Apple's motto, "Think Differently.

" is a concept that the company does very well by

creating innovative products that continue to define the world of computer design. Other
computer manufacturers have attempted for decades to replicate the iconoclastic appeal of the
Apple design. None have succeeded in the manner of Apple. When Steve Jobs assumed the post
of CEO in 1998, he re-revolutionized the entire company. Apple introduced the iMac and iBook
product lines for the more basic computer buyer's and the PowerBook and G series computers for
the advanced purchasers. Apple continues to forge ahead in design with the introduction of the
iPod digital music player and the iTunes Web site for the sale and download of music. Among
giant rival firms, such as IBM. Apple is on the forefront of a revolution of technology,
integrating music, images, and animation.

INTRODUCTION
Apple Inc. is the most famous name in the technology sector, it is an innovative
electronics manufacturer, which is giving benefits to the consumers and to the suppliers, and the
company is using successful strategies in the market so the best results could be achieved. The
company is successful because it efficiently establishes the target market, and with the help of
marketing mix and giving value to its customer's company has become successful in the market.

From years Apple is maintaining its standard as it has the ability to recognize the need of
the dynamic strategies, with the changing of the technology and environment, a company is able
to maintain its standards and trying to reach the customer demands, through doing innovation in
the products Apple is meeting the customer demands. Apple is offering cutting-edge products,
which are hest in the market and better than the competitors are. The products are at the top
because a company is continuing towards growth and enhancing the customers' life by expanding
their product line. With the help of the strategies, Apple is fulfilling the demands of the
customers, which are cohesive. Apple Inc. has loyal customers because the company is hale to
satisfy their needs through using various sets of strategies.
EXECUTIVE SUMMARY/OVERVIEW
Steve Jobs is a founder of Apple and incorporated the company 1976. The name of the
company was Apple computer but in 2007, a company was renamed as Apple INC. Apple is an
innovative computer with the communication solutions: Tim Cook is the present CEO of the
company, as in 2011. Steve Jobs died., Steven Wozniak and Steve jobs produced the Apple I. the
first Apple computer in 1967. Apple Inc. has strategically made it's headquartered in California,
Cupertino, the part of the infamous valley, which is known for the high technology based
companies, moreover, they gave the skilled resource output. Apple has made its segment on the
regional basis as soon as it realizes that it can provide value to the customers across the world.
The company products are according to the demands of the customers. Apple has a wide range of
application and products (Mittan, 2010). The company is meeting the consumer needs in multiple
ways, as the company did researchers on the demands, make the products, so the customer
should be brand loyal, and gain confidence. Apple products are designed so they can meet all
communication needs, the products of Apple are Laptop, on-the-go tablets, operating system,
personal computer, online store, and accessories etc.

HISTORY OF APPLE
The first $1 trillion firm in history is now Apple! It shouldn't be shocking considering
how Apple continues to amaze the world with its cutting-edge goods and services.
Years of hardship, numerous failures and successes finally paid off for the business,
making it the first ever to be valued at $1 trillion.
Join us as we travel down memory lane to examine Apple's history, from the time when
the corporation was only able to operate out of a garage in California to the present, when it is
the most prosperous business ever.

The foundation of Apple

In 1976, Apple was founded by three men: Steve Jobs, Steve Wozniak and Ronald Wayne
with the intention of selling Wozniak’s hand-built Personal Computer named Apple 1.
The Apple 1 was sold as a motherboard with CPU, RAM and basic textual-video chips. It
then lacked a built-in keyboard, monitor, case or any other Human Interface Devices (which was
later added in 1977).
In July 1976, the Apple 1 went on sale and was sold for $666.66. Steve Wozniak took a
special liking for repeated numbers and hence the fancy number as the price.

Steve Jobs and Steve Wozniak with the Apple-1

However, Ronald Wayne decided to leave the company only a couple of weeks after it
was founded. Wayne then took a cheque of $800 which would have been worth almost $72
billion 40 years later. Wayne was the one to hand sketch the first Apple logo which was then
replaced by the bitten apple logo designed by Rob Janoff in 1977.
History of Apple logo

The Apple Computer Inc. was incorporated on January 3 rd, 1977. Mike Markkula, the
multimillionaire who had taken interest in the Apple-1 provided the company required funding
and business expertise. Mike Markkula was the 3 rd employee with a one-third share in the
company. He suggested a man named Michael Scott be the company’s first president and CEO as
he thought Steve was too young and undisciplined to be the CEO.

Steve & Mike

The Apple II and III

It was in 1977 that the Apple II was introduced, also by Wozniak. VisiCalc (the world’s
first ‘killer-app’), a ground-breaking spreadsheet and calculating software helped the Apple II
computers to stand ahead of market leaders Tandy and Commodore PET. VisiCalc gave users an
additional reason to buy the Apple II because of its office compatibility. With the introduction of
colour graphics, the Apple II was able to revolutionize the computer industry.

The Apple II

By 1978, Apple had a real office with several employees and an Apple II production line.
In the years that followed, revenues grew exponentially for the Apple company doubling
every four months. Their yearly sales grew from $775,000 to $118 million between September
1977 and September 1980 (average annual growth rate of 533%).
 Jobs and several employees were allowed to visit the Xerox PARC lab in 1979. It is
world famous for the laser printer, mouse, ethernet networking and other technological
accomplishments. Jobs and his engineers visited the PARC campus in return for the option to
buy 100,000 shares of apple for $10 a share.
By the year 1980, the competition was growing difficult with IBM and Microsoft in the
market. Apple released Apple III in the same year to compete with these companies in the
corporate computing market. The Apple III was not as successful due to a design flaw. In order to
reduce noise, Jobs insisted computers not have fans or vents which in turn created problems due
to dangerous overheating. Thus, the Apple III lost to IBM computers.
However, Jobs had been convinced from the visit to the Xerox PARC labs that all future
computers required to use a Graphical User Interface (GUI) like the ones used today. He
immediately began the development of a GUI for Apple’s next generation computer, Apple Lisa.
Unfortunately, Jobs was removed from the Lisa team due to infighting and became a part
of the low-cost-computer project, the Macintosh. Lisa was released in 1983 and met with
disastrous sales due to its high price and limited software support.
Apple went public on December 12, 1980, at $22 per share. According to EDN Network,
Apple’s $4.6 million shares sold out immediately and generated more capital than any other IPO
(Initial Public Offering) since the Ford Motor Company in 1956. The IPO created $217 million
in wealth for Steve Jobs, the largest shareholder. The company’s IPO also created 300 other
millionaires instantly.

The Macintosh
After being replaced from the Lisa team, Jobs became the lead of the Macintosh team.
The Apple Macintosh is known as the most user-friendly computer to date. It is also known as
the first mass-market personal computer to feature an integral GUI and mouse.
The Macintosh, unlike Lisa, was a success thanks to the intense marketing with the iconic
“1984” commercial directed by Ridley Scott which aired during the Super Bowl and never again.
Even though the graphics hardware used was very expensive, Apple decided to sell the
Macintosh for a price that would put it in the reach of home users. Its black and white graphics
and visual abilities attracted design professionals and it was particularly successful in the desktop
publishing market due to it’s the same. It had a carrying handle which made it portable and it
looked friendly too.
The Macintosh was priced at $2,495 and went on sale in January 1984. It was good value
for the money although not cheap. By the beginning of May 1984, 70,000 units were shipped as
a result of the “1984” commercial.
In 1983, around the time of launch of the Macintosh, Jobs hired John Sculley as the new
Apple CEO when Mark Markkula, the second CEO wanted to retire. Scully was the youngest
CEO of Pepsi during the time, but jobs brought him to Apple with the legendary question “Do
you want to sell sugared water for the rest of your life? Or do you want to come with me and
change the world?”
Jobs and Sculley at the Macintosh launch

However, tension grew between Jobs and Sculley when the Macintosh failed to break
IBM’s dominance. Moreover, Jobs liked doing things his own way while Sculley wanted strict
oversight on future products as both Lisa and the Macintosh had not been able to compete with
IBM and others at the time.

Apple without Steve Jobs

In 1985, as friction grew between Jobs and Sculley, Jobs attempted to oust Sculley by
staging a coup which then backfired. The Apple’s board took Sculley’s side and removed Jobs
from his managerial duties. Jobs then quit his job and founded a new company making advanced
workstations name NeXT. Steve Wozniak too left around the same time selling most of his shares
saying the company was going in the wrong direction.
With Jobs now out of the company, the board was free to think what kind of machines Apple was
going to produce. They decided to target high-end markets with more expensive Macs. Steve
Jobs was opposed to the idea of hiking the prices and so it was only after he left that they could
implement this policy. They agreed that although fewer units may be sold, similar or higher
profits are to be achieved. This policy was called “55 or die” which is Jean-Louis Gassée’s rule
that the Macintosh II should deliver at least 55% profit per machine. Gassée was the man whom
Sculley hired in place of Steve Jobs.

The Macintosh II-The first Macintosh to be shipped with a colour display

Although the Apple computers were quite expensive compared to the other computers in
the market, they had benefits such as the user interface that kept their users loyal. Apple
introduced its PowerBook laptop and system 7 operating system in 1991. The system 7 was
behind giving colour to the Macintosh OS and was used until 2001 when OS X was released.
John Sculley introducing System 7

The 1990s saw Apple trying to get into new markets. Gassée also took part in the
development of new products such as the Newton MessagePad and the eMate dreaming that
these products will drive the company towards new heights.

The eMate and the Newton MessagePad

However, with prices as high as $700 and functions limited to taking notes and managing
contacts these new products did not work out in the market. And the Newton MessagePad
became the Apple flop of the 1990s. Gassee’s tenure too came to an end in 1990. Apple then
introduced the Macintosh Classic, Macintosh LC and Macintosh IIsi, which were lower cost
models and they also managed to bring up significant sales.

The Decline of Apple

Apple’s “55 or die” policy backfired in the last years of the decade when IBM clones
were getting cheaper and Microsoft’s influence started to rise. Even though Macs offered an
excellent library of software, they were limited. Windows 3.0, on the contrary, was on sale for
cheap commodity computers.
 Apple needed to find its way back in the market and so they introduced a whole new line
of computers: the Quadra, Centris and the Performa. The Performa was meant to be a stock item
for department stores and other lifestyle outlets as Apple computers were then available only
through mail or authorized dealers. There was no Apple Store back then. These lines of
computers were, in fact, their existing stock rebranded by adding new consumer-friendly
software like ClarisWorks and Grolier Encyclopaedia to attract home users.
This, on the contrary, created confusion among the customers as they did not quite
understand the difference between these models.
Apple also experimented on products like digital cameras, portable CD audio players,
speakers, TV appliances etc, but they were all unsuccessful. Apple’s market shares and stock
prices continued to decline.
To add to the mistakes, Sculley spent a lot of time and cash on bringing System 7 to the
new IBM/ Motorola PowerPC microprocessor instead of Intel Processor. As most software were
written for Intel processors, and they were cheaper, Apple had no luck finding its way back in the
market.
With the highly unsuccessful line of products and the costly decision to move to
PowerPC, the Apple board had had enough. In 1993 Sculley was fired and replaced by Michael
Spindler as the new CEO, a German expatriate who had been with Apple since the 1980s.

Michael Spindler, Apple’s CEO from 1993-1996

Spindler, unfortunately, had to follow through Sculley’s PowerPC mistake. The first
PowerPC run by Macintosh was released in 1994 but Apple’s misfortune continued. One reason
was because of the popularity of Windows in the market then.
 The Power Macintosh 6100- the first PowerPC to use Motorola’s PowerPC processor

In 1996, Spindler was replaced by Gil Amelio as CEO. Amelio made several changes
such as including extensive layoffs and cut costs. His tenure was also troubled as the Apple stock
hit a 12-year low. Amelio then decided to purchase Jobs’ NeXT Computer for $429 million in
February of 1997 and brought back Steve Jobs to Apple.

Gil Amelio

Rise to Profit
Jobs convinced the board to make him the interim CEO in July 1997. Due to the huge
financial losses and a three-year record low stock price the board agreed with Jobs. Amelio
resigned a week later.
During the 1997 Macworld Expo, Jobs announced Apple was joining hands with
Microsoft to create new versions of Microsoft for the Macintosh. He also announced that
Microsoft had invested $150 million in non-voting Apple stock. On November 10, 1997, Apple
introduced the Online Apple Store.
Jobs was impressed by the design talent of Jonathan Ive and they paired to rebuild
Apple’s status. The iMac was introduced on August 15, 1998, an all in one computer. Jonathan
Ive lead the iMac design team and he would later design the iPod and the iPhone. 80,000 units of
the iMac were sold in just 5 months as a result of modern technological features and a unique
design.
 The first iMac

Jobs did not want a wide range of products and preferred to concentrate on a narrow
range of products. He reduced the range of computers to four- two for businesses and two for
consumers. He also closed down a lot of other divisions including the Newton MessagePad.
In 1998, Apple purchased Macromedia’s Key Grip Software Project, thus expanding its
video editing market. The product was named Final Cut Pro when it was launched in April 1999.
It was unfinished even at the time of its sales. Key Grip Software’s development led to Apple’s
release of the video editing product called iMovie in October 1999.
The Mac OS X was introduced in place of System 7 in 2001 which was based on the
operating system from NeXT computers. In the same year, the iPod portable digital audio player
was released, and it sold 100 million units within six years.
Following this, Apple acquired German company Astarte and Apple created iDVD for the
consumer market using Astarte’s DVD authoring technology. Apple purchased two companies in
2002 – Nothing Real for digital composing application and Emagic for music productivity
application Logic. Apple became the first computer manufacturer to own a music company after
purchasing Emagic.
Apple’s iTunes music store was introduced in 2003 and the service offered online music
downloads for $0.99 per song and also integrated it to the iPod. iTunes became the world’s
largest music retailer by 2005.
In 2006, Apple finally decided to switch to an Intel-based system architecture. The
MacBook Pro was the Apple’s first laptop with an intel core processor.

MacBook Pro

Between 2003 and 2006 the Apple’s stock price increased by more than ten times, from $6 per
share to $80 per share.

The Iphone
The iPhone was announced at the Macworld Expo on January 9, 2007. Jobs also
announced that Apple Computer, Inc would thereafter be called Apple Inc. as the company had
widened its emphasis to consumer electronics as well. 270,000 iPhones were sold during the first
30 hours of its sales and it came out to be known as a “game-changer for the industry”.
Widespread success was achieved with the introduction of iPhone, iPod Touch and iPad
products.

Steve Jobs with the iPhone

The App Store was launched by Apple in July 2008 to sell third-party applications for the
iPhone and iPod-Touch. Within a month, 60 million applications were sold through the App
store, and it was able to register an average daily revenue of $1 million. Apple also became the
third-largest mobile handset supplier in the world thanks to the popularity of the iPhone.
Apple shares hit a staggering $300 in October 2010.
Steve Jobs resigned from his position as CEO due to health factors on August 24, 2011,
and was replaced by Tim Cook. Jobs passed away on October 5, 2011, which marked the end of
an incredible era for Apple and brought a big diversion in Apple’s history.
However, Apple still continues to influence the markets with ground-breaking
technological wonders to date.
In early 2011 Steve Jobs took a leave of absence; naming Tim Cook as the new CEO of
Apple. Steve Jobs died on October 5, 2011.
Apple has continued to release new products and expanded services in recent years.
Apple has switched to using its own in-house designed CPUs, first in iPhone and now in its
Macintosh line of computers. It also offers media streaming services through Apple TV+ and
Apple Music. It is expected that Apple might enter new markets soon, with rumors that a virtual
reality/augmented reality headset and a self-driving automobile in development.
In 2015, Apple embarked on a fresh journey into the realm of wearable technology with
the release of the Apple Watch. A marvel of miniaturisation and engineering, the Apple Watch
redefined the potential of the wristwatch, transforming it from a simple timekeeping device into
a powerful tool for health, communication, and more.
This smartwatch seamlessly integrated with the Apple ecosystem, acting as a companion
to the iPhone, while also offering standalone features. With its unique Digital Crown, users could
navigate the interface, zoom, and scroll with ease, while the heart rate sensor ushered in a new
era of health-focused technology. It delivered personalised notifications, made contactless
payments possible via Apple Pay, and even allowed for on-wrist calling.
The Apple Watch brought about a revolution in personal technology, making it more
accessible and personal than ever before. Its combination of design, functionality, and user-
friendly interface quickly made it a leader in the smartwatch market.
 In 2016, Apple unveiled the AirPods, taking a giant leap in wireless audio technology.
These were not just earphones; they represented Apple’s vision for a wireless future and
embodied the company’s commitment to effortless, high-quality sound.
AirPods, with their iconic design, offered a unique, wire-free experience. They featured
Apple’s custom-designed W1 chip for fast, seamless connection, and superior sound. The
AirPods also introduced innovative features such as automatic pausing when removed from the
ear, easy switching between Apple devices, and quick access to Siri. Plus, their compact charging
case provided multiple recharges, ensuring they were always ready to go.
Despite initial skepticism over their design and price, AirPods quickly became a cultural
phenomenon. They redefined the headphone category and set new standards for wireless audio.
2017 marked the tenth anniversary of the iPhone, and Apple celebrated it with the
introduction of the iPhone X. The iPhone X pushed the boundaries of design and technology
with its edge-to-edge OLED Super Retina Display, the secure and intuitive Face ID, and the
sophisticated A11 Bionic chip.
The period between 2015 and 2017 reaffirmed Apple’s ability to innovate and redefine
our relationship with technology. With each product launch, Apple consistently strives to create
technology that is not just powerful and efficient, but also personal and intuitive. From
revolutionising the smartwatch industry to shaping the wireless audio landscape, Apple’s journey
is a testament to the power of innovation.
Following the launch of iPhone 11, Apple once again proved its commitment to
prioritizing customer desires. The subsequent release of the iPhone 11 Pro and Pro Max came as
a delightful surprise. It wasn’t just about improved camera systems or a sleek aesthetic, but
rather, a focus on performance and immersive user experience. The phones were graced with an
A13 Bionic chip, offering a leap in computational abilities, and the Pro Max featured a stunning
6.5-inch Super Retina XDR display, setting a new benchmark for smartphone display technology.
In 2020, amidst the unprecedented challenges the world faced, Apple released the iPhone
12 series with 5G technology. The models featured the robust Ceramic Shield, bringing
unparalleled durability to iPhones. The introduction of the Mini and Pro Max versions showed
Apple’s knack for diversity and personalisation. The same year, Apple delved deeper into home
technology with the HomePod Mini, a compact smart speaker with impressive sound quality and
seamless iPhone integration.
Marking the end of 2020, Apple unveiled a new audio gear – the AirPods Max. The over-
ear headphones redefined Apple’s audio offering, providing superior sound quality combined
with stunning design and effective noise cancellation.
Come 2021, Apple presented the iPhone 13 range with noticeable enhancements in
battery life, processing power, and camera technology. The introduction of the A15 Bionic chip,
a continuation of their self-designed silicon chips, made the devices more efficient and powerful.
In the Mac universe, Apple revolutionised personal computing with their M1 chips in the
MacBook Air, MacBook Pro, and Mac Mini. Apple’s foray into chip manufacturing led to better
performance and power efficiency, drastically improving the user experience.
2023: Entered the realm of Augmented Reality (AR)
Finally, the year 2023 marked a significant milestone in Apple’s journey as they entered
the realm of Augmented Reality (AR) with the launch of Apple Glass. This innovative gadget
offered a unique blend of reality and digital information, right in front of the users’ eyes.
The iPhone 14, too, reflected the continual evolution of design and performance that
Apple is renowned for. With even more power, an improved camera system, and advancements
in battery technology, Apple stayed true to their tradition of upping the ante with each new
launch.

RISK MANAGEMENT BUSINESS ENVIRONMENT

CORPORATE STRATEGY, GOVERNANCE, AND ETHICS AND THEIR IMPACT ON
THE ACHIEVEMENT OF APPLE'S GOALS
Environmental Analysis
Apple's key internal strengths and weaknesses were examined in the context of its
industry. External factors are those that are beyond the control of company, SWOT, PEST, and
Porter's Five Forces Analysis were used in order to identify the strengths and weaknesses of
Apple and the available threats and opportunities in the competitive market, while taking into
consideration various political, economic, social, and technological factors.

INTERNAL AND EXTERNAL ANALYSIS

Apple organization was established by Steve Jobs and Steve Wojniak in the year 1976 and
integrated in February 1977. The company’s head office is located at Cupertino. The present
CEO is Tim Cook. Apple Company chiefly engaged in sector associated with computer
accessories and consumer electronic appliances. Apple Inc.
Chiefly develops, fabricates and promotes products that vary from handy digital entertainment
systems, mobile communication gadgets, personal computers and diverse associated software,
service, secondary, and social network systems. The major distribution avenues are the Apple’s
electronic shops, direct selling, and others. In addition, the clients vary from users, organizations,
small and medium enterprise, trade, education, government and innovative consumers.
The company presently has more than 35,000 workers and expansion of approximately 63%.
Based on financial period ending report of August 2011, the organization had generated total
income of $32.5 million, gross income of $11.1 million, net profit of $4.8 million, total asset
amount of $41 million and indicates expansion of about 35% for 12 month expansion and
approximately 38% of revenue increase (Hunger & Wheelen 2012).
Regarding vision the company is guided by view that man is the creator of change in this
universe and therefore, man ought to be above any system and structure, and not inferior to this
system and structure. Concerning mission Apple is dedicated to creating the best individual
computing exposure to learners, teachers, innovative specialists and users worldwide through its
creative software, hardware and internet-based applications (Apple in education 2008).

SWOT Analysis - Internal Environment

A SWOT analysis summarizes the key issues from the business environment and the
strategic capability of an organization that are most likely to impact on strategy development
(Johnson, Scholes, and Whittington 2008). Thus, strengths and weaknesses are part of business
internal environment while opportunities and threats are from the external business environment
(Fred R. David).
 Strengths
Since diversifying beyond personal computers. Apple has enjoyed terrific sales growth
and has wisely managed its cash flow which resulted as No. 1 brand at Forbes with a total capital
of $416.62 billion.
 Strength analysis showed that Apple is endorsed by a large brand: the company has a
strong recognition because of its aggressive nature of founder towards creativity and innovation
(Schmeiser 2008). As the existence of innovative culture, it had increased investment in R&D i.e.
$4.5 billion in 2013, $3.4 billion in 2012 and $2.4 billion in 2011(Apple's 10K). It also had
elevated sales as of practiced and skilled sales personals (Apple's 10K). It had positioned its
direct sales branches at high traffic locations, which contributes towards strengthening the
company’s revenues (Apple's 10K). It has significantly controlled its supply chain and publishes
its supplier codes of conduct report annually, which further enhances brand recognition. Further
strength of Apple is implausible trade name trustworthiness; Customer can stand whole freezing
night (Guenette, 2012) to be the first one to get new Iphone. The philosophy of ease to use is also
a plus point for the company. Every product that they produce is user-friendly and easy to
understand.
 Weaknesses
To be the world’s biggest information technology company brings higher responsibilities
as well. Apple, like other entities, is also facing problems in some of its areas.
Based on internal analysis of Apple, it was found that it had a strong strategy for
promotion of direct sales channels but unfortunately, they are still lagging behind. As they only
had direct sales locations in just 13 countries (Apple 10-K). In addition, one of the weak areas is
Apple’s dependency on iPhone and iPod, as their contribution towards overall sales is dominant
(Biddle 2014). Also, it's hardware products are only supported with iOS. which makes it difficult
to use, whereas competitors' products are android which doesn't have such issues. It is also
researched that its products are luxury products as carry a premium price. Ordinary man would
prefer to spend dollars on more productive places rather than to buy (Nair 2014). Since Apple
had a well-recognized manager. Steve Jobs whose death is a big loss for company. More
importantly there is a change of philosophy for iPhone between Cooks and Jobs. Another
weakness in Apple is the declining sales growth causing diminishing market share (Apple 10-K).

STRATEGIC ANALYSIS
PEST is a widely used tool to analyze the Political, Economic, Socio-Cultural and
Technological changes in the business environment. PEST analysis is used not only to
understand the external environment, but also to adapt business strategies for achieving business
goals.
PESTLE Analysis To make the analysis more comprehensive, legal and environment
factors have been added which makes PEST, PEST + L (Legal) E (Environment)=PESTLE
Analysis.
It adds two more different aspects to see the whole environment and keep a track while
achieving certain goals.

Political Factors Economical Factor

 Political pressure on the  Impact of recession
company  Exchange Rates
 Limitation on import  Cost of Labour
 Political insurgence in  Recent trends in stock
different countries market
 Stability of Government  Rates of growth
 Company’s approach on  Rate of Inflation
Technological
recent issues Factors  Job Opportunities
 Entry to ChineseSocio-Cultural
Market Factors
 Product life cycle  High-Status lifestyle
 Screen Size  Buying Habits
 Tough competition
 Legal Factors
Environment Factors
 Increasing privacy
regulations  Air and Water
(telecommunication  Pollution Population
regulations)  Greenhouse Effect
 Intellectual property Law  Global Warning
 Employment Law  Increased electricity cost
 Breach of Law  Transoceanic shipping
 Consumer Law

Political factors
Apple faced an awkward situation when suicide cases were registered against its supplier.
This company was held responsible for making its employees work for longer hours.
Owing to the political insurgency in China. Apple has faced increased labour and
manufacturing cost.
There is always a risk of terror in its base country. America and the countries that it
services.

Economic Factors
Apple's economic growth touched a new low due to the global recession in 2013.changes
implemented in Europe's economy have affected apple directly. It led the company to 16% less
growth in third quarter of 2012.
The company had to suffer when the inflation rate was increased because it possessed a
large amount of cash.

Social Factors
Apple has become simply a symbol of social status due to its extremely high prices.
Owing to the growth in consumer spending in third world countries. Apple sees a big
potential of business.
Apple chooses China for manufacturing instead its home country due to the low labour
cost. It could, however, limit the product appeal.
Technological Factors
Apple got entry to Chinese market the agreement that Apple products would be made
available in both China Mobile and Apple retail stores.
Apple had invested 3% of the net sales (which is more or less 8.09 billion USD on
Research and Development.
As consumers started preferring larger screen. Apple is now forced to increase its screen
size,

Legal Factors
US government imposed a legal ban on the import of some of Iphone parts, which are
brought back later.
Apple could engage in litigation as it started offering financial services through Apple
Pay.
The company is exposed to the threats like piracy and litigation as a large number of
people use its products.

Environmental Factors
Apple has been forced to spend money on discarding used and non-used electronic junk
as it can cause environmental hazards.
Environmental issues caused by manufacturing facilities in China has become a growing
concern for Apple.
China's attempt to minimize the environmental side effects could lead Apple to increased
manufacturing costs.
After evaluating all the factors in PESTLE analysis, it can be predicted that apple will
continue to hold its top position in information technology industry. The reason being it boasts of
adaptive qualities to perform well even in a challenging environment.

PEST Analysis - External Environment

➤ Political Analysis
Apple Inc. is exposed to many political problems, as company had a decent number of
contract suppliers in world especially in Asia (CNET 2012). Also major sales contribution for
Apple is from outside US (Apple 10-K). Any political insurgence for sure leaves Apple to
danger. Furthermore. Apple recently was in political pressure and its supplier worker issues,
suicides cases were registered against one of its biggest supplier. Foxconn, long working hours
brings stress to workers and in May 2010 two of workers lost their life and sixteen were injured
during an explosive in one of Apple's supplier facility (Torres et al 2012). Survey conducted by
SOMO shows, Delta Electronics a facility of Apple Inc. had about 5000 workers registered in
union although they aren't having any significance clashes with management but still Apple is
espoused to political risk (Green Beagle 2011),
Apple's political problems are not just confined to abroad infect. Apple is facing legal
stress domestically also. Previous year, it restored imports of some of its parts used in Iphone
which ever earlier banned by US government. America's toughing labor and environmental laws
are also making it difficult to compete in highly competitive environment (Apple 10-k).
 Economic Analysis
Apple felt the heat, as the world advanced economies ie. America, Japan and Europe
were and are but recovering from global recession (IMF 2013). Further, the growth of world's
economy was also very slow in 2012 and was expected to be same in 2013-14 as obvious. Apple
has been affected by crisis.i.e. the change in American region sales for current year was 9% în
2012-13 compared to 50% of 2011-12, in Europe 4% in comparison to 31% and in greater China
13% in comparison to 78% (Apple10-K), Unemployment rate in US was 7.9 during 2012-13, 4.1
in China and 4.6 in Japan, was one of the significant causes of downturn in sales growth (Trading
Economics). Euro crisis. US fiscal problems and hard landing of large developing countries will
likely to continue in coming couple of years leading Apple to more toughen economic situations
(IME 2013). Moreover, stringing dollars had also source of problem for Apple product prices,
transportation cost and profit margins (Apple 10-K).
 Social Analysis
Throughout its history. Apple has been making a series of changes in its products to
satisfy and fulfill what its customers expect. In order to do so, it has been making many
acquisitions - such as Embark, Prime Sense, and Topsy and many alliancesc.g., Sony, Motorola,
Phillips, and AT&T (Business Insider). Sales of Apple products increased by a good percentage
in India in 2013, which forced the firm to open franchises and make investments in India, which
is clear evidence of Apple showing a rationale as her growth strategy.
 Technological Analysis
Information technology is highest earner for past a decade but only those companies have
carned well who had innovated. Apple is a trend setter in consumer electronics business and had
aggressive philosophy on innovation. It by offering unique and advanced technology retained
49% of its customers and convert 20% to iOS in year 2012-13 (Frobes 2013). The cracked deal
with China Mobile had also brought 760 China Mobile subscribers into their circle, giving Apple
and immense competitive advantage in world largest growing market (Frobes 2013). Along with
above mentioned positive technology industry related points for Apple Inc. there are some risk
factors also present.
Apple needs to invest more and more in R&D as of competitive and short product life
cycle nature of industry (Apple 10-K). Apple designs are unique but consumers are also giving
preferences to screen size. Moreover, it is famous for its one floor software application offering
which is third party software, bringing risk to its continuation of contract with the Apple (Apple
10-K).
PORTER’S FIVE FORCES ANALYSIS

The analysis of Porters five forces enables more effective strategic decision making (Porter 2008;
Johnson, Scholes, and Whittington 2008).

 Rivalry among competing sellers: (High)

Apple Inc. had a well-diversified portfolio of tech based products; it sells hardware and
software which makes a tough situation for Apple to compete globally (Apple 10-K). The impact
of highly competitive market can be seen in lesser sales growth 50% to 9% in America, 31% to
4% in Europe, 94% to 27% in Japan. Apple is also losing it smart phone market share, 14%
decline in recent company's quarterly report, Apple iPad growth also slowed to just 13% as
compared to competitors 79%. Positive point of Apple is, its product line is less, simple and user
friendly, so they manage to make sales out of it as compared to competitor's one where enough
choice is present to confuse consumers (Apple Form 10-K). Apple products had high
differentiation with competitor's products. Moreover, Apple distribution channel i.e. via Amazon
and direct outlets is very strong. helps Apple to strategically position their products. Looking into
the intense competitive environment it should increase its investment more in mobile, computer
and software.

 Potential entry of new competitors: (Low)

Apples threat of new entrant's competitors is low. As Apple is world's dominant IT having
focus on niche market i.e. high income consumers, makes it difficult for new entrants to grasp
market share specially when just alone iPhone need $100million investment. Apple also use
contract manufacturing strategy saving unnecessary cost and expense, as no need to spend
money directly on social responsibilities helping them to be the world's most profitable and
capitalized corporation. Other reasons for low threat is copyrights, patents and high switching
cost. But Apple is also in risk if the suppliers refuse to renew the contracts.
  Competitive pressure from substitute products: (High-Moderate)
Apple's substitute product pressure is high-moderate. For almost every product of Apple
there is a substitute present.
Ipod -> Samsung mp3 player & Sony mp3 player

Ipad Samsung tab

Iphone -> Samsung galaxy. Samsung note, HTC, Nokia, Sony Erickson

But Apples OS still proves to be a strong area of Apple which is not having any near
substitute. Another positive area is the Apple own app store, iTunes and lelouds.

 Bargaining power of suppliers: (Low-Moderate)

Suppliers bargaining power is moderate because of their unique capability to manufacture
product for Apple. But, Apple had a very well diversified supplier numbers; they aren't
manufacturing everything from one supplier and one place. Because Apple buys in large
quantity, giving them higher buying power (Green Beagle 2012).

 Bargaining power of customers: (Low)

Apple enjoys its bold image of being innovator, quality continuer and big investor in
R&D helps it retains its current customers. Along with retention, Apple is also successful in
switching competitor's customers towards itself many times (Tech Crunch 2014).

SWOT Analysis - External Environment

 Opportunities
Apples iPhone has plentiful result since its invention; recent statistics shows that iPhone
still is Hercules (Apple 10-k). IPhone 6 introduction will rewrap market for Apple. Further
contract signed last year with China Mobile has and will open up abnormal opportunities in
growing market. Rumors of Apples wearable made up of bending glass material if offered in
early 2015 would be an asset for company, as it would be closest substitute to Samsung's
wearable and with unique material. Apples goodwill worth $1577 million, one of key cause is
talented personals: competitor's attractive offering may pull them which Apple can't afford is to
lose human resource (Apple 10-k). Opportunity for Apple is if management retained talented
human resource which in return connects company to creativity and innovation.

 Threats
The competitive nature of business sector in which Apple Inc. operates brings many
potential threats for them. Majority of the competitor's ample resource brings a threat that they
go for low profit margins, break even or even negative pricing (Apple 10-K).One of the reasons
of intensive order to be cost effective also don't have their own software. Moreover, Apple's
majority suppliers are from Asian countries. Any economic or political problem may cause
shortage of supplies or increase in production cost (Apple 10-K).Apple would be consistently
losing market share if they wasn't able to innovate continuously or rather reduce price.

Boston Consulting Group Matrix

Boston Consulting Group (BCG) matrix is among the widely used model that helps making
timely and efficient strategic decisions (Fred R. David).

TABLE 1. Apple’s BCG Matrix

Brands Revenues % of Largest Your Relative Market
Corp. Competitors brand’s market Growth
Revenues market market share Rate
share share
Iphone 91,279 53% 26% 32% 1.2 44%
Ipad 31,980 18.70% 18.80% 38.80% 2.11 51.80%
Ipod 4,411 2.60% 20% 32.60% 1.68 3%
Itunes 16,051 9% 22% 63% 2.86 5%
Mac 21,482 13% 26.50% 13.70% 0.52 -5.60

Figure 1: Apple Inc. BGC Matrix

Only five of products were analyzed based on the data availability in Apples 10-K form.
Iphone pretty obviously positioned itself in stars, as iPhone remains the core revenue generator
for company. Along with high market share, it had high market growth potential which Apples is
planning to exploit via introduction of Iphone 6. Ipad had a huge potential but unfortunately due
to high availability of its substitutes. Ipad is not performing to its capacity, differentiated features
with increased application software support and direct selling strategy can help reach its capacity.
IPod and iTunes being at dogs shows the maturity of the technology.
Apple had a defendable strategy of not investment more in iPods but just bring modified
versions like increasing the memory size etc. to cope with sales. Apple's hope from Mac is still
high despite of at cash cows because around to Apple 10-K form. Apple's philosophy toward
future is Smartphone's and computers.

Critical Analysis of Apples Corporate Governance and Corporate Social Responsibility

Increasing conflicts between management and shareholders, more corporate scandals and
increasing outsider's stakes in company had emphasized on growing importance of literature over
corporate policies and procedures over its organization's ownership structure. Aim of corporate
governance is to overcome the competition in organization rising from inside structure (Mitchell,
1997). Apple Inc. had decent number of corporate governance guidelines present, covering
almost majority sections of International Corporate Governance Network principles (ICGN).
Despite of being literature rich Apple's real time implement of principles are poor. Calpers, a US
largest public pension fund in 2010 filed a resolution against IT giant on its one electing of
directors. Calpers also emphasized on incumbent of majority voting system as criteria for board
election (Apple Insider 2014). Moreover, Apple had been criticized on its diversity i.e. inclusion
of more female director which is in response of questions on its other International Journal of
Economics, Commerce and Management. United Kingdom Licensed under Creative Common
Page 963 competitors male dominant board for the purpose of bringing people from different
backgrounds and color to contribute positively to the global company (Satariano 2014).
According to a National Centre for Public Policy Research published in 2012 conflict of
interest raised against Gore Ex-Apples board member when Apple signed contract of hydrogen
power plant with Bloom Energy, Gore was accused of using his influence as Gore had ownership
stake in Bloom Energy (Almasi, 2012). Further the company had also been criticized on its
excessive compensation to executives, with a proposed solution of tying pay with Apples
performance (Satariano 2014). In Early 2014, Apple's CEO was criticized by its shareholder on
green goals of the company (Winston 2014), shareholder emphasized focus on short term goals
rather than long term goal which clearly predicts that company never neglects the importance of
long term goal but should also focus on shorter returns for shareholders, too.
Not only Apple's corporate governance had room to be criticized, there is a strong
contradiction between CSR policy and actions of company, Report also objects the limited CSR
legal environment and its management by Apple critically. Apple is world's largest information
technology and most profitable business on earth. It is also responsible for the society in which
they do business i.e. Apple's corporate social responsibility. CSR is not a legal standard rather an
ethical standard. Increased competition in sector requires Apple to be more innovative than
before and more ethical in business transactions.
Corporate social responsibility is defined as a company's obligation to exert a positive
impact and minimize its negative impact on society. Despite of showing high commitment and
insistence on suppliers to provide state of art save working conditions, avoidance of child labor,
optimum labor working hours with fair wages. Still Apple has been under the ink of scholars and
reporters because of series on conflicts i.c. The Foxconn suicides, Foxconn factory blasts.
Foxconn long working hours and Foxconn's underage workers (Cristina et al. 2012). Survey
conducted by SOMO 2007 reported, PIMES, Hitachi Global Storage, volex Cable, CKL Delta
Electronics who are some of the suppliers of Apple were found in volitions of working hours
more than 60 hours. Working hours forced overtime. Nonpayment of overtime wages,
Occupational safety, Occupational illness and industrial hygiene standards of EICC.
Critical Analysis of Strategies Used by Apple
Apple Inc. had small number of strategies to follow like premium pricing, low cost,
product segregated strategy. less or but integrated products, low focus on market share. low
shareholder return policy and global cheaper marketing. Apple Inc., being among the most
successful brands of world and marked performance of implemented strategies, although, had
faced lots of critics on its strategies.
Apple's widely criticized strategy as always and obvious is the strategy of premium
pricing (Nair 2014), the product market segment of Apple is higher, medium and upper class of
economy making it difficult for the average people to purchase. Moreover, major competitors are
consistently working of price minimization strategy, like Google plans to introduce less than
$100 smartphone in India and free android software availability to Samsung intensified
competition (Dutton 2014). Apple not really an inventory but a trend setter. following up their
differentiation strategy they try to bring something which is complete and if it's not they retain it
rather to market, exposing Apple to giving up short term but critical market opportunities helping
Apple to maintain their share until new product offering (Farber 2013). Apple's integrative
strategy of full package of hardware mobile and software iOS is the most appreciated facilities
with million applications from third party but is not cost effective, in 2013 out of every four
smart phone sales Iphone purchased is one (Meyer 2013). Alex Wilhelm in his article published
in 2014 criticized the lower cash return policy of Apple Inc. to its shareholders while company
has above $100 billion as there cash reserves. Weaker inorganic growth strategy as compared to
competitors also could be hazardous for company as 'Apple had one acquisition per year for past
25 years compared to Microsoft's 45, Google 40 and CISCO 30 (Cheney 2010). Apple also
believed to be trend setter in cheapest strategy of marketing via patents wars. In normal business
they would have to spend millions and even billions to spend on high profile shows and timing,
but thanks to this strategy, they are everywhere every time every channel for free. Although, now
they won the law suites but not all of them, which costs at Apples image (Galasoo2014).
CONTINGENCY PLAN
Apple Inc. is one of the most successful organizations in the world. The heighten
anticipation from consumers when they launch new products proves they are one of the most
visible brand names in the world. Apple Inc. success is attributed to the visionary leadership of
former chief executive Steve Job and the Strategic plan of emphasizing on developing new
products.

Difficulties and Risks

 High Competition and rapid technological changes keeps Apple under pressure
 Consistently stimulating customer demand. Successfully managing frequent product and
technology development

Worst Case Risks

 Future operation depends on the Apple's ability to obtain sufficient quantities of the rare
metals and other components used in production. Growth of Apple's own retail store
could discourage third-parties from selling and promoting the company's product.

Corporate strategy
Corporate-level strategies involve selecting the businesses in which organizations ought to invest
their money and potential opportunity to expand or contract (Morden 1993). Since Apple is
concerned with horizontal incorporation and strategic subcontracting, this section will discuss the
organization’s unique roles and goals along these avenues.

Horizontal integration
Horizontal incorporation refers to the guideline of buying or combining with sector players with
a view of maximizing sustainable profitability (Kerin & Steven 2009). Even though there are two
potential strategies of applying horizontal incorporation, Apple Company only concerns with
acquisitions and apparently does not plan mergers currently (Jade 2008).
Indeed, the company has acquired and may keep on acquiring organizations that have items,
services, staff, and skills that complement Apple’s strategic path. Indeed, the company
understands that such acquisitions may comprise critical threats and risks, for example regarding
the incorporation of the acquired organizations, costs associated with the acquisition, lawful
barriers, or product quality concerns (Investor relations 2008).
Latest acquisition of Emagic highlights that the company’s acquisition framework is focused on
increasing Apple’s value through addition of significant products, talents, and skills of the
acquired organization. Indeed, this acquisition of comparatively small organization did not offer
Apple an enormous opportunity for enhancing the competitive advantage that stems from
economies of scope but attached important value to the company’s product collection (Hunger &
Wheelen 2012).
Since the company is basically concerned with the sector of product accumulating, these
additional products in addition provide Apple with new opportunities to offer new and
diversified product ranges and can promote cross-buying.

Strategic subcontracting
Strategic subcontracting encompasses isolating out a few of an organization’s value addition
roles within an organization and letting them be carried out by a separate company. In fact, the
company has subcontracted different roles based on activities and logistics as its contract
designers and subcontracting organizations can carry out various value-addition roles at a lesser
cost as a result of low operational costs and other competitive benefits (Hruska 2008; Hill &
Jones 2004).
Since the company’s focus depends on the design of its items and its capabilities can be viewed
in terms of novelty, planning, and promoting, it is rational that Apple aims at such value addition
roles and subcontracts its processing function to companies that focus on this role (Hickey &
Thompson 2005). Therefore, the company can obtain gains as far as costs, chances of
differentiating its products, and enhanced attention to its unique capabilities.

Business strategy
The business-level strategies propose how an explicit company system can result to a
competitive benefit over other players in the sector. There are 3 basic aspects impacting the
direction of Apple’s business system. These include: consumer needs, client categories, and
unique capabilities – i.e. the company has to find solutions to what and how a customer need is
fulfilled and who is going to be fulfilled (Hellmann 2000).
Consumer needs
Apple, right through the sectors it contributes in, attempts to initiate its mission of being the
entertainment focus in a sector where linking between service, hardware, and software is turning
out to be increasingly significant, as users need complicated in addition to incorporated digital
systems which can easily link to each other. The company has been trying to separate itself from
possible rivalries with a view of justifying the high cost.
It is significant in finding the precise balance between costing alternative and client fulfilment
since such a mix is critical for maximizing value for the client and for increasing profitability
(Dickel 1994; Yoskowitz 2008).
The company is known for its high-cost design, since establishment of product plan and novelty
is an expensive issue. However, product differentiation is an effective competitive tool since
Apple can enhance the expected quality of its product portfolio and be as successful as any other
competitor in spite of the higher-cost policy.

Client categories
For organizations it is essential to understand their clients. Knowing your clients implies to be
capable of performing an accurate market demarcation, since each category of customers
requires to be accurately differentiated. Such policy aids organizations in targeting specific
clients in an improved manner with enhanced and highly suitable products, expanding client
receptiveness (Bernardin & Russell 1998; Wilcox 2008).
There are 3 kinds of strategy on hand for market grouping. The initial alternative would be that
the company could focus on serving the moderate consumer without making impacts in meeting
their needs, secondly the company could still focus on all clients, but identify the various
preferences and therefore develop distinct products for every client group or third the company
could just locate itself into an environment and focus on simply particular client segments
(Ehrenreich 1989; Evans & Gupta 2001).

Unique capabilities
Apple’s business system has to recognize its unique capabilities and embrace business models
which enable the company to design and implement its competitive benefits. With Apple as
sector leader in product novelty and development the role of the leader is for choosing strategies
which are compatible with the high-cost design and the differentiation strategy (Watson 1993;
Fortt 2008).

Apple External Analysis

The company operating in the hi-tech sector, is, as the name already shows, greatly impacted by
technical changes. The organization has already made the cruel exposure of losing a famous fight
against Microsoft and thus Apple is enthusiastic not to experience similar situation (Frommer,
2008; Gilbert 2002).
Opportunities emerge via Apple’s digital focus system which focus on generating not only user-
friendly devices, but in addition focus on the Wintel marketplace with its fresh novelties. Besides
that the critical obstacles to entry signify secure havens for the company since they can satisfy its
major marketplaces via novel and greatly competent product portfolio and equally sell at a high
price (Thompson & Hickey; Graham 2008).
Among the generally significant threats are the increased competitions in the technology sector,
which persistently brings down charges and creates high-end, highly priced inventive product
portfolio less striking and the negotiating authority of Apple’s main part suppliers, which can
result in an upper cost design and low profitability (Schumpeter 2001; Hartley & William 2009).
For the potential, as additional companies where Apple is engaged in will have significance,
concerns in the entertainment marketplace and digital marketplace will gain an upper influence
on Apple. In this, socio-economic pressures appear to emerge as major factor of how effective
the company will be in the future. If the company is capable of maintaining the smart aspect of
not only iTunes, but also iPod, Apple will be capable of generating above sector incomes for the
future.

Apple: Key Challenges

Pricing
Generally, the price of any Apple product is in most cases high and only can be purchased by
financially stable people. Most of the Apple’s products range from $250 to approximately $350
for both MP3 and MP4 in relation to other brands such as Samsung. Hence, numerous clients
from low-income class could not purchase Apple items and choose other trade names (O’ Brien
2007; Krazit 2008).

Market segmentation
The company has previously been toughest in the United States physical and learning upward
market. With the learning marketplace encountering threatening budget barriers and the United
States moving towards a personal computer saturation level, the company may require spending
funds more rapidly and yield to promotion cost forces on Apple items without an alternative
novelty, incorporation, or divesture (Martin 2008; McGrath 2006).

Functional strategy
A functional strategy is focused on enhancing the roles of an organization’s value chain and
therefore achieving competitive advantages via better competence, excellence, novelty, and
receptiveness to consumers (Musgrove 2006; McLean 2008).
As a result, there are various techniques, guidelines, and strategies for all value addition roles
that were identified as Apple resources in the evaluation of the company’s internal situation,
namely Promoting, Funding, R&D, operation & Logistic (O&L), Human Resource Management
(HRM), and Information System (IS).

CORPORATE STRATERGY OF APPLE

The key aspects of corporate strategy can be listed as follows: Strategic Management;
Creating Shareholder Value; Realizations of Potential Company and Individuals; Strategy
Diversification. Apple’s corporate strategy has focused on diversifying its business, with
computer business taking up a main position on other sectors.

Apple, Inc. is another world’s leading manufacturer of technology, which makes it a global
company. As far as strategic management of Apple, INC. is concerned, the chief and other
executives have it uppermost in their mind. Innovations involve the introduction of new
technologies related to the strategic plan, leadership, strategic goals, and tactics among
others. The main stakeholders are investors, customers, employees, communities, and
competitors. For instance, it can be seen that all stakeholders, working as collaborators and
communicating with each other, are a part of a company strategy within the Apple, Inc. (Jeannet,
J-P & Hennessey, 2001).

Ashcroft (2012) suggests such main components of corporate strategy: This includes marketing,
production, financial strategy and R&D. Global market orientation underlies the marketing
strategy of Apple’s Inc. Creating globally relevant products, they strictly follow a general
approach in order to attract more consumers throughout the world. They create it as a global
standardized product that they advertise everywhere. Apple Inc. determines their price and track
the demand for various products through the world market.
One of Apple’s corporate strategies is to continually increase its product line. The story of
Apple’s business started in the computer industry but Apple is no longer just a computer
story. Today, Apple is involved in sales of various types of hardware and software equipment
such as home computers, personal computers, phone and music gadgets. For their numerous
products, Apple’s economy of scope allows them to be more efficient through use of many of the
same resources. At the heart of Apple’s business plan lies its capacity for developing both the
operating system as well as hardware, application software and infrastructure services that
provides consumers with unique design on their product and services.

Apple applies its strategy through product differentiation. There are various changes brought
about by Apple. Among others, these include the iPad, an innovation in which the company
became famous for creating a portable device with storage capacities to hold thousands of songs
to be played under shuffle mode. They also pioneered such an innovation as the making of the
Macintosh. Macintosh was the first graphical user interface-based computer. This makes such an
ability to produce an innovative design very much important as it is placed at the center of
Apple’s strategy. Another element of Apple’s competitive edge is first mover advantage. For
instance, Iphone was the first perfect touchscreen phone with single click application buying
feature. The company achieves this through borrowing cues from other products, modifying
them, eliminating those aspects that are disliked while incorporating those that make it stand
apart from others.

Apple uses related constrained diversification. The diversification associated with firms involved
in the same business unit are related or interconnected. This policy ensures that there is
maximum effect on resources since they are now being shared. Apple is a PC manufacturer
utilizing its capabilities in producing hardware, and software solutions. All such of their
inventions, such as the Macintosh or iMac, iPod—iPhone and iTunes, Apple TV—iPod-to-
computer, have all been computers for resource sharing within the company. Apple's operating
system. The Macintosh, iPad, iPhone, and Apple TV all share the same operation system which
is OSX. This results in an economy of scope where the resources can be used by different
companies and this implies reduced costs incurred on the company’s side. However, while other
companies are related all their operations are on separate platforms which have no irrelevant
product.

Analysis of Apple’s Corporate Strategy. in expansion of its lines of products that resemble those
offered in its current lines. Using a diversifying strategy, apple can produce good results. You can
widen your customer base by entering new markets, launching innovative products, or going
after new consumer segments or geographies. Such may result in higher profits, enhanced
liquidity or increased availability of loans. The world’s leading it company based on revenues
and assets, the second-largest in the world in the production of mobile phones belongs to this
enterprise referred to as apple. As at September 2018, it was reported that the Apple had about
132,000 full-time equivalent employees (Annual Report, 2018). In 2018, sales of the world’s
leading IT corporation in terms of revenues rose by $36.4 billion and were up 16{debit
amount}. (Dudovskiy, 2019). No matter if it about number of employees, profitability or
turnover is; the diversified strategy may help you achieve this objective.

ALTERNATIVE COURSES OF ACTIONS

Alternative strategy applicable in ensuring that Apple remains on top of producing
innovative products includes increased research and development. This can only be achieved
through the allocation of finances to programs to increase innovations. This would increase its
market share by keeping loyal customers. The drawback is that Apple requires financial
investments in these programs. Another strategy to increase customers and market share. Its
drawback is to invest more financially.
Apple should continue investing more în research and development to design more
innovative products that would satisfy its loyal consumers. This would sustain the organization's
goals although it would have an impact on its budget as more finances would be required. It is
recommended that the company adopts the alternative strategies discussed.
To achieve this. Apple Inc. has to increase its financing, carry out market research to
determine consumer satisfaction and how the company is fairing in the market. Apple also needs
to undertake an evaluation of the actual and standard progress of its innovative products as a way
of checking market and product performance..
The risk response to the rapid technology change risk is to treat it. the risk brought by
rapid technology change is that Apple may fail to bring innovative products or higher product
price with lower product differentiation as compared to its competitors, consequently, it will
suffer from customer loss and profit shrink, and these impacts are severe Additionally, the
likelihood of the technology change risk is high since we are in a technology updating age.
Though the amount of risk is highly over its risk appetite. Apple can do little to prevent the risk
from happening, additionally, this risk id hard to be transferred into the insurance market, so in
response to it. Apple should take actions to reduce the likelihood of this risk. One of the main
methods to reduce this risk is to invest its research and development department to keep pace
with the instant technology update and bringing out the innovative products continuously to
attract customers, besides. Apple can cooperate with a professional law firm to protect its
intellectual products from infringing, thus, competitors will be discouraged to emulate its product
feature.

CONCLUSION AND RECOMMENDATION

Apple had this technique of wait and to bring full package for targeting niche market
while giving focus to profit margins. They are successful in selling their products and had
highest customer satisfaction ratio. Problem with Apple is that major consumers are unable to
buy due to higher prices, Apple's don't had more than paper work for supplier codes. indirect
reachability to maximum markets, app store is based on third party contractor. It is confronted
with possible human resource turnover, criticism on its governance and issues such as not
socially responsible corporation.
It is recommended that Apple along with cost minimization should work on price
minimization. Looking forward for Blues Ocean strategy would be in favor as it is in lined with
profit maximization goal of company. Apple can decrease its future threat via increase
investments, currently which is a billion dollar on yearly which is basically not sufficient.
Company should pay more focus to emerging markets like China and India which already been
occupied by competitors.
Apple must broaden their board of directors to improve corporate governance; they must
be committed toward social responsibilities more than words, further there is lack of
communication and valuing similarities between management and investors' company by which
they had lost enormous portion of its market capitalization, therefore it must improve
communications with its investors

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