STRATEGIC ANALYSIS OF APPLE INC

Strategic Analysis of Apple Inc



Executive Summary

The paper presents strategic analysis of Apple Inc., exploring the external and internal environments effecting the organisation, Apple, Inc. In order to explore the strategic position and direction of the company, the paper presents the Porter Five Forces, ILC- Industry Life cycle, and PEST analyses for the company. Apple is a major player in the Smartphone and computer markets. This report evaluates the impacts of Apples key strengths and opportunities on the company as well as the industry. Then, the competitor analysis is done by evaluating the competition involved in the industry. The strengths and weaknesses impacting on the company give rise to issues such as industry saturation and price wars. The paper devotes a section to address these key issues. Also, the company is highly vulnerable to technological changes and hence uses innovation as a key to sustainability and growth. In the end, this paper gives recommendations as to what the company should do to be technologically and environmentally competitive in the industry and what opportunities should be availed by the company. While Apple has been experiencing varied response from global customers, this paper concludes that a more localized business strategy based on innovation will add to the company's growth in the long term future.

Table of Contents

Executive Summary2

Introduction5

Question 16

Porter Five Forces6

ILC- Industry Life cycle7

PEST10

Political Factors10

Economic Factors10

Social Factors11

Technological Factors11

Question211

Future steps: what will be impacts on apple revenue?11

Competitor's analysis15

Question 316

Key issues Faced by Apple16

Strengths and Weaknesses19

Strengths19

Weaknesses20

Question 420

Recommendations21

Conclusion22

References23

Strategic Analysis of Apple Inc

Introduction

Apple Inc. is one of the largest U.S. corporations. Initially the company was based Apple Computer in 1976 by three people, but the third co-founder does not believe in the success of the venture and sold its shares (10%) for 800 dollars. However, the company has become one of the few in the industry, quickly conquered the market. The first personal computer (Apple initially began to specialize on them, rather than bulky computers that occupied an entire room for) Apple I became quite popular. This was the first computer, which had a built-in support for a keyboard and connected to a monitor, i.e., prototype of the modern desktop PC. The real success is waiting for the computer Apple II, released a year later, because that's what he was destined to become the first mass model, which are used not only in companies and research centres but also at home. It was a real computer revolution.

The iphone is a Smartphone based on GSM; apple introduced it in 2007. With regard to apple iphone user apple has unsuccessful marketing strategy for those people who adapted the product early. Apple after the launch of the product decreased the price of the product; it came equal to the price 3G iphone. It served as the a discouraging factor for the consumers of Apple, and the situation became even worst when they chose to cut down the price all more to 50% of what the price of 3G.

Loyal consumers of apple continued to buy iphone, and ...