Running head: Apple Inc.

in 2012

Apple Inc. 2012

Ayoub Bokhabrine
King Graduate School
Dr. Roberta M. Harris

Introduction

Apple Inc. in 2012

Apple Inc. started in 1976 as a US maker of personal computers, software and peripheral
devices. Originally, it was Apple Computer for 30 years, and the head office in Cupertino,
California. It is the first company in the booming personal computers that began to use the
popularity of the graphical user interface. During the early years, Steve Jobs and Wozniak was
responsible for the introduction of the first innovative company that was sold. Been selling its
first product for the personal computer and then, and then continued its founders for the
production of personal computers are increasingly innovative. However, every year is the year of
luck to Apple, and there were also times that the company has faced financial difficulties that led
to several changes in management.
In 1997, Steve Jobs took over the operations and became CEO during the time discussing the
organization. Then, in 2001, the iPod eventually became very popular in the market, and even
turned out to be at the forefront of the music industry player. Later, in 2007, Apple began to
approval in the phone industry with the first of its innovative phone, which also proved to be one
of the most successful products of the company. The company is not only recognized by the
consumer products, but above all for its expertise in the production of electronic products. Soon
after, Apple has become the tablet PC phenomenon in the IT market all over the world have been
introduced.

Vision Statement of APPLE

Apple Inc. in 2012

"Man is the creator of change in this world. As such he should be above systems and structures,
and not subordinate to them."
Apple's vision of life through technology for consumers and businesses are being developed. It is
committed to making products that they purchase their main customers. Apple is not just making
a statement. He ensures that employees understand the vision and efforts to achieve it. I have put
systems in place to allow seamless interaction with the customer.
I have goals in place to continue moving forward. Strategies to achieve these goals. And ensure
proper marketing strategy has been developed financial and business structure to achieve.

Mission Statement of APPLE

Apple designs Macs, the best personal computers in the world, along with OS X, iLife's, iWork,
and professional software and. Apple leads the digital music revolution with the iPod and iTunes
online store equipment. IPhone revolutionary iPhone and App Store in the invention, and the
recently launched mobile phones and media have defined the future iPad computer magic.
Mission Statement Analysis for APPLE
Apple is mainly focusing at the following components of mission statement:
1. Apple may not be important to elaborate on its concern for its employees or to thoroughly
outline its customers and targeted market. Apple is a trendy technology company which prides its
self in providing easy to use electronics and efficiently run software systems. Because of this it is
most important for Apples mission statement to focus on components like company philosophy,
self-concepts, and current technologies. These aspects of Apple are what make it popular and
successful today.

Apple Inc. in 2012

2. Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented
the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the
industry in innovation with its award-winning desktop and notebook computers, OS X operating
system, and iLife and professional applications. Apple is also spearheading the digital music
revolution with its iPod portable music players and iTunes online music store.
3. Apples mission statement only includes descriptions of products and services and past and
present technologies.
4. The mission statement from Apple is somewhat unconventional. Its more of a brief history
rather than a summary of the corporations overall purpose. It does however paint a picture of
where Apple came from, how far it has come, and where its continuing to go. But for such a
popular company it may be beneficial divulge into points like its self-purpose and their concern
for public image.
SWOT analysis for APPLE Inc.
SWOT analysis stands for Strength, Weakness, Opportunity and Threat for a particular
organization, which can help in formulating a strategy for its business and can also help in
analyzing its internal environment (Strengths & Weakness) and external environment
(Opportunities & Threats).
Strengths
According to (Wharton, 2012) The first and foremost strength of Apple Inc. is its technological
edge over its competitors. IPhone have turned out to be a great success and has been associated
with status in many of the countries. ITunes has turned out to be a wonderful revenue generating
source and since it also sells with its own tool i.e. the iPod, thus, revenue has multiplied for
Apple Inc. Another strength for the organization is that for every software that Apple Inc.
produces, it introduces its hardware with it too, which leads to its expertise in both the industries.

Apple Inc. in 2012

Apple Inc. products are classified as luxury items, thus its products provide enough room for it,
so that the competitor products are no longer a competition. The another strikingly advantage
over competitors products, is the design of the Apple products, and which are also simple to use.
The brand loyalty of its product and its super dedicated research and development department are
also its major strengths.

Weaknesses
Weaknesses are the disadvantages that are hindrance in obtaining the business goals for the
organization. The poor relationship with the market than Microsoft is surely a disadvantage to
Apple Inc. Another point could be that the products introduced by Apple Inc. have very short life
cycle, which concludes that the research and development department has to be constantly
maintained, which requires huge capital. Apple Inc. has very low presence in the advertisements,
and also it has very small market occupation as compared to its main rival Microsoft. Thus, all
this leads to the fact that Apple Inc. gets very less business from its home country US, and major
of its business is from outside the US.
Opportunities
Opportunities can affect both the present as well as the future condition of an organization. Apple
Inc. opportunities are the introduction of more and more PC viruses, on which Apple Inc. can
capitalize on. The second opportunity is the population of the world is growing at a rapid pace
and thus, this opens the front for many new markets, also the purchasing power of a common
man has increased drastically, who can be pursued or impressed to buy the luxury Apple
products. The online sales of the organization are increasing and also, the bonds and the
partnership with the other organizations have been on the rise in the past few years. Products
such as iPhone have created a new set of potential customers altogether which can be targeted in

Apple Inc. in 2012

the future i.e. the young population who have a craze for any new technology gadget
(MarketingTeacher.com 2012).

Threats
In the past few years, many competitors have come up for Apple Inc., especially in the field of
laptops, like Dell, Sony, HP, and Toshiba. Another threat could be that many of the customers
have started downloading the music for free instead of purchasing at iTunes. The product
expensiveness is itself a threat to the product, as substitutes at a lower price are always available.
Long lasting recession could also be a threat to its products. Windows 7 software is gaining more
market place after vista flopped and last but not the least, the technological advances that have
been taking place every single day, is a big threat to Apple Inc.

Porters Five Forces Model

Porters Five Forces Model is a very powerful tool to understand the core of the power in a
business or in a company. The Porter Five Force Model for Apple Inc. is shown below:

Apple Inc. in 2012

Apple Inc. in 2012

Financial Ratios for APPLE

Sale Ratio

Showing sales ratio for APPLE Inc.

Asset Turnover Ratio

Showing Asset Turnover ratio for APPLE Inc.

Apple Inc. in 2012

Inventory Turnover Ratio

Showing Inventory Turnover ratio for APPLE Inc.

Gross Profit Margin Ratio

Showing Gross Profit Margin ratio for APPLE Inc.

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Conclusion

Is one of the analysis of strategic management concluded that Apple's technology industry is not
easy to compete. They have lots of investment in research and development and the need of their
competitors in the same industry initiative. As for Apple, but it was very good as it is to show the
formation of its products. Because Apple has more, and those of other companies is increasing,
and try to do better on their own special things interesting. Apple needs to make major changes.
They should not wait for people to buy their products only when they are on sale, but they need
to focus more on customer support and promote their region is already problematic.
Recommendations
Apple Inc. should continue to use its product differentiation strategy.

It must continue inventing new and most innovative products.

R & D should exert more effort in finding more efficient and effective ways to cut further

production costs in order to reduce the prices of the products to remain competitive
Maintain the highest level of innovation.
Most of all, Apple headquarters should give utmost considerable attention on the
increasing labor problems, pressures and psychological issues that Chinese workers are
experiencing nowadays.

References
1. David, F, Strategic Management Concepts 13 edition, Pearsons, 2011.

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2. http://myassignmenthelp.info/assignments/marketing-assignment-essay-writing-analysisreview-online-apple-swot-pestle-analysis/
3. http://www.strategicmanagementinsight.com/swot-analyses/apple-swot-analysis.html
4. http://investor.apple.com/secfiling.cfm?filingID=1193125-12-444068
5. Thompson, A. J. (2012). Crafting and Executing Strategy: The Quest for Competitive
Advantage. NY: McGraw-Hill.
6. Suvarna, V. V. (2012, 08 21). Mybizzscribes. Retrieved 2015, from vaishaksuvarna:
http://vaishaksuvarna-bizzscribes.blogspot.com/2012/08/case-study-apple-inc-strategyanalysis.html#sthash.abeNSgvN.dpuf