Apple Inc.

Team Members:Dimitriadis Savvas

Gazis NikolaosKoukou KaterinaTeterina Xenia

Case Abstract

• Apple Inc., originally Apple Computer, Inc., is an American multinational corporation headquartered in California that designs, develops, and sells consumer electronics, computer software and personal computers. The company was founded on April 1, 1976, and incorporated on January 3, 1977. The word "Computer" was removed from its name on January 9, 2007, to reflect its shifted focus towards consumer electronics. Its best-known hardware products are the Mac line of computers, the iPod, the iPhone and the iPad. Its software includes the OSX and iOS operating systems, iCloud, the iTunes media browser, the iLife and iWorkcreativity and production suites.

• Apple is the world's third-largest mobile phone maker after Samsung and Nokia. Fortune magazine named Apple the most admired company in the United States in 2008, and in the world from 2008 to 2012. However, the company has received widespread criticism for its contractors' labor practices, and for its environmental and business practices. As of August 2012, Apple has 393 retail stores in fourteen countries as well as the online Apple Store and iTunes Store. It is the largest publicly-traded corporation in the world by market capitalization, with an estimated value of US$626 billion as of September 2012. The Apple market cap is larger than that of Google and Microsoft combined. As of September 24, 2011, the company had 60,400 permanent full-time employees and 2,900 temporary full-time employees worldwide; its worldwide annual revenue in 2010 totaled $65 billion, growing to $108 billion in 2011.

Vision Statement

• “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 regardless of who is in what job those values are so embedded in this company that Apple will do extremely well.”

Timothy D. Cook Apple’s CEO

Mission Statement

• 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.

EFE Matrix

Opportunities Weight Rating Weighted Score

1 Global smartphone market is on fire 0,10 4 0,40

2 Increase in worms and viruses on PCs so the antivirus solution can be developed by Apple 0,05 4 0,20

3 Possible ventures with other companies 0,02 2 0,04

4 Downloadable music and MP3 players are highly marketable 0,02 2 0,04

5 The online computers sales is rapidly increasing 0,04 3 0.12

6 The laptop and tablet market growth is high 0,07 3 0.21

7 Constant growth of PC and mobile phone industry 0,05 4 0.20

8 Huge untapped market to expand to 0,07 3 0,21

9 Growing demand for internet music and other online programs (cloud based services) 0,02 2 0,04

10 Robust outlook for mobile advertising market 0,05 3 0,15

11 Strong growth in smartphone segment. 0,07 3 0,21

12 Open market in gaming console industry to compete with PS3 and Xbox 0,01 1 0.01

13 Growing market of “Green” and energy efficient products 0,01 2 0.02

The worldwide smartphones market segment is forecast to record strong growth in coming years. The shipments for smartphones are expected to exceed 400 million globally. The number is expected to reach approximately 850 million by the end of 2013. Apple is the third largest player in the smart phone market segment in the US since launching its first mobile device, iPhone, in 2007.

The demand for tablets is increasing over the years. Globally, tablet shipments are expected to touch 150 million units by 2013. Apple launched the iPad in January 2010. In FY2010, the iPad generated $5 billion in revenues and showed unit sales of 7.5 million. In the first quarter of 2011, iPad sales were 7.33 million.

Global smartphone market is on fire

The laptop and tablet market growth is high

Threats Weight Rating Weighted Score

1 Economic recession can have a significant negative effect on the company due to higher prices of its products 0,09 2 0,18

2 Rising popularity of Google Android and Windows ecosystems in the mobile and tablet space 0,06 2 0,12

3 Intense competition from Dell, HP, Sony and Toshiba0,03 2 0,06

4 Dependence on specific suppliers 0,02 2 0,04

5 Companies not seeing Apple as compatible with their software 0,04 1 0,04

6 Downloading free music from other online source without paying cost is common it may impact the iTunes sales 0,02 1 0.02

7 Microsoft launched Microsoft Windows 7 and 8 which are gaining market share

0,05 2 0.10

8 The growing tablet market is competing with ipad0,02 3 0,06

9 Apple is involved in several legal actions 0,06 3 0,18

10 High product substitution0,03 2 0,06

TOTAL 1,00 2.71

Increasing popularity of Android may affect the attractiveness of Apple’s iOS affecting the market share of Apple. The Google Android operating system (OS) for smartphone is gaining rapid popularity. With the acquisition of Android Inc. in 2005, and the subsequent launch of Google’s mobile OS “Android” changed the competitive landscape of smartphone business globally. Moreover, the online application store for Android applications “Android Market” is growing at a rapid pace. The Android Market currently offers approximately 250,000 apps, compared to 350,000 offered by Apple’s App Store, although Android has been a late entrant in the market.

Rising popularity of Google Android and Windows ecosystems in the mobile and tablet space

Apple is involved in several legal actions

Apple is involved in several legal actions, including lawsuits alleging patent infringement and antitrust violations. Many of the suits are from smaller companies, but notable plaintiffs include Nokia. These lawsuits present a threat because of the possibility of unfavorable judgments and the ongoing costs associated with legal defenses.

IFE MatrixStrengths Weight Rating Weighted Score

1 iTunes Music Store is an excellent source of revenue, especially with the iPod and the accessibility on Windows platform. 0,03 3 0,09

2 Apple Computers have good brand loyalty and image by setting high standards for quality and use. 0,09 4 0,36

3 Partnership with Intel Computers in 2006 – Present (Intel's microprocessors) 0,04 2 0,08

4 Strong Research & Development Department driving innovation, creating its own software (free of viruses) and hardware 0,10 4 0,40

5 Creators of high tech technology such as iphone or imac 0.07 4 0.28

6 Holds 5% market share and is 4th largest player in mobile phone market. 0.08 3 0.16

7 18.5% market share of global smartphone market 0.09 3 0.27

8 Robust financial performance. (strengthens investors’ confidence and provides capital for future growth avenues)Low debt—more maneuverable.

0.08 4 0.32

9 Entering into new product lines ex: Laptops to iPhones and iPads 0,03 3 0,09

10 Excellent distribution network globally to make its products accessible online and stores 0.04 4 0.16

11 The iOS has given it a lead as compare to its competitors 0.02 3 0.06

Apple has a strong focus on research and development (R&D) as continual investment in R&D is critical for the development and enhancement of innovative products and technologies. In addition to evolving its PCs and related solutions, the company continues to capitalize on the convergence of the PC, digital consumer electronics and mobile communications by creating and refining innovations, such as the iPod, iPhone, iTunes Store, Apple TV and iPad. The company’s R&D expenditure was $1,782 million, $1,333 million and $1,109 million in FY2010, 2009 and 2008, respectively. The company’s research and development spending is focused on further developing its existing Mac line of personal computers.

Strong Research & Development Department driving innovation, creating its own software (free of viruses) and hardware

Strong brand image provides an edge over regional and global competitors. The Apple brand is well recognized among most consumers. Apple’s products enjoy a high level of brand awareness and brand recognition throughout all its markets. This is evident with the rapid sales of new Apple launches. For instance, net sales of iPad and related products and services was $5 billion and unit sales of iPad were 7.5 million during 2010

Apple Computers have good brand loyalty and image by setting high standards for quality and use.

Weaknesses Weight AS TAS AS TAS AS TAS

1Weak relationship with Microsoft. (low product compatibility)

0,05 0 0,00 0 0,00 0 0,00

2Apples market share is far behind from major competitor Microsoft.

0,07 0 0,00 3 0,21 2 0,14

3Its high priced products and accessories make them inaccessible to many of customers

0,04 3 0,12 2 0,08 4 0,16

4

It has less presence in B2B market, as compare to its competitors like Dell and HP. It can be seen that Apple mainly focuses on B2C so its losing large chunk of market

0,03 0 0,00 0 0,00 0 0,00

5Comes without expandable memory and the battery is fixed (in mobile products)

0,01 0 0,00 0 0,00 0 0,00

6 Former CEO Steve Jobs died 0,04 3 0,12 1 0,04 0 0,00

7Coming off of the failure of two items apple tv and mac mini

0,02 3 0,06 0 0,00 0 0,00

8 Patent infringement. 0,02 1 0,02 0 0,00 0 0,00

9Not shareholder friendly (did not declare or pay cash dividends in either 2011 or 2010)

0,04 0 0,00 0 0,00 1 0,04

10 Product recalls. 0,01 2 0,02 0 0,00 0 0,00

TOTAL 2,36 2,10 3,02

Apple’s market share is far behind from major competitor Microsoft.

Patent infringement lawsuit may affect financial condition and operating results. The company is involved in legal complaints relating to patent infringement. For example, in January 2010, Nokia filed a revised suit against Apple with the US International Trade Commission (ITC), alleging that Apple has infringed Nokia’s patents in almost all of its mobile phones, portable music players, and computers.

Patent infringement.

Competitive Profile Matrix

CPM Apple Microsoft Dell Samsung Nokia

Critical Success factorsWeight Rating

Score

Rating

ScoreRatin

gScore Rating

Score

Rating

Score

Store Locations 0,10 4 0,40 3 0,30 2 0,20 2 0,20 3 0,30

Financial profit 0,12 4 0,48 4 0,48 2 0,24 2 0,24 2 0,24

Consumer loyalty 0,10 4 0,40 2 0,20 2 0,20 3 0,30 3 0,30

Market penetration 0,11 3 0,33 4 0,44 2 0,22 4 0,44 3 0,33

Advertising 0,07 3 0,21 4 0,28 2 0,14 3 0,21 3 0,21

Product variety 0,09 2 0,18 3 0,27 3 0,27 4 0,36 4 0,36

Market Share 0,11 2 0,22 4 0,44 2 0,22 3 0,33 3 0,33

Product quality 0,08 4 0,32 3 0,24 4 0,32 3 0,24 2 0,16

Price competitiveness 0,10 1 0,10 3 0,30 3 0,30 3 0,30 4 0,40

e-commerce 0,06 4 0,24 4 0,24 2 0,12 2 0,12 1 0,06

Employee dedication 0,06 4 0,24 3 0,18 3 0,18 2 0,12 3 0,18

Totals 1,00 3,12 3,33 2,41 2,86 2,87

Financial Ratio Analysis

• Apple’s Annual Report indicates that its business industry is Computer Hardware and its sector is technology. Yet, many analysis consider Apple as being a direct competitor with other hardware manufacturers such as Hewlett-Packard and even Google, yet there is no comparison between Apple and other phone-related manufacturers or devices, through 38% of its business is driven by iPhone and related products. So, such competitors like Samsung or Nokia, should be strongly considered due to the fact that they run its businesses in the same field. This usually happens and is always a challenge when companies have wide product lines with a different marketing mix in each line, like Apple which both belongs to the industry of “Computer Hardware” and “Telecommunication Services”.

Ratios Apple Google HP Industry

Market Cap 498.3 174.48 89.80 320.58

% Qtrly Rev Growth 82.70 26.60 3.60 24.30

$ Revenue 108.249 31.12 127.16 87.45

%Gross Margin 39.07 64.97 24.14 39.07

$ EBITDA 36.02 12.16 18.25 26.73

%Operating_Margin 29.02 34.35 10.49 31.92

$ Net Income 25.92 8.85 9.12 N/A

$ EPS 27.68 27.29 3.92 20.99

Employees 46,600 26,316 324,600 100,300

Price / Earnings 11.9 20.1 -4.9 13.6

Dividend yield% 1.0 N/A 3.9 1.3

Financial Ratio Analysis

Ratios Apple Microsoft Dell Samsung Nokia

Revenue Net-sales(mil) 108,249 69,943 61,494 86,860 30,376

Gross margin % 40.5 77.7 18.5 25.2 29.3

Operating income 33,790 27,161 3,433 8,413 -0,843

Operating margin % 31.2 38.8 5.6 9.7 -2.8

Net income 25,922 23,150 2,635 7,210 -0,915

Earnings per Share 27.68 2.69 1.35 48.03 -0.24

Dividends N/A 0.61 N/A N/A 0.26

Net margin % 23.95 33.10 4.29 8.3 -3.01

Asset Turnover (Avg) 1.13 0.72 1.70 1.08 1.03

Return on Assets 27.07 23.77 7.29 8.93 3.09

Financial Lvrg (Avg) 1.52 1.90 4.97 1.32 3.05

Return on equity 41.67 44.84 39.31 11.89 -8.87

Return on invested Capital 41.67 38.23 22.44 11.88 -6.24

Current ratio 1.61 2.60 1.49 1.46 1.46

Quick ratio 1.35 2.35 1.26 0.72 1.04

Receivable turnover (efficiency

ratio)19.9 5.00 9.97 7.60 5.24

Financial Ratio Analysis

Ratios APPLE DELL HP SAMSUNG GOOGLE INDUSTRY

Profitability Ratios

Gross Margin (%) 40,05 22,3 24,14 25,2 64,97 39,07

Operating Margin (%)

29,02 5,6 10,49 9,7 34,35 31,92

Return on Assets (%) 27,07 6,9 -4,7 8,93 11,8 8,03

Return on equity (%) 41,67 41,86 19,8 11,89 15,5 23,9

EBIT Margin (%) 35,6 6,4 -3,1 N/A 28,1 16,75

Leverage 1,5 4,5 3,7 N/A 1,3 2,75Liquidity Ratios

Current Ratio 1.61 1,49 1,1 1,46 3,9 1,9

Quick Ratio 1,35 1,26 0,6 0,72 3,7 1,5Working Capital per

share ($)20.32 7.44 2.7 N/A 128.99 38.9

Other Ratios

Earnings per share 27.68 3.49 3.21 48.03 6.53 15.5

Receivable Turnover 19.9 9.97 6.1 7.60 7.0 10.1

Assets Turnover 1.1 1.4 1.0 1.2 0.6 1.06

Interest Coverage 15.6 15.6 N/A N/A 161.1 64

Financial Ratio Analysis

Financial Year 2012 2011 2010 2009 2008

Earnings per share ($) 44.15 27.68 15.15 6.29 9.08

Profit Margin (%) 26.67 23.95 21.48 19.19 14.88

Return on equity (%) 42.84 41.67 35.28 31.27 27.19

Return on Assets (%) 23.70 22.28 18.64 17.34 12.22

Price per sales 3.50 2.92 3.20 2.5 4.41

Price per Earnings 11.89 12.31 15.10 19.04 30.17

Price to book Value Ratio 4.16 4.12 4.37 3.39 6.81

Book Value per share ($) 126.1 82.64 52.31 35.32 23.74

Gross Margin (%) 43.9 40.5 34.4 40.1 34.3

Operating Income ($ mil) 55,241 33,792 18,387 11,744 6,271

Operating Margin (%) 35.3 31.2 28.2 27.4 19.3

Assets Turnover 1.07 1.13 1.06 0.99 1.00

Financial Ratio Analysis

The table below shows some financial statement data for Apple during the last five years

2008 2009 2010 2011 20120

5

10

15

20

25

30

35

40

45

50

Return on Equity

Gross Margin

Operating Margin

Return on Assets

Trend of Apple’s basic ratios during ‘08-’12

Internal AnalysisFinancial Position (FP)

External AnalysisStability Position (SP)

Liquidity 7 Technological changes -1

Earnings per share 6 Price elasticity of demand -6

Sales 7 Competitive pressure -3

Revenues 7 Barriers to entry into Market -4

Return on equity 5

Financial Position (FP) Average 5,8 Stability Position (SP) Average -3,5

Below are provided the most important determinants of the organization overall strategic position.SPACE MATRIX

Liquidity: according to the current ratio Apple is one of the most reliable corporations within the Industry with minimum investment riskEarnings per share: the trend during the last years shows that Apple from 2008 to 2012 this has been increased four times. In comparison to the Industry this ratio shows that Apple is extremely shareholders friendly corporation, which indicates great internal strength Sales: is far better from all Apple’s competitors Revenues: Apple’s consolidated income statements and balance sheets note that Apple’s revenues increased a whopping 52 percent in 2010, while its net income increased 70 percent. Also, notice that Apple has zero long-term debt on its balance sheetReturn on equity: Apple is second among its competitor on return on equity

Technological changes: the Company has been an innovator in the area of computer hardware and telecommunications since its recoveryPrice elasticity of demand: high prices of Apple’s products is a major weaknessCompetitive pressure: the companies which Apple is competing with, are urban corporations with dynamic strategies, both in computer hardware & telecommunication sectorBarriers to entry into market: the extreme competence advantages of the already existing companies in computer hardware sector, makes it very hard for new companies to enter the market

Below are provided the most important determinants of the organization overall strategic position.SPACE MATRIX

Internal AnalysisCompetitive Position (CP)

External AnalysisIndustry Position (IP)

Market Share -6 Profit Potential 6

Product Variety -2 Growth Potential 6

Product quality -1 Financial Stability 5

Customer loyalty -1 Resource Utilization 5

Control over suppliers and distributors -3

Competitive Position (CP) Average -2,6 Industry Position (IP) Average 5,5

Market share: Apple has a very low market share according to S&P industry survey for 2009Product variety: Apple offers a wide range of technological products, including iPads, iPods, iPhones, iTunes, PCs and more. Apple is perhaps the best known “first mover” company ever, as the firm has a 35-year history of being the first to introduce blockbuster, successful new products.Product quality: Apple meanly focuses on its products quality using the most recent technologies and innovationsCostumer loyalty: The i-halo effect has been synonymous with Apple for the last years. In basic terms its definition is customers who buy an i-product, become hooked on Apple’s products and their ease of use. Control over suppliers and distributors: Apple already has a very efficient network of distributors and suppliers and intents to develop it further

Profit potential: today Apple’s profit potential is at the same level as industry but according to the trend observed from 2008-2012 it shows that Apple will soon exceed the industryGrowth potential: demand in computer hardware products is expected to increase Financial stability: Apple has minimum long-term debts and liabilities that shows its financial stabilityResource Utilization: Apple makes reasonable management of its human and material resources

SPACE MATRIX

• After illustrating the SPACE Matrix it is obvious that the company should follow aggressive strategies. This means that Apple should implement backward, forward, horizontal integration, as well as market penetration, market development, product development and diversification (related or unrelated).

X’X 5,5 + (-2,6) = 2,9Y’Y 5,8 + (-3,5) = 2,3

(X,Y) = (2,9 , 2,3)

QSPM: Quantitative Strategic Planning MatrixIt determines the relative attractiveness of various strategic alternatives

Create a new game console (strong R&D department)

Acquire Red Hat Linux

or/and Maxtor or Western

Digital

Develop new product lines in

China and India

Opportunities Weight AS TAS AS TAS AS TAS

1 Global smartphone market is on fire 0,10 0 0,00 0 0,00 2 0,20

2Increase in worms and viruses on PCs so the antivirus solution can be developed by Apple

0,05 0 0,00 4 0,20 0 0,00

3 Possible ventures with other companies 0,02 4 0,08 3 0,06 1 0,02

4Downloadable music and MP3 players are highly marketable

0,02 2 0,04 0 0,00 0 0,00

5 The online computers sales is rapidly increasing 0,04 0 0,00 3 0,12 0 0,00

6 The laptop market growth is high 0,07 0 0,00 3 0,21 2 0,14

7 Constant growth of PC and mobile phone industry 0,05 0 0,00 1 0,05 4 0,20

8 Huge untapped market to expand to 0,07 2 0,14 0 0,00 4 0,28

9Growing demand for internet music and other online programs (cloud based services)

0,02 3 0,06 0 0,00 0 0,00

10 Robust outlook for mobile advertising market 0,05 0 0,00 0 0,00 0 0,00

11 Strong growth in smartphone segment. 0,07 0 0,00 0 0,00 2 0,14

12Open market in gaming console industry to compete with PS3 and Xbox

0,01 4 0,04 0 0,00 0 0,00

13 Growing market of “Green” and energy efficient products 0,01 0 0,00 0 0,00 1 0,01

QSPM: Quantitative Strategic Planning MatrixIt determines the relative attractiveness of various strategic alternatives

Create a new game console (strong R&D department)

Acquire Red Hat Linux

or/and Maxtor or Western

Digital

Develop new product lines in

China and India

Threats Weight AS TAS AS TAS AS TAS

1Economic recession can have a significant negative effect on the company due to higher prices of its products

0,09 2 0,18 3 0,27 4 1

2 Rising popularity of Google Android and Windows ecosystems in the mobile and tablet space

0,06 0 0,00 2 0,12 0 2

3 Intense competition from Dell, HP, Sony and Toshiba 0,03 3 0,09 2 0,06 4 3

4 Dependence on specific suppliers 0,02 0 0,00 1 0,02 3 4

5Companies not seeing Apple as compatible with their software

0,04 3 0,12 2 0,08 0 5

6Downloading free music from other online source without paying cost is common it may impact the iTunes sales

0,02 0 0,00 0 0,00 0 6

7Microsoft launched Microsoft Windows 7 and 8 which are gaining market share

0,05 0 0,00 2 0,10 0 7

8 The growing tablet market is competing with ipad 0,02 0 0,00 0 0,00 0 8

9 Apple is involved in several legal actions 0,06 0 0,00 0 0,00 0 9

10 High product substitution 0,03 1 0,03 0 0,00 3 10

QSPM: Quantitative Strategic Planning MatrixIt determines the relative attractiveness of various strategic alternatives

Create a new game console (strong R&D department)

Acquire Red Hat Linux

or/and Maxtor or Western

Digital

Develop new product lines in

China and India

Strengths Weight AS TAS AS TAS AS TAS

1iTunes Music Store is an excellent source of revenue, especially with the iPod and the accessibility on Windows platform.

0,03 0 0,00 0 0,00 0 1

2Apple Computers have good brand loyalty and image by setting high standards for quality and use.

0,09 2 0,18 0 0,00 0 2

3Partnership with Intel Computers in 2006 – Present (Intel's microprocessors)

0,04 1 0,04 3 0,12 2 3

4Strong Research & Development Department driving innovation, creating its own software (free of viruses) and hardware

0,10 4 0,40 2 0,20 1 4

5 Creators of high tech technology such as iphone or imac 0.07 2 0,14 0 0,00 0 5

6Holds 5% market share and is 4th largest player in mobile phone market.

0.08 0 0,00 0 0,00 2 6

7 18.5% market share of global smartphone market 0.09 0 0,00 0 0,00 2 7

8Robust financial performance. (strengthens investors’ confidence and provides capital for future growth avenues)Low debt—more maneuverable.

0.08 3 0,24 2 0,16 4 8

9Entering into new product lines ex: Laptops to iPhones and iPads

0,03 4 0,12 0 0,00 2 9

10Excellent distribution network globally to make its products accessible online and stores

0.04 3 0,12 0 0,00 4 10

11 The iOS has given it a lead as compare to its competitors 0.02 0 0,00 0 0,00 0 11

TOTAL 2,36 2,10 3,02

QSPM: Quantitative Strategic Planning MatrixIt determines the relative attractiveness of various strategic alternatives

Create a new game console (strong R&D department)

Acquire Red Hat Linux

or/and Maxtor or Western

Digital

Develop new product lines in

China and India

Weaknesses Weight AS TAS AS TAS AS TAS

1Weak relationship with Microsoft. (low product compatibility)

0,05 0 0,00 0 0,00 0 0,00

2Apples market share is far behind from major competitor Microsoft.

0,07 0 0,00 3 0,21 2 0,14

3Its high priced products and accessories make them inaccessible to many of customers

0,04 3 0,12 2 0,08 4 0,16

4It has less presence in B2B market, as compare to its competitors like Dell and HP. It can be seen that Apple mainly focuses on B2C so its losing large chunk of market

0,03 0 0,00 0 0,00 0 0,00

5Comes without expandable memory and the battery is fixed (in mobile products)

0,01 0 0,00 0 0,00 0 0,00

6 Former CEO Steve Jobs died 0,04 3 0,12 1 0,04 0 0,00

7Coming off of the failure of two items apple tv and mac mini

0,02 3 0,06 0 0,00 0 0,00

8 Patent infringement. 0,02 1 0,02 0 0,00 0 0,00

9Not shareholder friendly (did not declare or pay cash dividends in either 2011 or 2010)

0,04 0 0,00 0 0,00 1 0,04

10 Product recalls. 0,01 2 0,02 0 0,00 0 0,00

Develop new product lines in China and India

This strategy aims to handle the high cost structure of products, as well as to expand the product lines, which is a major opportunity. By establishing new product lines in China and India, Apple will implement its high technological competencies, which combined with the low labor cost of China and India, will manage to reduce the overpricing of its products and will gain a competitive advantage among other companies.

Apple has to focus on the global market, and both China and India are two of the most populated countries in the world and they are experiencing lately, increased use of computers and computer technology products. The economies of the said countries are rapidly improving with more disposable income than ever before.

Currently, all of Asia, accounts for about 5% of Apple’s total revenue; however, with more advertising and focus on China and India, can be fully exploited because the market has no prejudices yet. If tapped properly, these two countries can provide significant revenues for Apple in the future. This is the alternative strategy that should be followed by Apple among the other two, due to the highest total attractive score it took, at the QSPM process.

Epilogue

Apple, is arguably the most successful company ever in many respects. But there are major financial risks with being the premier “first mover” in any industry. Rival firms across the globe are getting better and better at quickly duplicating successful Apple products and offering them at lower prices.

Success of Apples iPad, iPhone and Mac’s new versions, helped Apple to replace Microsoft as the world’s most valuable technology company in 2010.

Apple thinks that there is yet room for improvement, to substitute the already created wonders.

Innovation never stops.

The Technology of the Future

Coming Straight from the Past