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Strategic Plan of Apple
Transcript of Strategic Plan of Apple
1.0 Current situation - External environment
2.1 Porters Five Forces
2.3 Competitive strengths and weaknesses
2.0 Review existing business plans
3.1 Value Chain
3.2 Group mapping
3.3 future planning
3.0 Options for plan
4.1 Structure and fomula
4.2 Evaluation tool
4.3 Resource implication
4.0 Strategy plan
There are a number of external factors considered as influential to organisation. They are politic, economic, social, technology, which is called PEST analysis (Grant, 2008).
Stakeholders interests of Apple
1.1 PEST analysis of Apple
In order create increasingly value for company, value chain analysis is able to provide strategic options for future planning.
3.1 Value Chain
Brand and ... more brands
-social factor: life style
the market is furious, but increasingly harder for foreign firms
hard to remain brand loyalty
5.0 Affecting factors
5.1 Apple's value
5.2 Mission and Vision
Mission: Life is innovation.
Vision: Communication, innovation and overseas market development.
a)Increase sales of Mac Desktop computers and Mac Notebook by 7% which can be achieved since Apple already has a powerful brand image where as the Mac computers are not attacked by viruses and works unlike is the case with Microsoft computers.
b) Increase percentage in various foreign markets with particular emphasis been to intensify marketing efforts in China as the country has huge potential that is not exploited to the maximum.
c) Continue producing high end products that are innovative and reliable which will make existing customers upgrade their products while new customers will also be attracted.
d) Establish more Apple retail stores in foreign markets as this will help customers experience Apple’s products before they can buy them.
5.4 Evaluation with Balance Scorecard
6.2 Stakeholders commitment
6.3 Evaluation -- SOSTAC
6.1 Schedule - Gantt Chart
6.3 Evaluation with SOSTAC
SOSTAC refers S- Situational, O- Objectives, S- Strategy, T- Tactics, A- Application, C- Control.
1.2 Shareholders Interests
1.3 external changes
Law - sweat workshop
Law - Tax - VAT
2.1 Porter's five forces
since these suppliers have the ability to dictate business activities their power gets higher (Riley, 2011).
Even though there are new rivals, such as Xiaomi, which started in 2011, till now they have occupied about 30% of China’s smartphone market share. However it is still considered that threats of entrants are low (Finlay, 2000).
The presence of cheaper tablet computers mostly from Mainland China poses a big threat to Apple’s iPad (McLean, 2010).
Strong bargaining power
In recent years a large part of Apple's strategy focused on the Corporate marketplace. The company is careful to maintain its brand values as it engages with corporations: it positions itself as facilitating the use of the individual's devices of choice (primarily iPads and iPhones) in the corporate world so that businesses can innovate and develop new ways of doing business and improving the world around them (Brown, 2014).
2.3 competitive strengths and weaknesses
(MG Ltd, 2014)
Threat in PC market
3.2 Strategic Group Mapping
Strategic group mapping is a way for firms to share similar business environments so they can identify their unique selling proposition and stay on top with other rivals, for instance, Microsoft and Google android (Harrison and John, 2010). As showing below, it is group mapping based on the product iPad
3.3 Technical innovation
Apple's success is based on its innovation. Innovation can never stopped by temporary successful outcomes. When it comes to future planning, it can be:
provide links creation amongst different platforms
4.1 Structure and fomula
The quantitative strategic planning matrix (QSPM) is an analytical framework which displays Apple’s strategy formulation, based on internal factors and external factors. Scores for expand production into Asia and Wintel production are compared in AS and TAS sectors (Sreekumar, 2010). The QSPM is basically include an SOWT analysis but improved.
4.2 Space Matrix
The SPACE matrix which is known as the strategic position and action evaluation is a four dimension framework that illustrates whether an organization’s strategies are forceful, conventional and competitive.
Apple’s performance shows that the company should be placed on the aggressive quadrant since it is financially stable and competing very strongly in the various industries that it serves (Nelson, 2010).
4.3 Resource implication
Making full use of outlets in centre
Brand image and its effects
5.1 Organisational value
5.2 Mission and Vision
Dependence and Innovations
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