https://apple-mx.webnode.

mx/vision/

MISIÓN

Apple intenta ofrecer la mejor experiencia de informática personal a estudiantes, educadores,

profesionales creativos y consumidores de todo el mundo a través de sus innovadoras soluciones
de hardware, software e Internet. Además de promover estilos de vida saludables, así como seguir
capacitándose para renovar la empresa constantemente.

Ser una empresa de concursos y sorteos de excelencia competitiva mundialmente, por sus
productos de alta calidad y confiabilidad.

VISIÓN

Como visión; ser considerados por sus clientes y aliados estratégicos como una opción viable que
ofrece soluciones y servicios basados principalmente en la innovación, tecnología avanzada,
servicio y calidad que supere sus expectativas, además de la creatividad que poseen a la hora de
crear nuevos productos distinguiéndose de la competencia, de manera que su valor añadido sea
único.

BUSINESS, MANAGEMENT

Apple Inc.’s Mission Statement and Vision

Statement (An Analysis)
http://panmore.com/apple-mission-statement-vision-statement

UPDATED ONUPDATED ON FEBRUARY 13, 2019 BY CHRISTINE ROWLAND

Some of Apple’s products. Apple

Inc.’s corporate vision statement and corporate mission statement align
to support the company’s success in the computer technology, consumer
electronics, and online digital services industries. (Photo: Public Domain)
Apple Inc.’s mission statement and vision statement are bases for
the company’s success as one of the most valuable businesses in
the world. Established in 1976, the firm has become a symbol of
innovation and elegance in design. This condition supports the
brand, which is one of the major business strengths identified in
the SWOT analysis of Apple Inc. The company’s corporate mission
and vision statements motivate employees to support and
contribute to innovation for competitive advantage. Apple Inc.’s
generic strategy and intensive growth strategies define such
competitive advantage, especially to counteract the effects of
competitors like Samsung, Google, Amazon.com, Dell,
Lenovo, Sony, and PayPal. Apple has changed its corporate vision
and mission statements over time, to reflect changes in the
company from the time of Steve Jobs to the current leadership of
Tim Cook. The vision statement and mission statement now
represent the company’s efforts in addressing business
opportunities in the computer technology, consumer electronics,
cloud computing, digital distribution services, and semiconductors
industries.

Apple Inc.’s corporate mission and corporate vision are linked in

terms of how they push for the company’s continuous growth
despite challenges in the competitive landscape. Considering the
variety of industries where the business operates, it is essential
that the diversity of strategic approaches for these industries be
embodied in the corporate mission and the corporate
vision. Porter’s Five Forces analysis of Apple Inc. shows that the
business deals with strong competition. The company must ensure
that its mission statement defines the strategies to keep the
business competitive. In relation, Apple’s vision statement must
direct business efforts toward a future of leadership in the global
market.

Apple’s Corporate Mission Statement

Apple Inc.’s corporate mission has changed over time. The
company considers the changing business landscape, which
influences the possibilities of what the business can do. The
company recognizes the changing market and industry
environment. Apple’s current mission statement is as follows:
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.

Considering such a corporate mission statement, Apple Inc. is

specific in enumerating its organizational outputs. For example,
these outputs include Macs, iPods, iPhones, and iPads. Another
characteristic of Apple’s corporate mission is its emphasis on
digital distribution services via the Internet. For instance, the
iTunes online store enables the company to distribute digital
content. In this regard, the mission statement highlights the
company’s focus on computing devices and related online
services. The business outputs enumerated in the corporate
mission partly determine Apple Inc.’s marketing mix or 4Ps.

Apple’s Corporate Vision Statement

Apple Inc.’s corporate vision influences strategic management in
terms of the decisions that the company’s managers make to
reach a future of leadership in the various industries where the
business operates. Apple introduced a new vision statement under
the leadership of Tim Cook, who stated the following:

We believe that we are on the face of the earth to make great

products and that’s not changing. We are constantly focusing on
innovating. We believe in the simple not the complex. We believe
that we need to own and control the primary technologies behind
the products that we make, and participate only in markets where
we can make a significant contribution. We believe in saying no to
thousands of projects, so that we can really focus on the few that
are truly important and meaningful to us. We believe in deep
collaboration and cross-pollination of our groups, which allow us
to innovate in a way that others cannot. And frankly, we don’t
settle for anything less than excellence in every group in the
company, and we have the self-honesty to admit when we’re
wrong and the courage to change. And I think regardless of who is
in what job those values are so embedded in this company that
Apple will do extremely well.

Apple Inc.’s vision statement provides specific details about

various areas of the multinational business. For example, the
company specifies innovation in product development. In addition,
in saying, “to own and control the primary technologies behind the
products that we make,” Apple’s corporate vision indicates a
strategy of vertical integration. This strategy influences suppliers
and the company’s supply chain. Focus on excellence is also
emphasized. Based on these details, Apple’s corporate vision
statement functions like a specification of values and business
philosophy. These beliefs influence Apple Inc.’s corporate culture.
The corporate vision helps set the strategic objectives for
different areas of the computer technology, consumer electronics,
online digital distribution services, cloud computing, and
semiconductors business.

Apple’s Corporate Mission & Corporate

Vision – Recommendations
Apple Inc.’s mission statement satisfies conventions regarding
ideal corporate mission statements. For example, the company’s
corporate mission provides information about products,
customers, target markets, and technology. However, some
adjustments can improve Apple’s mission statement. Ideally, the
statement should contain information about corporate philosophy,
corporate image, and employees, among other components of the
business. Currently, Apple’s corporate mission focuses on
products and leadership in product development. Thus, it is
recommended that the company add information on corporate
philosophy, corporate image, employees, and the current and
possible future strategic aims of the business. In addition, the
company’s mission statement lacks information about new
products like Apple Watch, as well as other products in
development. In this regard, another recommendation is to make
the corporate mission’s product details more abstract to
encompass the current and future products of the business.
 Apple’s vision statement is comprehensive and detailed enough to
show the firm’s future direction. It satisfies many of the
conventional characteristics of ideal corporate vision statements.
For example, Apple’s corporate vision is clear in terms of what the
company aims for, such as leadership in product design and
development, vertical integration, emphasis on innovation, and
excellence as a business organization. Also, the company’s vision
statement is abstract, inspiring, and stable to encompass the
future of the business. However, to improve this vision statement,
it is recommended that Apple Inc. make it more concise. Instead
of providing a detailed list of beliefs and values, the company can
make its corporate vision more concise, to make it easier for
employees to understand and apply in their daily work activities.
The resulting concise vision statement would be easier to
integrate into more aspects of Apple Inc.’s business, including new
operations in the future.

References

 Apple Inc. – Form 10-K.

 Apple Inc.’s Website.
 Hefti, J., & Levie, J. (2015). Entrepreneurial leadership-vision
casting and the role of signalling. In ICMLG2015-The 3rd International
Conference on Management, Leadership and Governance:
ICMLG2015 (p. 95). Academic Conferences and Publishing Limited.
 Laird-Magee, T., Gayle, B. M., & Preiss, R. (2015). Personal values
and mission statement: A reflective activity to aid moral
development. Journal of Education for Business, 90(3), 156-163.
 Leuthesser, L., & Kohli, C. (2015). Mission statements and
corporate identity. In  Proceedings of the 1996 Academy of Marketing
Science (AMS) Annual Conference (pp. 145-148). Springer International
Publishing.
 Pace, S. (2017). Shaping corporate brands: From product features
to corporate mission. International Studies of Management &
Organization, 47(2), 197-205.
 Price, W. H. (2012). Vision statement Impact on organization
strategic roles. Business Journal for Entrepreneurs, 2012(1), 27-42.
 Salem Khalifa, A. (2012). Mission, purpose, and ambition:
Redefining the mission statement. Journal of Strategy and
Management, 5(3), 236-251.
 Sarros, J. C., Cooper, B. K., & Santora, J. C. (2011). Leadership
vision, organizational culture, and support for innovation in not-for-profit
 and for-profit organizations. Leadership & Organization Development
Journal, 32(3), 291-309.
 Scott, J. (2016). What is a thirteener? Empowering your teams will
help you successfully implement your corporate vision. Strategic
Finance, 98(5), 12-13.
 Suranga, J. M. (2017). Importance of corporate vision.
In Proceedings of International HR Conference, 1(1), 34-40.
 U.S. Department of Commerce – International Trade Administration
– The Software and Information Technology Services Industry in the
United States.
 U.S. Department of Commerce – International Trade Administration
– The Media and Entertainment Industry in the United States.
 U.S. Department of Commerce – International Trade Administration
– The Semiconductors Industry in the United States.

BUSINESS, MANAGEMENT

Apple Inc.’s Marketing Mix or 4Ps (An

Analysis)
http://panmore.com/apple-inc-marketing-mix-4ps

UPDATED ONUPDATED ON FEBRUARY 25, 2019 BY ROBERTA GREENSPAN

The entrance to the Apple Store on

Fifth Avenue, New York City. Apple Inc.’s marketing mix (4Ps) takes
advantage of different product lines, distribution channels, and
promotion, while keeping high-end price points for information
technology, Internet services, and consumer electronics products.
(Photo: Public Domain)

Apple Inc.’s marketing mix (4P) indicates how the company

matches its business activities to the conditions of the global
 market for information technology, consumer electronics, and
online services. A company’s marketing mix involves the
strategies and tactics pertaining to the implementation of a
marketing plan. The focus of the marketing mix is on the 4P
variables, namely, Product, Place, Promotion, and Price. In this
business case, the marketing mix is specific to the technological
nature of Apple’s business. For example, the company’s 4Ps
encompass multinational operations in the consumer electronics
market, the information technology market, the Internet services
market, and the digital content distribution market. Such diversity
in operations brings Apple Inc. in competition with a variety of
firms, such as Google, Amazon.com, Samsung, Dell,
Lenovo, Sony, and PayPal, as well as Microsoft, IBM and Intel.
These competitors are known for their aggressiveness in
innovation and marketing. As a result, Apple has a marketing mix
that involves various strategies and tactics that correspond to the
approaches of these other firms.

In developing its marketing mix, Apple Inc. uses an approach that

focuses on premium branding. This approach involves capitalizing
on the premium brand, and ensuring that all of the 4P elements
support the maintenance of a strong brand image. For example,
Apple’s prices match its premium brand, as well as the
corresponding consumer perception that equates the company’s
products with high value and high quality. Reinforced with
appropriate 4Ps, such response to the market enables the
corporation to keep its wide profit margins. These conditions help
fulfill Apple Inc.’s corporate vision and mission statements.

Apple’s Products (Product Mix)

This marketing mix element determines the outputs of the
business organization. In this case, Apple’s product mix includes
goods and services that are classified as, or involves information
technology. However, the company continues to expand its
product mix, creating the possibility of adding non-IT-related
products in this 4P element. Apple Inc.’s main product lines are as
follows:

1. Mac
2. iPhone
3. iPad
4. iPod
5. Apple Watch
6. Apple TV
7. Digital content
8. Software
9. Accessories
10. Cloud services

These product lines are associated with human resource

utilization and business processes based on product-based
divisions, which are a characteristic of Apple Inc.’s corporate
structure. The Mac product line includes desktop and laptop
computers of various sizes for different market segments. On the
other hand, the iPad, iPhone, iPod, and Apple Watch are mobile
devices with some functions similar to those of Mac products. This
element of the marketing mix shows that the company operates in
the consumer electronics products. In the company’s current
strategic management approaches, the Digital Content product
line includes digital music, videos, e-books, and games. Through
digital content, Apple TV, and Software like mobile apps, among
other products, Apple Inc. operates in the digital content
distribution industry. Moreover, the company’s 4Ps include
products based on cloud technology, which allows customers to
store and access their data, and use software as a service (SaaS),
such as iWork for iCloud. The product lines in this 4P element are
based on the outputs of the product development growth strategy
(see Apple’s Generic Competitive Strategy & Intensive Growth
Strategies). This element of the marketing mix reflects Apple
Inc.’s evolution from a computer technology business into an
increasingly diversified business with focus on information
technology.

Place or Distribution in Apple Inc.’s

Marketing Mix
This element of the marketing mix involves the selection of
appropriate places or venues through which the company
distributes its products. Apple Inc.’s business case involves
 company-owned locations, as well as other parties that the
company authorizes to distribute its products. The following
places are included in Apple’s distribution strategy:

1. Apple Store locations

2. Company-owned website and online stores for desktop and mobile
3. Authorized sellers
4. Telecommunications companies

Apple Store is a subsidiary of Apple Inc. that operates physical or

brick-and-mortar stores that sell the company’s products, along
with related products from other manufacturers. For example,
these stores sell MacBook units, as well as peripheral devices
from other companies. In addition, customers can buy products
through Apple’s website and online stores for desktop and mobile.
Customers can buy consumer electronics through the company’s
website. Apps, music, movies, and other digital content are
available through online stores for desktop and mobile, such as
the App Store and the iTunes Store. In this element of the
marketing mix, the inclusion of these online distribution channels
helps optimize international market reach. Also, Apple Inc.
includes authorized sellers in its distribution strategy. These
sellers operate stores in various strategic locations, such as in
shopping malls in different markets around the world. The sellers
include large retail firms like Walmart and Best Buy. Some
authorized resellers sell through their own stores as well as their
seller accounts on Amazon.com. Moreover, the company has
agreements with various telecommunications companies, such
as Verizon, AT&T, and Sprint, which offer iPhone units integrated
into some of their telecommunications service packages available
to subscribers in local or regional target markets. Thus, Apple’s
marketing mix is comprehensive in taking advantage of online and
non-online distribution channels.

Apple’s Promotions (Promotional Mix)

Also called the marketing communications mix, this element of the
marketing mix determines the communications tactics that the
company uses to reach its target customers. Apple Inc. promotes
its products in various ways, involving different communications
 channels and parties. In addressing this 4P element, the company
emphasizes the premium brand image and premium quality of its
products. The following communications tactics are in Apple’s
promotional mix:

1. Advertising
2. Personal Selling
3. Sales Promotion
4. Public Relations

Apple Inc.’s marketing mix includes advertising, such as on

Google’s digital advertising network and on technology news
websites. The company has agreements with various prominent
websites to advertise and promote Apple products. In addition, the
company uses personal selling in the form of Apple Store
employees who provide product-specific information in the aim of
convincing store visitors to make a purchase. Also, among the
4Ps, this element involves sales promotion, which usually happens
at the Apple Store locations and authorized reseller locations. For
example, some locations offer old models at discounted prices
when bundled with larger or more expensive products. Moreover,
the company uses public relations to optimize its corporate image.
For instance, Apple Events, leaks of new product features, press
releases, and exclusive interviews are carefully executed to
maximize positive publicity. The company is also involved in
various initiatives, such as ConnectED, which aims to improve
formal education outcomes, while promoting the business and its
products. These efforts are linked to Apple’s corporate social
responsibility strategy and stakeholder management efforts. The
company uses such communications tactics to satisfy this
element of the marketing mix, pertaining to business needs in
reaching more customers worldwide.

Apple’s Prices and Pricing Strategies

This element of the marketing mix sets prices, price points, and
price ranges for the company’s products. Apple Inc. uses the
following pricing strategies:

1. Premium pricing strategy

2. Freemium pricing strategy

The premium pricing strategy involves offering products at a

premium. In theory, a premium is an amount that is applied in
addition to the typical or common price. In this regard, Apple’s use
of the premium pricing strategy sets high prices for its products.
For example, in general, iPhones are more expensive than
Samsung smartphones. Premium pricing maximizes profit margins.
Even though the SWOT analysis of Apple Inc. shows that such
high prices are a weakness, the company utilizes premium pricing
in combination with premium branding and creative innovation.
Such combination ensures competitiveness. Creative innovation is
supported through Apple’s organizational culture. Aside from
premium pricing, the company also uses the freemium pricing
strategy. This strategy involves “free” and “premium” pricing
combined into a single strategy. In this freemium pricing case,
some of Apple Inc.’s products are free, but customers pay to
access more, advanced, or better features. For example, the
company offers free 5-gigabyte iCloud storage. However, to add
more storage capacity, customers must pay a recurring fee. In this
regard, Apple’s marketing mix is aligned with premium branding
and associated product design and development efforts.

References

 Apple Inc. – Apple Events.

 Apple Inc. – ConnectED.
 Apple Inc. – Find a Store.
 Apple Inc. – Form 10-K.
 Apple Inc. – iCloud Storage Plans and Pricing.
 Apple Inc.’s E-commerce Website.
 Borden, N. H. (1964). The concept of the marketing mix. Journal of
Advertising Research, 4(2), 2-7.
 Carpenter, G. S., & Lehmann, D. R. (1985). A model of marketing
mix, brand switching, and competition. Journal of Marketing Research,
318-329.
 Constantinides, E. (2006). The marketing mix revisited: Towards
the 21st century marketing. Journal of Marketing Management, 22(3-4),
407-438.
 Danaher, P. J., Hardie, B. G., & Putsis Jr., W. P. (2001). Marketing
mix variables and the diffusion of successive generations of a
 technological innovation. Journal of Marketing Research, 38(4), 501-
514.
 Datta, H., Ailawadi, K. L., & van Heerde, H. J. (2017). How well
does consumer-based brand equity align with sales-based brand equity
and marketing-mix response? Journal of Marketing, 81(3), 1-20.
 Gronroos, C. (1994). From marketing mix to relationship marketing:
Towards a paradigm shift in marketing. Management Decision, 32(2), 4-
20.
 Naik, P. A., Raman, K., & Winer, R. S. (2005). Planning marketing
mix strategies in the presence of interaction effects. Marketing
Science, 24(1), 25-34.
 Rahmani, K., Emamisaleh, K., & Yadegari, R. (2015). Quality
function deployment and new product development with a focus on
marketing mix 4P model. Asian Journal of Research in Marketing, 4(2),
98-108.
 U.S. Department of Commerce – International Trade Administration
– The Software and Information Technology Services Industry in the
United States.
 U.S. Department of Commerce – International Trade Administration
– The Media and Entertainment Industry in the United States.
 U.S. Department of Commerce – International Trade Administration
– The Semiconductors Industry in the United States.
 Van Waterschoot, W., & Van den Bulte, C. (1992). The 4P
classification of the marketing mix revisited. The Journal of Marketing,
83-93.
 Yoo, B., Donthu, N., & Lee, S. (2000). An examination of selected
marketing mix elements and brand equity. Journal of the Academy of
Marketing Science, 28(2), 195-211.

TAGS: APPLE INC., CASE STUDY & CASE

ANALYSIS, CLOUD COMPUTING, COMPUTER
TECHNOLOGY, CONSUMER ELECTRONICS
INDUSTRY, INFORMATION AND COMMUNICATIONS
TECHNOLOGY INDUSTRY, INFORMATION
TECHNOLOGY, MARKETING, MARKETING MIX
(4PS), ONLINE DIGITAL CONTENT DISTRIBUTION
INDUSTRY, STRATEGY
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Apple Inc. SWOT Analysis &

Recommendations
http://panmore.com/apple-inc-swot-analysis-recommendations

UPDATED ONUPDATED ON FEBRUARY 14, 2019 BY NATHANIEL SMITHSON

An Apple Wireless Keyboard (German language) and Magic Mouse.

A SWOT analysis of Apple Inc. shows that the business is strong
but must address the threats of competition and imitation in the
computer technology, cloud services, digital content distribution,
and consumer electronics industries. (Photo: Public Domain)
Apple Inc.’s success is linked to the ability to use business
strengths to overcome weaknesses and threats, and to exploit
opportunities in the industry environment. A SWOT analysis of the
company gives insights on the strategic actions of the business,
especially in maximizing its growth based on its strengths and
opportunities. The SWOT analysis framework is a strategic
management decision-making tool that determines the most
pressing issues facing the company, based on the internal
business conditions and the external environment. In this case,
the SWOT analysis of Apple Inc. scans the business for relevant
strengths, weaknesses, opportunities, and threats (SWOT
variables), with reference to various industries and markets. The
 company is involved in the computing technology (hardware and
software), consumer electronics, cloud computing services, and
online digital content distribution services industries. This
condition necessitates that Apple develop a diverse set of
strategies to ensure its competitiveness and business growth.

This SWOT analysis of Apple Inc. presents the strategic factors

that influence the decisions of CEO Tim Cook and managers in
developing the business. With its operations in various markets
around the world, the company deals with different sets of SWOT
factors based on regional situations. Also, the Porter’s Five
Forces analysis of Apple Inc. establishes that the company faces
the strong force of competition linked to the aggressiveness of
other technology firms, such as Google, IBM, Amazon.com,
Samsung, Sony, Lenovo, Dell, and PayPal. This competitive
landscape requires innovative strategies and tactics to achieve
continuous business growth and development, and to
fulfill Apple’s corporate mission statement and corporate vision
statement.

Apple’s Strengths (Internal Strategic

Factors)
This aspect of the SWOT analysis framework identifies the
strengths that enable the company to overcome weaknesses, take
advantage of opportunities, and withstand threats in its business
environment. These strengths are internal factors specific to the
conditions within the business organization. In this case, the
following are the most notable strengths of Apple Inc.:

1. Strong brand image

2. High profit margins
3. Effective rapid innovation processes

Apple is one of the most valuable and strongest brands in the

world. In the context of this SWOT analysis, the company is
capable of introducing profitable new products by virtue of its
strong brand image. In addition, Apple’s marketing mix or
4P involves the premium pricing strategy, which comes with high
 profit margins. This internal strategic factor is a major strength
because it maximizes profits, even when sales volumes are
limited. Moreover, the generic competitive strategy and intensive
growth strategies of Apple Inc. involve effective rapid innovation,
which enables the business to keep abreast with the latest
technologies to ensure competitive advantages. Based on this
aspect of the SWOT analysis of Apple Inc., the company’s
strengths are difficult to compete with, thereby supporting
continued leadership in the global industry environment.

Apple Inc.’s Weaknesses (Internal Strategic

Factors)
In this aspect of the SWOT analysis, the emphasis is on the
weaknesses or inadequacies of the company. Weaknesses are
internal factors that are obstacles to business growth. The
following business weaknesses are the most notable in the case of
Apple:

1. Limited distribution network

2. High selling prices
3. Dependence of sales on high-end market segments

Apple Inc. has a limited distribution network because of the

company’s policy of exclusivity. For example, the company
carefully selects the authorized sellers of its products. The SWOT
analysis framework considers this exclusivity strategy as a factor
that limits market reach. This weakness exists despite
exclusivity’s advantages, such as Apple’s strong control on the
distribution of products. In addition, because of its premium
pricing strategy, the company has the weakness of the
dependence of sales on high-end market segments. High prices
attract customers from the middle- and high-income brackets,
while preventing customers from low-income brackets to easily
purchase the company’s products. This internal strategic factor is
a considerable weakness because high-end market segments
represent only a minority of the global market. Based on the
internal factors in this aspect of the SWOT analysis, Apple Inc.’s
 pricing and distribution strategies impose limitations or
weaknesses in the business.

Opportunities for Apple Inc. (External

Strategic Factors)
This aspect of the SWOT analysis of Apple Inc. pinpoints the most
significant opportunities that are available to the business.
Opportunities are external factors based on the industry
environment. These factors influence the strategic direction of
business organizations. In Apple’s case, the following are the most
significant opportunities:

1. Expansion of the distribution network

2. Higher sales volumes based on rising demand
3. Development of new product lines

Apple Inc. has the opportunity to expand its distribution network.

Such opportunity directly relates to the weakness of the
company’s limited distribution network. This SWOT analysis
emphasizes the need for the company to change its distribution
strategy. An expanded distribution network can help Apple reach
more customers in the global market. In relation, the company has
the opportunity to increase its sales volumes through aggressive
marketing, especially for mobile products. This opportunity is
linked to the rising demand for mobile access, as illustrated in
the PESTEL/PESTLE analysis of Apple Inc. Furthermore, the
company has the opportunity to explore new product lines. Its
current product lines are highly successful. However, with further
innovation, the company can develop and introduce new products,
like what it has already achieved with the Apple Watch.
Developing new product lines can support business growth in the
international market. Thus, this aspect of the SWOT analysis of
Apple indicates that the business has major opportunities for
further growth despite aggressive competition.

Threats Facing Apple Inc. (External

Strategic Factors)
 In this aspect of the SWOT analysis, the focus is on the threats
that the company experiences from various sources, such as
competitors. Threats are external factors that limit or reduce the
financial performance of businesses. In Apple’s case, the following
threats are the most significant:

1. Aggressive competition
2. Imitation
3. Rising labor cost in various countries

Tough competition in the industry is partly because of the

aggressiveness of firms. Apple competes with firms like Samsung,
which also uses rapid innovation. In the context of this SWOT
analysis, aggressive competition has a limiting effect on Apple Inc.
Because of the aggressive behaviors of competing firms, it is
necessary to have strong fundamentals for maintaining
competitive advantages. In addition, the company faces the threat
of imitation. This threat is significant because of the large number
of local and multinational firms that imitate the design and
features of Apple’s products. Moreover, rising labor costs involving
contract manufacturers, such as those in China, reduce profit
margins or push selling prices even higher. Based on the external
strategic factors in this SWOT analysis, Apple Inc.’s performance
could suffer because of aggressive competition and imitation of
product design.

SWOT Analysis of Apple Inc. –

Recommendations
The internal and external factors discussed in this SWOT analysis
indicate that Apple Inc. possesses major strengths to effectively
address organizational weaknesses. The company can also use
these strengths to exploit opportunities, such as the expansion of
its distribution network. Moreover, the company can use its strong
brand image and rapid innovation processes to successfully
develop and launch new product lines. However, Apple faces the
significant threats of aggressive competition and imitation, which
are major challenges affecting players in the global market for
 consumer electronics, computer hardware and software, and
online digital content distribution services.

Based on the strategic issues highlighted in this SWOT analysis of

Apple Inc., a recommendation is to continue the aggressive and
rapid innovation involved in developing the company’s products.
Such innovation reduces the adverse effects of imitation on
revenues. Also, it is recommended that the company further
enhance the automation of its production processes, and support
the automation of its contract manufacturers, as a way of
addressing the rising labor costs involving Apple product
manufacturers. Another recommendation is to establish
partnerships with more distributors to improve the overall market
reach of the company’s distribution network.

References

 Apple Inc. – Form 10-K.

BUSINESS, MANAGEMENT

Apple Inc. Five Forces Analysis (Porter’s

Model)
http://panmore.com/apple-inc-five-forces-analysis-porters-model-case-study

UPDATED ONUPDATED ON FEBRUARY 22, 2019 BY EDWARD FERGUSON

MacBook Pro, iPad and iPhone from

Apple. A Five Forces analysis (Porter’s Model) of Apple Inc. reveals an
industry environment where the company must prioritize the external
factors of competition and the bargaining power of buyers in the
consumer electronics, computing technology, and online digital content
distribution markets. (Photo: Public Domain)

Apple Inc. has achieved success as one of the most valuable

companies in the world. This Five Forces analysis gives insights
about the external factors influencing the company’s success.
Michael E. Porter’s Five Forces framework is a strategic
management tool for evaluating the five forces affecting the
business organization: customers, suppliers, substitutes, new
entrants, and competition. A Five Forces analysis of Apple Inc.
sheds light on what the company does to ensure industry
leadership despite the negative effects of external factors in the
competitive landscape of the computer software and hardware,
consumer electronics, and online digital content distribution
markets, which involve firms
like Microsoft, Google, Amazon, Walmart, Samsung, Dell, Sony,
and Lenovo. Established in 1976, Apple has succeeded to become
a dominant competitor in the industry under the leadership of
Steve Jobs. Based on this Five Forces analysis, the company
addresses competition and the bargaining power of buyers, which
are among the most significant external factors impacting the
business. Also, this Five Forces analysis indicates that Apple Inc.
must focus its strategic efforts on these two external factors to
keep its leadership in the industry.

This Five Forces analysis (Porter’s model) of external factors in

Apple Inc.’s industry environment points to competitive rivalry or
intensity of competition, and the bargaining power of buyers or
customers as the primary forces for consideration in the
company’s strategic formulation. Nonetheless, all of the five
forces influence the company’s business situation, together with
the effects of others external factors, such as the ones identified
in the PESTEL/PESTLE analysis of Apple Inc.

Five Forces Analysis of Apple Inc. –

Overview
Apple’s strategies are partly based on the need to address forces
in the external business environment. These forces can limit or
reduce the firm’s market share, revenues, profitability, and
 business development potential. This Five Forces analysis, based
on Porter’s framework, points to the following strengths or
intensities of external factors in Apple Inc.’s industry environment:

1. Competitive rivalry or competition: Strong force

2. Bargaining power of buyers or customers: Strong force
3. Bargaining power of suppliers: Weak force
4. Threat of substitutes or substitution: Weak force
5. Threat of new entrants or new entry: Moderate force

Considering the five forces, Apple must focus its attention on

competitive rivalry and the bargaining power of buyers. This
external analysis supports the company’s current position of
continuous innovation. Through rapid and continuous innovation,
Apple effectively addresses the five forces in its external
environment, although much of the company’s effort is to
strengthen its position against competitors and to keep attracting
customers to Apple products. An applicable recommendation is to
intensify research and development for innovation to develop
novel products that will complement the iPhone, the iPad, and
other existing products.

Competitive Rivalry or Competition with

Apple (Strong Force)
Apple faces the strong force of competitive rivalry or competition.
This component of Porter’s Five Forces analysis model determines
the intensity of the influence that competitors have on each other.
In Apple’s case, this influence is based on the following external
factors:

1. High aggressiveness of firms (strong force)

2. Low differentiation of products (strong force)
3. Low switching cost (strong force)

Companies like Samsung and LG aggressively compete with Apple.

Such aggressiveness, observable in rapid innovation, aggressive
advertising, and imitation, impose a strong force in the industry
environment. Moreover, in terms of product differentiation,
available products in the market are generally similar in fulfilling
 specific purposes. For example, many popular apps are available
for Android and iOS devices, and cloud storage services from
different companies are available to iOS users. In Porter’s Five
Forces analysis model, this condition creates a strong force by
making it easy for customers to switch to other sellers or
providers. On the other hand, the low switching cost means that it
is easy for customers to switch from Apple to other brands, based
on price, function, accessibility, network externalities, and related
concerns. The combination of these external factors in this part of
the Five Forces analysis leads to tough competitive rivalry that is
among the most significant considerations in Apple’s strategic
management.

Bargaining Power of Apple’s

Customers/Buyers (Strong Force)
The bargaining power of buyers is strong in affecting Apple’s
business. This component of Porter’s Five Forces analysis model
determines how buyers’ purchase decisions and related
preferences and perceptions impact businesses. In Apple Inc.’s
case, buyers’ strong power is based on the following external
factors:

1. Low switching cost (strong force)

2. Small size of individual buyers (weak force)
3. High buyer information (strong force)

It is easy for customers to change brands, thereby making them

powerful in compelling companies like Apple to ensure customer
satisfaction. On the other hand, each buyer’s purchase is small
compared to the company’s total revenues. Porter’s Five Forces
framework indicates that this condition makes customers weak at
the individual level. However, the availability of detailed
comparative information about competing products’ features
empowers buyers to shift from one provider to another. This
external factor enables buyers to exert a strong force on Apple
and other brands. Thus, this part of the Five Forces analysis shows
that Apple must include the bargaining power of buyers or
customers as one of the most significant strategic variables in the
business.
 Bargaining Power of Apple’s Suppliers
(Weak Force)
Apple Inc. experiences the weak force of the bargaining power of
suppliers. This component of Porter’s Five Forces analysis model
indicates the influence of suppliers in imposing their demands on
the company and its competitors. In Apple’s case, suppliers have a
weak bargaining power based on the following external factors:

1. Moderate to high number of suppliers (weak force)

2. Moderate to high overall supply (weak force)
3. High ratio of firm concentration to supplier concentration (weak
force)

The global size of its supply chain allows Apple Inc. to access
many suppliers around the world. In Porter’s Five Forces analysis
context, the resulting high number of suppliers is an external
factor that presents only a weak to moderate force against the
company. In relation, the moderate to high overall supply of inputs,
such as semiconductors, makes individual suppliers weak in
imposing their demands on firms like Apple. Also, the ratio of firm
concentration to supplier concentration further limits suppliers’
power and influence in the industry. This external factor reflects
the presence of a small number of big companies like Apple and
Samsung, in contrast to a larger number of medium-sized and big
suppliers. Thus, this part of the Five Forces analysis shows that
the bargaining power of suppliers is a minor issue in developing
Apple Inc.’s strategies for supply chain management, value chain
effectiveness, innovation, and industry leadership.

Threat of Substitutes or Substitution (Weak

Force)
The competitive threat of substitution is weak in affecting Apple
Inc.’s computing technology, consumer electronics, and online
services business. This component of Porter’s Five Forces
framework determines the strength of substitute products in
attracting customers. In Apple’s case, substitutes exert a weak
force based on the following external factors:
1. Moderate to high availability of substitutes (moderate force)
2. Low performance of substitutes (weak force)
3. Low buyer propensity to substitute (weak force)

Some substitutes to Apple products are readily available in the

market. For example, instead of using iPhones, people can use
digital cameras to take pictures, and landline telephones to make
calls. In Porter’s Five Forces analysis model, this external factor
exerts a moderate force in the industry environment. However,
these substitutes have low performance because they have limited
features. Many customers would rather use Apple products based
on convenience and advanced functions. This condition makes
substitution a weak force in impacting the company’s business.
Also, buyers have a low propensity to substitute. For instance,
customers would rather use smartphones than go through the
hassle of buying and maintaining a digital camera, a cellular
phone, and other devices. This part of the Five Forces analysis
shows that Apple does not need to prioritize the threat of
substitution, specifically in management decisions in business
processes like marketing, market positioning, and product design
and development.

Threat of New Entrants or New Entry

(Moderate Force)
Apple Inc. experiences the moderate force of the threat of new
entrants. This component of Porter’s Five Forces analysis model
indicates the effect and possibility of new competitors entering
the market. In Apple’s case, new entrants exert a moderate force
based on the following external factors:

1. High capital requirements (weak force)

2. High cost of brand development (weak force)
3. Capacity of potential new entrants (strong force)

Establishing a business to compete against firms like Apple Inc.

requires high capitalization. Also, it is extremely costly to develop
a strong brand to compete against large companies like Apple.
These external factors make new entrants weak. However, there
are large firms with the financial capacity to enter the market. For
 example, Google has already done so through products like Nexus
smartphones. Samsung also used to be a new entrant. These
examples show that there are large companies that have the
potential to directly compete against Apple Inc. Thus, the overall
threat of new entry is moderate. This part of the Five Forces
analysis shows that Apple must maintain its competitive
advantage through innovation and marketing to remain strong
against new entrants’ moderate competitive force.

References

 Apple Inc. – Form 10-K.

 Apple Inc.’s E-commerce Website.
 Burke, A., van Stel, A., & Thurik, R. (2010). Blue ocean vs. five
forces. Harvard Business Review, 88(5), 28-29.

BUSINESS, MANAGEMENT

Apple Inc. PESTEL/PESTLE

Analysis & Recommendations
http://panmore.com/apple-inc-pestel-pestle-analysis-recommendations

UPDATED ONUPDATED ON JUNE 9, 2019 BY JESSICA LOMBARDO

An iPhone, one of Apple’s

bestselling products. A PESTEL/PESTLE analysis of Apple Inc. indicates
that most of the external factors in the company’s remote or macro-
environment present opportunities for the consumer electronics and
information technology services business. (Photo: Public Domain)

Apple Inc.’s high performance is linked to effectiveness in

addressing external factors in the company’s remote or macro-
environment. The corporation’s success is a result of strategic
management that exploits opportunities and protects the business
from threats in the consumer electronics and information
technology services industries. This PESTEL/PESTLE analysis of
Apple Inc. identifies the most significant external factors that the
company must strategically address in its industry environment.
The PESTEL/PESTLE analysis framework evaluates the political,
economic, sociocultural, technological, ecological, and legal
factors relevant to the business. These strategic factors are
opportunities or threats that impact business performance relative
to competitors, such as Google, Microsoft, Amazon,
Samsung, IBM, Dell, HP, Sony, Lenovo, Huawei, and LG. While
Apple has a leading position, especially in the premium consumer
electronics market, this PESTEL/PESTLE analysis shows that the
company must continue evolving its strategies to keep its
leadership. Effectiveness in addressing these external strategic
factors ensures that Apple remains strong despite tough
competition in the global market.

The external factors in Apple’s remote or macro-environment

indicate the value of strategic management and flexible long-term
strategic planning in managing external factors. This
PESTEL/PESTLE analysis serves as a guide for strategic
formulation processes to address external pressures the
technology corporation is experiencing. Apple Inc.’s generic
strategy for competitive advantage and intensive strategies for
growth are examples of strategic congruence for countering such
pressures.

Political Factors Affecting Apple’s Business

The political external factors in Apple’s remote or macro-
environment mainly present opportunities. This aspect of the
PESTEL/PESTLE analysis model indicates the influence of
governments and related organizations on businesses. In Apple’s
 case, the following are some of the major political external
factors:

1. Improving free trade policies (opportunity)

2. Stable politics in developed countries (opportunity)
3. Trade disputes, especially between the U.S. and China (threat)

Better overall free trade policies are created over time. This
external strategic factor increases the opportunities for Apple Inc.
to distribute more of its products around the world. This
PESTEL/PESTLE analysis also identifies the stability of the
political landscape of developed countries as an opportunity for
Apple to grow, considering the reduced political problems
affecting business operations in these countries. In spite of these
trends that present opportunities, the political external factor of
trade disputes, especially between the United States and China,
creates a threat against the company’s potential growth and the
global sales revenues of its products, such as consumer
electronics. For example, growing China-U.S. tensions could lead
China to impose higher tariffs on imported electronic components
used in Apple’s product assembly. Based on this part of the
PESTEL/PESTLE analysis, Apple can improve its performance by
taking advantage of political opportunities in its remote or macro-
environment, although caution is needed to ensure stability
despite trade disputes.

Economic Factors Important to Apple Inc.

Most of the economic external factors in Apple’s remote or macro-
environment create opportunities. This aspect of the
PESTEL/PESTLE analysis model indicates market and industry
conditions that impact firms. In this external analysis case of
Apple Inc., the following economic external factors are the most
significant:

1. Stable economies of developed countries (opportunity)

2. Rapid growth of developing countries (opportunity)
3. Increasing disposable incomes among target customers
(opportunity)
 The economic stability of developed countries creates
opportunities for Apple’s expansion. However, the rapid growth of
developing countries is a more significant economic external
factor in this PESTEL/PESTLE analysis case, in terms of support
for growing the technology business. For example, the high
economic growth rates of Asian countries are opportunities for
Apple to increase its revenues through sales in these foreign
markets. In relation, higher disposable incomes create more
opportunities to sell the company’s relatively high-priced
technology products. In exploiting these economic opportunities,
it is essential to consider competitive forces in the international
market, as described in the Porter’s Five Forces analysis of Apple
Inc. These external strategic factors indicate growth potential for
the corporation and its competitors, especially large multinational
firms like Samsung. Based on this part of the PESTEL/PESTLE
analysis framework, speed and effectiveness are critical in Apple
Inc.’s growth and expansion efforts because competitors also
target these same economic opportunities.

Social/Sociocultural Factors in Apple’s

Industry Environment
Apple’s business is subject to the effects of social or sociocultural
trends. This aspect of the PESTEL/PESTLE analysis model points
to the social external factors that influence consumer behaviors
and expectations. In Apple’s case, the following sociocultural
trends are significant in the remote or macro-environment:

1. Rising use of mobile access (opportunity)

2. Increasing dependence on digital systems (opportunity)
3. International anti-Apple sentiments (threat)

The rising use of mobile access is an opportunity to grow Apple

Inc.’s revenues. This social external factor relates to the
increasing demand for devices like smartphones and tablets. This
PESTEL/PESTLE analysis also points to the increasing dependence
on digital systems, which is another sociocultural trend that
creates opportunities for Apple to sell more of its products based
on higher demand. Despite these opportunities, the company faces
the social threat of opposition against its business operations.
 Anti-Apple sentiments are mounting, questioning business
practices, such as the company’s lawsuits against third-party
repair service providers that repair products like the iPhone and
MacBook. In the PESTEL/PESTLE analysis context, these
sentiments have the potential to reduce brand image and
consumer confidence in the corporation’s technological products.
These sociocultural factors emphasize the importance of Apple
Inc.’s corporate social responsibility strategy. Such strategy helps
satisfy stakeholders, including customers and governments. In
addition, Apple Inc.’s corporate culture is a relevant factor
because it influences the quality of service provided to customers.
The company’s internal cultural approach must align with the
sociocultural trends influencing the global market. In this part of
the PESTEL/PESTLE analysis of Apple Inc., opportunities for
growth, as well as threats against the business, are identified.
These strategic concerns require that the company continue
improving its policies and practices, as well as its approaches to
technological innovation. Also, Apple Inc.’s marketing mix or
4Ps must include strategies that match such social external
factors.

Technological Factors in Apple’s Business

Environment
The technological external factors in Apple’s remote or macro-
environment generally provide opportunities for the enterprise. In
this aspect of the PESTEL/PESTLE analysis framework, current
technologies and technological trends are evaluated based on
their effect on business conditions. In Apple’s external analysis
case, the following technological external factors are the most
significant:

1. Growing cloud computing demand (opportunity)

2. Increasing technological integration in businesses (opportunity)
3. Growing mobile market (opportunity)
4. Growing technological capabilities of other firms (threat)

This PESTEL/PESTLE analysis of Apple Inc. identifies the growing

demand for cloud computing as an opportunity to grow the
business. The company now offers cloud services, although to a
 limited extent. In exploiting this opportunity, together with support
from Apple Inc.’s corporate structure, developing an expanded
cloud infrastructure could maximize the profitability of the
business in offering cloud-computing services. In relation, the
external strategic factor of increasing technological integration
presents the opportunity to enhance the company’s services and
grow the business by offering its technological goods and services
to more customers, including organizations. Furthermore, this
PESTEL/PESTLE analysis includes the growth of the mobile market
as an opportunity for Apple Inc. to gain higher revenues, including
revenues through the App Store and related digital content
distribution platforms. However, the technological advancement of
other firms threatens the company, as more new players could
enter the market. Thus, to ensure the achievement of Apple Inc.’s
corporate vision and mission statements, it is beneficial to
reinforce business capabilities to exploit the opportunities and
protect the business against the competitive threats shown in this
part of the PESTEL/PESTLE analysis.

Ecological/Environmental Factors
The ecological factors in Apple Inc.’s remote or macro-
environment provide opportunities for business improvement. This
aspect of the PESTEL/PESTLE analysis model highlights ecological
trends and their impacts on business. In Apple’s case, the
following ecological external factors are the most important:

1. Business sustainability trend (opportunity)

2. Energy efficiency trend (opportunity)

The business sustainability trend is an ecological factor linked to

increasing favor among businesses to adopt sustainable practices,
based on concerns about the adverse environmental impact of
business operations. In this PESTEL/PESTLE analysis of Apple Inc.,
such an ecological trend offers the opportunity to strengthen the
company’s corporate image. In addition, the energy efficiency
trend is an ecological external factor that promotes the adoption
of newer and more efficient technologies among businesses and
customers. Apple has the opportunity to improve its operational
cost efficiencies in this regard, while offering more attractive
 products to an increasingly environmentally aware customer
population. Based on this part of the PESTEL/PESTLE analysis
model, Apple addresses these ecological/environmental factors in
its remote or macro-environment. The company has strategic
measures to adjust its operations and technological products to
respond to these ecological trends. Apple Inc.’s operations
management also supports business efforts to exploit
opportunities on these trends.

Legal Factors that Limit Apple

The legal external factors in Apple’s remote or macro-environment
create threats to the business. This aspect of the PESTEL/PESTLE
analysis framework indicates the impact of laws or regulations on
businesses. In Apple’s case, the following are the most significant
legal external factors:

1. Increasing privacy regulations (opportunity & threat)

2. Legal challenges against Apple’s policies and practices (threat)

Governments’ pressure on privacy in the digital age has resulted in

increasing privacy regulations on businesses like Apple Inc. This
legal external factor is a threat that could impose costly
regulatory compliance requirements and more limits on the
technology company. However, this PESTEL/PESTLE analysis
identifies the same external factor as a trend that presents the
opportunity for Apple to boost its business through enhanced
privacy measures. In addition, the company faces legal challenges
related to its practices and policies on after-sales service and
other areas of the business. For example, in Australia, the
European Union, and the United States, among other countries, the
company has faced strong criticism and legal battles regarding its
policies on third-party repair services. Based on this part of the
PESTEL/PESTLE analysis model, Apple must emphasize privacy
protection and regulatory compliance in all of its products, and
consider adjusting its policies and practices to address current
legal pressures on the business.
 Apple Inc. PESTEL/PESTLE Analysis –
Recommendations
This PESTEL/PESTLE analysis shows that the majority of external
factors in Apple’s remote or macro-environment provide
opportunities. Given its current industry position, the company can
exploit these opportunities to expand its reach in the global
information technology goods and services market. However,
Apple must develop suitable strategies to effectively address the
threats identified, especially those in the legal dimension of its
remote or macro-environment. Based on this PESTEL/PESTLE
analysis, it is expected that Apple will remain in its strong industry
position. Nonetheless, the dynamics of the market and the
presence of aggressive competitors could drastically change the
company’s strategic position. In this context, it is of critical
importance to further improve the strengths identified in
the SWOT analysis of Apple Inc.

References

 Apple Inc.’s E-commerce Website.

 Apple Inc. – Environment.
 Apple Inc. – Form 10-K.
 Apple Inc. – Supplier Responsibility.
 Cherney, M. (2018). Apple Fined as Customers Win a Right-to-
Repair Fight. The Wall Street Journal.
 Dockalikova, I., & Klozikova, J. (2014, November). MCDM Methods
in Practice: Determining the Significance of PESTEL Analysis Criteria.
In European Conference on Management, Leadership & Governance  (p.
418). Academic Conferences International Limited.
 Jennings, R. (2018). Why These Contractors Had To Help Apple
Cut Air Pollution In China. Forbes.
 Murphey, M., & Gause, R. (1974). UCF Research Guides. Business
Research–Industry Analysis. PESTLE Analysis. Business Horizons, 17(5),
27-38.
 U.S. Department of Commerce – International Trade Administration
– The Media and Entertainment Industry in the United States.
 U.S. Department of Commerce – International Trade Administration
– The Semiconductors Industry in the United States.
 U.S. Department of Commerce – International Trade Administration
– The Software and Information Technology Services Industry in the
United States.
 Wiens, K., & Gordon-Byrne, G. (2017). Why We Must Fight For The
Right To Repair Our Electronics. IEEE Spectrum.
 Yuksel, I. (2012). Developing a multi-criteria decision making
model for PESTEL analysis. International Journal of Business and
Management, 7(24), 52.

TAGS: APPLE INC., CASE STUDY & CASE

ANALYSIS, CLOUD COMPUTING, COMPUTER
TECHNOLOGY, CONSUMER ELECTRONICS
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COMMUNICATIONS TECHNOLOGY
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Apple Inc.’s Generic Strategy & Intensive

Growth Strategies
http://panmore.com/apple-inc-generic-strategy-intensive-growth-strategies

UPDATED ONUPDATED ON JUNE 5, 2019 BY PAULINE MEYER

 An Apple Watch. Apple Inc.’s
generic strategy (Porter’s model) and intensive growth strategies (Ansoff
Matrix) are aligned to support the company’s leadership in various
consume electronics and information technology services markets
worldwide. (Photo: Public Domain)

Apple Inc.’s generic strategy and intensive growth strategies

directly relate to the company’s strategies in pricing, marketing,
and other areas of the business. Michael E. Porter’s model for
generic strategies defines strategic options that the company can
use to develop its competitive advantages in the consumer
electronics and information technology and services industries. As
one of the most valuable companies in the world, Apple shows that
its generic strategy is a major determinant of competitive
advantage against other firms
like Samsung, Google, Amazon, Microsoft, Dell, HP,
Lenovo, Sony, IBM, BlackBerry, Huawei, LG, and
even Walmart with its content distribution service, Vudu. On the
other hand, Igor Ansoff’s Matrix of growth strategies presents
ways for the technology business to intensively grow in current or
new markets and industries. In this case, Apple’s intensive growth
strategies support the ability to maintain a strong position in the
global market. With a high rate of innovation and emphasis on
excellence in product design, the enterprise succeeds even with
its relatively high selling prices. This successful positioning
indicates Apple’s effectiveness in using its generic strategy for
competitive advantage, and intensive strategies for business
growth.
Apple’s generic strategy aligns with the company’s intensive
growth strategies, especially in maximizing the use of the
organization’s competitive advantages. In particular, the intensive
growth strategy of product development is key to fulfilling this
generic strategy and supporting the long-term growth and success
of the company’s technological goods and services. This alignment
between the generic competitive strategy and the intensive
growth strategies provide support for fulfilling Apple Inc.’s
corporate mission and vision statements.

Apple’s Generic Strategy (Porter’s Model) &

Objectives
Apple Inc.’s generic strategy is broad differentiation. This generic
strategy focuses on key features that differentiate the company
and its information technology products from competitors.
Through the broad differentiation generic strategy, Apple stands
out in the market. For example, elegant design and user-
friendliness of products, combined with high-end branding,
effectively differentiate the technology business. This generic
strategy means that Apple always aims to set itself apart from
competitors not by price but by competitive advantages based on
product design that attracts customers. Such design includes
seamless connectivity among devices and cutting-edge
aesthetics. Even though this generic strategy makes Apple
different, the company still broadly reaches various segments of
the market. The firm’s products are designed for everyone, thereby
supporting a broad market reach. For example, Apple targets
individuals and business organizations through the MacBook
product line. In this way, the generic strategy of broad
differentiation supports the company in maintaining its
competitive advantage, leadership, and position as a high-end and
high-value technology business.

The broad differentiation generic strategy has significant

implications on Apple’s strategic objectives. For example, to apply
this strategy, the company must continue emphasizing innovation
through research and development. Apple must keep developing
innovative products so that the business maintains its competitive
advantage. Competitors eventually catch up with new
technologies and new products, so the broad differentiation
generic strategy compels the company to continuously innovate to
keep itself always ahead of the competition. Thus, continuous
innovation is one of Apple’s strategic objectives based on the
broad differentiation generic competitive strategy. In addition, to
maintain business growth, the company must keep growing its
market reach, such as in the global consumer electronics market.
In its generic strategy for competitive advantage, Apple does not
focus on any specific market segment. Instead, the company
competes by selling various goods and services that suit the
various segments of the consumer electronics and information
technology services industries. Thus, another of Apple’s strategic
objectives based on its generic strategy is to penetrate markets to
ensure a broad reach. Such expansion and business growth are
achieved through intensive strategies for growth.

Apple’s Intensive Growth Strategies (Ansoff

Matrix)
Product Development. Apple uses product development as its main
intensive strategy for growth. Product development requires that
the company develop attractive and profitable technology
products to grow its market share and business performance.
Apple implements this intensive growth strategy through
innovation in its research and development processes. Through
product development, the company uses innovation as a critical
success factor and competitive advantage. For example, the
business continues to innovate products like the iPhone, iPad, and
Apple Watch. In this intensive growth strategy, the company grows
because new products allow the business to generate more
revenues, such as through the sale of new iPhone models. The
company’s generic strategy agrees with this intensive growth
strategy by focusing on technological innovation to increase
competitive advantage and profits. Apple Inc.’s organizational
structure supports this growth strategy. The structure’s product-
based divisions enable strategic management specific to product
development. Also, Apple Inc.’s organizational
culture emphasizes innovation that supports product
development.

Market Penetration. Apple Inc. uses market penetration as its

second most significant intensive strategy for growth. Market
penetration involves gaining a larger share of the current market
by selling more of the company’s current products. For example,
Apple applies this growth strategy by selling more iPhones and
iPads to its current markets in North America. Also, the company
achieves more sales by adding more authorized sellers to boost
competitive advantages in its current markets. This approach
penetrates markets where Apple has not yet achieved a significant
position. In relation, under the market penetration intensive
growth strategy, the company uses promotion through various
websites and media outlets. Advertisements encourage more
people to buy Apple products. This intensive growth strategy
agrees with the company’s broad differentiation generic strategy
by addressing the need to broadly capture the market through the
sale of more technological products to more customers. Apple
Inc.’s marketing mix or 4P influences the effectiveness of the
organization’s competitive advantage and this intensive growth
strategy.

Market Development. Apple uses market development as a low-

priority intensive strategy for growth. Using the company’s
competitive advantages, market development involves selling
existing products in new markets. For example, Apple Inc. applies
this intensive growth strategy by authorizing new sellers in
markets where the company does not have any presence yet. This
growth strategy agrees with the generic strategy of broad
differentiation by expanding the company’s market reach, such as
by introducing its current consumer electronics to new overseas
markets. This generic strategy for competitive advantage also
requires offering products to different market segments, which
Apple satisfies via market development. Through its various
product models of consumer electronics and other goods and
services, the company fulfills this strategic requirement. In
relation, the business strengths discussed in the SWOT analysis
of Apple Inc. facilitate the implementation of market
development.

Strategic Analysis and Recommendations

for Apple Inc.
Apple’s generic strategy of broad differentiation adds competitive
advantage by making the business stand out. Differentiation in
product function and design supports the firm’s goal of leading the
market through technological innovation. Innovation is at the heart
of Apple Inc.’s business. However, to improve its application of
this generic strategy for competitive advantage, the company
must aggressively penetrate markets. This recommendation is
especially applicable in developing countries where the
corporation has limited market reach for its information
technology goods and services.

Apple Inc.’s main intensive growth strategy is product

development. Market penetration and market development have
lower priority in this technology enterprise. These intensive
growth strategies agree with and support Apple’s generic strategy.
The company is strong in product development through innovation.
However, to improve performance, Apple needs to emphasize more
on market penetration and market development. These two
intensive growth strategies can improve the company’s resilience
against aggressive competitors like Samsung. Also, Apple Inc.’s
operations management can optimize the effectiveness of these
growth strategies and the broad differentiation generic strategy
for competitive advantage.
 References

 Akan, O., Allen, R. S., Helms, M. M., & Spralls III, S. A. (2006).
Critical tactics for implementing Porter’s generic strategies. Journal of
Business Strategy, 27(1), 43-53.
 Allen, R. S., & Helms, M. M. (2006). Linking strategic practices and
organizational performance to Porter’s generic strategies. Business
Process Management Journal, 12(4), 433-454.
 Apple Inc. – Form 10-K.
 Apple Inc.’s Website.
 Bajarin, T. (2014, July 14). Understanding Apple’s ‘Continuity’
Strategy. Time.
 Parnell, J. A. (2006). Generic strategies after two decades: A
reconceptualization of competitive strategy. Management
Decision, 44(8), 1139-1154.
 Pretorius, M. (2008). When Porter’s generic strategies are not
enough: Complementary strategies for turnaround situations. Journal of
Business Strategy, 29(6), 19-28.
 U.S. Department of Commerce – International Trade Administration
– The Media and Entertainment Industry in the United States.
 U.S. Department of Commerce – International Trade Administration
– The Semiconductors Industry in the United States.
 U.S. Department of Commerce – International Trade Administration
– The Software and Information Technology Services Industry in the
United States.

TAGS: APPLE INC., CASE STUDY & CASE

ANALYSIS, CLOUD COMPUTING, COMPUTER
TECHNOLOGY, CONSUMER ELECTRONICS
INDUSTRY, GENERIC STRATEGY (PORTER'S MODEL) &
INTENSIVE GROWTH STRATEGIES, INFORMATION AND
COMMUNICATIONS TECHNOLOGY
INDUSTRY, INFORMATION TECHNOLOGY, ONLINE
DIGITAL CONTENT DISTRIBUTION
INDUSTRY, STRATEGY
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