STRATEGIC FINANCIAL REPORT

Strategic Financial Report: Apple

Table of Contents

Introduction4

Business Strategy4

Market Segments5

Apple's Product Diversification5

Mac Book, Mac Book Air and Mac Book Pro6

iPad6

Peripherals and Other Hardware6

iTunes and Other Music Related Products and Services7

Software, Services and Other Sales7

Financial Analysis7

Financial Position7

Profitability Ratios7

Return on capital employed (ROCE)8

Gross profit margin8

Stock turnover8

Debtors Ratio9

Earnings per share ratio9

Marketing Analysis9

Market Structure9

Market segmentation10

Marketing Mix (4Ps)11

BCG Matrix12

HRM Analysis13

Value chain Analysis15

SWOT Analysis16

Strengths16

Weakness16

Critical Success Factors17

PESTLE Analysis18

Political Analysis18

Socio-Cultural Analysis18

Economic Analysis19

Technological Analysis19

Legal Analysis19

Competition in the Industry20

Market Size and Growth20

Threat of New Entrants21

Threat of Substitute Products21

Threat of Industrial Rivalry22

Conclusion and Recommendation22

Suitability Screening23

Full Description of Strategy23

Risk Assessment23

Appendix A26

Appendix B28

Appendix C30

Appendix D31

Strategic Financial Report: Apple

Introduction

Apple continues to grow faster than industry in all categories. New manufactory plants and sales offices are continually introduced to regions in order to save time and cost. The exact relationship model provides the powerful differentiator for the company to deliver satisfaction to customers of all sizes and types. Apple has focused most of the resources to support large commercial and formal organizations segment to sustain its growth by delivering superior services over competitors.

Report Objective

Main objective of the report is to assess the adequacy of Apple's current strategies and its business model for the next 5 years. The paper will generate the in-depth financial analysis of Apple Inc. stating the overall situational analysis and future highlights that the organization needs to consider. The paper will highlight that and categorize the objective in way paper will cover the complete financial specs of Apple Inc.

Business Strategy

Apple is committed to providing its customers with an unparalleled user experience through superior ease-of-use, seamless integration, and innovative product lines. The Company also views constant research and development a key component to its competitiveness looking forward. Proof of this can be seen in Apple's financial statements as a 33.7% increase in R&D expenditures was reported during fiscal year 2010. Intent focus is also placed on the discovery and delivery of digital content and applications through iTunes.

Market Segments

Apple, Inc. currently holds retail operations in eleven different countries, which it divides into five separate operating segments; the Americas, Europe, Japan, Asia-Pacific and retail sales. Though the majority of the Company's net sales generated within the Americas operating segment, Apple's concentration in the Asia-Pacific region has shown the highest levels of growth as countries with emerging markets like China continue to show increases in consumer demand for the high-tech devices Apple produces (Apple Inc, 2010).

Apple's Product Diversification

Computer Industry

Apple's desktop product line will follow the overall market trend of declining unit prices and a decrease in demand for these less portable hardware solutions.

Mac Book, Mac Book Air and Mac Book Pro

As consumer further transition from desktop to portable PC's, Apple's portable (laptop) computer sales will benefit. The proprietary OS X and iOS operating systems many current Mac users are familiar with will be a major catalyst in maintaining unit sales growth.

iPad

The April 2010 release of Apple's iPad has since created a flurry of competing products in attempts to steal some of the market share back, that this game-changing tablet PC was able to ...