Strategic Analysis - Apple

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- Strengths

- Apple strength is its big brand image and very good review from the Apple customers as well.

- Apple got talented and innovative design and developer’s team.

- Apple always been well on charts when it comes to finance.

- Apple got enough resources to start any new venture at any time. So it need not worry about the capital.

- Weakness

- In recent times Apple is into many patent right battles with its rival companies which may create a negative image for the Apple.

- The price of the Apple products is higher than the other competitors at that equity level.

- Its Recent Handset iPhone 6 plus is criticised for its cheap frame which gets bended easily if pressure is applied.

- Opportunity

- There is a huge potential of handheld and mobile devices and Apple got enough resources and talented developers.

- Apple still not sold in many countries. So it can explore the new markets to increase its sales with new policies.

- Threat

- There is a growing market for the Google Android market. Which can affect the sales revenue of the apple

- There are only few suppliers for Apple. Which in future can lead to supply risk.

Figure 3: SWOT Strategies

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Current Apple Situation

- Apple just experienced a huge loss with the death of Steve Jobs on October 2011 who is the CEO and the innovative market leader for new products and latest designs. We see Apple a techgiant because of the innovations of the Steve Jobs.

- Increased competitors like Samsung, HP, and Google posed some great market share loss.

- Often Apple is criticised for its waste disposal policy (Marisa McNatt, 2010).

- Area of performance

- Apple is performing very well with its mobile device, iPhone. With the latest release of the iPhone 6s it has proved the real potential of the company and lot more to come in the near future.

- When it comes to market, Apple has stable customer base in the America and Europe

Apple Current Vision Statement

Apples current vision statement as given by the new CEO of Apple Tim Cook

“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.”(CHRISTINE ROWLAND, 2015).

From the Apples vision statement it is clear about its innovative approach in the future as well. It also emphasise on several major terms simplicity, user friendly and design with development. Apple for the first time mentions the selection about the markets and collaboration with different groups. When saying no to thousands of products by Apple only mean, it puts the effort of thousand projects in one to give the customer the best product possible.

Financial Performance

According to the recent Apple Fiscal report for 2015 from Jan to June for its mobile device iPhone. Apple has earned a revenue of $49.6 billion and a quarterly profit of $10.7 billion which are converted into shares. When the fresh report was compared to the previous report where the revenue was $37.43 billion and net profit of $7.748 billion. Which only means that Apple is making continuous profits with its devices every year.

Figure 4: iPhone quarterly sales comparison

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Gap Analysis

The Apple is dedicated to produce efficient products packed with many functions. As, we see the financial performance of Apple, it already making some profits in handset division but the Apple has the potential to produce more profits by exploring more markets. By following some of the recommendations Apple can achieve better results within the next 5 years.

- When it comes in terms of mobile devices, Apple release Handsets every year which worth more than a normal person can buy outside America and there is need to keep mass customers in view when it comes to release in the markets.

- It has to explore more markets which are still ruled by other companies.

- Apple should come with new change design and operating system. Providing more functionalities.

Objectives and goals

- Apple should now focus on the Asian market, which is the fastest developing countries with large number of population. So there is a huge market to explore.

- Apple should probably releasing some phones at the middle end to attract more people. Who can’t just afford the hefty price of the high end devices.

- Apple should be partnering with other major firms to let them try the IOS in their devices. It makes the IOS available through more providers everywhere.

- Apple should definitely look into the waste disposal mechanism which has been criticised by people since 2011.

- The number of Apple Store are very less, when compared to its counter parts. So, Apple should come up with Chain of Apple Stores Everywhere (Brandon Burnette, 2015).

- Apple should tie