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Strategic Recommendations: Apple Inc.
Transcript of Strategic Recommendations: Apple Inc.
Reliance on C.E.O Opportunities Emerging Markets
Increased trend towards usage of more handheld devices Threats Over Reliance on third party partners
Emergence of strong competitors
Primary markets getting saturated
Developed consumer base
Steve Jobs One of the fastest growing and most profitable companies of the 2000s
Company being increasingly defined by the 'Digital Hub' Strategy
North America and Europe are primary markets
Product range heavily centred on premium priced products Life outside the Apple Industry Analysis Personal Computers Handheld Devices The top 4 PC vendors account for 55% of shipments
Apple only has a 6% share although accounts for majority of premium computer sales
Extremely competitive and technological innovations are swiftly copied
Increased trend towards netbooks and handheld computers Apple is leader in smartphone market
Emergence of Android and Windows 7 Mobile
Recommendation: have Apple less reliant on Steve Jobs
• Medical leave of absence in 2004, 2009, and 2011
• COO steps in as temporary CEO
• Develop innovative culture from within the company
• Shift more responsibility to COO now for future smooth transition The Future Continuous Innovation
Expansion into new product ranges
A generalized company vision being implemented at every step of the heirarchy iCam Introduction of a 4G 8GB touch screen digital camera
Sleek design, high resolution and LCD screen
Features such as advanced photo editing
WiFi for instant upload of pictures on the web
Connectivity with Macbook, iPhone and iPod
Will compete with Sony cybershot, Canon powershot etc.
--- Existing markets are showing signs of maturity and saturation
--- Any significant growth in sales revenue has to be in emerging markets, where there is much potential for growth.
--- Emerging markets have consistently growing economies, which produce high income consumers.
-- Almost 50% of sales in China are to first time Apple users.
--- Aggressive expansion into new, emerging markets.
-Signs of this: Apple announces 25 stores in China.
--- Pursue minimal yet effective product and price differentiation to make product range more attractive in emerging markets.
--- Explore various retail channels to maximize potential sale and minimize risks in these growing markets.
--Huge opportunity to build brand reputation and loyalty.
Continous Innovation •Penetrate emerging markets with a cheaper smart phone
•Would have less memory (maximum of 4 GB), a basic camera, and slower processing speed at under $250
• Release the iPhone Nano with more emphasis on emerging markets, such as China, India, and Pakistan
Product expansions, extensions e.t.c Must ensure that products continually diversify and expand the technological horizon to keep Apple as a cultural phenomenon