Essay

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MGMT 490-BX1
Strategic Management
Apple Inc.: Case Study
July 16, 2012

Good content and application of course concepts. Try to make better use of headings and bullets. It will give more focus and make your case easier to read
90
Current Performance
From The “Consolidated Statement of Operations: Apple Inc.” show that Apple evaluates its performance according to its operating segments based on net sales as well as evaluation based on operating income. On January 9, 2007, the company changed its name from Apple Computer, Inc. to Apple Inc. to reflect the company’s shift of emphasis to mobile electronic devices from personal computers. Apple primarily uses a geographic structure for managing its business. According to the Business Organization26, the corporation’s reportable operating segments are the Americas, Europe, Japan, and Retail.
However, all of these returns on investment, profitability and so forth came to reality because of the company’s commitment to utilize strategic management processes allowing them to make better strategic decisions that are appropriate for dealing with the complex and changing environment. Some of these decisions are mentioned in “Apple Inc.: Performance in a Zero-Sum World Economy.”
One clear benefit Apple has is the ability to design, manufacture and market its own personal computing devices including the variation of related software applications coupled with services, peripherals, networking solutions and third-party digital content that target not only the consumer market, but small mid-sized businesses, education, enterprise, government and creative markets.
It is also apparent that Apple does not only concern itself with monetary performance, but is committed to bringing the best user experience to its customers. That is providing customers new products and solutions with superiority, ease-of-use and with experience that makes integration seamless to the users. As part of Apple is successful performance, it has invested in programs to enhance reseller sales by placing high-quality Apple fixtures, merchandising materials, and other resources within selected third-party reseller locations. They continue to expend their marketplace through the App Store and iBook Store, which allowed customers to browse, search and to purchase third-party applications through either a Mac or Windows based computer. They have expanded their distribution network to be able to effectively reach more audiences and have uniquely positioned themselves to offer superior and well-integrated digital lifestyle solutions. Apple has adapted to the rapidly changing environment by investing in research and development which is focused on further developments and enhancement of new products and technologies.
Additionally, Apple continues to attract more customers because they have positioned their stores in locations that target potential buyers. Such strategy has made Apple to be one of dominance in the market place regardless of the economic downturn in the United States and around the world. Not only does the company relay on it products to appeal to customers, but provide an opportunity for users and customers to have direct contact with Apple’s experienced and knowledgeable personnel who provide product advice, service and training.
Apple continues to have great opportunities. The most important opportunity for Apple is technological innovation. They are committed to bringing the best user experience to their customers through the innovation of new hardware, software, peripherals, services, and Internet offerings. Global expansion has become a tremendously important opportunity for the company. They continue to expand and improve their distribution capabilities by opening a number of their own retail stores worldwide with increase in sales.
The increase in world mobile technology market continues to evolve as the company builds and host a robust platform for the discovery and delivery of third-party digital content and applications through the iTunes Store. Another opportunity Apple has is being able to create more products and solutions that are compatible with other non-apple products with superior ease-of-use, seamless integration to end users. Furthermore, the user experience is one of enjoyment because of “the look and feel” of their product. Not only the “look and feel”, but how easy it is for users to learn how to use Apple products such as the iPad or iPhone.
While Apple enjoys dominance in the marketplace, there are some threats that must be considered and taken into consideration. As the economy takes a downturn, and the global recovery becomes static, demand for their products will decrease because they are more expensive. Another threats posed to Apple is rivalry among competitors. In the past, Apple, IBM and Compaq-HP dominated as the mail order companies, but now, Dell and Gateway has joined therefore, increasing the level of competition. Another threat to Apple is the decrease in demand for the iPhone. Most applications on the Android phone are free and their monthly service is less expensive than the Apple iPhone. Because of this, buyers are increasingly purchasing the Android phone over the iPhone. Low cost substitute products in the industry – can also be seen as an external threat. As Apple announces new product, the rushed to buy the product is always on the raise, but after few weeks, similar low cost alternatives appear on the market – be it accessories, etc. Apple’s continuous reliance on third-party companies for delivery of goods and services adversely poses threats because to stay ahead with innovation, the company must be able offer customers the newest and latest technology and having an outside firm could undermine their interest.

External Factors | Weight | Rating | Weight Score | Comments | Opportunities | | | | | * Technological Innovation | .20 | 5.0 | 1.0 | They are committed to bringing the best user experience | * Global expansion | .10 | 4.5 | .45 | They continue to expand and improve their distribution capabilities | * Create more compatibility products | .05 | 1.0 | .05 | Non-apple products ease-of-use | * Increase in world mobile technology market | .10 | 2.5 | .25 | continues to evolve as the company builds and host a robust platform | * Easy to use internal | .05 | 1.0 | .05 | Easy it is for users to learn how to use | Threats | | | | | * Economy | .10 | 4.0 | .40 | The continue downturn of the economy | * Rivalry among competitors | .15 | 4.3 | .65 | Dell and other competitors | * Decrease in demand | .05 | 1.5 | .08 | Android phone | * Low cost substitute products in the industry | .10 | 3.8 | .38 | Rapid supplies from other vendors | * Third-party companies | .10 | 3.0 | .30 | Third-party not able to deliver on time | Total Scores | 1.00 | | 3.61 | |