You are on page 1of 8

Assignment # 5

SUBMITED BY:
Ilyas Ahmad Farooqi
REGISTRATION NO:
L1F10MCOM0155
SUBMITED TO:
Prof. Muzaffar Asad
SUBJECT:
Strategic Management

Vision Statement of Apple


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.
Mission Statement of Apple
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 is defining the future of mobile media and computing devices
with iPad.
Objective of Apple
To expand their sales to customers who have not yet own any Apples products.
Strategy of Apple
Expanding their distribution network to reach more consumers.
Tactics of Apple
1. Internet Providers
2. Third Party Retail Stores
3. Flagship Stores
Swot analysis of apple

Strength

Brand name
Growing sale of ipod and iphones
Low debt
Wide ranges of innovative products
Increase in number of retail stores
Market share and global expansion
Loyalty of employees
Research and development

Weakness

No manufacturing units
High product prices

Opportunity

Customer loyalty
People like new features and innovative product

Threats

Low compatibility with non apple products


Competitors
Substitute
Technology changes at a rapid rate

Internal factor evaluation matrix


Strengths
Brand name
Growing sale of ipod and iphones
Low debt
Wide ranges of innovative products
Increase in number of retail stores
Market share and global expansion
Loyalty of employees
Research and development
Weakness
No manufacturing units
High product prices

Weight
0.15
0.05
0.1
0.1
0.05
0.1
0.1
0.2
0.1
0.05
1.0

Rate
4
3
4
1
4
2
4
4
4
1

Weighted average
0.6
0.15
0.4
0.1
0.2
0.2
0.4
0.8
0.4
0.05
3.3

External factor evaluation matrix


opportunity
Customer loyalty
People like new features and innovative product
Threats
Low compatibility with non apple products
Competitors
Substitute
Technology changes at a rapid rate

Weight
0.25
0.2

Rate
4
3

Weighted average
1
0.6

0.15
0.1
0.1
0.2
1.0

1
4
3
4

0.15
0.4
0.3
0.8
3.25

Competitive profile matrix


Critical

Apple
Weight Ratin

success

Weighted

score

Dell
rating Weighted

IBM
rating Weighted

score

score

factor
Continuous

0.2

0.8

0.4

0.6

innovation
Distribution

0.15

0.45

0.60

0.60

network
Product

0.15

0.6

0.45

0.45

quality
Customer

0.15

0.45

0.45

0.45

0.2
0.15
1.0

4
4

0.8
0.6
3.7

2
3

0.4
0.45
2.75

2
4

0.4
0.6
3.10

loyalty
R&D
Brand name

BCG Matrix of Apple

The famous BCG matrix classifies a firms product portfolio into four strategic business
units (SBU): Stars, Question Marks, Cash Cows and Dogs. Within each SBU, there are
again four potential strategies to take: build market share, hold market share, harvest
(reduce investment) and divest (phase-out).

Competitive Positioning

Apple have a clearly defined premium strategy: they offer more benefits for a higher
price. According the Value Proposition Matrix (above), any of the white squares are
competitive strategies. But, I personally believe a more for more position is perhaps
one of the more effective. This is because it is highly profitable and hard for competitors
to copy a premium identity.
Developing a premium, or luxury image, is incredibly hard for both new and existing
brands. Hence, it is highly unlikely any of Apples competitors will risk undertaking an
upward brand stretch and gain a premium status. Moreover, this type of branding allows
a premium price tag to be attached to any product regardless of the quality with an
Apple logo, allowing the firm to make huge gross margins.

You might also like