Strategic Management

MBA Course Code: Winter

16111

.Apple Inc

MBA Student Name: Sherif Ibrahim

Sidhom

Dr. Mahmoud A. Moursi

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This company was undiversified Information

Technology
:Mission Statement
Designs Macs, the best personal computers in the world,
along with OS X, iLife, iWork and professional software
Leads the digital music revolution with its iPods and iTunes
online store
Reinvented the mobile phone with its revolutionary iPhone
and App Store, and is defining the future of mobile media and
computing devices with iPad
:VISION
Committed to bringing the best user experience to its
customers through its innovative hardware, software,
peripherals, services, and Internet offerings
Superior and well-integrated digital solutions
Continuous new offerings
Ecosystem for the products
Retail Strategy
Digital Hub Strategy
Problem Statement
What, historically, have been Apples competitive .1
?advantages
?How sustainable is Apples competitive position in PCs .2

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How sustainable is Apples competitive position in the MP3 .3

?arena/players
How do you assess Apples competitive position in .4
?smartphones
?What are the prospects for the iPad .5
?Can Apple thrive without Steve Jobs .6

:Critical Issues
PC Mac
Less Market Share (Market Opp.)
MP3 iPod
IPod Sales declining (Market Opp.)
Smartphone iPhone
Threat from new entrants with open OS Google Android
(Strength/Weak)
More App Developers willing to work on new OS
(Strength/Weak)
Tie-up with single network operator with not reliable services
(Mkt Opp)
Feature limitation Battery Life, Keyboard, Flash technology
(Mission)
Tablet iPad
Usage Model (Market Opp.)
Threat from new entrants HP, Dell (Strength/Weak)
Content
Low Margins & Tense Relations
Sustainability
Profitability & Growth (Financial Position)
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:The SWOT Analysis

SWOT Strengths
Revolutionary Differentiated Product
High Quality& Use Experience
Well Integrated Plug Play Intuitive
Product Breadth
Fast Innovation Pace
High Margins
Charismatic Visionary CEO
High Customer Loyalty
Strong Brand Halo Effect
Financially Strong
Innovation Culture
Patents
SWOT - Weakness
MAC: Low Market Share
Reliance on Suppliers for MP, App, Mem
ITunes: Low Margin
IPhone: Limited to Single SP ATT
IPhone: Lacking Features
Innovation limited to key Personnel
Some Product Failure
High Investment in R&D
Inventory Cost Adv. Purchase
Overseas Less Market Presence
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Content Provider Relations

Closed Systems
SWOT Opportunities
Capitalize on iPod-iPhone Growth
Tablets
ITunes
Global Demand for Cons Electronics
IPhone Feature Limitation
Additional Cellular N/W
SWOT - Threats
Rapid Technology Changes
Highly Competitive Markets
Free Content Availability
Imitators
MP3 Dying Market
New Entrant Google
Global Economic Crisis
Identification of Alternative
Option-I: International Expansion
Emerging Markets, APAC with lot of consumers, provides high
growth
opportunity
Use Retail Strategy Apple presence alone can do the trick
ITunes & Apple Store Introduce worldwide content
Option-II: Open up
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Introduce iPhone on other reliable carriers

License MacOS & iOS for running on non-Apple Hardware
Option-III: Price Differentiation
Extend product line to provide some products with lower
price point
Option-IV: Complete In house Development
Develop MProcessor, Software rather than rely on Intel,
Microsoft
Substantial & Incremental Innovation required for all
strategies

Industry analysis: analyzing the task environment

A strategic group: is a set of business units or firms that
"pursue similar strategies with similar resources". Categorizing
firms in any one industry into a set of strategic groups is very
useful as a way of better understanding the competitive
environment.
Business units belonging to a particular strategic group within
the same industry tend to be strong rivals and tend to be more
similar to each other.
Apple has a great deal in common with hp & Dell in terms of
their similar strategy.
In analyzing the level of competitive intensity within a
particular industry or strategic group it is useful to characterize
the various competitors for predictive purposes. A strategic
type is a category of firms based on a common strategic
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orientation and a combination of structure, culture, and

.processes consistent with that strategy
This distinction helps explain why companies facing similar
situations behave differently and why they continue to do so
.over long periods of time
In this kind of firms are defenders with a limited product line
that focus on improving the efficiency of their existing
operation. This cost orientation makes them unlikely to
.innovate in new areas. With its emphasis on efficiency

Competitive Advantage
R&D Rapid Innovation
Complete Solution
Large Customer Base
Brand Reputation
Superior Quality
Appealing Design
Conclusion
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It is concluded from the strategic management analysis at

APPLE Inc. that technological industries are never easy to
.compete with
They have a lot invest at R&D and have to be proactive in order
to compete with their competitors in the industry. As for APPLE
is concerned they have been working so well as it is shown
.form their products
As Apple Inc. is increasing also, those other businesses are
increasing and trying to do something interesting for their own
good. APPLE needs to make a drastic change. They don't need
to wait for people buy their products only when they are on sale
but they need to focus more on the customer support and
.improve the areas they already have problems

Recommendation
:We recommend, Apple should
Employ Market Expansion
Emerging markets using Retail store strategy
Worldwide contents on iTunes
Employ Market Penetration
More cellular carriers
License MacOS & iOS to be used on non-Apple products
Continue on R&D to Innovate for Product Development
Feature-rich iPhone & iPad
Continue delivering well-integrated & superior products
Advertise - iPad usages
Hospital, Schools/Universities, Professionals
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Put in place Replacement plan for Steve Jobs

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