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Apple Case Study

4817 words - 20 pages

Strategic Appraisal of Apple Inc.

Managing Strategy

Course Tutor: Mr William Edward Hearne

Introduction The intention of presenting this report is to give a full strategic appraisal and evaluation of Apple Inc. In 1976, the company was founded in a garage in Santa Clara, California. The American multinational corporation mainly involves in designing and marketing consumer electronics, computer software and as well as personal computers. Differentiation is the current strategy position of Apple Inc. There are five main firms in the PC industry and among them; the world’s leading brand is Dell. Apple’s major target is to sustain their present strategic position and to take over the ...view middle of the document...

The PESTEL analysis discuss about the factors from the external environment that affect the consumer electronics sector. Changes in the government policies are mainly include in the political factors. This includes many issues such as tax issues, the political stability of an individual city and the county or region’s friendliness or hostility towards Apple’s in penetrating that certain country and so on. The economical factors are also very important; these issues include exchange rates and effects of recession. The exchange rates are a major factor to consider for the electronic industry as it will affect export concentration and import infiltration as well as worldwide ownership and direct foreign investment. In 2008, the electronic industry has declined by 4 percent because of the effect of recession; globalisation is also vital to this industry as operational internationally and as such need to remain aware of how globalisation is changing the face of the business environment. The trend of competitor and demographic changes is the success of the industry which is crucial for the social factor; In order to make decisions regarding what strategic choices to undertake and demographic such as the aging populations mean that this industry can focus more on adding value to products and services by the help of the recent trends. The technological factors that would affect this industry are primarily the continuous advancement of technology, which is need since innovation is the major contributor to this industry success. The environment factors embrace issues such as waste recycling, within the electronic industry there are regulations, regarding emissions and waste management and as such will require the electronic industry to comply appropriately. The legal issues include copyright, patents as well as changing regulations of different

countries regarding business policies which are more to do with the intellectual property and this will require legal protection to avoid development from other company within the industry.

Industry analysis The next step is to look into the three industries which include PC industry, the digital music portable industry and the phone industry. And these analyses will be done with the help of Porter’s 5 forces (see appendix 1, 2, 3). This analysing toll deals with issues which are from outside the industry that impacts the nature of competition within the certain industry. Thurlby, (1998) stated “Understanding the nature of each of these forces gives organisations the necessary insights to enable them to formulate the appropriate strategies to be successful in their market”1. The analysis of the three industry are given belowPC industry (See appendix 1) This competition within the PC industry is extraordinarily high consisting with top companies like Dell, HP, Apple, Gateway and Sony. In order to gain competitive advantage, the key factors are advancement in technology, custom built PCs, reliability and...

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