Apple Strategic Audit

Muhammad Rizwan
184541TVTM
Current Situation

• Strong financial results for 2018

• Company posted quarterly revenue of $53.3.

• Apple announced its highest annual revenue to date with 265.6

• 506 retail stores in 25 different countries.

Mission
• To bring the best user experience to its customers through its
innovative hardware, software, and services.
• They have a unique ability to design and development of their own
hardware and software.
Current Sitution
• Strategies
• is broad Differentiation. This focuses on key features that differentiate
the company and its information technology products from
competitors.
• Product development as intensive strategy for growth.It requires that
the company develop attractive and profitable technology products
to grow its market share.
• Market penetration as its significant intensive strategy for growth.
• Market development as a low-priority intensive strategy for growth
Current Situation
• Policies:

• Honesty: Demonstrate honesty and high ethical standards in all business dealings.

• Respect: Treat customers, suppliers, employees, and others with respect and
courtesy.

• Confidentiality: Protect the confidentiality of Apple's information and the

• Compliance: Ensure that business decisions comply with all applicable laws and
regulations.
Corporate Governance
• Apple's Board of Directors oversees the Chief Executive Officer and
other senior management in the competent and ethical operation
• They assures that the long-term interests of shareholders are being
served.
• To satisfy the Board's duties, directors are expected to take a
proactive, focused approach to their positions.
• Set standards to ensure that Apple is committed to business success
through the maintenance of high standards of responsibility and
ethics.
 EFAS
OPPORTUNITIES SUMMARY
High demand of Apple’s iPhone 6, iPhone 6 plus, iPad, Every year Apple launchs its new iPhone, it is always a
Mac tablet and Apple Watch hign demand from all over the world. Especially, the
launch of iPhone 6 and 6 plus has a tremendous
demand
Extensive amount of cash flow Apple has that can be One of the biggest advantage of Apple company is
used for acquiring other companies, developing new that it has a lot of cash that cannot be used within a
products, and stock buying-back. short period of time. Apple could utilize these cash to
develop new iPhone, make Apple Watch better, and
create more new technology on their products
Apple Pay usage Apple Pay is a smart idea. It could make Apple
company becoming the third transcation party, which
means that Apple could hold the money, and then
release it.
Rapid growth of smartphone, tablet, and mobile China and India are growing fast. Apple could find a
payment market in Asian and Indian good opportunity and market in both contries
More and more providers of parts, such as screens, Parts are cost. More provider or supplier could give
camera, processor, and metal shell, for Apple Apple more options to choose which company to use.
Company And also, decrease the cost of purchasing parts
 EFAS
THREATS SUMMARY
Overdepending on the sale of iPhone 6 and 6 plus in China is a big market, and could help Apple making a
China market lot of profit. However, if Apple overdepends on
Chinese market, there will a obvious downtrend for
Apple when the demand in China decreases
The growth and development from other competitors It is a potenial risk for Apple Company. Microsoft’s
surface and Chinese XiaoMi smartphone are growing
really fast.
Decreasing sale on iPad and iPad mini According to news that I have read recently, the sale
of iPad is decreasing. Less innovation may be the
problem
Currently strong U.S dollar More than 30% sale comes from oversea. If dollar is
more and more valued, Apple may face decrease in
revenue
Less and less innovation ability Even though, iPhone 6 and 6 plus made a great
success, investors and consumers are still looking for
more new technology
 Industry Matrix
Sucess factor Apple Microsoft samsung

Weight Rating Score Rating Score Rating Score

Storelocatio 4 0,40 3 0,30 2 0,20

Profit 4 0,48 4 0,48 2 0,24

Brand 4 0,40 2 0,20 3 0,30

Market 3 0,33 4 0,44 4 0,44

Product 4 0,32 3 0,24 3 0,24

Innovative products Apple Company has great and innovative design and management team. Their smart phone, iPhone,
make the traditional market different and their iPad even make some people give up laptop

Brand loyal customers Apple has loyal groups of customers. Some people even lined up in front of apple’s retail store
overnight before new iPhone release.

Virus free IOS system Apple creates IOS system, which is the fastest system and is virus free. Apple helps customers to avoid
getting virus when they use their phone and laptop.

Apple looks for diversified development for their products Not only does Apple Company focus on developing on their smart phones, but they also develop iPad
and music system. Also, they start developing Apple car that will blend into our life in the future.

Apple try to make their products as aesthetic as possible For example, the first edition of iPhone is rounded edge, and then it becomes cutting edge, and then the
screen becomes bigger. Especially, Apple’s logo is a talented design. The logo is simple, but aesthetic
and has representativeness.
IFAS
WEAKNESSES SUMMARY

Decreased market share for iPad The demand of iPad started decrease last quarter because they haven’t developed
much technology on it.
Low market share in their software industry Apple device runs only ios software.

Expensive price for their iPad Their new iPad, which is iPad pro cost over 1000 dollar and it does not have 64 GB
memories. 64 GB memories is what most people buy.
Declined sale for iMac Mac book laptop is one of their main source for income.
 SFAS
SWOT FACTORS SUMMARY

S1 Innovative products Apple Company has great and innovative design and management team. Their
smart phone, iPhone, make the traditional market different and their
S2 Apple try to make their products as aesthetic as possible For example, the first edition of iPhone is rounded edge, and then it becomes
cutting edge, and then the screen becomes bigger. Especially, Apple’s logo is a
talented design. The logo is simple, but aesthetic and has representativeness.

S3 Apple looks for diversified development for their products Not only does Apple Company focus on developing on their smart phones, but
they also develop iPad and music system. Also, they start developing Apple
car that will blend into our life in the future.

W1 Decreased market share for iPad The demand of iPad started decrease last quarter because they haven’t
developed much technology on it.
W2 Declined sale for iMac Mac book laptop is one of their main sources for income.

O1 High demand of Apple’s iPhone 6, iPhone 6 plus, iPad, Mac tablet and Every year Apple launchs its new iPhone, it is always a hign demand from all
Apple Watch over the world. Especially, the launch of iPhone 6 and 6 plus has a tremendous
demand

O2 Extensive amount of cash flow Apple has that can be used for acquiring One of the biggest advantage of Apple company is that it has a lot of cash that
other companies, developing new products, and stock buying-back. cannot be used within a short period of time. Apple could utilize these cash to
develop new iPhone, make Apple Watch better, and create more new
technology on their products.
SFAS

SWOT FACTORS COMMENTS

T1 Overdepending on the sale of iPhone 6 and 6 plus in China market China is a big market, and could help Apple making a lot of profit. However, if Apple
overdepends on Chinese market, there will a obvious downtrend for Apple when the
demand in China decreases.

T2 The growth and development from other competitors It is a potenial risk for Apple Company. Microsoft’s surface and Chinese XiaoMi
smartphone are growing really fast.

T3 Currently strong U.S dollar More than 30% sale comes from oversea. If dollar is more and more valued, Apple
may face decrease in revenue.
Questions