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Transcript

"Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and has recently introduced iPad 2 which is defining the future of mobile media and computing devices"

“Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings.” (Apple, 2013)

Apple's Strategy

Flavja Beqiri, 2013/2014 VG

Cook's four Pillars

1.     Offer a small number of products.

2.     Focus on the high end

3.     Give priority to profits over market share

4.     Create a halo effect that makes people starve for new Apple products

Recruiting and Retaining Staff

R&D

Internal Strategy Frameworks

Quality Control

Converting Raw Materials

Purchasing of Materials

Aftercare e.g:

Warranty

Distribution to Retailers

Value Chain

Apple's Mission Statement

Stake Holder Mapping

Are Apple On Message or Off Message?

On Message

All aspects are pulling together

Stakeholder Mapping

Mission Model

L Level of Interest H

Purpose

Why does the company exist

Create Great Products

"Our goal, in a nutshell, is to obtain stellar products and services within tight timeframes, at a cost that represents the best possible value to our customers and shareholders. If that sounds like a daunting task, it’s the same one we assign ourselves."

(www.apple.com/procurement 2013)

Lenders

Third Party Retailers

Strategy

Values

The competitive position and distinctive competence

What the company believes in

  • Innovation
  • Great Products
  • Simplicity
  • Own and control primary technologies
  • Loyalty
  • Collaboration
  • Honesty
  • Create products that deliver and are easy to use
  • Propriety formats - not compatible with other systems
  • Consistency, easy to adapt to new hardware
  • Educational sales - early exposure
  • Varied products enjoy one and then purchase another.
  • Focus on what's important

Behaviour Standards

H Power/ Influence L

The policies and behaviour patterns that underline the distinctive competence and the value system are :

Visibility

Managers

Employees

Customers

Government

Employees

Suppliers

Competition

Shareholders

All aspects of the mission model are pulling together. They are foccused on achieving company goals in an ethical manner; with innovation being a key focus point.

Bowman's Strategic Clock

Bowman’s Strategic Clock

Apple sits between differentiation and focused differentiation on the strategic clock.

This is due to Apple having a high perceived value and the high price. Yet the price is still taken into consideration by the customer.

Vertical Integration

Resources

and Competencies

External Strategy Frameworks

Financial Resources: Capital

Human Resources:

Employees

Physical Resources:

Building & Stores

Intellectual Capital

How much of a threat to Apple?

  • Bargaining Power of Suppliers – MODERATE

  • Bargaining Power of Customers – LOW

  • Threat of New Entrants – LOW

  • Threat of Substitute Products – LOW

  • Competitive Rivalry within the Industry – HIGH

Finance

PESTLE

Social

Economic

Political

Mobile phone subscriptions

Consumer lifestyle

Customer's change in attitude

Current economy :

Recession,

Consumer Spending,

Unemployment

Tax

Government involvement i.e. Code of Best Practice 2002

UK competition policy (EU competition law)

Environmental

Legal

Technological

Environmental Impact

Harm on global warming

Mobile Phone Wastage

Hand-free Legislation

Smart Phones

Growth of tablets

Advertising Laws

App Development

Competencies: Supply

Porter's Five Forces

SWOT

Opportunities

Strengths

  • Customer loyalty combined with expanding closed ecosystem

  • Apple is a leading innovator in mobile device technology

  • Brand reputation

  • Leading product

  • Strong marketing and advertising teams

  • High demand of iPad mini and iPhone 5

  • iTV launch

  • Emergence of the new provider of application processors

  • Growth of tablet and smartphone markets

  • Obtaining patents through acquisitions

  • Damages from patent infringements

  • Strong growth of mobile advertising market

  • Brand Loyalty

Leading Supply chain

Threats

Weaknesses

  • Rapid technological change

  • 2013 tax increases

  • Price pressure from Samsung over key components

  • Android OS growth

  • Competitors moves in online music market
  • High price

  • Incompatibility with different OS

  • Decreasing market share due to upcoming competition

  • Patent infringements

  • Defects of new products

  • Customer expectation

  • Cash
  • Debt
  • Shareholders

References

In 2014 the company sold 51 million iPhones with a 7% increase sold last year.

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