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Copy of Apple's Strategy
Transcript of Copy of Apple's Strategy
Libby Parfitt, Roz Carney, Carrie-Anne Adams, Steph Ochmann
Ashridge Mission Model
Apple's Mission Statement
"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)
"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."
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
Own and control primary technologies
Create Great Products
What the company believes in
Why does the company exist
The policies and behaviour patterns that underpin the distinctive competence and the value system
The competitive position and distinctive competence
Porter's Five Forces
Bargaining Power of Suppliers –
Bargaining Power of Customers –
Threat of New Entrants –
Threat of Substitute Products –
Competitive Rivalry within the Industry –
How much of a threat to Apple?
Are Apple On Message or Off Message?
Government involvement i.e. Code of Best Practice 2002
UK competition policy (EU competition law)
Current economy :
Mobile phone subscriptions
Customer's change in attitude
Mobile Phone Wastage
Bowman's Strategic Clock
This is due to Apple having a
high perceived value
Yet the price is still taken into consideration by the customer.
Bowman’s Strategic Clock
Customer loyalty combined with expanding closed ecosystem
Apple is a leading innovator in mobile device technology
Leading product in a saturated market
Strong marketing and advertising teams
Incompatibility with different OS
Decreasing market share due to upcoming competition
Defects of new products
High demand of iPad mini and iPhone 5
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
Rapid technological change
2013 tax increases
Price pressure from Samsung over key components
Android OS growth
Competitors moves in online music market
L Level of Interest H
H Power/ Influence L
Third Party Retailers
Growth of tablets
Harm on global warming
All aspects are pulling together
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.
Whittington's Four Generic Approaches to Strategy
Value Chain and Value Network
Internal Strategy Frameworks
External Strategy Frameworks
Apple sits between differentiation and focused differentiation on the strategic clock.
Building & Stores
Financial Resources: Capital
Purchasing of Materials
Converting Raw Materials
Distribution to Retailers
Recruiting and Retaining Staff
What comes before Apple?
Network Providers e.g. O2
Third Part Retailers e.g. John Lewis
What comes after Apple?