Apple Inc. Case Study.

It is related to apple Inc. Vision & Mission Statement:
 
There are no official or written statements of vision or mission on apple website but different statements of CEO or press release may be the vision or mission of Apple. There is no specific area for vision and mission as there are no clarifications about the vision and mission.
 
VISION STATEMENT : (Future positon ideas)
 We strive to provide users of Apple products the best experiences possible though innovative product designs and software

MISSION STATEMENT:
Not all market shares are equal, and Apple has never been about the most; we are about being the best.
We believe that we are on the face of the earth to make great products and that’s not changing.
We are constantly focusing on innovating.
We believe in the simple not the complex. (only selected initial 3 statement by Tim)SWOT ANALYSIS:
�STRENGTHS:
Safety of personal data.
Pioneer in the personal desktop computer.
Max market capitalization.
High performance production line with products like iphone, ipad, ipd, mac computer.
WEAKNESS:
15% global market show.
Significantly expensive.
Not compatible with many software and windows machine
Late production of Larger screen in smart phone.
 
OPPERTUNITIES:
Apple pays finger prints
In-house credit system
Product diversification
Formation of strategic partnerships
 
 
THREATS
Patent infringement
Reverse packaging
Quality problems with negative effects on sales and Apple brand image
Intense competition like Samsung, Lenovo, Chinese companies in smart phone. Dell, Sony and Toshiba in PCs.
Rising popularity of Google Android may affect its market share.

1. Apple Corporation Case study Nazim Hussain

2. Strategy Formulation Vision & Mission Statement:   There are no official or written statements of vision or mission on apple website but different statements of CEO or press release may be the vision or mission of Apple. There is no specific area for vision and mission as there are no clarifications about the vision and mission.   VISION STATEMENT : (Future positon ideas)  We strive to provide users of Apple products the best experiences possible though innovative product designs and software MISSION STATEMENT: Not all market shares are equal, and Apple has never been about the most; we are about being the best. We believe that we are on the face of the earth to make great products and that’s not changing. We are constantly focusing on innovating. We believe in the simple not the complex. (only selected initial 3 statement by Tim)

3. SUGGESTION The Vision and Mission statements are clear, but need further furnish on basis of their mission and vision achievement new ideas (for vision and mission) develop on the basis of the following points. Apple needs that analysis its position in the market like internal and external factors as strength and opportunities for example the market share of different products are not equal, need to be focus on market and its share and growth condition in market. After that it will decide its future among the competitors. For example we analyze its position in market with the help of BCG Metrix that what is the position of its sustainability of competitive advantages in the market. “Apple designs Macs, the best personal computers in the world, along with OS X, iLife , iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with iPad.”   Analysis: Vision or Mission statement is critically important to any organization because it’s the right way towards its vision. The best vision or mission statements should be short, simple, and specific for any business.   Steve Jobs started the new iconic company, the mission statement was: "To make a contribution to the world by making tools for the mind that advance humankind.   This mission statement is clear, simple, and for human advancement.   Tim Cook the current CEO of Apple. Inc. stated this is the company mission statement which is published in 2018 annual report. “We strive to provide users of Apple products

4. The Strategy-Formulation Analytical Framework STRATEGY SELECTION           Stage 2: The Matching Stage BCG Matrix Grand Strategy Matrix IE Matrix SPACE Matrix SWOT Matrix

5. SWOT Analysis OPPERTUNITIES: Apple pays finger prints In-house credit system Product diversification Formation of strategic partnerships     THREATS Patent infringement Reverse packaging Quality problems with negative effects on sales and Apple brand image Intense competition like Samsung, Lenovo, Chinese companies in smart phone. Dell, Sony and Toshiba in PCs. Rising popularity of Google Android may affect its market share. SWOT ANALYSIS: STRENGTHS: Safety of personal data. Pioneer in the personal desktop computer. Max market capitalization. High performance production line with products like iphone , ipad , ipd , mac computer. WEAKNESS: 15% global market show. Significantly expensive. Not compatible with many software and windows machine Late production of Larger screen in smart phone.      

6. l Internal and external evaluation

7. INTERNAL FACTOR EVALUATION (IFE) Key Internal Factors Weight Rating Weighted Score           Strengths                   iTunes Music Store is a good source of 0.15 4   0.60 revenue, especially with the iPod and         the availability on Windows platform.                   Apple‟s niche audience provides the 0.10 3   0.30 company with some insulation from         the direct price competition.                   Revamping desktop and notebook 0.10 3   0.30 lines.                   Low debt—more maneuverable. 0.06 4   0.24           Developing own software and 0.14 3   0.42 hardware.                  

8. INTERNAL FACTOR EVALUATION (IFE ).. Good brand loyalty. 0.05 3   0.15           Web technology can be used to 0.10 4   0.40 improve product awareness and sales.                   Weaknesses                   Dependency on new product launches. 0.06 1   0.06           Weak presence in business arena. 0.07 1   0.07           Slow turn around on high demand 0.03 2   0.06 products.                   Weak relationship with Intel and 0.10 1   0.10 Microsoft.                   Weak presence in markets other than 0.04 2   0.08 education and publishing.                   Total 1.00     2.78          

9. Space Matrix

10. BCG,Grand & IE Matrixes

11. FINANCIAL ANALYSIS FOR APPLE

12. Strategy Implementation Plan Apple implementation plan take into consideration three major points: Cost Leadership Strategy Differentiation Strategy Integration Strategy

13.  Cost leadership strategy: Advantages of cost leadership: Higher profitability: The selling of products in a lower cost basis and competitive pricing, allow the organization to have a margins greater than other competitors who invest more to produce a similar quality for the same  product.  Increased market share:  By earning higher profits, the organization can use them in increasing their market share and satisfy their customers demand. Sustainability: During tough economic times, or in a beat down price war in the market, companies with lower costs of production have a better chance to survive facing other competitors. Capital growth: When an organization use cost leadership strategy, they‟ll have more capital resources available to invest for further developments.   Disadvantages of cost leadership: In order to have a cost leadership strategy, the company need to reduce the cost of some of their services such as the customer services who will lead to lose the loyalty of their customers, and in the other hand, they will reduce the cost of the R&D department who will lead to the lack in the innovation, and it will affect negatively on the customers who looking for the up-to-date technologies and innovations.  

14. Differentiation Strategy: Since 1980s Apple has successfully used the differentiation strategy to separate their product in the market from other competitors‟ products, starting with their mackintosh computers to their music player “ Ipod ”, and smart phones “ Iphone ”. Those are the four majors differentiation used by Apple in the market worldwide: Product Design  A major aspect of a product differentiation strategy comes from product design. Products that display a different visual style, include different features or handle different tasks stand out from those offered by the competition. Apple has made product design a hallmark of its product differentiation strategy since the company's origins. When Apple introduced the iPod, iPhone, and iPad, no similar consumer electronics products existed in the market that included so many features in one package. Pricing Strategy Another factor in product differentiation plans stems from the company’s pricing strategies. Apple Computers co-founder Steve Jobs sought to create a topnotch product with a price proportionate to its level of quality while maintaining high profit margins. The lowest-priced Apple products consistently fall in the mid-range, but customers are willing to pay that price for the high quality of the user experience. This pricing strategy runs counter to that of makers of PC "clones," which put out low-end computers and rely on slim profit margins. Brand Loyalty  Apple has been among the most successful technology companies in the development of loyalty to a brand. Loyal Apple customers will wait in line to purchase the latest iPhone, download music through iTunes, watch their favorite television shows on Apple TV and play games on their iPads. The company's efforts toward building brand loyalty have allowed Apple to differentiate itself from Microsoft, Samsung and other competitors in its various arenas. Retail Outlets Apple's pricing strategy extends to its differentiation in the retail electronics marketplace. While users can purchase PC clones, tablets and mobile phones from nearly any electronics outlet, Apple differentiates itself by providing limited quantities to "big box" retailers and focusing its retail efforts on its Apple Stores. For its third-party retailers, Apple uses a "minimum advertised price" to prevent outlets like Walmart and Best Buy from undercutting the  prices found at the Apple Stores.

15. Integration Strategy: Apple Branding Strategy a. Benefits of Branding Strategy i.Emotional Appeal     ii.Loyalty iii.Extension and Safety iv.Lower Marketing Investment b. STP Process: Segmentation Demographic Segmentation Geographic segmentation Psychographic segmentation

16. Targeting: 1.One supplier target one segment with a single product 2.One supplier targets all segments with one brand and several products. 3.One supplier target several segments with several products or brands, and each segment has its own product or brand. Apple uses the second type of targeting, they target all segments with a single brand, “APPLE” contains several products (like the iPhone, iPad, iPod, and iMac). Positioning: It’s the third and the last step in the STP process. It‟s all about perception. After the segmentation and the targeting of a market, the marketers need to put the products in the market finally. Apple positioned as a premium brand and price for the customers who look for a high-class relation with the company. This premium price includes all Apple products. Therefore, Apple create a culture that has differs it from its competitors by positioning a less price sensitive customers.

17. Strategy evaluation: Break the Price competition-option 1 Strategic evaluation and selection Sustainable(√) Suitable to redesign of services cape and layout. UK culture adaptation Attract new customers’ attention. Acceptability(√) Low risk of redesign of Apple store Attract local customers Increasing profits will maximize shareholders wealth Feasibility(√) Debt Coverage > Industry average→ low financial risk. Leverage ratio < Industry→ low business risk. Sufficient cash reserves Issue 1: The price competition of Apple

18. Issue 2: The sustainable development of Apple Keep sustainable development-option 1 Strategic evaluation and selection Sustainable(√) Build the gap of price between UK and other countries, like US Appeal local customers Attain existing customers Acceptability(X) Improve the customer satisfaction and loyalty decrease gross profit margin in the short term and rise afterwards Less dividends for shareholders Feasibility(X) Further funds for accessories products or service

19. JUSTIFICATION OF RECOMMENDATIONS AND ACTION PLAN The price competition of Apple For achieving the aspect covered in option 1 it is crucial for Apple to lay down appropriate service cap and design within UK. It is very important for the business to understand the culture of UK for undertaking the operation in a suitable manner. There is a need for attracting larger number of local consumers for expanding Apple operation in UK. In UK it is even significant for Apple to increase their profits while maximizing wealth of their shareholders. This will also help in increasing sufficient cash reserves within the business. The sustainable development of Apple In order to be sustainable it is important for Apple to build the gap of price between UK and other countries, like US. Then there is a need for appealing local consumer in a most appropriate manner and to attain existing customers. For Apple it is important to enhance the satisfaction and loyalty of consumer. This is seen to be crucial as it helps business to be sustainable with the market of UK. It is significant for Apple to undergo appropriate investment concerning accessories of their products and services. Recommendation According to the all above evaluation of Apple strategic position apple should adopt some major strategies that include: • Market development • Market Penetration