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Apple’s Strategy Bends the World

How Apple’s business tactics, partly driven by fear, affect the rest of us.

apple inc strategic plan

By Shira Ovide

This article is part of the On Tech newsletter . You can sign up here to receive it weekdays.

I’m going to put Apple and other technology giants on the therapist’s couch: To understand their motivations and actions, it’s helpful to examine their vulnerabilities.

I’ve been surprised this year that Apple mostly hasn’t budged as regulators and some app companies complain loudly about the downsides of the app system that Apple created more than a decade ago. The gripe essentially is that Apple abuses its control over iPhone apps to impose unfair fees and complexities on app developers. That’s the claim in a lawsuit that Epic Games, the maker of the Fortnite video game, has pending against Apple.

Apple says that it is right to exercise control over apps and collect commissions for some things that we do on our phones. But there’s also something else at work: fear.

Connecting the dots between Apple’s business predicaments and its choices helps us understand why the company does what it does — and by extension how those actions affect everyone, whether we own an Apple device or not. Apple’s strategy bends the world.

Why should Apple be worried? It is wildly successful and has so much cash that … well, corporate employees sit in desk chairs that might cost more than your sofa. Or your car.

But the reality is that sales of smartphones will probably never again have a growth spurt like the one in the 2010s that made Apple a superstar. Smartphones have become a necessity of modern life in many countries, like refrigerators , but there are fewer potential first-time smartphone buyers every year, and people are waiting longer to replace phones they already own.

(I’ll acknowledge that Apple has sold a bunch more iPhones and other devices recently . We’ll see if that’s lasting, or a pandemic-related blip.)

Apple and lots of people who keep tabs on the company don’t think it’s a problem if Apple has a harder time selling more iPhones each year. Instead, the company has shifted its strategy to make more money from the gadgets that we have in our homes and pockets — in the form of app downloads, subscriptions like Apple Music, AirPods headphones and other Apple products or services connected to company devices.

It’s a smart strategy that’s working very well, but also one born of necessity now that the peak smartphone era seems to be over.

There’s also a long shadow cast by Apple’s need to become more than the iPhone company. Would Apple, for example, be more willing to reconsider aspects of the app store if it weren’t so reliant on generating money from sources other than iPhone sales? And how much are Apple’s tactics changing all of the technology that we use?

The Vox writer Peter Kafka recently wrote that Facebook decided to start newsletters that people read outside of Facebook’s apps in part to avoid paying the fees that Apple demands from digital subscriptions sold inside its iPhone apps. The billions of people who use Facebook are affected by Apple’s strategy to squeeze more cash from apps.

Companies have also said that they felt forced to charge people money in their iPhone apps because of Apple’s rules. In short, those apps might be worse for users, because of Apple’s strategy shift.

It’s not unusual for the world around us to be shaped by companies’ business models and finances . And sometimes it works in our favor. Microsoft is giving Windows PC users access to more kinds of apps partly because it — unlike Apple — doesn’t need to make money from app fees, and Microsoft wants to thumb its nose at Apple.

We aren’t completely at the whims of big companies’ tactics to make money. But I find it useful to examine the ways that our technology choices are not accidents, nor are they purely driven by what we want.

Before we go …

A win for Facebook in a likely long war: A federal judge said that a Federal Trade Commission lawsuit that wants to break up Facebook lacked too many essential facts to move ahead . The judge told the government to try providing evidence that Facebook meets the legal definition of a monopoly, Cecilia Kang reported. DealBook has an analysis of the opinion from the judge, who also said that more than 40 states had waited too long to bring their own antitrust case.

Related: All of the antitrust investigations and lawsuits against Big Tech companies are terrific for lawyers , Cecilia and David McCabe write. One example: 51 lawyers from 21 law firms have appeared in court related to antitrust cases against Google.

Life is just fodder for online posts: Residents in a rural county in China dress up as old-style farmers and fishermen to stage scenes of a bygone China for local and foreign tourists to photograph and post online, my colleague Vivian Wang writes. The setups are elaborate, including burning straw to simulate mist.

Robot pets are meh but also promising: “They could become sophisticated enough to become their own category of thing — not a living pet necessarily, but not a glorified toaster either ,” says a writer for Gizmodo.

Hugs to this

This is a mesmerizing video of a herd of sheep , recorded from a drone over several months and sped up. (I spotted this first in the Garbage Day newsletter .)

We want to hear from you. Tell us what you think of this newsletter and what else you’d like us to explore. You can reach us at [email protected].

If you don’t already get this newsletter in your inbox, please sign up here . You can also read past On Tech columns .

Shira Ovide writes the On Tech newsletter, a guide to how technology is reshaping our lives and world. More about Shira Ovide

How to Make Your Smartphone Better

To comply with recent European regulations, Apple will make a switch to USB-C charging for its iPhones. Here is how to navigate the change .

Photo apps have been using A.I. for years to give you control over the look of your images. Here’s how to take advantage of that .

The loss of your smartphone can be disruptive and stressful. Taking a few simple steps ahead of time can make things easier if disaster strikes .

Many default settings make us share superfluous amounts of data with tech companies. Here’s how to shut those off .

Need a new phone? Wirecutter can help you weigh the pros and cons of different iPhone models  and pick the best smartphone .

Upgrading your device will leave you with a decision: What to do with your old phone ?

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How Apple Is Organized for Innovation

  • Joel M. Podolny
  • Morten T. Hansen

apple inc strategic plan

When Steve Jobs returned to Apple, in 1997, it had a conventional structure for a company of its size and scope. It was divided into business units, each with its own P&L responsibilities. Believing that conventional management had stifled innovation, Jobs laid off the general managers of all the business units (in a single day), put the entire company under one P&L, and combined the disparate functional departments of the business units into one functional organization. Although such a structure is common for small entrepreneurial firms, Apple—remarkably—retains it today, even though the company is nearly 40 times as large in terms of revenue and far more complex than it was in 1997. In this article the authors discuss the innovation benefits and leadership challenges of Apple’s distinctive and ever-evolving organizational model in the belief that it may be useful for other companies competing in rapidly changing environments.

It’s about experts leading experts.

Idea in Brief

The challenge.

Major companies competing in many industries struggle to stay abreast of rapidly changing technologies.

One Major Cause

They are typically organized into business units, each with its own set of functions. Thus the key decision makers—the unit leaders—lack a deep understanding of all the domains that answer to them.

The Apple Model

The company is organized around functions, and expertise aligns with decision rights. Leaders are cross-functionally collaborative and deeply knowledgeable about details.

Apple is well-known for its innovations in hardware, software, and services. Thanks to them, it grew from some 8,000 employees and $7 billion in revenue in 1997, the year Steve Jobs returned, to 137,000 employees and $260 billion in revenue in 2019. Much less well-known are the organizational design and the associated leadership model that have played a crucial role in the company’s innovation success.

  • Joel M. Podolny is the dean and vice president of Apple University in Cupertino, California. The former dean of the Yale School of Management, Podolny was a professor at Harvard Business School and the Stanford Graduate School of Business.
  • MH Morten T. Hansen is a professor at the University of California, Berkeley, and a faculty member at Apple University, Apple. He is the author of Great at Work and Collaboration and coauthor of Great by Choice . He was named one of the top management thinkers in the world by the Thinkers50 in 2019. MortentHansen

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Analyzing Apple’s growth strategy: The business moves hinting at the secretive $2T+ giant’s strategic future

  • July 20, 2022
  • Artificial Intelligence
  • Augmented & Virtual Reality
  • Hardware Tech
  • Semiconductors & HPC
  • Strategy Map
  • Wellness Tech
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We mined Apple's acquisitions, investments, and partnerships to discern the company's emerging strategic priorities.

Apple is looking for the next big thing.

As the world’s most valuable company, with a $2T+ market cap and over $100B in annual profit, Apple has long been known for its cell phones, laptops, tablets, and watches. Today, the company is investing aggressively in high-tech areas like AR/VR, AI, and semiconductors to lay the groundwork for products and features that affect health & wellness, mobility, digital connections, and more.

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Although Apple is famously secretive, its acquisitions, partnerships, and investment activity provide a window into where it’s headed next. The company has acquired more than 25 companies since 2018, from edge-based AI startup Xnor.ai to VR streaming platform NextVR . Apple has also committed $430B for new investments and 20,000 new jobs in the US over 5 years — in addition to further investments in Europe and India — across silicon engineering, AI, and 5G tech.

Using CB Insights data, we uncovered 4 of Apple’s emerging strategic priorities highlighted by its recent acquisitions, investments, and partnerships. We then categorized companies by their business relationships with Apple across these priorities.

Digital health

Machine learning & ai, semiconductors & advanced materials.

Apple's strategy map

These designations are not exhaustive of Apple’s investment and partnership activity in the analyzed period.

Apple started investigating augmented and virtual reality (AR/VR) applications over a decade ago, as evidenced by its patent activity . For example, its ARKit framework (launched in 2017) — which enables developers to build AR experiences into their apps — is now used in over 14,000 apps with over 13M total downloads.

In recent years, companies in the AR/VR space have become serious M&A targets for Apple, coinciding with rumors about its internal development of a mixed reality headset that is expected to release in 2023 (eventually followed by a sleeker pair of glasses ).

In 2018, Apple acquired 2 companies in the space: Camerai , an Israel-based computer vision and AR tech company, and Akonia Holographics , an AR optics developer . These purchases helped grow Apple’s patent portfolio and talent, setting the foundation for its future AR products.

Then in 2020, Apple acquired two VR companies. First was NextVR for a reported $100M , which developed solutions for the capture and delivery of sports and entertainment virtual reality content. A few months later, Apple purchased Spaces , which created location-based and themed virtual environments.

While Apple has not been explicit about its metaverse ambitions like fellow big tech giant Meta , its continued investment in AR/VR sets it up for more immersive digital environments of the future — and the hardware they may need.

Apple is continuing to cement its focus in health as part of a wider strategic priority, as we’ve previously examined here and here . Apple is also working with companies, universities, app developers, and others to move this priority forward.

Central to this strategy are Apple devices, such as the Apple Watch and iPhone, which enable users to track, aggregate, and share their health data.

The company’s research teams are actively exploring new health indicators the Apple Watch could help monitor. Last year, Apple announced a collaboration with Biogen IDEC to investigate how the device can detect declines in cognitive health. Apple has also teamed up with several university and government partners — such as the NIH, the White House, Harvard , UCLA , and the University of Michigan — to conduct studies that use Apple devices to address issues ranging from Covid-19 to noise exposure to women’s health.

Meanwhile, Apple has landed agreements with major health plans like UnitedHealthcare and Aetna to offer subsidized Apple Watches and other wellness services to members.

In 2019, the company purchased Tueo Health , which developed a system to help parents monitor asthma symptoms in sleeping children. This acquisition is further indication of Apple’s intention to engage consumers on health & wellness.

Apple has aggressively acquired companies across the machine learning (a type of AI that leverages past data to understand future scenarios) and AI space — outpacing fellow tech giants like Google and Microsoft — to shore up its AI efforts .

Apple’s AI acquisition spree has been essential to the development of new iPhone features. Many of its purchases are positioned to enhance its virtual assistant, Siri, but they also have applications across many other parts of its software.

For example, Apple acquired in 2019 and 2020:

  • Laserlike , an ML platform that could better personalize Siri, news feeds, and video apps for individual users.
  • Voysis , to improve Siri’s language understanding.
  • Inductiv , which developed an AI platform to automatically identify and correct errors in datasets, helping software to improve with less human intervention.
  • Spectral Edge , a company with infrared tech that could enhance iPhone photos.

In January 2020, Apple also acquired Xnor.ai for a reported $200M , which specialized in developing highly efficient ML models deployed at the edge. The edge computing startup could enhance a number of Apple’s device ML models, including those related to capturing and processing images, natural language processing, and object recognition.

Other AI acquisitions include Lighthouse AI , a developer of AI-powered home security cameras, and Silk Labs , which developed on-device ML software. These possibly point to Apple strengthening its smart speaker, the HomePod, with a focus on privacy by keeping data on the device.

Apple is considered by some as the most advanced semiconductor design firm in the world. It’s also partnered with TSMC — the most advanced semiconductor production firm in the world — to produce chips. Semiconductor production is an extremely complex manufacturing process, making this partnership critical.

Apple’s design history started in 2008, when the company made the prescient purchase of PA Semi , a semiconductor design firm. Apple understood that if it wanted the best consumer experience possible, it needed to design its own chips, tailored to its own devices.

In the years since, Apple has remained aggressive in semiconductor design. The company purchased Intel ‘s smartphone modem business in 2019 for $1B, giving it a significant patent portfolio and 2,200 former Intel employees. This followed the acquisition of Dialog Semiconductor ‘s power management division in 2018 for $600M . 

Apple has built out its semiconductor capabilities further with investments in critical suppliers, including Corning and II-VI . Corning is the manufacturer of Gorilla Glass, a durable glass used for iPhone screens. On top of the $450M it’s already given to Corning, Apple invested $45M in the company in 2021 — coinciding with the rise of bendable iPhone rumors, though no official purpose for the funding was given.

Meanwhile, Apple invested $410M in II-VI in 2021, building on its $390M investment in II-VI-owned Finisar in 2017. II-VI makes the optical technologies that power features like Face ID and Portrait mode, as well as the lasers used in Apple’s LiDAR Scanner, which is used to create AR experiences.

In addition to these investments, Apple has developed partnerships with leading firms such as Foxconn , one of its main partners in iPhone production, and LG Display , a producer of its OLED displays.

Other categories

Beyond these 4 strategic areas, Apple has made noteworthy acquisitions, investments, and partnerships across a number of other categories.

Rumors of an Apple car have existed since 2014, further materializing in 2018 when  the company partnered with Volkswagen to turn some of the carmaker’s vans into autonomous employee shuttles.

Over the past few years, Apple has also filed a number of car patents. Using CB Insights patents search tool , we can see that the company is focusing on traditional car technologies, such as thermal management systems and vehicle seating .

Beyond patents, Apple has made one acquisition in the space, purchasing autonomous driving startup Drive.ai in 2019. Apple has also reportedly held talks with Hyundai ,   Toyota , and Porsche — focusing on car and battery production in the US with Hyundai and Toyota, and car production with Porsche.  

DIGITAL MEDIA & Services

Apple has grown its services segment — which includes Apple Music, Apple TV+, cloud services, and others — to nearly $20B in quarterly revenue, with 825M paid subscriptions as of the second quarter.

Alongside this growth, Apple has made multiple acquisitions of digital media companies over the last 2 years, including Scout FM , Vilnyx , Primephonic , and AI Music . These purchases are aimed at enhancing its music and podcasting capabilities, while the Vilynx purchase — for a reported $50M — provides AI tools that help analyze and understand videos. 

Apple’s 2018 acquisition of digital magazine service Texture laid the foundation for its subscription service Apple News+, launched in 2019. 

More recently, Apple notably invested in independent music distribution platform UnitedMasters , participating in the company’s 2021 Series B alongside Alphabet and Andreessen Horowitz. The company also partnered with Verizon to offer the telecom’s Unlimited customers a free trial of Apple Music, and with Comcast on a cross-platform distribution deal for their streaming apps.

Apple first released Apple Pay — a digital wallet and mobile payment system — in 2014. Since then, Apple has continued to invest in payments and beyond .

In July 2020, the company acquired Mobeewave , which developed a solution to turn any NFC phone into a mobile payment terminal. Most recently, Apple purchased UK-based fintech Credit Kudos , which uses consumer banking data for better informed credit checks.

Apple has also developed partnerships to grow its services, including with   PayHawk and Isracard to expand Apple Pay , and with Goldman Sachs to launch the Apple credit card.

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Strategic Planning at Apple Inc.

By: Fabrizio Di Muro, Kyle Murray, Miranda Goode

Apple Inc. is one of the world's most successful and most recognizable companies. Over its 30 year existence, the company had seen a lot of changes in the computer industry. What would the future…

  • Length: 12 page(s)
  • Publication Date: Jan 11, 2010
  • Discipline: General Management
  • Product #: 909A26-PDF-ENG

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Apple Inc. is one of the world's most successful and most recognizable companies. Over its 30 year existence, the company had seen a lot of changes in the computer industry. What would the future hold for the computer giant in a rapidly changing world? How should the company allocate resources between its more traditional offerings (computers) and its newer products (iPods, iPhones, Apple TV, etc.) in order to maintain and improve its market position. Also, how should Apple's unique retail strategy be used to support the company's product decisions, and by capitalizing on new and emerging trends thus further maintaining its competitive advantage.

Learning Objectives

The case examines the ups and downs of Apple Inc. and asks students to determine where Apple should focus its resources in the future. This case is intended to be an introduction to many of the critical issues in developing and maintaining a competitive advantage, the strategic marketing process and entering new markets. The case is intentionally conceptual in nature, with minimal number crunching, in order to provide students with some insight into the development and execution of a future strategic plan for Apple. This case allows students an opportunity to think about how Apple can capitalize on new and emerging trends in order to remain competitive. This case has several uses and can be positioned in a variety of ways. It can be used to discuss and understand the strategic marketing process (i.e. SWOT analysis, deciding which products and markets to focus on in the future) in an introduction to marketing course. Also, this case can be used to discuss the process of entering new markets and/or developing new products, which may or may not be part of Apple's strategic planning. In addition, this case can be used in a retail marketing course to highlight how a manufacturer can use retail outlets to develop and maintain a competitive advantage. This case is appropriate for undergraduate or MBA level instruction. Overall, the case can be used to accomplish a number of different teaching objectives as follows:

1) To provide students with an opportunity to engage in the strategic marketing process.

2) To discuss how retailers can create and sustain a competitive advantage.

3) To discuss the process of developing new products and/or entering new markets.

Jan 11, 2010

Discipline:

General Management

Geographies:

United States

Industries:

Retail trade

Ivey Publishing

909A26-PDF-ENG

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apple inc strategic plan

Tim Cook Reveals Apple's 10-Year Plan For Future Tech

The company's vision for the future is already being etched into its products. just look closely; it's right in front of you..

Apple

Vision of the Future

Apple revealed its 10-year plan for the future this week.

If you don't remember that slide from the hours of presentations Apple executives made onstage during the company's developer conference on Monday, you're not alone.

Apple didn't explicitly call it a 10-year plan. And the company was very subtle about how it showed this road map.

But look closely, and it's easy to see.

Instead of introducing flashy new products that will change your life today, this year's WWDC conference was all about putting the pieces in place for what comes next.

It's a Trojan-horse strategy — sneak the seeds for the next breed of technology products into the stuff that we're already using.

A new augmented reality platform, virtual reality development tools, the HomePod speaker, and improvements to iOS 11 on the iPad may not feel revolutionary or even particularly useful right now, but they are the building blocks for the technologies Apple is betting will power our future.

Let's break it down:

Augmented Reality

Ask most tech companies which product will replace the smartphone and the answer will probably revolve around a wearable device for "augmented reality," the tech that overlays digital images on the real world.

Microsoft has the HoloLens headset. Google has Project Tango for Android devices and, one day, headgear like Google Glass. Facebook announced its AR ambitions a few months ago, and Mark Zuckerberg even said AR glasses would replace the need for most screens in your life one day.

Apple's approach is different.

There weren't any AR goggle demos or TED-talk-esque prophecies about how a pair of glasses will soon be the only computer you need. Instead, Apple is starting with something already very familiar: the iPhone and a new way for developers to build AR apps for the phone. When iOS 11 becomes available on tens of millions of Apple devices this fall, Apple will immediately have the largest AR platform. Even better, it'll be on the devices that people already use — not futuristic glasses or headsets. Apple will get a major advantage over its AR competitors with one simple software update.

That won't be a game changer right away of course, and it certainly won't deliver the kind of jaw-dropping experience being developed by companies like Magic Leap. AR-enabled iPhones will mostly mean some cool games and entertainment apps at first. Pikachu will look more realistic in "Pokémon Go." You'll be able to build virtual Lego models on your coffee table. The rainbow puke in your Snapchat selfies will look even better.

But AR on the iPhone sets Apple up for the long run by building a base of developers already dedicated to the platform who want to make stuff for the largest number of users they can. If and when Apple decides to take AR to the next level with a pair of smart glasses or something else, it'll be in a better position than companies trying to win over developers.

Virtual Reality

Apple has been hesitant to get involved with virtual reality, even as the rest of the tech industry seemed to be hyperventilating over its prospects. But now the time feels right for Apple, and it's offering a new set of tools in the coming macOS Sierra software that it says will let developers connect VR headsets and create 3D and VR content.

This isn't about attracting gamers and VR enthusiasts to the Mac. This is about making sure Apple's most dedicated class of users has the tools it needs to create the content of the future. Apple has historically been the platform of choice for digital artists, filmmakers, and other professionals, and adding VR development tools will make sure those users have what they need and don't abandon Apple.

HomePod and Ambient Computing

HomePod, the new Amazon Echo competitor, is Apple's biggest new Trojan horse of all.

Even though Apple focused on HomePod's music capabilities and pitched it as a new kind of home stereo, it undersold the rest of the real potential. HomePod is also Apple putting Siri in your home in a new way and making a long-term play for the concept of ambient computing, in which everything you own is connected and powered by an underlying artificial intelligence.

HomePod is a way to put Siri everywhere else when you're not looking at your iPhone, typing on your Mac, listening to your AirPods, or tracking your workout on your Apple Watch. HomePod is Apple creeping into the rest of your life under the guise of a really nice Wi-Fi stereo. Apple may be focusing on music now with HomePod, but it's also sneaking in a lot of Amazon Echo-like features like controlling your connected appliances and getting updates from Siri.

That said, it's pretty clear why Apple would want to bury the AI features of HomePod. Pitching it as a digital assistant instead of a music player will only open up Apple to more criticism about how it is falling behind in AI compared with Google and Amazon. Apple's Siri is still much less capable as a virtual assistant than the offerings from Amazon and Google, and Apple has a lot more work to do to catch up. But there's no question that AI is a big area of investment for Apple, and HomePod will play an important role in this strategy as Apple makes progress.

iOS 11 on iPad

The biggest news with iOS 11 wasn't on the iPhone. It was on the iPad.

Apple has finally started making improvements to the software that help turn the iPad into the laptop replacement the company has been promising for years. There's a new file-storage system, an app dock similar to the one on Mac, the ability to drag and drop content in between apps, and apps that float in separate windows. The iPad is starting to feel less like a giant iPhone and more like a touch-screen Mac.

There's still a lot of work to do. The iPad Pro's keyboard isn't as good as the one on a normal laptop, and it's now up to developers to build compelling apps that take advantage of all the new iOS 11 features and give people a better reason to ditch their laptop for an iPad. The new 10.5-inch iPad is a small move in the right direction because its larger size allows for a full-size keyboard, but it's still not enough.

But Apple is inching closer toward its ultimate goal of creating a super thin and portable laptop replacement, and iOS 11 feels like a huge milestone.

What's Next

A lot of this stuff may not work out. We're in a period of relatively flat innovation across most of the tech industry, where new gizmos improve only incrementally each year. It's impossible to tell which wild idea will actually end up taking off and which will fizzle. (Two years ago everyone thought smartwatches were going to revolutionize the tech industry, after all. Now that's barely part of the conversation.)

In some sense, Apple's latest batch of WWDC announcements feels underwhelming, as if Apple is dabbling in various areas rather than making a bold move in any one direction. But the company's vision for the future is already being etched into its products. Just look closely; it's right in front of you.

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Understanding Apple Business Strategy

APPLE BUSINESS STRATEGY

Based in Cupertino, California, Apple is an American multinational company that designs and sells consumer electronics, software, and services. Apple’s iPhones helped spark the dawn of the smartphone-era and have revolutionized the way the world sees phones.

Apple’s business strategy, though simple, holds up to date and has played a major role in helping Apple become the first-ever company to reach the trillion-dollar valuation .

apple trillion

Apple’s business strategy can be easily understood by knowing the type of products and services they provide.

Let’s find out.

The Business of Apple

Apple was founded on 1 April 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne, and bought innovation to the table in form of their rendition of what a personal computer should look like with the Apple I.

Apple continued producing quality and perfectly engineered products, with an emphasis on design and aesthetics. Apple primarily made desktop systems and hardware accessories related to it for a while and soon diversified into making other consumer electronics such as laptops, PDAs, music players and such.

Their first major success of the new millennium was the iPod – which wholly embraced all of Apple’s design philosophy and set stage for its future products. The revolutionary iPhone was launched in 2007. With resounding success, Apple once again redefined the public’s perception of the smartphone.

To put it in short, Apple has brought about –

  • The revolution of the PC industry
  • Introduced mouse and graphical user interface to consumer products
  • Innovated the music player
  • Launched the smartphone revolution
  • Bringing innovating technologies that set trends for the rest of the industry

Here are all the products and online services that Apple currently provides –

apple products

Apple is among the leading electronics manufacturers in the world with profit margins and revenues that put most major businesses to shame. Apple became the first “tech” company to reach a trillion-dollar market capitalization value in August 2017.

There are only five other companies to have made it to the trillion-dollar list, which brings us to –

What is Apple’s business strategy that has led them to become such a successful company?

Let’s find out the operational tactics of Apple which have helped them list as one of the market leaders in the technology and electronics industry.

Apple Business Strategy

Apple ecosystem.

Apple has always designed, developed and manufactured its hardware and software in-house. This innate advantage helps them create a deeper level of integration between its hardware and software – between for all of its devices.

Here’s an example –

Say, you buy an iPhone. You soon start using a few of its online services such as iCloud for storage. Herein lies its brilliance – the hardware, software, and services on the iPhone are so well designed and intuitive to use that you soon fully embrace it. Once you do, it leads you to create a good image and also only the rest of Apple devices can use the services.

This makes you buy their laptops and other hardware that plays well with one another. This extends to their accessories as well – the recent line of iPhones have removed the headphone jack which makes people buy more of Apple’s wireless AirPods earphones.

apple ecosystem

This strategy has helped Apple create an environment or “ecosystem” that offers a consistent and great experience to its users.

Customer Relation

Apple has always made a major point in providing stellar customer service and has been able to facilitate this with its AppleCare service and by employing knowledgeable sales and service personnel to cater to the customers in need.

applecare plans

This has helped Apple set itself apart from the rest of the competition in terms of customer relations and support, increasing its brand loyalty . Apple has made it a point to focus on providing the best quality of service to its consumers and this has been reflected in the increased chance of customers sticking with Apple.

Apple also builds upon this with their purpose-built Apple Stores, which are mostly situated at prime locations, allowing customers to experience Apple products before making the purchase.

apple store fifth avenue

The Apple Stores also help have much finer control over the customer experience and apart from showcasing Apple products and devices, Apple Stores double up as service centres.

Form Over Function

One of Apple’s main strategies when it comes to product development lies in its ability to provide well-designed products and services – with emphasis on minimalism, clean lines, and solid tones.

apple design

But it can also be said that Apple has made it a point to focus on design and aesthetics over performance when possible.

The recent Macbook (laptop) lineup is a great example of this. Apple has sacrificed heat dissipation capabilities and has included a thinner keyboard – which is riddled with issues such as not working in case the slightest of dust getting in between the keys – all in the pursuit of maintaining a thin and sleek design.

But this strategy has still worked out fine and in favour of Apple. The average consumer mostly prefers thinner and quieter laptops.

Brand Differentiation

Apple’s brand strategy and marketing strategy have always made it a point to promote itself as a luxury brand while focusing on differentiating itself from its competitors. Apple makes sure that it puts forth the following brand image – Apple competes against itself and not against others. This helps Apple in achieving its desired brand image and recognition.

apple brand

Consumers anyway tend to presume this is because Apple has built its reputation as a manufacturer of well-built premium products.

Customer Privacy

Apple has always made it clear that it values customer privacy and has shown to handle its customer’s data much better than the rest of its competitors.

apple privacy

During CES 2020, Apple’s senior director for global privacy mentioned Apple’s take on privacy as –

  • Minimize the amount of personal data collected from its users.
  • Providing highly secured cloud storage (iCloud)
  • Providing tools for users to be able to maintain their privacy

Final Thoughts

Apple’s main strategies are as follows –

Apple uses product development and market penetration as its main intensive strategy for growth.

Apple’s product development revolves around creating clean and premium products that are quite timeless and appeal to a wider audience while their market penetration strategy can be summed up as distinguishing themselves from the rest of the competition, providing an air of distinction and recognition for their products.

Their exceptional customer support and the seamless integration between their products are icing on the cake which helps Apple firmly hold its place as one of the market leaders in the technology and consumer electronics industry.

Go On, Tell Us What You Think!

Did we miss something? Come on! Tell us what you think about our article on Apple Business Strategy  in the comments section.

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Started out to become a developer but felt at home in the home of startups. The journey started from a single novel. Been an entrepreneur since schooling days. Interested in coding, reading and movies.

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Apple Inc. Operations Management: 10 Decisions, Productivity

Apple operations management 10 decision areas, productivity, consumer electronics, smartphone, digital services business case study analysis

Apple’s operations management (OM) involves innovative strategies for the 10 decision areas to ensure that all aspects of the business run smoothly. In operations management, the 10 decisions relate to product design, quality management, process and capacity design, and location strategy, as well as inventory management, supply chain management, and other operational areas. In this case, the 10 decisions of operations management are carefully implemented through coordinated efforts to limit the effects of the strong competitive pressure noted in the Five Forces analysis of Apple Inc . With considerable leadership in the consumer electronics and computer technology market, Apple Inc. is an example of success in addressing the 10 decision areas of operations management. Operational effectiveness and strategies involving technological innovation help Apple’s business thrive despite competition with information technology and consumer electronics firms, like Samsung, Google (Alphabet) , Microsoft , and Sony , as well as companies competing with Apple TV Plus video-streaming services, such as Netflix , Disney , Amazon , and Facebook (Meta) . This success highlights the importance of Apple’s strategies for high-productivity goals and objectives in operations management.

Apple Inc. has a dedicated team of senior managers and operations managers for handling the implementation of measures to address the 10 decisions of operations management. The company has excellent performance in maximizing efficiency and productivity in operations management. This operational efficiency translates to competitive advantages and capabilities that fulfill strategic objectives, ultimately leading to the achievement of Apple’s mission and vision .

10 Decision Areas of Operations Management at Apple Inc.

1. Design of Goods and Services . Apple’s processes in the design of its products are handled through multiple organizational components and officials. For example, Mac development and production involve a Senior VP for Hardware Engineering and a Senior VP for Software Engineering. Similar activities and cooperation are seen in operations for the company’s online services. This coordination reflects the nature and characteristics of the organizational structure (company structure) of Apple Inc . In this decision area of operations management, decision-makers coordinate with the company’s Senior VP for Operations. This system of interactions ensures that the outputs in this operational area are successful in making Apple excel in the design of its technological products.

2. Quality Management . This decision area of operations management emphasizes quality standards and controls. Apple’s Senior VP for Operations coordinates with other Senior VPs to ensure compliance with the company’s quality standards. The company is known for high-quality standards that permeate different areas of the technology business, including product design and development, retail, marketing, online sales, industrial design, and human resource management. Quality management ensures product quality that matches the premium brand, which is a business strength shown in the SWOT analysis of Apple Inc . The consumer electronics business has a holistic approach to ensuring quality to address this area of operations management. Apple’s generic competitive strategy and intensive growth strategies also account for quality standards for competitiveness and effective business growth.

3. Process and Capacity Design . Apple’s human resource management strategies include support for maximizing workforce capacity for product development and design. In addition, the company works with suppliers to ensure efficient processes and adequate capacity in this decision area of operations management. For instance, suppliers are given directives for process design, as well as the Apple Supplier Code of Conduct to optimize their human resource management. Moreover, the company’s operations managers strive for technological innovation in its facilities to optimize operating capacity and process efficiency. The consumer electronics and online services business has a comprehensive approach for this decision area of operations management, while accounting for the industry trends noted in the PESTLE/PESTEL analysis of Apple Inc .

4. Location Strategy . Apple’s location strategy is selective, involving limited authorization of resellers. Authorized resellers are generally located in urban centers to maximize foot traffic and brand exposure. At present, the company has hundreds of stores around the world. This area of operations management coordinates with the marketing mix (4Ps) of Apple Inc. , particularly the distribution strategy for consumer electronics, such as iPhones, iPads, and MacBooks. Despite this limited approach to reseller authorization, the company is now among the most profitable in the world, and Apple Stores have the highest revenue per square foot of retail space in the United States. Thus, the iPhone maker’s selective location strategy successfully satisfies this strategic decision area of operations management.

5. Layout Design and Strategy . Apple’s layout design and strategy emphasize customer expectations. For example, company-owned and authorized-reseller stores are spacious with minimal décor to ensure focus on the products for sale, such as smartphones, tablets, laptops, and accessories. At Apple’s other facilities, this decision area of operations management is addressed through innovative office layouts that encourage creativity and efficiency of workflows. Creativity is a critical factor among employees involved in product design and development processes at Apple Inc.

6. Job Design and Human Resources . This decision area of operations management requires job design and human resource strategies specific to the trends in HR management in the information technology industry. In this business case, Apple’s company culture (work culture) supports job design and HR strategies based on Steve Jobs’ original emphasis on excellence. However, the company has been gradually changing its HR strategies under Tim Cook to reflect a sociable workplace with competitive compensation for optimum employee morale. Apple Inc. has mastered job design and human resource strategies for continuing support for its leadership in the consumer electronics industry.

7. Supply Chain Management . Apple’s supply chain is among the most efficient and streamlined in the world. To address this decision area of operations management, the company uses automation of processes and regular monitoring of suppliers. In this monitoring, operations managers evaluate supplier capacity and productivity, as well as compliance with the Apple Supplier Code of Conduct. The automation aspect serves as a strength of the corporation’s approach to supply chain management. Apple’s corporate citizenship, CSR, ESG, and stakeholder management programs are applied alongside strategies in this area of operations management for an effective and sustainable supply chain.

8. Inventory Management . In this decision area of operations management, Apple Inc. uses different methods of inventory management, such as the serialized method for tracking and control of products. The company also uses the first in, first out (FIFO) method, so that most old models are sold before new models are released to the consumer electronics market. Apple Store managers also handle the inventory management of their respective stores.

9. Scheduling . Apple’s decisions in this area of operations management deal with a combination of automation and manual processes. Automation is used for scheduling activities in the supply chain and production processes. On the other hand, manual scheduling is used for individual Apple Stores and in some aspects of the company’s offices. The main aim of the information technology firm in this decision area of operations management is to maximize the capacity utilization of facilities, equipment, and human resources.

10. Maintenance . Apple’s operations managers address maintenance needs through various personnel, work teams, and business processes involving policies for high productivity and efficiency. For example, the company has maintenance teams for its various facilities. IT teams also function as maintenance teams for Apple’s servers and other information technology assets. The VP for Human Resources ensures that the company’s personnel are always at an adequate capacity to maintain high performance. Thus, Apple effectively addresses this decision area of operations management for stable operations throughout the business organization.

Productivity at Apple Inc.

Apple’s operations management monitors and evaluates productivity through multiple criteria. The company’s global size and diverse activities translate to different standards, benchmarks, and criteria for measuring productivity in different business areas. The following are some of the productivity metrics applicable to Apple’s operations management:

  • Revenue per square foot (productivity of Apple Stores)
  • Product units per time (productivity of suppliers and the supply chain)
  • Milestones per time (productivity of employees in product development)
  • Apple Inc. – Benefits .
  • Apple Inc. – Find a Store .
  • Apple Inc. – Form 10-K .
  • Apple Inc. – Online Store .
  • Apple Leadership – Executive Profiles .
  • Apple Supplier Code of Conduct .
  • Chen, X., Deng, T., Shen, Z. J. M., & Yu, Y. (2023). Mind the gap between research and practice in operations management. IISE Transactions, 55 (1), 32-42.
  • Fine, C. H., Padurean, L., & Naumov, S. (2022). Operations for entrepreneurs: Can Operations Management make a difference in entrepreneurial theory and practice? Production and Operations Management, 31 (12), 4599-4615.
  • Helo, P., & Hao, Y. (2022). Artificial intelligence in operations management and supply chain management: An exploratory case study. Production Planning & Control, 33 (16), 1573-1590.
  • Sancha, C., Gutierrez-Gutierrez, L., Tamayo-Torres, I., & Gimenez Thomsen, C. (2022). From corporate governance to sustainability outcomes: The key role of operations management. International Journal of Operations & Production Management, 43 (13), 27-49.
  • U.S. Department of Commerce – International Trade Administration – Software and Information Technology Industry .
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  • This article may not be reproduced, distributed, or mirrored without written permission from Panmore Institute and its author/s.
  • Educators, Researchers, and Students: You are permitted to quote or paraphrase parts of this article (not the entire article) for educational or research purposes, as long as the article is properly cited and referenced together with its URL/link.

Apple Strategic Management: Planning and Management Process — Apple Company Essay

Introduction, description and analysis of the sector of industry, pestel analysis, vision, mission and objectives, swot analysis for apple inc., strategy diamond analysis: apple company, business strategy, apple management strategy, competitive advantage, vrine model: apple, value chain-cage distance framework, bcg matrix analysis, recommendations, reference list.

In every organization, there is a need to have an effective strategic management plan. In the contemporary world, the need for an effective strategic management plan has significantly increased due to the increased level of competition in the market. The contemporary business world has been characterized by a very high level of competition, which has increased the need for effective strategic management processes.

Strategic management can be viewed as the process through which an organization formulates and implements critical decisions, which plays a pivotal role in determining the performance of an organization. The ability of an organization to meet its long-term goals is determined by its strategic management processes.

Through strategic management, an organization can easily achieve both its long-term and short-term goals. Most of the top-performing companies in the global market usually have the most effective strategic management practices. Apple Inc has well-developed effective strategic management practices. This has helped the company to retain a high level of performance.

Apple Inc has managed to offer unique products in the market, a fact that has enabled the company to win a significant proportion of the market share. For instance, the company has managed to provide high-quality products when compared to its competitors.

It has also managed to develop a good relationship with its customers, a fact that has enabled the company to attract and retain a large number of customers. Apple Inc also consults high-performing companies while seeking outsourcing services. In the process, the company has managed to retain a significantly high level of performance.

Apple Inc has utilized its available resources maximally, a situation which has also contributed to its success. For instance, the company has highly productive and experienced personnel that have significantly contributed to the company’s high level of performance.

The company also has adequate financial resources, which have supported perpetual research activities. Continued research has enabled the organization to maintain a high level of innovation. Through these priorities, Apple Inc has managed to develop a good reputation for quality products hence attracting many customers.

In the recent past, the market has drastically changed. More competitors are entering the industry, a thing that has resulted in risky price wars. In order to resolve this problem, Apple Inc has decided to expand its market so as to increase its level of sales.

Apple Inc was founded in 1976 in Santa Clara, California. The establishment of the company was the contribution of Steven Jobs and Steve Wozniak. The two were led by the passion for developing a computer that was more user-friendly than the existing computers.

A couple of years after its establishment, the company recorded a drastic increase in the level of its sales. In 1984, the company made a major step when it unveiled the Macintosh computer, which earned the company great recognition. Since then, the company has been engaged in innovations and development, which has helped it introduce quality products in the market.

Apple is a multinational corporation with operations in a number of countries all over the world. The company is centered in the United States, and it is involved in the manufacture as well as marketing of computers. The company has been in the industry for a long period where it has produced a wide range of computers.

The company is involved in the production of products such as iPods, iPhones, and Macintosh computers. The company is also involved in the production of other products like iPads. For instance, the company introduced a unique ipad2 which has recorded a recommendable performance in the market. Ipad2 has several features that make it unique from others, especially those provided by its competitors. It is very thin, and therefore it is more portable than the other products.

This attracts a significant number of customers because most people do not like carrying gorgeous electronic devices. This product also has batteries that can last for more than ten hours. In other words, Apple has managed to introduce into the market high-quality products hence winning a significant number of customers.

The history of Apple Inc can be traced back to 1976 when the company started in California. Since its establishment, the company has concentrated on computers. However, the company has done significant work in the entire electronic industry.

In connection to this, the company decided to omit the word computer in its name to Apple Inc, that more describes its achievements not only in the computer world but also in the entire electronic industry (Malhotra 2007). The company has a total of about 37,000 employees. The company maintains good working conditions for its employees while giving adequate attention to their motivation. This has helped in employee retention hence retaining competent and experienced personnel.

In the recent past, Apple has been widely known for its digital entertainment devices, which are widely used all over the world. It has introduced a wide range of entertainment devices, which have recorded a high level of performance.

The PC industry is characterized by a large number of players who operates in the industry. Apple Inc is one of the oldest players in the industry. Since its entry, many other companies have entered into the industry. This has affected Apple’s market share significantly since they intensify the level of competition in the industry. For instance, the market share for Apple fell by 8% in 1983.

In the recent past, there have been negotiations requiring Apple to license the Mac OS. For instance, Microsoft and Bill Gates insisted that Apple should license Mac OS in the late 1970s. However, Apple failed to license it. As a result, Microsoft developed its operating system.

In every organization, it is important to carry out the PESTEL analysis in order to make critical organizational decisions. This analysis is of great importance to Apple Inc. For instance, this analysis enables the company to understand Political, Economic, Social, Technical, Environment, and Legislative factors which may have a significant impact on the organization’s activities.

Social analysis is of great importance to Apple Inc, especially in the current contemporary competitive market. In order to interact with its customers adequately, Apple Inc has opened its own retail stores in different places around the world. Through their outlets, they provide repair services and collect the views of the customers at the same time. In the process, the company manages to improve the quality of services to its customers.

Through environmental analysis, Apple has managed to understand its market networks. For instance, the company manages to understand the costs of locating its stores in various places. The company locates its stores in places where it minimizes costs and maximizes sales at the same time.

This has helped the company in maximizing its profits. Environment analysis also helps Apple understand public opinion regarding its products. This information plays a pivotal role in future innovation plans. This is because innovations should be directed toward the satisfaction of consumer needs.

Over the past, Apple has recorded a recommendable performance through invention and reinventions. The company is committed to providing the best computing experience to users, including educators, creative professionals, students, and other consumers worldwide (Brainmass 2004). The company has managed to realize this by providing high-quality software, hardware, and internet offerings.

Apple is determined to maintain a secure and quality environment, safety, and health for its customers, employees, and the entire community all over the globe. The company emphasized the need to maintain a friendly environment for the current as well as the future generation. In order to achieve this, the company has integrated all these aspects into its management practices to facilitate realizing its vision.

Competitors

As already noted, the contemporary market for PC has become more saturated. This has increased the level of competition in the industry. There are several negative consequences associated with a high level of competition. For instance, increased competition may result in price wars. This may threaten the performance of an organization.

Apple’s main competitors include Hewlett-Packard, Dell, and IBM. Since Apple is involved in the production of a wide range of products, it also faces competition from Microsoft in a range of areas in the personal computer software industry (Malhotra 2007). The computer market has been characterized by a high level of technological development both in software and software advancement.

Therefore, there is stiff competition faced by each of the manufacturers. Failure to innovate would mean a complete exit from the industry because consumers are seeking computers that are up-to-date with technological advancement. Through this management, Apple managed to revive its activities.

The company later continued with value creation in the organization, which led to significant growth. Apple has a group of experienced and competent engineers who have played a major role in innovations and the development of new ideas. Under Job’s management, the organization has managed to utilize these resources in order in the most useful ways.

The company also has several retail stores which are operating in different parts of the world. This is another important resource that has helped in advertising as well as distributing the company’s products. Through its stores, Apple has managed to collect information from consumers about their views on the product.

This information plays a pivotal role in directing future innovations. It would be an organization’s wish to produce goods and services that satisfy their needs. This information is therefore necessary for maximizing the level of consumer satisfaction.

Through its stores, the company has managed to develop a good image and brand, providing quality service to the customers. Over the past, many companies have failed in their effort to distribute their products through their own stores, but Apple has recorded a very good level of performance. Therefore, retail shops are a valuable resource to Apple since not many organizations have managed to realize this.

Resources & Capabilities

Apple has a wide range of research, both tangible and intangible. In order for any organization to maintain a high level of performance in the market, there is a need for adequate resources to facilitate the process of meeting various goals.

One of the major company’s resources is based on its ability to maintain a high level of innovation. Apple Inc has managed to maintain a high level of innovation in its products. This has been facilitated by its ability to conduct intensive research.

As a result, the company has managed to provide products that are up to date with technological development. This has been realized through teamwork, which has encouraged the exchange of ideas among the employees. This has significantly contributed to the company’s ability to win and retain its customers.

Apple has well-developed networks and relationships in its operations. For instance, the company has a very good relationship with OEM partners. This has provided the company with an opportunity to outsource some of its manufacturing processes. As a result, the company has managed to produce high-quality products. The company has also managed to reduce its operational costs.

One of the most valuable resources to the Apple Company is Steve Jobs. Steve has recorded a recommendable level of performance at Apple under his management. The company recorded a drastic improvement soon after he started managing the organization. For instance, when he discovered that the failure of the organization was a result of the leaders during the period, he sacked them and made various adjustments.

Every organization has its own strengths and weaknesses. Similarly, Apple Inc has several strengths and weaknesses. The company has a number of strengths that have significantly contributed to its success. On the other hand, its weakness undermines its effort to retain its high-level performance.

The company has enjoyed a stable line of products which is easy to use. Over the recent past, the company has integrated its operations with Microsoft products, and others have helped the company in developing a wide customer base. The company has managed to retain a high level of innovation.

This has enabled it to introduce high-quality products with more features. For instance, the company introduced ipad2 early this year. The ipad2 has come with a wide range of features that have attracted a wide range of customers. In addition, this product (iPad2) has a long-life battery that can last for ten hours. This is a major improvement since most of the similar products have low battery life.

Apple Inc has also enjoyed financial stability. The company has adequate cash reserves, a fact which has helped the company in funding activities like research which fosters innovation.

The company has also managed to retain a high level of innovation. This has been realized through continuous research and development. The management has realized the need for research to maintain continued innovation and development in its product.

Therefore, a significant amount of funds is allocated to the research operations. Research processes have also enabled the company to improve the quality of its products with time. This has helped to increase the level of customer satisfaction.

Apple Inc has already developed a strong brand. This has developed a strong relationship with its customers hence forming a stable customer base. The company’s products have a good reputation throughout the world. It is, therefore, even easier to market its products in the global market.

In other words, a strong brand name has increased efficiency and reduced operational costs in the company. It costs a lot in terms of financial and time resources for an organization to build such a strong brand. Therefore, this provides a great opportunity for the company.

In every organization, the working personnel plays an important role in determining the performance of an organization. Some leaders can dip an organization into failure, while others can promote success. Steve is one of the most important leaders who have been of great importance to Apple.

Before he joined the company, Apple experienced hard financial situations which threatened its existence in the increasingly competitive market (Malhotra 2007). The company was also characterized by a low level of innovation before Steve joined the management. However, soon after joining the company, he made drastic changes that led to changes in operations that encouraged innovation and fostered new ideas.

Despite of wide range of strengths associated with Apple Inc, the company has some weaknesses. These weaknesses have tended to threaten the company’s efforts to achieve its goals and realize its missions.

Apple Company has been one of the strongest players in the United States market. Over the past, the market has been faced with tight economic difficulties. The saturation of the US PC market has even made things worse. The company is therefore forced to spend a lot of cash at the expense of increasing market pressures without strategic innovation integration.

Opportunities

Apple has several opportunities which form room for further improvements. For instance, the company has the opportunity to develop its music player and iTunes into mobile phone format (Datamonitor 2006). This provides a great opportunity for the company as it will help in expansion.

Another opportunity for the company lies in the wide range of its wireless products. The demand for wireless products is expected to increase in the future. Therefore, the company will be able to increase its sales in the future. The market will expand, and the company will be able to increase the number of its customers. Apple has positioned itself with the necessary resources in order to benefit from this growth (Datamonitor 2006).

For instance, the company has managed to come up with a wireless technology known as Airport. Through this technology, users can create computer networks and enjoy the internet without necessarily having cables (Datamonitor 2006). Through the Airport technology, users can access a high rate speed at a radius of 150 feet from where the airport base is located. This opportunity will provide a good base for the company’s growth.

In March 2006, Apple’s market share in the US for MP3 players increased to 78% from 71% in December 2005 (Datamonitor 2006). However, the company’s performance in the international market remained relatively lower. The company is planning to penetrate further in the international as well as the domestic market. This will help in increasing the company’s market share.

Apple Inc Company has been faced with several threats in its effort to expand its market share. One of the major threats that face the organization is strong competition. The company is faced with a very high level of competition in all its fields of production, ranging from software to hardware, among other products. The industry is also characterized by a very high level of innovation which has led to the introduction of new products in the market with performance, price, and feature competition.

This competition has resulted in price wars. Some of Apple’s competitors have significantly lowered the prices of their products in an attempt to increase their market share. As a result, Apple’s financial status may continue to deteriorate since the level of competition is continuously rising. This leads to a reduction in the profit margins.

Another threat facing Apple Inc company is the slowdown in the Eurozone economy. This may be accompanied by a high level of unemployment. As a result, the level of spending falls because disposable household income is relatively low. A household bubble that may burst at any time also poses a big danger to the economy. These economic uncertainties affect the level of spending negatively, a thing that has led to a significant cut down in information technology products.

In the contemporary world, every organization has its own strategies aimed at realizing its individual goals. However, the most important things to consider are the effectiveness of these strategies. An organization may implement strategies that may be of little importance in a given situation. Therefore there is a need for preparations in order to have effective policies.

Policy diamond contains various facets, which include Arenas, Vehicles, Differentiators, Staging, and Economic logic. The facet arena implies that the strategy must match the market arena. For instance, Apple Inc locates its stores in the areas where its customers are located.

This helps the organization in maximizing its sales by utilizing the available opportunities while minimizing its costs. Differentiators are unique features of the firm. In this case, Apple has managed to manufacture both software and hardware. This differentiates the company from other companies. Through these differentiators, Apple is able to achieve positive performance (economic logic).

Vehicles, on the other hand, help an organization in applying its strategy to reach its destination. Apple has been using internal development to realize its goals. The company has intensified research which has helped maintain continuous innovation. Research helps in the generation of new ideas and therefore promotes innovation.

As already noted, Apple Inc has recorded a commendable performance over the past. An effective business strategy that the company has applied has to a greater extent, contributed to its success. Most of the successful companies have managed to develop and execute effective business strategy. This can clearly be described through the strategic positioning model.

It has been revealed that the main problem which Apple faces is competition. In order to overcome this problem, there is a need for the company to have an effective strategic positioning. Through this strategy, Apple has managed to position itself among other organizations in such a way that it has managed to stand out from many.

Apple’s strategic target is in a broad industry and characterized by broad differentiation. Apple has managed to differentiate its product through innovation. This has been the main factor that has promoted the company’s success over the past. A good example is when Apple dominated the PDA market when it introduced Newton in 1993.

Later, the company introduced into the market iMac, which was a device that was easy to use. These were just some of the innovations which the company has developed. Through the strategy of the product differentiation, Apple has managed to reduce threats that are posed by a high level of competition. Although differentiation comes along with a cost, this cost acts as an entry barrier to other companies.

In its effort to maximize its performance and profitability, Apple has applied a diversified strategy in its production operation. Apple Inc is involved in the production of both hardware and software. The company has managed to apply its wide range of competence to manufacture software and hardware that are compatible to maximize the performance of its products. The company also has resources that are necessary for the production of both software and hardware.

Apple Inc is also involved in the production of various computers. These include iPhones, Pad, Macintosh, and Apple TV, among others (Baxter 2010). This has helped the company to make maximum use of its available resources. For instance, the company is able to distribute its resources in various businesses hence saving on costs.

Each of the company’s business is focused on a number of product types. For instance, notebooks and desktops are two kinds of products under Macintosh. Through such a strategy, the company minimizes costs because various product lines can share resources. The products may also supplement each other. This strategy has significantly helped the company in maximizing returns.

In the contemporary world, where the level of competition is extremely high, the need for a high competitive advantage has increased. Organizations with a high level of competitive advantage are mostly the top-performing in their respective industries.

Apple success can, to some extent, be attributed to its competitive advantage. For instance, the company has managed to retain a high level of performance while other companies face hard times. Apple has remained unstoppable while its competitors face difficult times.

Since its development, Apple has managed to differentiate its products. This is unlike its competitors, who are now struggling to differentiate their products. The company has managed to develop both software and hardware. This combination has improved the quality of their products because they can manage to develop the software which is most compatible with its hardware.

The company is led by the principle that an organization that is serious about coming up with effective software must also be serious about developing effective hardware (Bajarin 2009). This is because in case one of these is not effective, then the resultant performance will be poor.

Therefore, in order to satisfy the needs of their customers, Apple Inc has managed to manufacture both the software and the hardware. This strategy has significantly enabled Apple Inc to maximize the value of its software. This strategy has also helped the company to win a significant proportion of the market share.

For instance, the company has managed to make high-performing software known as iLife (Bajarin 2009). This software is the best of the software used in creating music, DVDs, and movies, among other functions.

In other words, Apple Inc has managed to handle successfully the production of both software and hardware. Many companies deal with either software or hardware. This combination is demanding, and therefore most of these companies are forced to specialize in either production of software or hardware.

This has undermined the value of their products since they have to rely on products from other organizations for compatibility. For instance, a company specializing in the production of hardware will rely on software from another organization. Therefore, it is a great opportunity for Apple to handle the production of both.

Another Apple’s competitive advantage lies in its retail strategy. The company has come up with a strategy of coming up with its own retail stores. However, their idea to come up with their own retail stores was received with a lot of pessimism since many companies had tried and failed in this strategy before.

Contrary to this conception, Apple did very well after launching its own retail stores. The main reason why Apple retail stores were successful was that the company managed to identify the factors which contributed to the failure of many companies that attempted to open their own retail stores.

The main reason why these companies failed was because of improper identification of the best location or even lack of priority. Apple managed to make perfect decisions in both cases. This has helped the company reduce its operational costs, a thing that has helped in increasing its profitability.

Apple has emphasized the need for good services for its customers. It has been extremely careful about how people buy its products. Apple authorized small shops where it ensured that they provided all Apple products and accessories. In addition, these outlets provide repair and support for the customers.

By recognizing the need for quality service for its customers, Apple Inc has managed to maintain quality service for its customers throughout its market network. Close interaction with its retail shops has also enabled the company to build close relationships with its customers, a priority that most organizations in the industry have not managed to access. Previous research has indicated that most of the company’s customers prefer buying from the company’s stores (Bajarin 2009). This can be attributed to the quality services offered by these stores.

Through these arrangements, Apple Inc has managed to maintain an effective support strategy. By provision of repair services and support to the customers, it generates even more sales. For instance, the customers can shop for other products in the store as they wait for their repair to be completed.

This interaction has also enabled the company to have direct conversations with its customer as well as their potential customers. This provides good information to the company for future decisions. For instance, the products may be modified depending on the needs of the customers.

The VRINE model gives an analysis of Valuable, rare, inimitable, or non-substitutable resources that an organization has. The ability of an organization to access such kinds of resources or products contributes to developing its competitive advantage.

Apple has managed to differentiate its products through innovations. By maintaining continuous innovations in its products, Apple has managed to offer unique products in the market. This has helped the company in attracting and retaining a large number of customers.

Through research and development, Apple has managed to acquire patents. This protects the organization’s contributions from imitation. Therefore, exploitation of such resources is restricted and therefore offers a great opportunity for the company.

However, the industry has been faced with a very high level of competition, a factor that has forced the company to improve its products to retain its customers. Apple has also managed to provide both software and hardware. This provides a good opportunity for the organization because it can be able to develop the best compatible software for their hardware.

Apple has a very successful value chain which has been characterized by a high level of achievement. Apple Inc distributes its market all over the world. Therefore, the company distributes its products to people from diverse cultural, geographical, administrative, and economic backgrounds.

This can be viewed in terms of cultural, administrative, geographic, and economic distance framework (CAGE distance framework). CAGE distance framework helps in identifying and assessing the impact of distance on various industries (Ghemawat 2001).

For instance, the European economy is different from the American economy. The economic condition can significantly affect the performance of a product in respective markets. For instance, the economic downturn in the Euro region in 2005 led to unemployment and other economic uncertainties, which led to cutting down on spending on electronics. This situation posed a major problem to Apple since the company’s level of sales fell significantly.

The BCG matrix has been used by several organizations in their effort to realize their goals. The chart is mostly used to assist large organizations like Apple Inc in making critical decisions on how to allocate their financial resources accordingly. The BCG matrix is very helpful to Apple Inc because it helps the organization in allocating resources in the best way. As already noted, Apple is involved in a number of businesses. For instance, it produces both software and hardware, which is not the case with many organizations.

Through the BCG matrix, an organization categorizes its business into units. These include stars, cash cows, question marks, and dogs. On categorizing their business units, the business would then move its finance from cash cows to stars and question marks that have higher growth rates. For instance, Apple’s new products, like iPad2, have a high level of demand. Therefore, more money should be allocated to its production.

From the discussion above, it is clear that Apple Inc has recorded a commendable performance in the computer industry. The company has managed to provide quality services to its customers to a level that the majority of organizations have not managed to achieve. The company has also managed to maintain continuous innovation. This has helped it to differentiate its products.

However, the high level of competition in the industry has subjected the company to a big risk. The cost of production has also increased which has posed a threat to its financial stability. Therefore, there is a need for the company to consider coming up with necessary measures to eliminate these threats.

To start with, there is a need for the company to consider production costs. This can be achieved by considering the application of the most efficient methods of production, which minimizes their costs. For instance, the company may consider relocating some of its production functions to regions where it can access cheap labor.

It is also advisable for the company to consider formulating an effective knowledge management strategy. Knowledge management will help the company in improving the performance of its employees. When employees’ productivity is high, the company will be able to reduce its average cost per unit of production.

This strategy will help in reducing the total production costs effectively. Knowledge management will also help in maintaining continuous innovation hence attracting more customers. It is also advisable for the company to consider intensifying its research activities. Research is the major key to innovation.

Another way through which the company can overcome this problem is by increasing the number of its retail stores to allow its customers to access their products easily. This will also help in advertising the company’s products. By so doing, Apple Inc will manage to expand its market share despite the high level of competition. All these strategies will help Apple Inc in overcoming threats posed by increasing levels of competition and increasing costs.

Bajarin, B. 2009. Apple’s Competitive Advantage . Web.

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  • Chicago (A-D)
  • Chicago (N-B)

IvyPanda. (2023, August 28). Apple Strategic Management: Planning and Management Process — Apple Company Essay. https://ivypanda.com/essays/strategic-management-apple-company/

"Apple Strategic Management: Planning and Management Process — Apple Company Essay." IvyPanda , 28 Aug. 2023, ivypanda.com/essays/strategic-management-apple-company/.

IvyPanda . (2023) 'Apple Strategic Management: Planning and Management Process — Apple Company Essay'. 28 August.

IvyPanda . 2023. "Apple Strategic Management: Planning and Management Process — Apple Company Essay." August 28, 2023. https://ivypanda.com/essays/strategic-management-apple-company/.

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Apple calls on global supply chain to decarbonize by 2030

Montague Wind Power Project wind farm in eastern Oregon.

Mobilizing Supply Chain Climate Action

Expanding Clean Energy to Address Customer Product Use 

A large-scale solar panel project in Brown County, Texas.

Advancing Equitable and Financially Viable Climate Solutions Around the World

Community members take part in a participatory design session in Zimbabwe.

  • In Namibia and Zimbabwe, Apple is working with the World Wildlife Fund (WWF) to promote climate resilience and sustainable livelihoods through the Climate Crowd program. Climate Crowd works hand in hand with communities facing the worst impacts of climate change to build resilience and develop alternative livelihoods that depend on the preservation and restoration of natural resources in the region — from climate-smart agriculture to beekeeping and rainwater harvesting. In this region, the program also supports interventions like clean cookstoves that help communities get the critical energy resources they need without depleting the natural resources around them.
  • In China, Apple has partnered with China Green Carbon Foundation to conduct research, demonstrate best practices, and build stakeholder networks around the goal of increasing the amount and quality of responsibly managed nature-based carbon sinks. The partnership will support identifying and mapping prioritized areas in the Sichuan province, as well as developing best practice guidelines and methods for forest management that could be replicated in other regions. Apple will also support a pilot in Chengdu to demonstrate carbon removal potential in urban and semi-urban areas, which will help establish best practices for carrying out carbon removal projects in urban areas of China, and improve climate adaptation and resilience.
  • In the Chyulu Hills region of Kenya, Apple has partnered with Conservation International since 2020 to demonstrate that improved livestock management can help restore crucial rangelands, store carbon, and build climate-resilient pastoral livelihoods across Africa. To date, the project has trained hundreds of local Maasai community members in updated rangeland management techniques, including more sustainable grazing practices, reduction of soil erosion, natural regeneration, and the creation of women-led grass seed banks.
  • In Europe, the Middle East, and North Africa, Apple is launching a new partnership with ChangemakerXchange to strengthen climate action and leadership in the region. By creating a network to connect, build, and uplift youth-led climate innovation, Apple will help link solutions to funding opportunities and enhance climate leadership skills. The initiative will launch in Egypt at the UN Conference on Climate Change (COP27), and over the next two years will support a group of 100 change-makers and social innovators — 50 from Europe and 50 from the Middle East and North Africa.

Text of this article

October 25, 2022

The company accelerates work with suppliers to decarbonize Apple-related production, and expands investments in clean energy and climate solutions around the world

Apple today called on its global supply chain to take new steps to address their greenhouse gas emissions and take a comprehensive approach to decarbonization. The company will evaluate the work of its major manufacturing partners to decarbonize their Apple-related operations — including running on 100 percent renewable electricity — and will track yearly progress. Apple has been carbon neutral for its global corporate operations since 2020, and is laser-focused on its ambitious goal to become carbon neutral across its entire global supply chain and the life cycle of every product.

As the impacts of climate change are increasingly felt around the world, Apple also announced new initiatives and investments aimed at helping decarbonize the global economy and promote innovative climate solutions for communities. These include significant investments in renewable energy in Europe, partnerships to support businesses transitioning to clean energy, and new support for projects that advance natural carbon removal and community-driven climate solutions around the world.

“Fighting climate change remains one of Apple’s most urgent priorities, and moments like this put action to those words,” said Tim Cook, Apple’s CEO. “We’re looking forward to continued partnership with our suppliers to make Apple’s supply chain carbon neutral by 2030. Climate action at Apple doesn’t stop at our doors, and in this work, we’re determined to be a ripple in the pond that creates a bigger change.”

As part of Apple’s supplier engagement, the company is partnering with its worldwide supply chain to urge accelerated action to achieve carbon neutrality for their Apple-related corporate operations. The company requires reporting on progress toward these goals — specifically Scope 1 and Scope 2 emissions reductions related to Apple production — and will track and audit annual progress. Apple will partner with suppliers that are working with urgency and making measurable progress toward decarbonization.

Additionally, Apple is encouraging suppliers to address the greenhouse gas emissions beyond their Apple production, prioritizing clean energy. As part of the company’s work to achieve its 2030 goal, Apple has reduced its emissions by 40 percent since 2015, largely through improvements in energy efficiency, low-carbon design, becoming carbon neutral for corporate operations, and transitioning its supply chain to renewable electricity.

More than 200 suppliers representing more than 70 percent of Apple’s direct manufacturing spend have already committed to using clean power like wind or solar for all Apple production. Major manufacturing partners — including Corning Incorporated, Nitto Denko Corporation, SK hynix, STMicroelectronics, TSMC, and Yuto — have committed to power all Apple production with 100 percent renewable energy.

To help suppliers meet their commitments and go even further, Apple offers a suite of free e-learning resources and live trainings through its Clean Energy Program, and works closely with its suppliers and local partners to identify effective solutions for renewable energy and carbon removal. More than 150 supplier representatives have participated in live trainings this year alone. Apple plans to donate these resources to create a first-of-its-kind public training platform that is free for businesses across many different industries, ensuring that companies of all sizes — in Apple’s supply chain and beyond — will have access to the resources and advocacy networks needed to speed their transition to 100 percent clean energy and carbon neutrality.

As part of Apple’s commitment to clean energy, the company has sourced renewable energy to power all of its corporate offices, retail stores, and data centers in 44 countries since 2018, and its suppliers have brought more than 10 gigawatts of clean power online around the world. Building on this progress, Apple plans to facilitate the construction of large-scale solar and wind projects in Europe, with projects ranging between 30 and 300 megawatts — following an initial request for proposals issued earlier this year. Over the next several years, the company aims to procure enough renewable energy to power all Apple devices on the continent with low-carbon electricity, while continuing to power corporate offices, retail stores, and data centers with 100 percent clean energy. In total, the planned investments will add 3,000 gigawatt hours per year of new renewable energy on the grid.

The European investments are part of the company’s larger strategy to address the approximately 22 percent of its carbon footprint that comes from the electricity customers use to charge their devices. Wherever possible, Apple plans to bring clean energy projects online in grids with high carbon intensity, enhancing the impact on Europe’s electricity sector at a time when renewable generation is critically needed. Earlier this year, the company announced new renewable energy projects in the United States and Australia designed to address customer product use.

Customers in the United States can now play a role in decreasing the carbon footprint of iPhone with Clean Energy Charging. Available starting this month in the United States through iOS 16, the new feature looks at the sources of the electricity during expected charge times and optimizes for when the grid is using cleaner energy sources like solar or wind. To continue to advance climate-smart decision-making for customers, employees, and partners, Apple has joined the University of California, Berkeley’s CoolClimate Network , a research partnership to motivate and empower individuals and organizations to make low-carbon choices.

Apple today also announced three new projects through the Restore Fund, a first-of-its-kind carbon removal initiative that aims to generate a financial return while removing carbon dioxide from the atmosphere. In partnership with Conservation International and Goldman Sachs, Apple has invested with three high-quality forestry managers in Brazil and Paraguay to restore 150,000 acres of sustainably certified working forests and protect around 100,000 acres of native forests, grasslands, and wetlands.

Together, these initial forestry projects are forecast to remove 1 million metric tons of carbon dioxide from the atmosphere in 2025. To ensure accurate monitoring, reporting, and verification of the projects’ carbon removal impact, Apple is working with partners to analyze satellite imagery and deploy innovative remote sensing technologies.

As Apple continues to make progress reducing emissions by 75 percent by 2030, the company prioritizes high-quality nature-based solutions for the 25 percent of remaining emissions that are unavoidable with existing technologies. At the same time, Apple is working to spur entirely new solutions, including through support for analysis by Carbon Direct identifying pathways for developing sustainable aviation fuels.

In addition to the Restore Fund projects, Apple today announced new partnerships to advance community-driven climate solutions around the world:

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apple inc strategic plan

External (Opportunities & Threats)

Opportunities.

As the demand of Apple’s iPhone is increasing dramatically in the outside of the US market, it has huge scope to include more features in single i-phone devise by applying the advance technology and research outcomes though the price of this product is too high. However, it has strong financial capability order to create a large customer base by implementing a cooperative strategy like a joint venture, and merger with multinational companies creates the opportunity to spread out its iPhone business rapidly; for example, the objective of a joint venture agreement between Apple and IBM was to form Taligent to introduce the revolutionary new operating system.

According to the annual report of 2010 Apple, the economic situation could adversely influence this Company as its operations and performance depend extensively on global financial conditions; so, the company will face challenges if its operating system of iPhone products depends on the performance of distributors, staff and other third parties. On the other hand, competitors are the main threat to Apple’s iPhone as competitors can change customers’ choices by implementing different strategies with quality features, for example, IBM entered in the PC market with pioneer products at competitive price in 1981, and introduction of other similar products reduced the market share of Apple’s iPhone. Other threats are – the market environment being extremely dependent on the rapid technological change, problems to expand its iPhone products in the Asian market, and the risk of legal litigation due to the accession of third parties’ intellectual property. On the other hand, many firms produced similar smartphone products without patents and fix comparatively lower prices, which really a threat to Apple’s iPhone, for instance, Microsoft copied the graphical user interface, and some other companies copy the features of the i-phone and sell without any permission

An Opportunity

This paper concentrates on the prospect of iPhone’s latest model in the global market as this company earned large profit from this product. However, iPhone is a communication device innovated by Apple integrating GSM 2 technology and Information Technology where the most popular i-pod functions are added and the users are facilitated to telecommunication and internet applications.

Long-Term Objectives

Apple is intended to increase annual sales revenue from the worldwide operation of key products like the iPhone by 25% within the next five years, so It will increase its annual budget for R&D by 200% within the fiscal year 2016 in order to conduct research more attentively to find out proper solutions over the competitors. In addition, it has aimed to carry on the IMC program to develop customer awareness about the iPhone products of this company by 30% to 45% within the next five years, therefore, it will increase the budget for promotional activities by 80% within the next five years to strengthen the brand image of Apple’s iPhone to the global customers.

The Internal Assessment

Internal audit.

Stronger factors of internal audit involve high revenue generation from iPhone, iTunes music store, personal hardware and software, restoring notebooks and desktops, technological sophistication, low debt, etc. Conversely, weaker issues consider less integration with Intel and Microsoft, backward globalization, low profit from high demand items, etc. (Apple Inc, 2010).

Production/ operation, management and marketing

The Company’s operating criteria are run by the production of some products and operation of some services. Major products include iPhone, iPod, iPad, iLife, iWork, Ios, Mac OSX, and TV, etc. Services involve online, app and iTunes stores, Mobile Me and iBooks. It operates five sections, which are liable for developing its offerings along with evaluation and production of computer, software and peripheral tools. Additionally, it holds product assistance sections that are responsible particularly for the marketing, allocation and after-sale support, like- The north American, European, Communications and Markets Marketing Division. Apple also has several administrative divisions for managing its daily organizational affairs, like- The finance, Legal Service and HR divisions (Freedman and Vohr, 1998).

After the period of reorganization, Apple’s i-phone has been trying to make a better fit between its production and marketing strategy. Such efforts have been reflected by the practice of customer-oriented order fulfillment and delivery system, integration with third- parties for software improvement, market penetration through branding and niche marketing, development of the new products through recognizing speech and virtual reality (Freedman and Vohr, 1998).

Finance and accounting perspectives

Apple provides software-enabled for operating the corporate accounting, payroll as well as other organizational requirements on their items. In 2010, Apple-owned $75.18 billion of assets, $47.79 billion of equity, $65.23 billion of revenue, $18.39 billion of income and 14.01 billion of net profit (Apple Inc, 2011).

By analyzing the company’s balance sheet from 2001 to 2005, it can summarize that the sales price has been increased from $1.02 to $3.21, book value from $1.39 to $6.0 and net profit margin from -0.7% to 9.6%. From the same time frame, its book value per share raised from $5.59 to $8.94, debt-equity from 0.08 to 0, ROE (Return on Equity) from null to 17.9% and ROA (Return on Assets) -0.6 to 11.6% (Apple Inc, 2010). However, the following figure shows that Apple’s iPhone captured a 27.9% share of the US market –

Market position of Apple’s iPhone in the US market. 

Research and development and MIS

The internal and external R and D costs of Apple Inc. has been raised by 20% as $224 million to $1.3 billion from 2008 to 2009. The general reason for which Apple tends to spend such a huge amount is that it wants to have technological sophistication through such practice. Moreover, $11 million has been used for developing software in 2008. Such expenses also assist the company to sharpen its revenue stream, capitalizing on future growth along with actionable position and time-wise expansion of new and modified versions of products as the major part of its organizational strategy.

The role of proper information flow in the company’s MIS system is distinctive since such information assists the company in proper recording, processing, routing and tabulating all the corporate transactions. The MIS department of Apple is responsible for tracking sales data and inventory (Apple Inc, 2011).

According to the IFE matrix, the key internal strengths and weaknesses of a company’s iPhone segment are weighted and rated, and finally, the overall weighted score is calculated. Based on these considerations, several internal stronger and weaker points of Apple can be listed for the further rating (Apple Inc, 2011), such as-

Value chain analysis

The value chain is the entire process through which the company can create value for its products and services for the final consumers. Thus, the value chain process of Apple Inc. consists of several stages circulating from raw materials suppliers to the users. Those stages involve content, advertising, manufacturing, distribution, hosting, promotion, finding and so on. Through each such stage, the company adds value to its distinctive offerings in terms of associating with various disputes and scopes. Collaboration is one of the most important characteristics of Apple’s value chain. For developing its major products such as iPod along with Macintosh, the complete offer is enclosed within the package by keeping such chain preassemble. By altering the vendor from IBM to Intel for the popular Macintosh, it has improved the performance of the chain by gaining an improved price from the customers than before. By assessing the customers’ preference, Apple’s iPhone basically differentiates this item in terms of quality and promotion for brand development throughout each phase of the value chain. At the international level, it had introduced a “multimodal” strategy with a network model that adjusts the domestic market, and behaves like a local with a mother entity support as a single distribution chain (Freedman and Vohr, 1998).

SPACE matrix

For the strategic evaluation of Apple by SPACE matrix, it is necessary to rate the company’s financial and industrial strength, environmental stability and differential advantage (Apple Inc, 2011), such as

Here, the points to produce the graph is –

X-axis = CA + IS = -10 + 18 = 8

y-axis = FS + ES = 20 – 17 = 3

Position of Apple’s i-Phone on SPACE matrix. 

Decision stages

Decision making for Apple’s iPhone occurs at various phases. For example, it takes rational decisions for choosing options between the strategic alternatives by considering hypothesis, commitment, representation and control. Various phases of decisions involve new features in iPhone products, partnership or collaboration, daily operations, employment and formulation of distribution network decisions,s etc. (Freedman and Vohr, 1998).

Grand strategy matrix

This model is helpful to determine the corporate position in terms of market growth and position in the market. Among the four quadrants, Apple can be positioned in quadrant four, which shows that the company is in a slow market growth situation with strong competitive positioning global market though it has the strongest growth in the US market. Here, Apple’s iPhone basically occupies a favorable position with the option of corporate diversification into this sector as it would like to concentrate more on the Asian market (Apple Inc, 2011). As below-

Apple at Grand strategy matrix.

The External Assessment

External audit.

The external audit is also assessed by the external scopes and challenges (Sooper Tutorial, 2009). That are-

PEST analysis

PEST analysis is highly effective for analyzing the external environment where Apple’s iPhone is competing whether it is the domestic market or a foreign one. Thus, this analysis enables the firm to consider various aspects of macro-marketing variables within the contexts of political and legal, economic, socio-cultural and technological factors (Griffin, 2006). Such as

  • Political factors: – Regarding political factors, Apple’s iPhone considers the stability of government in both national and international operations expanded in Europe and Asia. Additionally, trade and market policy, and trade agreements with the government are also significant.
  • Economic factors: – Economic factors involve long and short-term economic trends not only in the USA but also in Japan, France, Scandinavia and West Germany, etc. Inflation and employment rate, GNP and GDP, and rate of exchange are also significant.
  • Socio-cultural factors: – Socio-cultural factors are most influential for basically international operations regarding religion, language, demographic data and ethical involvement, etc.
  • Technological factors: – Finally, technology is foremost for Apple’s i-Phone since it is running within a high growth of technological age. Quality, innovativeness, user friendliness are some essential featured of its technological environment (Freedman and Vohr, 1998).

Porter’s 5 forces model of competition

Threat for new entrants for mobile or smartphone devices is comparatively low for those companies which are already serving the electronics segment as Apple doing. Higher capital investment, R and D and product development costs are some specific reasons for such entry barriers.

Suppliers of this industry are powerful enough and can influence producers’ performance with a higher prices and inferior quality of raw materials.

On the other hand, the threat of substitute for Apple’s iPhone product is very high because many firms in the industry try to introduce new upgrade substitute products like Nokia introduced Nokia N97.

Buyers are also powerful since they want newer requirements and features to be installed on their mobile phones, laptops or PCs. Many firms are following disintermediation for diminishing the power of customers, like- Motorola and Dell. Various substitutes of cell phones are limited to landline and VOIP (Voice over Internet Protocol). PC market also has limited alternatives.

Finally, Apple’s iPhone has to compete with a number of strong rivals in PC segment, like- Dell, Microsoft, and Intel. The mobile phone segment involves Motorola, Nokia, and Samsung etc. (Freedman and Vohr, 1998).

BCG Matrix of Apple

Apple can categorize its iPhone segment by using the Boston- consulting group approach since BCG Matrix is a strategic portfolio planning, where the business units of production are classified into four different groups in accordance with market growth and related share (David, 2008). However, the following figure will demonstrate four specific groups as it is a useful tool to determine the business position in terms of the profitability of Apple.

 The BCG Matrix of Apple’s iPhone.

According to the situation of a Cash cow, the market growth of a Cash cow is small though the relative market share is high, therefore, it should require less investment than Dogs to sustain in a market where Apple’s position is not to match with the position of Cash Cow. On the other hand, Dog occupies the worst position because both its market share and growth rate are not satisfactory.

In contrast, the position of Question marks indicates high growth and low-shared firms; consequently, it necessitates abundant resources of cash to continue its operation and move alone to increase them.

The segment of Apple’s iPhone is the most significant part in this case, which is located in the upper part of the left-hand side of the diagram. This figure, it demonstrates that iPhone is now in the highest position in the matrix and it shows that iPhone occupies a larger market share with a better growth rate than all of its competitors in the global smartphone market. Therefore, it should necessitate low investment than others and, it can hold a perfect market share for a long time by implementing its strategic decisions.

External Factor Evaluation (EFE) matrix for i-phone

This matrix is used to accumulate competitive intelligence data from the external setting of the company. The same variables as mentioned in the external audit section are measured here (Sooper Tutorial, 2009), such as-

In the Competitive Profile Matrix, the company reflects on all of the internal as well as external factors to assess its success variables against the major competitors (Sooper Tutorial, 2008). As-

TOWS Matrix

TOWS Matrix indicates the scope of the business to facilitate the external threats and opportunities comparing with internal weakness and strengths. As a market leader with brand value, and innovative technology, Apple enjoys its strength by modernization of services and capturing the US market the in Smartphone sector. Here, high prices, increased debt, expensive technology, low operating margin, and dependence on resellers stand as its weakness. However, the following figure explains mire elaborately

Figure 8: TOWS Strategic Framework for Apple Inc.  Source: Self-generated from Weihrich (2010).

Select a Strategy

Quantitative strategic planning matrix (qspm).

This matrix is quite similar as the IFE matrix with some exceptions (Sooper Tutorial, 2009). Such as-

Here, Attractiveness Score: 1 = not acceptable;

Attractiveness Score 2 = possibly acceptable;

Attractiveness Score 3 = probably acceptable;

Attractiveness Score 4 = most acceptable;

According to the matrix, Apple has enough capability to expand its iPhone business in international market as well as it can continue its business in national market.

Strategic Implementation and Control

Apple should try to implement the suggested strategies as it has a strong financial base to adopt these strategies in the future operation of the products in the global market. However, this report has concentrated on the external opportunities and threats to find out its prospective sectors and related problems. Illegal production or production of similar products without patents, slow development of the retail sector, unsafe investment in the retail sector, and intense competition are the key problems of the company, it should require taking some initiatives. Apple should increase gradually the opening of retail stores to increase i-phone sales though increasing numbers retail stores is the subject of huge investment, but it must focus on its internal control system to avoid any uncertain situation in the case of marketing.

However, managers must arrange a quarterly meeting with retailers and periodically visit stores to assess performance and the gradual improvement, iPhone sales position, and current financial and marketing status of the stores. It has to identify the operational barriers and address any negative trends to bring future success; therefore, the top management, HR managers, and other regular staff will act as a team in order to control operation departments, manage selection departments, and arrange training programs. In addition, the management should review the strategies and market survey reports to widen the features of its iPhone products as competitors are always eager to launch innovative features in their Smartphone items. However, financial and non-financial benefits are two major benefits of this management while ethics should be incorporated from the mission to all sorts of the corporate culture. Finally, the marketer of this company should identify the uncertainty in terms of return on investment capital and survey the market frequently to collect feedback from the customers.

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  • Public Company Accounting Oversight Board (United States).
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Apple's freshest design might just be this puffy space-age carrying case

  • The Apple Vision Pro travel case may be the tech giant's freshest look. 
  • Product reviewers say the puffy, wrinkled case priced at $200 looks futuristic and space-like. 
  • Some believe the look is different from Apple's typical product designs. One designer disagrees.

Insider Today

Apple products appear to be sporting a new aesthetic with its case for the Vision Pro.

The Apple Vision Pro travel case is a white, bulbous pouch designed to protect the $3,500 mixed reality headset when carried on the go. The outer shell is made out of ripstop: a nylon material often used in outdoor gear to make products like tents durable and waterproof, according to Apple . It's an aspect of the case that, at first glance, makes it visually stand out from Apple's product line of cases for devices like the iPhone — and some appear to be taken aback by its design.

"I think it's the most un-Apple thing they've done for so long," Derrick Gee, a TikTok user, said in a video he posted on his thoughts about the Vision Pro case. "I think the design team had a lot of fun making it."

@gee_derrick My fav Apple Accessory is a…puffy case? #design #applevisionpro ♬ original sound - Derrick Gee

Apple didn't respond to Business Insider's request for comment when asked about the case.

Gee isn't the only tech reviewer noticing Apple's seemingly unusual product design. In a YouTube video review of the case, Faiz Aly described its look as "futuristic" and reminiscent of a NASA space suit. TechWeWant , a YouTube channel that reviews the latest tech products, said in its assessment that the bag looks and feels like a pillow and sleeping bag. Matt Gray said he could imagine himself resting his head on the puffy case during a flight.

"They want to evoke this feeling of not the recent future, but the future that we all think about, which is space travel or something from another world," Gee said in his TikTok video.

While some designers have taken notice of Apple's new, space-like product design, one argues that the case's aesthetic isn't that much different from the style of Apple's previous products.

Dr. Cliff Shin, an associate professor of industrial design at the University of Illinois Urbana-Champaign, says the product's overall shape is "simple" and displays "visual complexity" through its usage of soft materials that create crumples on the exterior.

The minimalist, nuanced look, the professor says, falls in line with Apple's typical design strategy that he believes the company has "excelled" at when crafting the visual language for devices like the iMac.

"I believe it is aligned with what Apple has consistently pursued thus far," Shin told BI. "While Apple has chosen a different material for the Vision Pro case—a departure from the norm—it is in line with their established design philosophy."

While the innovative appearance of the case is being lauded, people still have some qualms with it. Aly said in his video the bag is "hefty" and is unsure whether he likes the size. Similarly, TechWeWant said the case takes up most of the space in the reviewer's backpack. Gray noted its white color is "loud" and could make it "susceptible to damage and dirt."

Despite the concerns, reviewers agree that the case fits their Vision Pro headsets and accessories well. They also believe it's cushion-like surface will serve as a useful barrier to protect their expensive device.

But is the extra protection really worth the $200 price tag? Gray doesn't seem to think so — at least for its intended purpose.

"I just bought a $200 camping pillow to put my Vision Pro inside,"he said.

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  1. Apple Strategy Teardown: Where the World’s Most Valuable Company Is

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  2. A Look At Apple's Business Strategy For The Coming Years

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  3. Apple Strategy Teardown: Where the World’s Most Valuable Company Is

    apple inc strategic plan

  4. 😍 Apple company strategy. Apple's Generic and Intensive Growth

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  5. Strategia marketingowa Apple Inc-Strategia marketingowa Apple

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  6. 👍 Apple strategic planning process. Strategic Planning at Apple, Inc

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COMMENTS

  1. Apple Business Strategy: A Detailed Company Analysis

    Apple's business strategy consists of the following four elements: Focus on product design and functionality Strengthening Apple's ecosystem Improving consumer service experience Reducing the business's reliance on iPhone sales

  2. Apple's Strategy Bends the World

    Instead, the company has shifted its strategy to make more money from the gadgets that we have in our homes and pockets — in the form of app downloads, subscriptions like Apple Music, AirPods...

  3. Apple's Competitive Strategy & Growth Strategies

    Updated on January 27, 2024 by Pauline Meyer An Apple Watch. Apple's generic competitive strategy (Porter's model) and intensive growth strategies (Ansoff Matrix) are aligned to support the company's leadership in consumer electronics and information technology services markets worldwide. (Photo: Public Domain)

  4. How Apple Is Organized for Innovation

    Believing that conventional management had stifled innovation, Jobs laid off the general managers of all the business units (in a single day), put the entire company under one P&L, and combined the...

  5. Analyzing Apple's growth strategy

    July 20, 2022 Apple Artificial Intelligence Augmented & Virtual Reality Hardware Tech Payments Semiconductors & HPC Strategy Map Wellness Tech We mined Apple's acquisitions, investments, and partnerships to discern the company's emerging strategic priorities. Where is this data coming from? Start your free trial today

  6. Apple commits $430 billion in US investments over five years

    Establishing a New North Carolina Campus As part of its investments and expansion, Apple plans to invest over $1 billion in North Carolina and will begin construction on a new campus and engineering hub in the Research Triangle area.

  7. Apple Business Strategy: a brief overview

    Apple business strategy consists of the following four elements: 1. Focus on design and functionality of products. According to its business strategy, Apple has adapted advanced features and capabilities of its products and services as bases of its competitive advantage.

  8. Strategic Planning at Apple Inc.

    Strategic Planning at Apple Inc. By: Fabrizio Di Muro, Kyle Murray, Miranda Goode Apple Inc. is one of the world's most successful and most recognizable companies. Over its 30 year existence, the company had seen a lot of changes in the computer industry. What would the future… Length: 12 page (s) Publication Date: Jan 11, 2010

  9. The Core of Apple's Strategy

    Apple's do-it-their-own-way strategy was expensive even when commanding price premiums for their products. Fortunately, a new opportunity presented itself with the rise of smartphones and mobile computing. Replicating the Mac playbook, Apple entered the market with the iPhone, marrying well-designed hardware with its innovative iOS software.

  10. Steve Jobs Summed Up Apple's Entire Strategy Using Just 6 ...

    Aug 25, 2021 Steve Jobs. Getty Images On October 24, 2010, Apple CEO Steve Jobs sent a very important email. It contained the agenda for the company's upcoming "Top 100" retreat, a top secret and...

  11. Apple's Key To Success Goes Beyond Products And Services And ...

    By focusing on creating breakthrough products like the iPod, iPhone, iPad, and Apple Watch, along with a rich set of services that have recurring revenues, Apple's growth, especially since...

  12. Tim Cook Reveals Apple's 10-Year Plan For Future Tech

    Vision of the Future Apple revealed its 10-year plan for the future this week. If you don't remember that slide from the hours of presentations Apple executives made onstage during the...

  13. Understanding Apple Business Strategy

    Understanding Apple Business Strategy. Based in Cupertino, California, Apple is an American multinational company that designs and sells consumer electronics, software, and services. Apple's iPhones helped spark the dawn of the smartphone-era and have revolutionized the way the world sees phones. Apple's business strategy, though simple ...

  14. Apple Leadership

    Apple leadership biographies include Apple's executive team responsibilities and experience. Learn more about Apple's leadership team.

  15. Environment

    A first for Apple. A major step toward 2030. As our first carbon neutral product, Apple Watch marks a milestone in our plan to make all our products carbon neutral by 2030. We're cutting the majority of emissions through innovations in materials, clean electricity, and low-carbon shipping. And we're investing in nature-based projects to ...

  16. Leadership and Governance

    Board of Directors. Apple's Board of Directors oversees the Chief Executive Officer and other senior management in the competent and ethical operation of Apple on a day-to-day basis and assures that the long-term interests of shareholders are being served. To satisfy the Board's duties, directors are expected to take a proactive, focused ...

  17. Understanding Apple's Formula For Success

    However, asking Apple to invent something new suggests that those asking do not understand Apple's formula for success. It's one they repeat with every product they have brought to market ...

  18. Apple Inc. Strategic Marketing Analysis and Evaluation

    ... Volume 34 (2022) 928 have a big impact on Apple's profitability. The technological aspect in general offers Apple a sizable number of options, enabling the business to innovate and create...

  19. Apple Inc. Operations Management: 10 Decisions, Productivity

    1. Design of Goods and Services. Apple's processes in the design of its products are handled through multiple organizational components and officials. For example, Mac development and production involve a Senior VP for Hardware Engineering and a Senior VP for Software Engineering.

  20. Apple Strategic Management: Planning and Management Process

    Apple Inc has well-developed effective strategic management practices. This has helped the company to retain a high level of performance. Apple Inc has managed to offer unique products in the market, a fact that has enabled the company to win a significant proportion of the market share.

  21. Apple calls on global supply chain to decarbonize by 2030

    As Apple continues to make progress reducing emissions by 75 percent by 2030, the company prioritizes high-quality nature-based solutions for the 25 percent of remaining emissions that are unavoidable with existing technologies. At the same time, Apple is working to spur entirely new solutions, including through support for analysis by Carbon ...

  22. Strategic Marketing Plan for APPLE Inc.

    Abstract Read online This study aims to explore the inner workings of Apple Inc. to gain a deeper understanding of the company's success and to identify opportunities for further growth and improvement.

  23. Apple Rush Company, Inc. Unveils Bold Plan: Anticipates Reducing Up to

    Apple Rush Company, Inc. (OTC PINK: APRU) proudly announces strategic move to reduce up to 3 billion shares from its issued and outstanding common shares. This proactive step reflects the company ...

  24. Apple Inc.: Strategic Plan

    Introduction The main objective of this report is to prepare a strategic plan for Apple by concentrating on the model of David Fred. However, this paper focuses on the vision and mission of the company, external opportunities and threats, competitive environment, internal strengths and weaknesses, long- terms objectives and so on.

  25. Apple's Products May Have a New Look

    Yui Mok - PA Images/Getty. The Apple Vision Pro travel case may be the tech giant's freshest look. Product reviewers say the puffy, wrinkled case priced at $200 looks futuristic and space-like ...

  26. ‎Early Retirement

    ‎Show Early Retirement - Financial Freedom (Investing, Tax Planning, Retirement Strategy, Personal Finance), Ep Why Most People Pick The Wrong Asset Allocation For An Early Retirement - Feb 19, 2024