inner environment of the organisation which deals with
the management of resources such as manpower, technology, physical resources, financial and
several others that constitute the company in order to implement or execute a strategy. Apart
from this it also involve several other intangible items also such as coordination, teamwork,
monitory cost, efficiency level of employees and many other. There are some factors of internal
environment which may affect performance of organisation :-
 Financial
 Innovation
 Company culture and image
 Strength of employees
The McKinsey 7-S Model :- This framework developed in 1980 and their inventors are
Tom Peters and Robert Waterman (Giannoulis,Zdravkovic and Petit, 2012). These model can be
useful in variety of situations such as improving performance of enterprise, analyse effect of
future changes, process of department during merger and acquisition etc. this includes seven
elements each of them need their own time and attention for its proper working as well some of
them are hard and rest are soft.
Hard Elements- There are mainly three factors which is considered as hard elements. Strategy: Apple make such strategies which help them in rise above from their
competitors google and Microsoft. Making strategy implementing is only possible when
business plan is prepared in advance. Structure: This is the element which is probably handheld in advance as well it is in the
form of organisational chart or it can be outline of entire organisation. It is the
framework that who will report to whom for what work and it can include entire
company, a department of firm such as accounting , HR and many more.
 System: This is the element which require daily work done for doing business operation
and also in moving forward. It is the area in which manager of Apple Inc. required to
spend their huge time. Thus, they have to make that sure every employees is working on
right task, must be completed on time.
Soft Elements – There are four elements of this model which is consider as soft:

 Shared Values: This is the core of McKinsey 7s Model and shared values are the norms,
standards which guides every employees that how they have to work and in which
direction. Values are the foundation of every enterprises.
 Style: This term states way of managing an organisation which is done by top level
management. That is how everyone will interact with each other, for continuing activity
what actions they will take as well these can be symbolic values also (Gilad,2011). In
simple words it can be said that, it is management style of leaders in organisation.
 Staff: They are the main role players in company without them no firm can achieve their
goals and objectives. It is important that their should be required amount of staff with
needed qualification for meeting daily target. Most important is that how they will
recruited, trained rewarded and motivated.
 Skills: This term is related to staff member in Apple Inc. that what knowledge they have
do doing work. Their should be well knowledge and skilled employees in enterprise so
that company can manage their working in smooth way.
Apple iPad is serving world wide thus they have to follow above mention model. So that they
working can be managed in proper because large scale organisation need proper management.
The same enterprise have its market reputation and value which must me maintained and it can
be possible through McKinsey's 7-S Model.
Resource-based view (RBV) :- It is the approach which assist Apple iPod in gaining
competitive advantages that emerged in 1980 and 1990. This model states that competitors have
to look inside the organisation for finding competitive advantages instead of the competitive
environment. Resources are given as the major role which help Apple iPod in achieving higher
performance of organisation. There are mainly two types of resources;
 Tangible which includes machinery, equipment and Apple iPod is also tangible assets.
 Intangible are reputation, brand value, market shares, trademarks, copyright etc.
Critical assumptions of RBV are that resources must also have heterogeneous and immobile:-
 Heterogeneous – This assumptions states that resources, skills and capabilities that every
organisation have is different from one organisation to another. Same Apple also have
distinct resources from their competitors google and Microsoft.

 Immobile – It says that resources are not mobile and they don't move from one
organisation to another mainly in short period. Best example of immobile resources are
reputation, brand equity, and several other intellectual properties.
(Source: Jurevicius, 2013)
M2
According to (…....) Internal environment is inner capability of organisation which
reflects strength, weakness, opportunity and threats. These are also name as micro factors that
internally impacts on the company and there is always some optimistic elements that gives a
direction to the company in way to develop more. Apple iPod is big brand which as unique
function which is its strength and weakness is that several other brands are also trying to bring
such products in market.
TASK 3
P3 Porter’s Five Forces model to evaluate the competitive forces of a given market sector
Porter five force model :- Apple is one of the reputed company and is famous all round the
world. Porter five force analysis is used by the company to analyse the competition present in
Illustration 1: Resource Based view

global market. Strategies made by Apple are partly based on the need to address forces in the
external business environment (Grant, 2016). These factors can pose negative impact on the
company like reduction in firm's market share, revenues, etc.
Competitive rivalry: Apple has a strong hold in the market and thus faces intense
competition from rival teams. This tool help company to analyse the intensity of the factors. The
influence is based on following factors:
 High aggressiveness of firms.
 Low switching cost.
Apple face competition from Samsung, LG, BlackBerry, etc. Switching cost is low so it is easy
for customers to switch different companies where they found better features in reasonable
process. Apple I Pad is one of the famous electronic item sold by Apple and other companies are
also manufacturing tabs at lower prices, so customers can switch to other companies for tabs.
Bargaining Power of Apple's customers/ Buyers: In this case, bargaining power of
customer is strong which affects the business of Apple. In the case of Apple, Buyers strong
power is based on the following external factors:
 Low switching cost.
 Small size of individual buyers.
It is easy and cost effective for customers to change brands thereby making them more powerful
on compelling Apple to ensure customer satisfaction.
Bargaining Power of Apple's Suppliers: Apple company faces weak force of the
bargaining power of supplier (Trivedi and Unhelkar, 201). In case of Apple, suppliers have weak
power based on the following factors:
 High number of suppliers.
 High overall supply.
Threat of substitute: Threat of substitution is weak in case of Apple and is based on the
following factors:
 High availability of substitutes

 low performance of substitutes.
Substitutes of Apple I pad are available in the market (Ryu, Lee and Choi, 2015). There is no
need for Apple to prioritize the threat of substitution in business process like marketing and
product design and development.
Threat of new entrant: Apple experience moderate force and is based on following
factors:
 High capital investments.
 High cost of brand development.
If company wants to give competition to Apple, they will require high capitalization. On the
other hand, it is costly to develop a strong brand to compete agonist Apple.
M3
Every organisation want to achieve competitive advantages and gain more profit by
displaying their products that can attract customers. Same strategy is using by Apple and
products in their iPod this is gaining competitive advantages from their competitors Google and
Microsoft. Respective organisation don't need to put any strategy for making their goods
different from others because they are already serving unique goods. But in this industry
competition is high thus, same company have to suffer sometimes so porter's five force model
will help Apple Inc. in the market full of competition by bargaining power of buyer and
suppliers, threats of new entrants, threats of substitutes and competitors.
TASK 4
P4 Applying a range of theories, concepts and models, interpret and devise strategic planning
Strategic planning – This is an organisational activity which is utilised for setting
priorities, focus energy and resources, make sure that staff member and stakeholders are working
towards an common goal, strengthen operation and several other (Hall and Wagner, 2012). In
simple term it can be said that it is an process in which leader of enterprise determine their vision
for future along with this identify their goals and objectives for the company.

Bowman strategic clock – This is an strategic clock utilised by organisation while
framing marketing strategy along with this for analysing its marketing position in relation to the
offerings of competitors. Below mention are eight strategic positions of Bowman's Strategic
clock which is applying in Apple iPad :-
 Position 1 low price/ low added values : This is not much competitive strategy for
Apple iPad because they sale their products at high price and don't having any bargain
basement strategy.
 Position 2 Low Price: To come in market most of the organisation use Low price
strategy but Apple iPad is not using this because they have their product and brand value
which don't need any price low strategy.
 Position 3 Hybrid : Hybrid position involves few elements related to low price and also
some product differentiation (Hittmár,Varmus and Lendel,2014). Apple iPad is different
product which don't require to low their price for capturing market.
 Position 4 Differentiation: Apple is offering high quality of products to their customers
such as iPad. Their customers are properly aware about that and loyal also.
 Position 5 Focused Differentiation: This position is suitable for Apple iPad because
this product as its high price level in this stage customers buy such goods because of its
high perceived value.
 Position 6 Risky High Margin: Apple is offering their products at risky high margin
because price of their products is high and they don't offer any other perceived value.
 Position 7 Monopoly Pricing: Their is no monopoly in business because Apple is the
one who is offering such kind of products.
 Position 8 Loss of market share: Their is no effect of market share to company they
have good market share.
M4
Strategic management plan is the document which includes all the important things
related to working of organisation. Apple also frame such plan so that they can communicate
with their every phases in each country. It maintain proper amount of resources, number of
employees, funds which is required for producing products and achieving goals and objective of
business.

D1
It is needed that company have to study or do research about market in proper manner so
that expectations of users can be identified in term of features and characteristics. Apple iPod is
introduced by respective organisation after identifying customers needs and wants so that they
can fulfil their requirement. Customers satisfaction is gaining by Apple this is their main reason
for survival in market for long term.
CONCLUSION
From the above assignment it has been concluded that business strategy is important for
every king of organisation. For making strategies there is requirement of proper business plan
because strategies are made according to that. Their are several marketing tools which can be
used by enterprise such as PESTEL, SWOT, Porters five force model and Bowman strategy
clock.