Strategic Management

Presentation - 1

Tanmaie Shinde GMT5.52002

BBA11 Semester 6
ST20253257 Module Leader : Brig. Prof. GPS
Cheema
 Table of Content

Introduction to the company Porters 5 Force Model

Current Situation - Challenges Faced VRIO Model

Core Competencies Types of Strategy

Financial Outlook Key Learnings

PESTEL Analysis Conclusion

SWOT Analysis Bibliography

 01 Apple Inc. represents one of the most valuable and
influential technology companies globally, making it an
ideal subject for strategic management study.

The company's transformation from a computer

manufacturer to a lifestyle technology brand offers crucial
insights into successful strategic pivoting, innovation
Introduction to
management, and sustainable competitive advantage. Company
02 Founded: 1976
Founders: Steve Jobs and Steve Wozniak
Apple revolutionized personal computing with the Macintosh in
1984. However, the company's most significant strategic
transformation began in 2001 with the iPod launch, followed by
the iPhone (2007) and iPad (2010). These products established
Apple's ecosystem strategy, which integrates hardware,
software, and services.

(Grant, 2021)
 What's the Current Situation
Currently, Apple maintains a dominant market position with
a market capitalisation exceeding $3 trillion as of 2024.

Current The company's product portfolio includes:

Situation iPhone (largest revenue generator)

Mac computers
iPad
Wearables (Apple Watch, AirPods)
Services (App Store, Apple Music, Apple TV+, iCloud)
Challenges Challenges Faced

Faced Current challenges facing Apple include:

Increasing competition in key markets

Regulatory scrutiny over App Store practices
Dependency on iPhone revenues
Pressure to maintain innovation leadership
Supply chain vulnerabilities
Emerging market penetration
(Johnson et al., 2012)
 Product Innovation
01 Apple continously pushes the
Core boundary for technological
advancements
Competencies

Brand Loyalty
02 Strong brand & emotional
connect with customers
around the world.

Retail Experience
03 Apple is known to providing a
unique user experience at
retail stores

(Bary, 2025)
 Apple’s Financial
Outlook 01 Apple reported $124.3 billion in revenue
in its latest quarter, a 4% year-on-year
increase, driven by a 13.9% rise in
services revenue despite a slight iPhone
sales decline.

02 Net income grew 7.1% to $36.3 billion,

showcasing resilience amid supply
chain disruptions and challenges in the
Chinese market, where revenue
dropped 11%.

03 Profit margins improved due to the

growing services segment, effective
cost management, and premium pricing,
offsetting fluctuations in hardware
sales.

(Bary, 2025)
 Political tensions and regulations affect Apple’s
operations. Economic factors like inflation and
PESTEL Analysis purchasing power influence sales. Social,
technological, environmental, and legal factors
drive innovation and compliance.

(Reuters, 2023)
 Political

US-China Trade Relations : In order to lessen its reliance on Chinese

manufacturing, Apple has moved a portion of its supply chain to India
and Vietnam as a result of the ongoing trade tensions between the
United States and China.

Regulatory Scrutiny : Apple's revenue supremacy is diminished by the

Digital Markets Act (DMA) of the European Union, which compels the
company to let third-party app stores.

Economic

Global Inflation & Recession Fears : The rising costs of raw materials
and supply chain disruptions have forced Apple to increase prices in
some markets such as India

Subscription Model Adoption : Apple has focused on services like

iCloud, Apple Music & Apple TV+ to maintain revenue growth amid
declining hardware sales.
(Reuters, 2023)
 Social

Consumer Preferences for Sustainability : Demand for environmentally

responsible products has lep to apple to focus on 100% recycled
aluminium in its products by 2030.

Health & Wellness Trends : The apple watch includes ECG monitoring,
sleep tracking and blood oxygen levels, to position themselves as a
health focused wearable.

Technological

Advancements in AI & AR : Apple’s Vision Pro headset signifies a strong

push into the mixed reality, positioning themselves against Meta’s
Metaverse ambitions.

5G Expansion : The rapid adoption of 5G enabled phones has improved

connectiivity, leading to increased adoption in emerging markets.

(Forbes, 2023)
 Environmental Legal

Patent Disputes : Apple frequently faces IP

Sustainability Goals : By 2030, Apple
litigation's, including recent cases against
wants all of its supply chains to be carbon
Masimo watches over smart watch blood
neutral.
oxygen technology

Antitrust Concerns : The U.S department of

E-Waste Management : Apple’s trade in
Justtice is investigating Apple for monopolistic
program and its use of Daisy robot for
practices related to the app store and device
recycling iPhones contribute to the efforts
interoperability.

(Apple, 2023)
 01
Strengths

S.W.O.T Analysis
02
Weakness
Strengths include strong brand loyalty and
innovation. Weaknesses are reliance on iPhone
revenue and supply chain vulnerabilities.
Opportunities lie in AR/AI expansion, while threats 03
include intense competition and regulatory Opportunity
challenges.

04
Threats

(Wired, 2023)
 Strong Brand Loyalty : Apple maintains an
ecosystem driven customer base, ensuring
repeat purchases
Strengths
Technological Innovation : Proprietary chip
technology (M-series chips) gives edge over
competitors

Dependence on iPhone sales : Over 505 of

revenue still comes from iPhone sales, making it
vulnerable to market saturation.
Weakness
Supply Chain Risks : Geopolitcal issues in China
have caused production delays, led to
diversification in manufacturing locations

(Kotler & Keller, 2019)

 Expansion in emerging markets : Apple is
increasing its footprint in India, recently
opening flagship stores at Mumbai and Delhi .
Opportunities
Growing subscription service : The rapid
growth of Appletv+ and Apple Music provides a
steady revenue stream.

Rising Competition : Samsung and Google are

aggresively innovating foldable smartphone
technology, posing a threat to Apple’s
dominance. Threats
Regulatory Risks : Increasing antitrust scrutiny
in the U.S. and EU could force Apple to change
its business model, affecting profitability

(Bloomberg, 2023)
 Porter Five Forces Model

Porter’s Five Forces is a strategic framework analyzing industry competitiveness by assessing

threats of new entrants, substitutes, buyer and supplier power, and rivalry among competitors.

(The Verge, 2023)

 High capital requirements, advanced expertise, and strong
Threat of New brand loyalty deter new entrants. However, the software
01
Entrants segment sees easier entry due to lower startup costs and
innovation potential.

Suppliers like Intel and Qualcomm hold significant power for

Bargaining essential components. However, major firms like Apple
02
power of supplier reduce dependency by insourcing (e.g., M1 chips), slightly
mitigating this force.

(Economic Times, 2023)

 Consumers have abundant alternatives and low switching
costs, forcing companies to innovate and price
Bargaining
competitively. For example, intense competition in 03
smartphones benefits buyers . Samsung has also recently
Power of buyers
launched foldable phones to compete in the same price
segment with more benefits than apple.

Innovation constantly introduces alternatives, like SSDs

replacing HDDs or cloud solutions replacing physical Threat of
04
storage. However, strong ecosystems (e.g., Apple) reduce Substitutes
substitution risk

(CNBC, 2023)
 05

Competitive
Rivalry

The industry is highly competitive, with giants like

Samsung, Google, and Amazon are battling for
dominance through aggressive R&D and market
innovation, particularly in AI, cloud computing, and
consumer tech. Intel and HP are also highly
dominant players in this industry in the latpop
segment.
(CNBC, 2023)
 V.R.I.O
Model

The VRIO model evaluates a firm’s resources

and capabilities based on Value, Rarity,
Imitability, and Organisation, determining
their potential to provide sustainable
competitive advantage.

(Newton, 2021)
 Innovative Product Design: Strong sales and
brand loyalty are fueled by Apple's dedication
to svelte, user-friendly designs, which are
demonstrated by devices like the iPhone and
MacBook.

Custom Silicon Development: The creation of

proprietary chips, such as the M1 and M2,
provides performance advantages that are
uncommon in the industry, setting Apple apart
from competitors.

(Newton, 2021)
 Integrated Ecosystem: Apple's seamless
integration of hardware, software, and
services creates a cohesive user experience
that is challenging for competitors to
replicate, contributing to customer loyalty.

Efficient Supply Chain Management:

Effective manufacture and distribution are
made possible by Apple's advanced global
supply chain, which guarantees product
availability and upholds quality standards.

(Newton, 2021)
 The VRIO model highlights Apple’s
competitive edge through innovation,
rare technologies, and a seamless
ecosystem. Efficient organization
ensures market leadership, resilience,
and sustained growth in the global
tech industry.

(Newton, 2021)
 Types of
Strategies
Apple uses differentiation, cost
leadership, and focus strategies. It
offers premium products, optimises
production costs, and targets high-
end customers with a seamless
ecosystem, ensuring loyalty,
profitability, and industry leadership.

(Reuters, 2023)
 Apple's planned strategy revolves
around innovation, ecosystem lock-in,
and premium branding. The company
aims to create unique products that
integrate seamlessly within its
ecosystem, ensuring a strong customer
retention rate. Intended
Strategy
Real-World Example: Apple’s shift
to in-house silicon chips (M1, M2,
and M3) has allowed it to improve
Application device performance and battery
efficiency while reducing
dependency on Intel processors

(Reuters, 2023)
 Apple’s realized strategy is shaped by
market conditions, regulatory factors,
and competitive responses. While some
aspects of its planned strategy are
implemented successfully, others

Realised require adaptation due to external

pressures.
Strategy
Real-World Example: In response to
increased antitrust scrutiny, Apple
has gradually adjusted its App Store
policies by allowing alternative
Application
payment systems in select regions

(BBC, 2023)
 Apple adapts to challenges and
opportunities through emergent
strategies, ensuring flexibility, innovation,
and responsiveness to market shifts,
technological advancements, and
consumer preferences, maintaining its
competitive edge and leadership. Emergent
Strategy
Real-World Example: Apple’s
expansion into financial services
with Apple Pay, Apple Card, and the
Application high-yield Apple Savings Account
demonstrates its ability to diversify
revenue beyond hardware sales

(CNBC, 2023)
 Some strategic moves lead to
unintended consequences due to market
shifts, operational challenges, or
changing consumer behavior, offering
companies opportunities to learn, adapt,
Unintended and improve future strategies.

Strategy
Real-World Example: The iPhone
Mini lineup, introduced to cater to
users who preferred smaller
devices, failed to generate Application
expected sales, leading Apple to
discontinue it in favor of larger-
screen iPhones

(Reuters, 2023)
01
Expand Affordable Product
Key 03
Enhance Supply Chain
Lines: Apple should introduce Learnings Resilience: Further
mid-range smartphones to diversification of
penetrate developing manufacturing beyond China
markets. will reduce geopolitical risks.

02
04
Increase Investment in AI
Sustainability Commitment:
and AR: Strengthening AI
Achieving full carbon neutrality
capabilities and AR
in the supply chain by 2030
applications can maintain
should remain a priority.
Apple’s innovation leadership.
 Applications

01 02 03
Apple’s ability to introduce The transition from Intel to Apple’s shift to USB-C
groundbreaking products, such as Apple Silicon allowed Apple charging ports on iPhones
Apple Silicon (M1, M2, and M3 chips), to gain full control over its ensures continued market
has set it apart from competitors by hardware ecosystem, presence in the European
offering superior performance and optimizing software and Union.
energy efficiency hardware integration.
Conclusion
Apple’s business model and competitive strategies position it
as a global tech leader. To sustain growth amid competition,
Apple must expand mid-range offerings, invest in AI/AR,
strengthen its presence in developing regions, and enhance
regulatory adaptation and supply chain resilience. These
steps will ensure continued leadership and sustainable,
inclusive growth.