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Copy of Apple's Strategy

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Sarita Karsija

on 7 March 2014

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Transcript of Copy of Apple's Strategy

Stake Holder Mapping
SWOT

Libby Parfitt, Roz Carney, Carrie-Anne Adams, Steph Ochmann

Apple's Strategy
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)
Purpose
"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)
Behaviour Standards
Strategy
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

Innovation
Great Products
Simplicity
Own and control primary technologies
Loyalty
Collaboration
Honesty
Values
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
Visibility
Employees
Managers
The competitive position and distinctive competence
PESTLE
Porter's Five Forces
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

How much of a threat to Apple?
Are Apple On Message or Off Message?
Strengths
Weaknesses
Opportunities
Threats

Tax

Government involvement i.e. Code of Best Practice 2002

UK competition policy (EU competition law)

Political
Economic
Current economy :

Recession,

Consumer Spending,

Unemployment

Mobile phone subscriptions

Consumer lifestyle

Customer's change in attitude
Social
Technological
Smart Phones
App Development
Stakeholder Mapping
Legal
Hand-free Legislation
Advertising Laws
Environmental
Environmental Impact
Mobile Phone Wastage
Bowman's 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.

Bowman’s Strategic Clock
Customer loyalty combined with expanding closed ecosystem

Apple is a leading innovator in mobile device technology

Brand reputation

Leading product in a saturated market

Strong marketing and advertising teams

High price

Incompatibility with different OS

Decreasing market share due to upcoming competition

Patent infringements

Defects of new products

Customer expectation

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

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
Customers
Government
Lenders

Third Party Retailers
Employees
Suppliers
Competition
Shareholders
Growth of tablets
Harm on global warming
On Message
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
Resources
and Competencies
Finance
Recommendations
Internal Strategy Frameworks
External Strategy Frameworks
Apple sits between differentiation and focused differentiation on the strategic clock.
Physical Resources:
Building & Stores
Human Resources:
Employees
Financial Resources: Capital
Intellectual Capital
Competencies: Supply
Cash
Debt
Shareholders
Purchasing of Materials
Converting Raw Materials
Distribution to Retailers
Aftercare e.g:
Warranty
Recruiting and Retaining Staff
R&D
Quality Control
What comes before Apple?
Network Providers e.g. O2
Third Part Retailers e.g. John Lewis
What comes after Apple?
Full transcript