Strategic Company Assessment

COMM 200 Strategic Company Assessment
Company: AAPL – Apple Inc.
Apple Inc. is an American multinational corporation specializing in consumer electronics, and computer software. Some of its most popular products include the line of Mac computers, the iPod, the iPhone, and the iPad tablet. Apple offers various software programs including the OS X and iOS operating systems, the iTunes media browser, and the Safari web browser. Apple is one of the world’s largest technology companies by revenue and competes with companies like Samsung, Blackberry (RIM) and Nokia. Even though Apple Inc’s change percentage is on the decline, I plan to purchase APPL in the near future because I believe the company has more to offer and continues to be a top competitor in the technological market. For investors right now, Apple is not the most desirable growth stock because of their lack of price changes. Their new products follow the same existing strategy they have previously set, and since the prices remain fairly the same, there is no clear step forward. As a result the stock went down. Apple Inc apparently has plans to increase spending on manufacturing equipment, product testing and retail stores in 2014 as it ramps up the output of iPhones, iPads and potential new products. This means that capital expenditures will rise. The spending is likely to go toward retail operations, including the opening of new stores and remodeling of others. In addition, apple has been known to spend high dollar amounts on customized equipment and tools needed to add the new and improved features to its products. This allows the company to continue growing and appeal to the high end customers as the products get smaller and faster.
When it comes to the competitive landscape of Apple Inc, they face many competitors. Apple has taken a major leadership position in the PC, CE, and in the smart phone market. There seems to be a new variation of online and offline rivals for Apple. Rather than the competition coming from the familiar PC and CE players, it's coming from the likes of Amazon, Google, and even Sony. Amazon has become a close competitor due to its ability to deliver digital music, movies, TV shows, and books to end users. Amazon has its strengths and competes with Apple; however it lacks in customer accessibility and manageability beyond standard PCs and basic mobile devices. Apple on the other hand, can be accessed and managed across a very broad range of products today. As for Google, it is continuing to evolve due to the Android compatibility, Google's OS and the wide range of apps for Smart phones. This really challenges the Apple products and most of all, the iPhone. Lastly, Sony also challenges Apple Inc because it now offers movies, music, and e-books, along with the console and mobile games. If only Sony could create their own user environment that could manage their own content, they could really challenge Apple.
Every company faces has its strengths and weaknesses. SWOT analysis is a useful tool for identifying Apple’s strengths and weaknesses as well as possible opportunities and threats. Apple seems to be stuck in a market where their devices have become commoditized. In order to get out of this little slump they could focus on what its competition is doing and improve their weaknesses. In order to re gain the edge over its competitors, Apple needs to continue expanding their dedicated user environment. This means expanding their accessibility and making it easier for customers and consumers to manage all types of their digital assets across all the Apple devices and possibly other devices. Another strategy for improving their business could mean possible creating a partnership with one of its growing competitors such as Amazon for example. Furthermore, there are many ways to analyze a company and to target specific areas of business that can be improved. In addition, the company positioning is extremely important for the products and services to be identified positively by the consumers and customers. The various positioning strategies that Apple uses affect a number of variables. Apple has found a way to position itself above competitors when it comes to scale, management and leadership. Apple seems to somewhat understand the scale of opportunity. For example, the entire mobile industry is expanding and Apple is right there near the top of the class. Lastly, management also plays a key role and influences Apple’s reputation and high-quality leadership.
Apple Inc must also analyze the P.E.S.T. factors (Political, Economic, Social, and Technological) because they play a significant role in the company’s decision-making process. When it comes to the political factor, Apple could really suffer in terms of communication and public relations with other countries due to the fact that many of Apples products are produced outside of the United States. Economic influences that need to be considered include inflation, recession, and currency. Apple is a leader in its class when discussing the social factors because its image displays a “lifestyle”. Globalization, the virtual world, and lifestyle are social factors that largely impact Apple Inc’s business development. Therefore, sociological effects can benefit the company and are very important within the decision making process. Lastly, the technological market is continuing to grow, meaning both Apple and its competitors must keep pace. Due to the increase in competition, technology now has a shorter life span. This is why Apple must continue upgrading their products. In decision making, Apple will likely invest a lot of their capital to the Research and Product Development. Overall, Apple is a well established company that understands how deal with the PEST factors.
Overall, Apple does have a competitive advantage over its rivals because there is no company that can match Apple’s approach to managing a user's digital assets, in which can be connected to multiple content business engines, yet managed by a single password. Apple is also one of the only companies that can offer both localized as well as online apps that can be accessed across any of their devices with an internet connection.
After assessing Apple Inc, I recommend to hold off on buying the company’s stock in the current market right now due to the increase and rise of competitors, their inability to provide better pricing and lack of current forward progress. Nonetheless, I would certainly be interested in purchasing stocks in the near future with Apple because the company has created such a wealthy structural base that includes high end hardware, software, content, and content management. They also seem to continue finding new ways to keep their competitors distant. Therefore, I think APPL is a worthy investment over the long haul.