Internal Analysis Apple
Internal Analysis
Tangible resources
Apple’s tangible resources are extensive and widely documented despite the company’s high level of security in matters of design. The value of analysing the tangible assets of the organisation lies in the determination of the potential for the creation of competitive advantage (Grant 2007). In terms of financial resources, the case quotes Apple’s market capitalisation is approximately US $550 billion, with sales annually over $100 billion. This makes Apple the most valuable publicly traded company in the world. The share price currently stands at around $600, merely 12 years after Steve Jobs’ return to the company, where the share price was $5. Apple’s physical resources include 362 retail stores world wide, which promote sales and effective advertising. Third party manufacturing relationships are also a key aspect of Apple’s success allowing for relatively inexpensive manufacturing while all design aspects stay in-house (Masi 2009). The systems in development, design and software systems are all key aspects of Apple’s organisational and technological resources, and are closely linked to the organisation’s intangible resources due to their close correlation with knowledge and managerial capabilities.
Intangible resources
Apple’s overwhelming and unprecedented success in the technology industry undoubtedly stems from its intangible resources. The influence that co-founder and CEO Steve Jobs had on the company is undeniably accountable for its achievements. As an entrepreneur and human resource to Apple, Jobs’ managerial capabilities and innovative ideas were invaluable. The retail stores of Apple also provide intangible resources in the interaction with customers, aesthetically appealing design of the stores and technological support provided on site in the ‘genius bar’ (Jarboe 2011). The reputation of Apple and the unique creation of customers ‘needing’ the newest design in the latest release of products is an intangible
Tangible resources
Apple’s tangible resources are extensive and widely documented despite the company’s high level of security in matters of design. The value of analysing the tangible assets of the organisation lies in the determination of the potential for the creation of competitive advantage (Grant 2007). In terms of financial resources, the case quotes Apple’s market capitalisation is approximately US $550 billion, with sales annually over $100 billion. This makes Apple the most valuable publicly traded company in the world. The share price currently stands at around $600, merely 12 years after Steve Jobs’ return to the company, where the share price was $5. Apple’s physical resources include 362 retail stores world wide, which promote sales and effective advertising. Third party manufacturing relationships are also a key aspect of Apple’s success allowing for relatively inexpensive manufacturing while all design aspects stay in-house (Masi 2009). The systems in development, design and software systems are all key aspects of Apple’s organisational and technological resources, and are closely linked to the organisation’s intangible resources due to their close correlation with knowledge and managerial capabilities.
Intangible resources
Apple’s overwhelming and unprecedented success in the technology industry undoubtedly stems from its intangible resources. The influence that co-founder and CEO Steve Jobs had on the company is undeniably accountable for its achievements. As an entrepreneur and human resource to Apple, Jobs’ managerial capabilities and innovative ideas were invaluable. The retail stores of Apple also provide intangible resources in the interaction with customers, aesthetically appealing design of the stores and technological support provided on site in the ‘genius bar’ (Jarboe 2011). The reputation of Apple and the unique creation of customers ‘needing’ the newest design in the latest release of products is an intangible
References: Grant, R 2007, Contemporary Strategy Analysis, 6th Edition, Wiley-Blackwell, West Sussex. Jarboe, K 2011, Apple 's hidden intangible asset, Available from: . [29 September 2012]. Masi, B 2009, Strategic Analysis of Apple Inc., Available from: http://www.scribd.com/doc/24134877/Strategic-Analysis-of-Apple-Inc-Brian-Masi. [30 September 2012]. Hollis, N 2011, The Secret to Apple 's Marketing Genius (Hint: It 's Not Marketing), Available from: http://www.theatlantic.com/business/archive/2011/07/the-secret-to-apples-marketing-genius-hint-its-not-marketing/241724/. [1 October 2012]. Apple and Procurement, 2012, Available from: http://www.apple.com/procurement/. [1 October 2012].