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8/2/2019 Apple Inc Strategicmanagementcaser 100415024913 Phpapp01

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Innovation

distinguishes betweena leader and a

follower.

Steve Jobs


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Saad MunirZamara Amjad

Ayesha

Shaukat

APPLE COMPUTER, Inc.


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Something for you

Apple Glimpse


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Company Mission Statement

Apple ignited the personal computer revolution in the 1970swith the Apple II and reinvented the personal computer inthe 1980s with the Macintosh. Apple is committed to

bringing the best personal computing experience tostudents, educators, creative professionals and consumersaround the world through its innovative hardware, softwareand internet offerings.


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Proposed Mission Statement

Apple ignited the personal computer revolution in the 1970s with the Apple IIand reinvented the personal computer in the 1980s with the Macintosh. ThinkDifferently is a concept Apple executes with perfection, Innovation being thecore competency of the company. The company is committed to bringing the

best personal computing experience to students, educators, creativeprofessionals and consumers around the world through its innovative hardware,software and internet offerings. A challenge for the company is to shift towardsenvironment friendly production of differentiated goods. As differentiation willensure that the current profitability of the company is sustained. Apple will alsostrive to provide added opportunities for growth and enrichment of company

personnel.


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Proposed Vision Statement

Become the World Leader of innovation in the computermarket


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Porters Five Force Model

Potential entry of new competitors

Potential development of substitute products

Bargaining Power of Suppliers

Bargaining power of Customers

Rivalry among existing firms


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APPLE inc. Value Chain

Enterprise Architecture and Portfolio ManagementFinance

Sourcing, Staff and VendorsFacilities and Operations

ProcurementHardware Engineering

Demand

Relationsh

ip

Manageme

nt

Inbound

Logistics

Solution

Development

Productio

n

Outbound

Logistics

Marketingand

Sales

Service

Support

IT Enablement MAR

G

I

N

Sup

port

Activities

Primary

Activitie

s


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Internal Factor Evaluation

Strengths Weight Rate Scoreuser-friendly GUI 0.1 4 0.4

Highly Innovative products 0.07 4 0.28Brand Loyal Customers 0.09 3 0.27

Financial Strength 0.05 3 0.15

Steve Jobs Return to APPLE 0.05 3 0.15

ITunes and music store is a great source

of revenue0.1 4 0.4

Diversifications in Products 0.05 3 0.15


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Internal Factor Evaluation

Weaknesses Weight Rate Score

Weak Corporate structure 0.05 2 0.1

Low e-trade 0.14 1 0.14

Business marketing strategy 0.08 1 0.08

Market Share 0.15 2 0.3

Product sales performance 0.07 2 0.14

Weak Corporate structure 0.05 2 0.1

Low e-trade 0.14 1 0.14


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External Factor Evaluation

Opportunities Weight Rate ScoreIncrease viruses and worms on Microsoft based

systems.0.05 2 0.1

Large population is Brand Conscious 0.05 3 0.15Ties with windows can make huge user shift to

Mac0.06 2 0.12

Increasing market of downloaded music and

Mp3 Players

0.15 4 0.6

Expanding use of the Internet to sell products

and services.0.1 2 0.2

increase in popularity of internet 0.1 2 0.2


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External Factor Evaluation

ThreatsWeight Rate Score

Weak foreign economies and us economies0.04 2 0.08

High Competition between Firms0.1 2 0.2

Risk of product Piracy, copyright infringements0.03 2 0.06

Risk of product obsolescence0.05 2 0.1

Substitute product development0.07 2 0.14

Competitors charge lower prices on similar

products 0.1 1 0.1


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Porters Five Force Model

Apple Dell HP MICROSOFT IBM

Critical Success Factors Weight Rating Score Rating Score Rating Score Rating Score Rating Score

Innovation(Product

Design)0.13 4 0.52 3 0.39 1 0.13 3 0.39 2 0.26

Market Share 0.12 1 0.12 4 0.48 3 0.36 4 0.48 2 0.24

Brand Loyalty 0.09 4 0.34 3 0.26 3 0.26 4 0.34 3 0.26

Customer Service/Support 0.05 3 0.15 3 0.15 3 0.15 4 0.20 3 0.15

Diversification(Product

Range)0.10 3 0.29 3 0.29 3 0.29 2 0.19 3 0.29

Business Structure

Efficiency0.08 2 0.15 4 0.30 2 0.15 4 0.30 2 0.15

Pricing 0.08 2 0.15 3 0.23 3 0.23 3 0.23 3 0.23

History of Name 0.05 3 0.15 3 0.15 3 0.15 4 0.20 4 0.20

e-Store 0.05 4 0.20 3 0.15 4 0.20 3 0.15 2 0.10

Financial Position 0.09 3 0.27 3 0.27 3 0.27 3 0.27 3 0.27

Product Quality 0.13 3 0.39 4 0.52 3 0.39 3 0.39 3 0.39

Concern for Environment 0.05 1 0.05 1 0.05 1 0.05 2 0.10 1 0.05

1 2.78 3.23 2.62 3.24 2.58


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Boston Consulting Matrix

World growth Rate = 14.1%

Market Share Dell = 15.3%

Market Share Apple= 5%

Relative Market Share = 5/15.3= 0.326


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Boston Consulting Matrix


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SWOT


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The External-Internal Matrix


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Grand Strategy

Quadrant 1Quadrant 2

Quadrant 3 Quadrant 4

StrongCompetitive

Position

WeakCompetitive

Position

Rapid Market Growth

Slow Market Growth

APPLE Inc.


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SPACE Matrix


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QSPMAlternative STRATEGIES

Market

Penetration

Product

Development

Weight AS TAS AS TAS

Increase viruses and worms on

Microsoft based systems0.05 4 0.2 3 0.15

Large population is Brand

Conscious

0.05 3 0.2 3 0.15

Ties with windows can make

huge user shift to Mac0.06 3 0.2 2 0.12

Increasing market of

downloaded music and Mp3

Players

0.15 4 0.6 3 0.45

Expanding use of the Internet to

sell products and services

0.1 3 0.3 2 0.2

increase in popularity of internet 0.1 3 0.3 2 0.2

Opportunities


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Market

Penetration

Product

Development


Weak foreign and US

economies

0.04 1 0 3 0.12

High Competition

between Firms

0.1 3 0.3 4 0.4

Risk of product Piracy,

copyright infringements

0.03 1 0 3 0.09

Risk of product

obsolescence

0.05 1 0.1 4 0.2

Substitute product

development

0.07 1 0.1 4 0.28

Competitors lower prices 0.1 1 0.1 3 0.3

Threats


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QSPM

OpportunitiesThreats +

MarketPenetration

ProductDevelopment

2.4 2.87


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Market

Penetration

Product

Development


user-friendly GUI 0.1 3 0.3 3 0.3

Highly Innovative products 0.07

3 0.2 3 0.21

Brand Loyal Customers 0.08-2 0.2 3 0.24

Steve Jobs Return to APPLE 0.04-

3 0.1 3 0.12

ITunes and music store is a

great source of revenue 0.1

4 0.4 3 0.3

Diversifications in Products 0.05

3 0.2 4 0.2

Financing option 0.06 3 0.2 3 0.18

Strengths


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Market

Penetration

Product

Development


1. Weak Corporate structure 0.05 1 0.1 3 0.15

2. Low e-trade 0.15 2 0.3 3 0.453. Weak Business-to -

Business marketing strategy0.08 3 0.2 1 0.08

4.

Market Share

0.15 3 0.3 2 0.3

5. Product sales

performance0.07 1 0.1 4 0.28

Weaknesses


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QSPM

WeaknessesStrengths +

MarketPenetration

ProductDevelopment

4.9 5.68


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NET SALES/ CASH from SALES


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ASSET TURNOVER


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Inventory Turnover


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Gross Profit Margin


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Operating Expense Ratio


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Net Profit Margin

apple inc strategicmanagementcaser 100415024913 phpapp01

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