A Case Analysis o

APPLE INC.
“WHERE’S THE NEXT
INNOVATION”
ABOUT APPLE INC.
A p p l e is the world’s largest corporation based on a
market capitalization of about 650 billion US
dollar. (page 545. paragraph 1)
Founded in 1976 by Steve Jobs and Steve
Wozniak and A p p l e began as a personal
computer c o m p a n y providing desktop
computers for businesses and the h o m e (page
545, paragraph 1)
A p p l e w e nt public in 1980 and generated its IPO
than any fi rm since Ford Motor C om p an y 25 years
earlier.
Throughout the 1990s, A p p l e experimented w it h
several diff erent product lines of personal
computers, w it h limited success. (page 545,
paragraph 2)
Current CEO: Tim Cook since 2011 (page 545,
paragraph 3) A p p l e mission and /or mission
statement:
ABOUT APPLE
INC.
Apple’s Most Profi table Lines of Business
1.Apple’s core product is the iPhone. The
c o m p a n y reported net sales for the iPhone unit
$192 billion for the 2021 fi scal year co mp are d to
$137.8 reported in the year before. (Investopedia,
par. 6)

2.The company’s services business is led by

the A p p Store and A p p l e Music.
(Investopedia, par. 7)

3.Apple’s personal computer business is built

around the M a c and includes its MacBook
laptops and the iconic iMac desktop computers.

4.W h e n A p p l e launched its iPad in 2010, it

quickly b e ca m e the first commercially
successful tablet computer to hit the
market.
GENERAL
ENVIRONMENT
EXTERNAL ENVIRONMENT ANALYSIS
KEY FACTORS OPPORTUNITIES THREATS
POLITICAL/ Compliance with global Political instability in key markets could
LEGAL regulations can open up new disrupt operations and sales.
markets.

ECONOMIC Growth in emerging markets Economic downturns can reduce

offers new customer bases for consumer spending on premium
Apple’s products. products like those offered by Apple.

SOCIO-CULTURAL An expanding middle class in Changing consumer preferences

developing countries increases towards more affordable alternatives
the potential customer base for can reduce Apple’s market share.
Apple’s premium products.

TECHNOLOGICAL Early adoption of emerging Increasing cyber threats and data

technologies (e.g., 5G, AI) can breaches can damage brand reputation
enhance product offerings and and lead to financial losses.
user experience.

PEST ANALYSIS
EXTERNAL ENVIRONMENT ANALYSIS
PORTER’S FIVE FORCES
KEY FORCES OPPORTUNITIES THREATS
THREATS OF NEW ENTRANTS High capital requirements, strong brand Technological advancements and innovation
identity, and established customer loyalty make might lower barriers over time, enabling new
it difficult for new entrants to compete with players to enter the market.
Apple.

BARGAINING POWER OF BUYERS Strong brand loyalty and high customer Increasing availability of alternative products
satisfaction reduce price sensitivity and brands can give buyers more options,
potentially reducing Apple’s market share.

BARGAINING POWER OF Apple’s significant purchasing power allows it to Dependence on a limited number of suppliers
SUPPLIERS negotiate favorable terms and prices with for critical components (e.g., chips, screens) can
suppliers. lead to supply chain vulnerabilities.

THREATS OF SUBSTITUTES Innovation and continuous improvement in High-quality, lower-cost alternatives (e.g.,
product quality can differentiate Apple’s Android devices) can attract price-sensitive
offerings from substitutes. consumers.

RIVALRY Leveraging brand strength, innovation, and Intense competition from major players like
ecosystem integration (e.g., iOS, MacOS, iCloud) Samsung, Google, and Huawei can lead to price
can maintain a competitive edge. wars and margin pressure.
INTERNAL ENVIRONMENT ANALYSIS
THE FUNCTIONAL AREAS
AREAS STRENGTHS WEAKNESSES
RESEARCH AND DEVELOPMENT Apple is renowned for its innovation, continually Significant R&D investments can impact
setting industry standards with products like the profitability if new products do not meet market
iPhone, iPad, and Apple Watch. expectations.

MARKETING High levels of customer loyalty and brand High prices may alienate price-sensitive
advocacy. customers, limiting market reach.
FINANCE Premium pricing strategy ensures high profit Vulnerability to economic downturns and shifts
margins. in consumer spending patterns.
HUMAN RESOURCE Attracts top talent due to its strong brand and Intense competition for top-tier talent in the
DEVELOPMENT reputation as an industry leader. tech industry.
PRODUCTION Large-scale production capabilities enable cost Manufacturing high-quality products with
efficiencies and competitive pricing. advanced technologies involves significant costs.
INFORMATION TECHNOLOGY Leading-edge software development Rapidly scaling IT infrastructure to keep pace
capabilities, resulting in intuitive and user- with growing data and user demands can be
friendly applications and operating systems. challenging.
INTERNAL ENVIRONMENT ANALYSIS
(SWOT)STRENGTHS WEAKNESSES

1.A ppl e has a great reputation in the tech 1.Spends m u c h less on its digital advertising.
industry 2. Highly-priced products
2. A ppl e has strict quality control 3.The company has been producing the
3.Has a strong culture of innovation same- looking iPhones with upgraded
4. Good corporate image features
4.All of the company's production takes
place overseas and so it is overly dependent
upon foreign contractors
OPPORTUNITY THREATS

1.Continuous growth rate of developing 1.Rising cost of raw materials

countries 2.Rivals have introduced its tech art in the
2. Increasing technological integration in m u c h lesser cost
businesses 3.Climate change created by global warming
3.Political stability could disrupt transoceanic shipping and
4. Large Population supply chain.
4. Growing competitors promotional tools
CENTRAL
PROBLEM
A strategy that will maintain its market
leadership in the technology business arena and drive
long-term growth.
A p p l e was late in pro -divisional-by-process design, but
absent of
any presidents of divisions.
Producing a larger screen smartphone. A p p l e also has a
culture of not collecting every detail about its use.
A p p l e competes in a highly competitive and rapidly
changing industry that is often associated w it h strong
customer loyalty.
In 2014, there were 234 million smartphone Internet
connections
in th e U n ited states.

TIME CONTEXT: 2019

ALTERNATIV MARKET PENETRATION
Increase market share within existing markets using current products.
E COURSE  Increase the number of Apple Stores and retail partnerships to enhance
product availability and customer reach.
OF
MARKET DEVELOPMENT
ACTIONS Expand into new markets or segments using existing products.
 Enter new geographic regions, particularly emerging markets with
growing middle-class populations.

PRODUCT DEVELOPMENT
Develop new products to serve existing markets.
 Enhance current products with new features, improved performance, or
design updates.
A. QUANTITATIVE
STRATEGIC
PLANNING MATRIX

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A. QUANTITATIVE
STRATEGIC
PLANNING MATRIX

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RECOMMENDATION
 The Quantitative Strategic Planning Matrix
ALTERNATIVE results indicated that A C A N o . 3 Product
COURSE OF Development obtained the highest overall
score w h i c h means that this is the best
ACTION
alternative course of action that could
signifi cantly address the identifi ed major
problem.
RECOMMENDATIO
Perhaps the biggest opportunity for Appl e lies in its pioneering eff ort
N in providing the IOS (Operating System) w hi c h has resulted in it
I recommend ACA 3 beco mi ng a direct competitor to Google and Microsoft. However, to
stay always at the forefront, it must always innovate and create
(Product Development).
something that its other competitors do not offer. It has also
concentrated its R&D efforts in cloud computing w hi c h enables
users to basically put all their information on servers and have fast
networks and lots of diff erent kinds of PCs and mobile phones that
can use the applications. The increased use of cloud-based
technology products globally has shown that the cloud industry is
poised for faster growth, w hi c h Appl e has to make more accessible
and price competitive to grow its revenue from them. With Apple’s
shift to the mobile industry, it must also strike while the iron is hot
w he n it comes to mobile advertising, since Appl e pride itself w he n
it comes to online advertising Appl e should also consider this as an
opportunity to earn a revenue on. With all of this in mind, Appl e has
always been a visionary of some sorts w he n it comes to their
products and services ventures, and with their dedicated eff ort of
always innovate and fi nd more ways with the use of their R&D
resources they have turn this opportunities to their strengths.
ACTION PLAN - PRODUCT
DEVELOPMENT
ACTIVITIES OBJECTIVES PERSON INVOLVED TIME
FRAME
BUDGET

1. Market Research and Consumer Identify consumer needs and trends Market Research Team, 3 months $1,000,000
Insights Consumer Insights Team
2. Submit Proposal for approval Seek approval of the CEO and the BOD CEO and BOD 2 weeks $5,000

3. Concept Development and Testing Develop and refine product concepts Product Development 4 months $3,000,000
Team, Design Team,
Market Research Team

4. Product Testing and Refinement Test and refine prototypes R&D Team, Quality 3 months $4,000,000
Assurance Team, Beta
Testing Group

5. Final Product Development and Finalize design and plan for mass Engineering Team, Supply 4 months $5,000,000
Production Planning production Chain Team, Production
Planning Team

6. Implementation (Product Launching) Launch the product and conduct Marketing Team, Sales 4-6 months $10,000,000
Team, Customer Support
Team

7. Evaluation and Monitoring Establish key performance indicators CEO and the BOD, Finance continuous $5,000,000
(KPIs) to measure the success of each
activity.

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THANK YOU FOR
LISTENING!

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