Strategic Management Plan for Apple Inc. - Business Strategy Report

This report provides a strategic management plan for Apple Inc., analyzing the macro and micro environmental factors impacting the organization. It includes a PESTEL analysis, SWOT analysis, and VRIO model to assess the external and internal environments. Porter’s Five Forces model is applied to evaluate the competitive landscape. The report identifies key strengths, weaknesses, opportunities, and threats, and proposes strategies to enhance Apple's competitive advantage and market position. The document, contributed by a student, is available on Desklib, a platform offering a variety of study tools and resources for students.

Strategic Management Plan
1

INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1 Impact and influence of the macro environment...............................................................3
M1 Macro environment analysis............................................................................................5
P2 Internal environment and capabilities of organisation......................................................6
M2 Critical analysis of internal environment.........................................................................7
P3 Porter’s Five Forces model...............................................................................................8
M3 Strategies to enhance competitive advantage and market position.................................9
P4 Range of theories, concepts and models, interpret and devise strategic planning for a given
organisation............................................................................................................................9
M4 Strategic management plan............................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
2

INTRODUCTION
Business strategy is defined as a set of measures and actions that a company utilise in order
to enhance organisational productivity, performance and increase competitiveness in industry.
Strategic management is a process of setting process goals and objective as to enhance
organisation competitiveness in industry (Goffee and Scase, 2015). Present report is conducted
on Apple Inc which was founded in the year 1976 by Steve Jobs and Stephen Wozniak. It is a
multinational technology company which offers wide range of innovative products and services
to consumers in different market. Present report include discussion upon the impact entrance of
macro environment on organisation. Along with this internal environment and capability analysis
of respective company is done in this report. Competitive environment of Apple Inc and strategic
management plan for organisation is also discussed in present report.
MAIN BODY
P1 Impact and influence of the macro environment
PESTEL Analysis
Political:
Apple Inc is one of the renowned premium organisations which offers wide range of
products services around the world. Organisation is required to emphasize upon trade policies
such as import and export rules and other regulations of particular geographical location in which
they are operating business. Apple Inc is conducting its business services in number of countries
around the globe. In this government policies play important role for company in which they are
required to strategize their business accordingly (Jeston, 2014). Covid-19 and Brexit is acting as
a factor which is affecting and making changes in foreign trade in a global manner. This makes
Apple Inc to analyse political stability of a country and undertake strategies accordingly to
conduct feasible operations.
Economical:
Apple Inc have decided to expand business operations on online and offline platform
simultaneously in the provinces of United Kingdom. Covid-19 and Brexit are some of the factors
which have economic impacts upon companies such as shrink in the potential market for high-
3

end consumers and increase in exchange rate. In this it is essential for them to develop strong
economic strategies to overcome this factor. Apple Inc with the help of taking use of different
promotional techniques can attract consumers on wide scale and can enhance sales
simultaneously.
Social:
Due to covid-19 there is a significant impact upon the behavioural spending of consumers
around the globe. However, it has been identified that in countries like United Kingdom and
already developed market segment consumers have strong emotional attachment towards Apple
products and services (Adawiyah, 2021). In this with the help of strong marketing strategy and
offering innovative and unique products and services to consumers in with the help of low-cost
strategy Apple can enhance market shares.
Technological:
Technological advancements have significant capability to distract profitability and
productivity of an organisation in any industry. In terms with Apple, it has been identified that
Google and Samsung have strong ability to duplicate Apple services and products. Furthermore,
identified that due to the growing use of tablet smartphone is significantly decreasing Apple
products demand in market segment. In this it is essential for Apple to emphasize upon providing
more security in their products and services to consumers, as with the help of high level of
security and safety system Apple can develop uniqueness comparatively to other rivals in
industry with the help of innovativeness in their services and products.
Environmental:
Being a multinational organisation, it is essential for a company to emphasize upon
protecting environment and make sure that their business operations are not affecting
environment in any way. In this it is essential for Apple to use effective system for disposal of
the non-working electronic devices especially for those which contains lithium batteries.
Company is also required to make sure that they implement system to cut greenhouse gases and
take use of renewable energy to conduct business operations in effective way. With the help of
investing in techniques like waste management system, energy efficient technology Apple Inc
can overcome the environment challenges efficiently.
Legal:
4

It is important for organisations like Apple to emphasize upon providing services to
consumers with the help of highly regulated safety and security and according to the laws and
regulation of government in a particular country. In the provinces of United Kingdom, it is
essential for company to have highly e secure system, as negligence of this will lead Apple to
face many legal obligation and penalties. It is essential for company to cover the services and
products with the help of intellectual property law (Ali and Anwar, 2021). Along with this due to
Brexit number of legal factors have significantly changed. In this it is essential for company to
make sure that all the legal obligations have been duly met in order to operate legally in the
market.
M1 Macro environment analysis.
According to the pestle analysis of Apple Inc it has been identified that there are some
certain negative aspects which is related with the macro environmental elements Brexit and
covid-19. Increase in environment complication and legal aspects have impact upon Apple Inc
operation in terms of economic, political, legal and environmental aspect change in consumer
purchasing behaviour, increasing competitors’ ability to duplicate the products and services,
increase in environmental laws and noncompliance of laws is acting against company. In this it is
essential for them to emphasize upon these and micro environmental factors and take decisions
efficiently to overcome this. With the help of taking strategic actions and developing strategies
by analysing consumer behaviour after covid-19 with the help of in-depth research and taking
use of proper intellectual property laws Apple Inc can conduct business operations efficiently.
P2 Internal environment and capabilities of organisation
SWOT Analysis:
STRENGTHS WEAKNESSES
 Apple is one the most valuable
brand and offer personalised smart
technology devices and advanced
computers to customers.
 With innovative products and
services Apple Inc have strong base
of loyal consumers.
 As compared to other rivals in
industry Apple Inc products is of
premium prices which makes this
company for high income
consumers.
 Apple Inc conduct limited
promotions and advertisements as
5

 Company have highly skilled and
talented employees.
compared to other rivals such as L.G
and Samsung.
 Apple Inc many times falls under
unfair business practices.
THREATS OPPORTUNITIES
 Coronavirus outbreak have major
threat upon uninterrupted supply
chain of company which may affect
it revenue generation rate.
 Increase in competition from rivals
like Dell, Google and Samsung is
increasing threat for Apple.
 Changes in law and legislations is
also creating threat for Apple Inc.
 Apple Inc have opportunity to
implement green technology, use
artificial intelligence, and deliver
self-driving software technology in
order to increase competitiveness.
 Company is having opportunity to
conduct more attractive
advertisement and promotion via
digital marketing in order to attract
maximum number of consumers.
VRIO Model:
For identification of capabilities of company, VRIO Model has been used in context of
Apple Inc as follows:-
6

Valuable:
It is defined as those components which render help to a company in accomplishing its
objectives and goals inside time. Apple Inc valuable elements are
Global presence: The presence of this organization inside worldwide market is exceptionally
solid compelling and expansive. Inferable from this, they can acquire global recognition and
competition in a viable way.
Products: Innovative and unique products are made by utilizing the most recent innovations are
presented by organization to customers. This helps with building a solid base of faithful clients
Software: Apple Inc utilizes software for operating and managing things in the helpful way for
accomplishment of company objectives
Employees: The staff of Apple Inc works in a way that gives help to company in accomplishing
specified focuses in ideal way.
Rarity:
7

It termed to be such parts of the organization which are uncommon and enhance
competitiveness in commercial market. Rare elements of Apple are: -
Global presence: Apple Inc is having worldwide global presence because of its unique and
innovative offerings.
Products: Products presented by this association are as per the most recent patterns and
advancements, accordingly, it is difficult for some other organization to handily duplicate them.
Software: The product utilized by Apple Inc for upkeep of records and execution of tasks is
uncommon in light of the fact that it is created according to the prerequisites of element
Employees: The staff of Apple Inc are rare as they have their own arrangement of abilities and
skill which helps association in accomplishment of hierarchical destinations in a successful way.
Imitable:
It alludes to those assets of organization which cannot be duplicated by rivals. For Apple
Inc imitable elements are
Software: Programming utilized by Apple Inc are planned and created as per company
requirements, accordingly, it is difficult to be duplicated.
Employees: The abilities and information on staff are one of a kind to people inferable from the
preparation gave to them and their own characteristics, accordingly these cannot be duplicated by
rivals.
Organized:
It tends to be as the components which is required to be coordinated in a systematic way
to achieve company objectives and goals. Software of Apple Inc is required to be updated in time
spans to address the issues of association consequently it does not fit this model.
Employees: The staff of organization possibly must be coordinated when a change happens
inside authoritative premises like conduction of instructional courses by business.
M2 Critical analysis of internal environment
It has been evaluated that internal environment analysis of Apple Inc state that there are
certain advantages as well as shortcomings. In relation to this, Apple employees are one of the
most important resource of company as they are imitable (Edwards, 2021). valuable, rare and
organised. In addition to this as per the internal analysis of company it has been identified that
lack of attractive marketing initiatives and strategy affects organisation to reach wider audience.
8

Along with this presence of large number of competitors such as LG, Samsung, Google Dell is
also posing threat in front of company sustainability and higher competitiveness in industry.
P3 Porter’s Five Forces model
Threat of new entry-
Threat of new entrants in terms with Apple Inc is relatively low as in order to develop
strong base of consumer it is essential for companies to make massive capital investments in
research and development and offer completely new and unique product in market segment and
invest in advertising (Stepnov, 2021). This makes Apple to develop more consumer value with
the help of their innovative services and products.
Threat of substitutes-
Rate of substitution is relatively low in context with Apple Inc, as competitors’ products
and services have limited feature as compared to Apple products. The quality of products with
advanced features, innovativeness and uniqueness enhances Apple competitiveness in industry.
Bargaining power of customers-
Bargaining power of industry for Apple is low. Company continuously invests capital in
research and development in order to develop unique and new products and services. This
organisation also keeps on offering Apple watch air pods and continuously launching
smartphone in market segment with high feature and uniqueness. Organisation is very successful
and ensuring low power of buyers as their consumer base would not ditch iPhone in favour of
other smartphone competitors. Apple enjoys high level of consumer loyalty with the help of
attractive design, advanced feature and capabilities.
Bargaining power of suppliers-
Bargaining power of suppliers is low in terms of Apple Inc as due to its global size
recognition Apple enjoys large base of suppliers. This company is having high number of
suppliers in market segment which make switching cost for Apple relatively low (Hillner, 2021).
This indicates that respective organisation has power in context to its suppliers. Organisation is
also workings systematically strength its relationship with suppliers around the world in order to
enhance negotiation power globally.
Competitive rivalry-
9

Competition among rivals in industry is high as a rival’s organisations are directly
competing with Apple in the technology sector. Direct competitors of Apple Inc are Samsung
electronics corporation, Amazon, L. G, Google and more. All these organisations are expending
capital on research and development, advertisement and marketing just like apple which makes
industry highly competitive. It is essential for company to strengthen their market share position
with the help of developing unique a new product to enhance competitiveness.
From the above analysis it has been identified that Apple Inc is facing threat of highly
competitive rivalry in industry as there are number of competitors like Samsung, Google, Dell
Technologies those who are directly competing with apple. All these big companies are making
huge capital investments in research and development marketing and advertising. This makes
consumers to easily switch. In this it is essential for Apple to emphasize upon strategies like
product differentiation, rapid innovation and strong and treatment techniques in order to reduce
this threat.
M3 Strategies to enhance competitive advantage and market position
It has been evaluated that marketing initiatives that has been undertaken by Apple Inc
over-the-years is gradually becoming ineffective to overcome the significant increase in
competitiveness in industry. In this it is essential for Apple to emphasize upon strategies like
social media, marketing digital advertising, uniqueness, medium to moderate cost and create
awareness among consumer base about the attractive features of their products and services
(Lanzolla and Markides, 2021). This will help Apple Inc to overcome the competition from other
competitors like LG, Samsung etc in industry.
P4 Range of theories, concepts and models, interpret and devise strategic planning for a given
organisation
Ansoff matrix is a strategic framework that assist an organisation to have a direction as to
implement best strategy for growth and development. With help of implementing this matrix
Apple Inc manager is aiming towards adopting best possible strategies for long-term growth.
Market Penetration:
In terms with this strategy of Ansoff matrix, company by focusing upon untouched
segment of customers in existing market segment can enhance their sales and consumer base.
This strategy mainly emphasises upon providing existing products in existing market segment.
10

This helps organisations to enhance their profitability as they are already aware about consumer
behaviour.
Market expansion:
Is also defined as market development as it emphasizes upon offering existing services
and products in market segment. This strategy helps organisation to maximize their existing
consumer base by approaching them from new market zone (Lanzolla and Markides, 2021). In
context with Apple Inc market extension allow organisation to increase profitability and sales in
which they can attract consumers from other geographical location around the world.
Product expansion:
The strategy mainly focusses upon offering new product in existing market segment.
With the help of product extension strategy Apple Inc can develop a whole new product as per
consumer requirement and demand. In this by offering new product in same consumer zone
organisation can increase competitiveness in industry. Apple Inc can take advantage of product
expansion strategy, as this organisation is innovative (Oldham and Spence, 2021). This will help
them to offer new products and services to consumers as per the current demand and trend. This
will significantly allow organisation to enhance profitability, sales and competitiveness in
industry.
Diversification:
In this company is required to provide new product and service in a completely new
market segment. This strategy seems to be riskier as comparatively to others, as in this
organisation is required to engage in in-depth research to evaluate the demands, needs, believes
and preferences of consumers. Along with this organisation also need to make high investments
in terms of advertisements, research etc. This strategy will make Apple Inc to enhance their
budget in all the segments which increases company expense rate as compared to profit earning
probability.
From the above analysis it has been evaluated that Apple Inc can I go for product
differentiation strategy (Nuraliati and Sianturi, 2021). This strategy will effectively enable
organisation to ensure higher competitive advantage and also helps in providing economic
11

benefits and achieving higher price point. With the help of product diversification Apple can
promote brand loyalty and can differentiate themselves easy from other competitors. With help
of those strategy Apple Inc can also increase market demand of the product with the help of
offering unique innovative and attracting services and products to consumers.
M4 Strategic management plan
Aim: To maximise operations scale of company is existing market segment.
Vision: To emerge out as a leader in information technology and mobile manufacturing
industry.
Mission statement: To offer innovative and unique services and product with value
addition in market segment to attain higher competitive advantage.
Values: Apple Inc possess values like transparency, integrity and ethics.
Strategies and tactics: With the help of product differentiation strategy Apple Inc can
enhance its competitive edge in market segment (Nurdiana, 2021). This will allow them to attract
large number of suppliers and customers around the world. By utilizing innovativeness and
uniqueness Apple Inc with product differentiation tactics can offer new services and products
and can develop strong base of loyal consumers.
CONCLUSION
According to the above report that has been concluded that, strategic management is
essential process which helps organisation to implement competitive strategies, tools and
techniques to enhance overall competitiveness. For this it is essential to conduct internal and
external environmental analysis with the help of tools like pestle and swot. Report identifies that
with the help of product differentiation and emphasize upon innovativeness and uniqueness
organisation can enhance overall market share and can satisfy consumers efficiently.
12