Running head: Apple Inc.

in 2012

Apple Inc. 2012

Ayoub Bokhabrine

King Graduate School

Dr. Roberta M. Harris

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Introduction

Apple Inc. started in 1976 as a US maker of personal computers, software and peripheral devices.

Originally, it was Apple Computer for 30 years, and the head office in Cupertino, California. It is

the first company in the booming personal computers that began to use the popularity of the

graphical user interface. During the early years, Steve Jobs and Wozniak was responsible for the

introduction of the first innovative company that was sold. Been selling its first product for the

personal computer and then, and then continued its founders for the production of personal

computers are increasingly innovative. However, every year is the year of luck to Apple, and there

were also times that the company has faced financial difficulties that led to several changes in

management.

In 1997, Steve Jobs took over the operations and became CEO during the time discussing the

organization. Then, in 2001, the iPod eventually became very popular in the market, and even

turned out to be at the forefront of the music industry player. Later, in 2007, Apple began to

approval in the phone industry with the first of its innovative phone, which also proved to be one

of the most successful products of the company. The company is not only recognized by the

consumer products, but above all for its expertise in the production of electronic products. Soon

after, Apple has become the tablet PC phenomenon in the IT market all over the world have been

introduced.
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Vision Statement of APPLE

"Man is the creator of change in this world. As such he should be above systems and structures,

and not subordinate to them."

Apple's vision of life through technology for consumers and businesses are being developed. It is

committed to making products that they purchase their main customers. Apple is not just making

a statement. He ensures that employees understand the vision and efforts to achieve it. I have put

systems in place to allow seamless interaction with the customer.

I have goals in place to continue moving forward. Strategies to achieve these goals. And ensure

proper marketing strategy has been developed financial and business structure to achieve.

Mission Statement of APPLE

Apple designs Macs, the best personal computers in the world, along with OS X, iLife's, iWork,

and professional software and. Apple leads the digital music revolution with the iPod and iTunes

online store equipment. IPhone revolutionary iPhone and App Store in the invention, and the

recently launched mobile phones and media have defined the future iPad computer magic.

Mission Statement Analysis for APPLE

Apple is mainly focusing at the following components of mission statement:

1. Apple may not be important to elaborate on its concern for its employees or to thoroughly

outline its customers and targeted market. Apple is a trendy technology company which prides its

self in providing easy to use electronics and efficiently run software systems. Because of this it is

most important for Apple’s mission statement to focus on components like company philosophy,

self-concepts, and current technologies. These aspects of Apple are what make it popular and

successful today.
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2. Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented

the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the

industry in innovation with its award-winning desktop and notebook computers, OS X operating

system, and iLife and professional applications. Apple is also spearheading the digital music

revolution with its iPod portable music players and iTunes online music store.

3. Apple’s mission statement only includes descriptions of products and services and past and

present technologies.

4. The mission statement from Apple is somewhat unconventional. It’s more of a brief history

rather than a summary of the corporations overall purpose. It does however paint a picture of where

Apple came from, how far it has come, and where it’s continuing to go. But for such a popular

company it may be beneficial divulge into points like its self-purpose and their concern for public

image.

SWOT analysis for APPLE Inc.

SWOT analysis stands for Strength, Weakness, Opportunity and Threat for a particular

organization, which can help in formulating a strategy for its business and can also help in

analyzing its internal environment (Strengths & Weakness) and external environment

(Opportunities & Threats).

Strengths
According to (Wharton, 2012) The first and foremost strength of Apple Inc. is its technological

edge over its competitors. IPhone have turned out to be a great success and has been associated

with status in many of the countries. ITunes has turned out to be a wonderful revenue generating

source and since it also sells with its own tool i.e. the iPod, thus, revenue has multiplied for Apple

Inc. Another strength for the organization is that for every software that Apple Inc. produces, it
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introduces its hardware with it too, which leads to its expertise in both the industries. Apple Inc.

products are classified as luxury items, thus its products provide enough room for it, so that the

competitor products are no longer a competition. The another strikingly advantage over

competitor’s products, is the design of the Apple products, and which are also simple to use. The

brand loyalty of its product and its super dedicated research and development department are also

its major strengths.

Weaknesses
Weaknesses are the disadvantages that are hindrance in obtaining the business goals for the

organization. The poor relationship with the market than Microsoft is surely a disadvantage to

Apple Inc. Another point could be that the products introduced by Apple Inc. have very short life

cycle, which concludes that the research and development department has to be constantly

maintained, which requires huge capital. Apple Inc. has very low presence in the advertisements,

and also it has very small market occupation as compared to its main rival Microsoft. Thus, all this

leads to the fact that Apple Inc. gets very less business from its home country US, and major of its

business is from outside the US.

Opportunities
Opportunities can affect both the present as well as the future condition of an organization. Apple

Inc. opportunities are the introduction of more and more PC viruses, on which Apple Inc. can

capitalize on. The second opportunity is the population of the world is growing at a rapid pace and

thus, this opens the front for many new markets, also the purchasing power of a common man has

increased drastically, who can be pursued or impressed to buy the luxury Apple products. The

online sales of the organization are increasing and also, the bonds and the partnership with the

other organizations have been on the rise in the past few years. Products such as iPhone have
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created a new set of potential customers altogether which can be targeted in the future i.e. the

young population who have a craze for any new technology gadget (MarketingTeacher.com 2012).

Threats
In the past few years, many competitors have come up for Apple Inc., especially in the field of

laptops, like Dell, Sony, HP, and Toshiba. Another threat could be that many of the customers

have started downloading the music for free instead of purchasing at iTunes. The product

expensiveness is itself a threat to the product, as substitutes at a lower price are always available.

Long lasting recession could also be a threat to its products. Windows 7 software is gaining more

market place after vista flopped and last but not the least, the technological advances that have

been taking place every single day, is a big threat to Apple Inc.

Porters Five Forces Model

Porters Five Forces Model is a very powerful tool to understand the core of the power in a business
or in a company. The Porter Five Force Model for Apple Inc. is shown below:
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Financial Ratios for APPLE

 Sale Ratio

Showing sales ratio for APPLE Inc.

 Asset Turnover Ratio

Showing Asset Turnover ratio for APPLE Inc.

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 Inventory Turnover Ratio

Showing Inventory Turnover ratio for APPLE Inc.

 Gross Profit Margin Ratio

Showing Gross Profit Margin ratio for APPLE Inc.

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Conclusion

Is one of the analysis of strategic management concluded that Apple's technology industry is not

easy to compete. They have lots of investment in research and development and the need of their

competitors in the same industry initiative. As for Apple, but it was very good as it is to show the

formation of its products. Because Apple has more, and those of other companies is increasing,

and try to do better on their own special things interesting. Apple needs to make major changes.

They should not wait for people to buy their products only when they are on sale, but they need to

focus more on customer support and promote their region is already problematic.

Recommendations

Apple Inc. should continue to use its product differentiation strategy.

 It must continue inventing new and most innovative products.

 R & D should exert more effort in finding more efficient and effective ways to cut further

production costs in order to reduce the prices of the products to remain competitive

 Maintain the highest level of innovation.

 Most of all, Apple headquarters should give utmost considerable attention on the

increasing labor problems, pressures and psychological issues that Chinese workers are

experiencing nowadays.
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References
1. David, F, “Strategic Management Concepts” 13 edition, Pearsons, 2011.

2. http://myassignmenthelp.info/assignments/marketing-assignment-essay-writing-analysis-
review-online-apple-swot-pestle-analysis/

3. http://www.strategicmanagementinsight.com/swot-analyses/apple-swot-analysis.html

4. http://investor.apple.com/secfiling.cfm?filingID=1193125-12-444068

5. Thompson, A. J. (2012). Crafting and Executing Strategy: The Quest for Competitive
Advantage. NY: McGraw-Hill.

6. Suvarna, V. V. (2012, 08 21). Mybizzscribes. Retrieved 2015, from vaishaksuvarna:

http://vaishaksuvarna-bizzscribes.blogspot.com/2012/08/case-study-apple-inc-strategy-
analysis.html#sthash.abeNSgvN.dpuf