QuestionCase Analysis Rough Draft 3Based on the organization Apple, write the Case Analysis based on the outline below.Include Citations/Works CitedThe more you provide, the more feedback you will receive.Recommendations? based upon analysis, provide a strategic plan”Your set of recommendations should address all of the problems/issues you identified and analyzed. If the recommendations come as a surprise or do not follow logically from the analysis, the effect is to weaken greatly your suggestions of what to do…. State how your recommendations will solve the problems you identified. Be sure the company is financially able to carry out what you recommend; also check to see if your recommendations are workable in terms of acceptance by the persons involved, the organization’s competence to implement them, and prevailing market and environmental constraints.””By all means state your recommendations as sufficient detail to be meaningful get down to some – nitty-gritty specifics. Avoid such unhelpful statements as “the organization should do more planning” or “the company should be more aggressive in marketing its product.” …Offer a definite agenda for action stipulating a timetable and sequence for initiating actions, indicating priorities, and suggesting who should be responsible for doing what.” (Thompson, 2016, p.CA-8-9) Reference: Thompson, A.A., Peteraf, M. A., Gamble, J.E., Strickland, A.J. (2016). Crafting and Executing Strategy (21st?d.) New York, NY: McGraw Hill Education.Executive SummaryProvide a conclusion of your case analysis including parts 1, 2, and 3. (Part 1 and 2 of Case Analysis included below)The purpose of an executive summary is to give the reader an opportunity to preview what the case study will address and the conclusions it will make. It is NOT an introductory. It should be one pg in length.Apple Case Analysis Part 1Company OverviewApple Inc is an American multinational technology company that mainly specializes in consumer electronics, computer software, and online services. Apple is the world’s largest technology company by revenue and, since January 20201, the world most valuable company. The main characteristics of Apple’s Inc corporate culture include top-notch excellence, innovation, secrecy, creativity, and moderate combativeness.Company HistoryApple Inc was formerly known as Apple computer Inc. It was the first successful personal computer company and the popularizer of the graphical user interface. Apple Inc had its genesis and a lifelong dream of Stephen G. Wozniak to create his own computer. Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in 1976 to cre ate and sell Wozniak’s Apple i personal computer. It was incorporated by Job’s and Wozniak as Apple computer Inc and in 1977, the sales of the Apples computers grew quickly. They went public in 1980 to instant financial success as they shipped new computers featuring innovative graphical user interfaces such as the original Macintosh. In 2018, Apple became the first publicly traded US company to be valued at over $1 trillion traded. It has had a high level of brand loyalty as the world’s most valuable brand.?ission and VisionMission; ” To bring the bet personal computing products and support to students, educators, designers, scientists, businesspersons, engineers, and consumers in over 140 countries around the world.”Vision: ” We believe that we are on the face of the earth to make great products and that’s not changing.”Business Model The products offered by Apple Inc include smart phones, tablets, personal computers, wearables, and accessories.Services offered by Apple include AppleCare, payment services, advertising, digital content, and cloud services.Apple is dependent on 2 different marketing strategies which are product placement and the bars created by positive review on the media.iPhones are Apples biggest source of revenue by product and the Americas is the largest revenue generator among its geographic regions. Apple’s services business generates the highest gross margins.Apple Case Analysis Part 2 SWOT Analysis – Apple Inc.’s success is linked to the ability to use business strengths to overcome weaknesses and threats, and to exploit opportunities in the industry environment. A?WOT analysis?f the technology company gives strategic insights on maximizing business growth based on its strengths and opportunities. The SWOT analysis framework is a strategic management decision-making tool that determines the most pressing issues facing the company, based on the internal business conditions and the external environment. In this case, the SWOT analysis of Apple Inc. scans the business for relevant strengths, weaknesses, opportunities, and threats (SWOT variables), with reference to various industries and markets. The company operates in the computing technology (hardware and software), consumer electronics, cloud computing services, and online digital content distribution services industries. This condition necessitates that Apple develop a diverse set of strategies to ensure its competitiveness and business growth. This SWOT analysis of Apple Inc. presents the strategic factors that influence the decisions of CEO Tim Cook and managers in developing the business. With its operations in various markets around the world, the company deals with different sets of SWOT factors based on regional situations. Also, the?orter’s Five Forces analysis of Apple Inc.?stablishes that the company faces strong competitive force linked to the aggressiveness of other technology firms, such as Google, IBM, Amazon.com, Samsung, Microsoft, Sony, Lenovo, Dell, and PayPal. This competitive landscape requires innovative strategies and tactics to achieve continuous business growth and development, and to fulfill?pple’s corporate mission statement and corporate vision statement.?hese are the SWOT Analysis of Apple:?pple’s?trengths?Internal Strategic Factors) This aspect of the SWOT analysis framework identifies the strengths that enable Apple to overcome weaknesses, take advantage of opportunities, and withstand threats in its technology business environment. These strengths are internal factors specific to the conditions within the business organization and its technological capabilities.?In this case, the following are the most notable strengths of Apple Inc.:?ne of the world’s strongest brands?igh profit margins based on premium pricing?ffective rapid innovation processes based on long history of technological innovation?Apple is one of the most valuable and strongest brands in the world. In the context of this SWOT analysis, the company is capable of introducing profitable new products, such as new lines of mobile devices, by virtue of its strong brand image. In addition,?pple’s marketing mix or 4P?nvolves a premium pricing strategy, which comes with high profit margins. This internal strategic factor is a major strength because it maximizes profits, even when sales volumes are limited, such as in the case of MacBook laptops. Moreover, the?eneric competitive strategy and intensive growth strategies of Apple Inc.?nvolve effective rapid innovation, which enables the business to keep abreast with the latest technologies to ensure competitive advantages. Based on this aspect of the SWOT analysis of Apple Inc., the company’s strengths are difficult to compete with, thereby supporting continued leadership in the global industry environment.?eaknesses?Internal Strategic Factors)??????n this aspect of the SWOT analysis, the emphasis is on the weaknesses or inadequacies of Apple and its technological product development and marketing capabilities. Weaknesses are internal factors that are obstacles to business growth, with consideration for relative performances of other technology businesses.?he following business weaknesses are the most notable in the case of Apple:?Limited distribution network for its goods?igh selling prices?ependence of sales in high-end market segments?Apple Inc. has a limited distribution network because of its policy of exclusivity. For example, the company carefully selects the authorized sellers of its products, such as iPhones and Macs. The SWOT analysis framework considers this exclusivity strategy as a factor that limits market reach, making the company’s consumer electronics not readily available in all areas. This weakness exists despite exclusivity’s advantages, such as Apple’s strong control on the distribution of products. In addition, because of its premium pricing strategy, the technology company has the weakness of sales dependence on high-end market segments. High prices attract customers from the middle- and high-income brackets and prevent customers from low-income brackets from easily purchasing Apple’s consumer electronics. This internal strategic factor is a weakness because high-end segments represent only a minority of the global market. Based on the internal factors in this aspect of the SWOT analysis, Apple Inc.’s pricing and distribution strategies impose limitations or weaknesses in the business.?pportunities?or Apple Inc. (External Strategic Factors)This aspect of the SWOT analysis of Apple Inc. pinpoints the most significant opportunities that are available to the business. Opportunities are external factors based on the industry environment, such as the on-demand digital content market. These factors influence the strategic direction of business organizations.?In Apple’s case, the following are the most significant opportunities:?Expansion of the distribution network for wider consumer electronics market reach?ore widespread and aggressive marketing for higher sales volumes based on rising demand?evelopment of new product lines in consumer electronics and online services?Apple Inc. has the opportunity to expand its distribution network. Such opportunity relates to the weakness of the limited distribution of the company’s products, such as smartphones and tablets. This SWOT analysis emphasizes the need to modify the technology company’s distribution strategy. An expanded distribution network can help Apple reach more customers in the global market. In relation, the company has the opportunity to increase its sales volumes through aggressive marketing, especially for mobile products. This opportunity is linked to the rising demand for mobile access, as illustrated in the?ESTEL/PESTLE analysis of Apple Inc. Furthermore, the company has the opportunity to explore new product lines to complement existing ones, such as online services. With further innovation, the business can develop and introduce new products, like what it has already achieved with the Apple Watch. Developing new product lines supports business growth, especially against other technology firms in the international market. Thus, this aspect of the SWOT analysis of Apple indicates that the business has major opportunities for further growth despite aggressive competition.Threats?acing Apple Inc. (External Strategic Factors) In this aspect of the SWOT analysis, the focus is on the threats that Apple experiences from various sources, such as competitors like Samsung. Threats are external factors that limit or reduce the financial performance of the technology-focused business.?The following threats are the most significant to Apple Inc:?Aggressive competition involving large multinationals like Samsung, Amazon, and Microsoft?mitation involving firms that compete based on low prices?ising labor costs in various countries where the company maintains production facilities?Tough competition in the technology industry is partly because of the aggressiveness of firms. For example, Apple competes with firms like Samsung, which also uses rapid innovation. In the context of this SWOT analysis, aggressive competition has a limiting effect on the business, indicating the necessity for strong fundamentals for maintaining competitive advantages in computer software and hardware, and online services. In addition, Apple faces the threat of imitation of some products, such as the iPhone. Local and multinational firms could imitate the design and features of Apple’s products. Also, rising labor costs involving contract manufacturers, such as those in China, reduce profit margins or push selling prices even higher. Based on the external strategic factors in this SWOT analysis, Apple Inc.’s performance is threatened by aggressive competition and the imitation of product design.?orter’s 5 Forces Analysis – Apple Inc. has achieved success as one of the most valuable companies in the world. This Five Forces analysis gives insights about the external factors influencing the company’s success. Michael E. Porter’s Five Forces framework is a strategic management tool for evaluating the five forces affecting the business organization: customers, suppliers, substitutes, new entrants, and competition. A Five Forces analysis of Apple Inc. sheds light on what the company does to ensure industry leadership despite the negative effects of external factors in the competitive landscape of the computer software and hardware, consumer electronics, and online digital content distribution markets, which involve firms like?icrosoft,?oogle,?mazon,?almart, Samsung, Dell,?ony, and Lenovo. Established in 1976, Apple has succeeded to become a dominant competitor in the industry under the leadership of Steve Jobs. Based on this Five Forces analysis, the company addresses competition and the bargaining power of buyers, which are among the most significant external factors impacting the business. Also, this Five Forces analysis indicates that Apple Inc. must focus its strategic efforts on these two external factors to keep its leadership in the industry. This Five Forces analysis (Porter’s model)?f external factors in Apple Inc.’s industry environment points to competitive rivalry or intensity of competition, and the bargaining power of buyers or customers as the primary forces for consideration in the company’s strategic formulation. Nonetheless, all of the five forces influence the company’s business situation, together with the effects of others external factors, such as the ones identified in the PESTEL/PESTLE analysis of Apple Inc.Five Forces Analysis of Apple Inc. – Overview? Apple’s strategies are partly based on the need to address forces in the external business environment. These forces can limit or reduce the firm’s market share, revenues, profitability, and business development potential.?his Five Forces analysis, based on Porter’s framework, points to the following strengths or intensities of external factors in Apple Inc.’s industry environment:?.Competitive rivalry or competition: Strong force2.Bargaining power of buyers or customers: Strong force3.Bargaining power of suppliers: Weak force4.Threat of substitutes or substitution: Weak force5.Threat of new entrants or new entry: Moderate force?Considering the five forces, Apple must focus its attention on competitive rivalry and the bargaining power of buyers. This external analysis supports the company’s current position of continuous innovation. Through rapid and continuous innovation, Apple effectively addresses the five forces in its external environment, although much of the company’s effort is to strengthen its position against competitors and to keep attracting customers to Apple products. An applicable recommendation is to intensify research and development for innovation to develop novel products that will complement the iPhone, the iPad, and other existing products.These are the Porter’s 5 Forces Analysis of Apple1.Competitive Rivalry or Competition with Apple (Strong Force)Apple faces the strong force of competitive rivalry or competition. This component of Porter’s Five Forces analysis model determines the intensity of the influence that competitors have on each other.?n Apple’s case, this influence is based on the following external factors:?High aggressiveness of firms (strong force)?ow differentiation of products (strong force)?ow switching cost (strong force) Companies like Samsung and LG aggressively compete with Apple.?uch aggressiveness, observable in rapid innovation, aggressive advertising, and imitation, impose a strong force in the industry environment. Moreover, in terms of product differentiation, available products in the market are generally similar in fulfilling specific purposes. For example, many popular apps are available for Android and iOS devices, and cloud storage services from different companies are available to iOS users. In Porter’s Five Forces analysis model, this condition creates a strong force by making it easy for customers to switch to other sellers or providers. On the other hand, the low switching cost means that it is easy for customers to switch from Apple to other brands, based on price, function, accessibility, network externalities, and related concerns. The combination of these external factors in this part of the Five Forces analysis leads to tough competitive rivalry that is among the most significant considerations in Apple’s strategic management.2.Bargaining Power of Apple’s Customers/Buyers (Strong Force)?he bargaining power of buyers is strong in affecting Apple’s business. This component of Porter’s Five Forces analysis model determines how buyers’ purchase decisions and related preferences and perceptions impact businesses.?n Apple Inc.’s case, buyers’ strong power is based on the following external factors:?Low switching cost (strong force)?mall size of individual buyers (weak force)?igh buyer information (strong force)?It is easy for customers to change brands, thereby making them powerful in compelling companies like Apple to ensure customer satisfaction. On the other hand, each buyer’s purchase is small compared to the company’s total revenues. Porter’s Five Forces framework indicates that this condition makes customers weak at the individual level. However, the availability of detailed comparative information about competing products’ features empowers buyers to shift from one provider to another. This external factor enables buyers to exert a strong force on Apple and other brands. Thus, this part of the Five Forces analysis shows that Apple must include the bargaining power of buyers or customers as one of the most significant strategic variables in the business.?.Bargaining Power of Apple’s Suppliers (Weak Force)?pple Inc. experiences the weak force of the bargaining power of suppliers. This component of Porter’s Five Forces analysis model indicates the influence of suppliers in imposing their demands on the company and its competitors.In Apple’s case, suppliers have a weak bargaining power based on the following external factors:?Moderate to high number of suppliers (weak force)?oderate to high overall supply (weak force)?igh ratio of firm concentration to supplier concentration (weak force)?The global size of its supply chain allows Apple Inc. to access many suppliers around the world. In Porter’s Five Forces analysis context, the resulting high number of suppliers is an external factor that presents only a weak to moderate force against the company. In relation, the moderate to high overall supply of inputs, such as semiconductors, makes individual suppliers weak in imposing their demands on firms like Apple. Also, the ratio of firm concentration to supplier concentration further limits suppliers’ power and influence in the industry. This external factor reflects the presence of a small number of big companies like Apple and Samsung, in contrast to a larger number of medium-sized and big suppliers. Thus, this part of the Five Forces analysis shows that the bargaining power of suppliers is a minor issue in developing Apple Inc.’s strategies for supply chain management, value chain effectiveness, innovation, and industry leadership.4.Threat of Substitutes or Substitution (Weak Force)The competitive threat of substitution is weak in affecting Apple Inc.’s computing technology, consumer electronics, and online services business. This component of Porter’s Five Forces framework determines the strength of substitute products in attracting customers.?In Apple’s case, substitutes exert a weak force based on the following external factors:?Moderate to high availability of substitutes (moderate force)?ow performance of substitutes (weak force)?ow buyer propensity to substitute (weak force)?Some substitutes to Apple products are readily available in the market. For example, instead of using iPhones, people can use digital cameras to take pictures, and landline telephones to make calls. In Porter’s Five Forces analysis model, this external factor exerts a moderate force in the industry environment. However, these substitutes have low performance because they have limited features. Many customers would rather use Apple products based on convenience and advanced functions. This condition makes substitution a weak force in impacting the company’s business. Also, buyers have a low propensity to substitute. For instance, customers would rather use smartphones than go through the hassle of buying and maintaining a digital camera, a cellular phone, and other devices. This part of the Five Forces analysis shows that Apple does not need to prioritize the threat of substitution, specifically in management decisions in business processes like marketing, market positioning, and product design and development.5.Threat of New Entrants or New Entry (Moderate Force) Apple Inc. experiences the moderate force of the threat of new entrants. This component of Porter’s Five Forces analysis model indicates the effect and possibility of new competitors entering the market.?n Apple’s case, new entrants exert a moderate force based on the following external factors:?igh capital requirements (weak force)?igh cost of brand development (weak force)?apacity of potential new entrants (strong force)?Establishing a business to compete against firms like Apple Inc. requires high capitalization. Also, it is extremely costly to develop a strong brand to compete against large companies like Apple. These external factors make new entrants weak. However, there are large firms with the financial capacity to enter the market. For example, Google has already done so through products like Nexus smartphones. Samsung also used to be a new entrant. These examples show that there are large companies that have the potential to directly compete against Apple Inc. Thus, the overall threat of new entry is moderate. This part of the Five Forces analysis shows that Apple must maintain its competitive advantage through innovation and marketing to remain strong against new entrants’ moderate competitive force.PESTEL Analysis of Apple – Apple Inc.’s high performance is linked to effectiveness in addressing external factors in the company’s remote or macro-environment. The corporation’s success is a result of strategic management that exploits opportunities and protects the business from threats in the consumer electronics and information technology services industries. This PESTEL/PESTLE analysis of Apple Inc. identifies the most significant external factors that the company must strategically address in its industry environment. The PESTEL/PESTLE analysis framework evaluates the political, economic, sociocultural, technological, ecological, and legal factors relevant to the business. These strategic factors are opportunities or threats that impact business performance relative to competitors, such as?oogle,?icrosoft,?mazon, Samsung,?BM, Dell, HP,?ony, Lenovo, Huawei, and LG. While Apple has a leading position, especially in the premium consumer electronics market, this PESTEL/PESTLE analysis shows that the company must continue evolving its strategies to keep its leadership. Effectiveness in addressing these external strategic factors ensures that Apple remains strong despite tough competition in the global market. The external factors in Apple’s remote or macro-environment indicate the value of strategic management and flexible long-term strategic planning in managing external factors. This PESTEL/PESTLE analysis serves as a guide for strategic formulation processes to address external pressures the technology corporation is experiencing.?pple Inc.’s generic strategy for competitive advantage and intensive strategies for growth?re examples of strategic congruence for countering such pressures. These are the PESTEL Analysis of Apple:Political Factors?ffecting Apple’s Business The political external factors in Apple’s remote or macro-environment mainly present opportunities.??his aspect of the PESTEL/PESTLE analysis model indicates the influence of governments and related organizations on businesses. In Apple’s case,?he following are some of the major political external factors:?Improving free trade policies (opportunity)?table politics in developed countries (opportunity)?rade disputes, especially between the U.S. and China (threat) Better overall free trade policies are created over time. This external strategic factor increases the opportunities for Apple Inc. to distribute more of its products around the world. This PESTEL/PESTLE analysis also identifies the stability of the political landscape of developed countries as an opportunity for Apple to grow, considering the reduced political problems affecting business operations in these countries. In spite of these trends that present opportunities, the political external factor of trade disputes, especially between the United States and China, creates a threat against the company’s potential growth and the global sales revenues of its products, such as consumer electronics. For example, growing China-U.S. tensions could lead China to impose higher tariffs on imported electronic components used in Apple’s product assembly. Based on this part of the PESTEL/PESTLE analysis, Apple can improve its performance by taking advantage of political opportunities in its remote or macro-environment, although caution is needed to ensure stability despite trade disputes.Economic Factors?mportant to Apple Inc. Most of the economic external factors in Apple’s remote or macro-environment create opportunities.??his aspect of the PESTEL/PESTLE analysis model indicates market and industry conditions that impact firms.In this external analysis case of Apple Inc., the following economic external factors are the most significant:?Stable economies of developed countries (opportunity)?apid growth of developing countries (opportunity)?ncreasing disposable incomes among target customers (opportunity) The economic stability of developed countries creates opportunities for Apple’s expansion. However, the rapid growth of developing countries is a more significant economic external factor in this PESTEL/PESTLE analysis case, in terms of support for growing the technology business. For example, the high economic growth rates of Asian countries are opportunities for Apple to increase its revenues through sales in these foreign markets. In relation, higher disposable incomes create more opportunities to sell the company’s relatively high-priced technology products. In exploiting these economic opportunities, it is essential to consider competitive forces in the international market, as described in the?orter’s Five Forces analysis of Apple Inc. These external strategic factors indicate growth potential for the corporation and its competitors, especially large multinational firms like Samsung. Based on this part of the PESTEL/PESTLE analysis framework, speed and effectiveness are critical in Apple Inc.’s growth and expansion efforts because competitors also target these same economic opportunities.Social/Sociocultural Factors?n Apple’s Industry Environment, Apple’s business is subject to the effects of social or sociocultural trends.??his aspect of the PESTEL/PESTLE analysis model points to the social external factors that influence consumer behaviors and expectations.In Apple’s case.,?he following sociocultural trends are significant in the remote or macro-environment:?ising use of mobile access (opportunity)?ncreasing dependence on digital systems (opportunity)?nternational anti-Apple sentiments (threat)?The rising use of mobile access is an opportunity to grow Apple Inc.’s revenues. This social external factor relates to the increasing demand for devices like smartphones and tablets. This PESTEL/PESTLE analysis also points to the increasing dependence on digital systems, which is another sociocultural trend that creates opportunities for Apple to sell more of its products based on higher demand. Despite these opportunities, the company faces the social threat of opposition against its business operations. Anti-Apple sentiments are mounting, questioning business practices, such as the company’s lawsuits against third-party repair service providers that repair products like the iPhone and MacBook. In the PESTEL/PESTLE analysis context, these sentiments have the potential to reduce brand image and consumer confidence in the corporation’s technological products. These sociocultural factors emphasize the importance of?pple Inc.’s corporate social responsibility strategy. Such strategy helps satisfy stakeholders, including customers and governments. In addition,?pple Inc.’s corporate culture?s a relevant factor because it influences the quality of service provided to customers. The company’s internal cultural approach must align with the sociocultural trends influencing the global market. In this part of the PESTEL/PESTLE analysis of Apple Inc., opportunities for growth, as well as threats against the business, are identified. These strategic concerns require that the company continue improving its policies and practices, as well as its approaches to technological innovation. Also,?pple Inc.’s marketing mix or 4Ps?ust include strategies that match such social external factors.?echnological Factors in Apple’s?usiness Environment, the technological external factors in Apple’s remote or macro-environment generally provide?pportunities for the enterprise.?n this aspect of the PESTEL/PESTLE analysis framework, current technologies and technological trends are evaluated based on their effect on business conditions. In Apple’s external analysis case, the following technological external factors are the most significant:?Growing cloud computing?emand (opportunity)?ncreasing technological integration in businesses (opportunity)?rowing mobile market (opportunity)?rowing technological capabilities of other firms (threat) This PESTEL/PESTLE analysis of Apple Inc. identifies the growing demand for cloud computing as an opportunity to grow the business. The company now offers cloud services, although to a limited extent. In exploiting this opportunity, together with support from?pple Inc.’s corporate structure, developing an expanded cloud infrastructure could maximize the profitability of the business in offering cloud-computing services. ?n relation, the external strategic factor of increasing technological integration presents the opportunity to enhance the company’s services and grow the business by offering its technological goods and services to more customers, including organizations. Furthermore, this PESTEL/PESTLE analysis includes the growth of the mobile market as an opportunity for Apple Inc. to gain higher revenues, including revenues through the App Store and related digital content distribution platforms. However, the technological advancement of other firms threatens the company, as more new players could enter the market. Thus, to ensure the achievement of?pple Inc.’s corporate vision and mission statements, it is beneficial to reinforce business capabilities to exploit the opportunities and protect the business against the competitive threats shown in this part of the PESTEL/PESTLE analysis.?cological/Environmental Factors – The ecological factors in Apple Inc.’s remote or macro-environment provide opportunities for business improvement.?This aspect of the PESTEL/PESTLE analysis model highlights ecological trends and their impacts on business.In Apple’s case,?he following ecological external factors are the most important:?usiness sustainability trend (opportunity)?nergy efficiency trend (opportunity)?The business sustainability trend is an ecological factor linked to increasing favor among businesses to adopt sustainable practices, based on concerns about the adverse environmental impact of business operations. In this PESTEL/PESTLE analysis of Appl
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