Apple: Company Analysis

Devin Swali
4/23/2013

2 Apple: Company Analysis
Table of Contents
Executive Summary .......................................................................................................................................................................... 3
Introduction ...................................................................................................................................................................................... 3
External Analysis .............................................................................................................................................................................. 4
General Assessment of Environment ........................................................................................................................................... 4
Demographic Segment ............................................................................................................................................................ 4
Political Segment .................................................................................................................................................................... 5
Technological Segment ........................................................................................................................................................... 6
Stakeholder Analysis ................................................................................................................................................................... 7
Internal Stakeholders ............................................................................................................................................................... 7
External Stakeholders .............................................................................................................................................................. 7
Porters Five Forces ..................................................................................................................................................................... 8
Threat of New Entrants ........................................................................................................................................................... 8
Bargaining Power of Suppliers................................................................................................................................................ 8
Bargaining Power of Buyers ................................................................................................................................................... 8
Threat of Substitute products .................................................................................................................................................. 9
Rivalry among Competitors .................................................................................................................................................... 9
Opportunities and Threats .......................................................................................................................................................... 10
Opportunities ......................................................................................................................................................................... 10
Threats .................................................................................................................................................................................. 11
Internal Analysis ............................................................................................................................................................................. 11
Financial Analysis ...................................................................................................................................................................... 11
Income Statement .................................................................................................................................................................. 11
Shareholders Equity Statement ............................................................................................................................................ 12
Financial Ratio Analysis ....................................................................................................................................................... 13
Strengths and Weaknesses ......................................................................................................................................................... 14
Strengths ............................................................................................................................................................................... 14
Weaknesses ........................................................................................................................................................................... 15
VRIO Analysis ........................................................................................................................................................................... 15
Value ..................................................................................................................................................................................... 15
Rarity .................................................................................................................................................................................... 16
Imitability .............................................................................................................................................................................. 16
Organization .......................................................................................................................................................................... 16
Value Chain Analysis ................................................................................................................................................................ 17
Strategy Identification ................................................................................................................................................................ 18
Recommendations ...................................................................................................................................................................... 19
Strategic implementation....................................................................................................................................................... 21
References .................................................................................................................................................................................. 22
Appendix.................................................................................................................................................................................... 24


3 Apple: Company Analysis
Executive Summary
Apple, Inc. is a global brand that was incorporated in the state of California in 1977. Over last
three decades, the company has invented a series of products that have changed the way
consumers use technology in the everyday world. Apple continues to transform products, and
follows a mission of providing the best computers in the world, along with revolutionary phones,
and media devices made for the future. By building high-quality products with a closed-market
operating system, the company has been able to create a sustained competitive advantage in the
market of computers and phones alike. Over the course of five years, Apple has revolutionized
the smartphone market, and has created a presence for itself within the computer market. Apple
will continue to design unique products and enhance their operating system in order to keep an
advantage in an intense and competitive environment. In addition to phones, multimedia players,
and computers, Apple has diversified its product line by expanding into tablets, TVs, and soon,
watches. Through market research and placement, Apple will gain opportunities to grow globally
and increase profits that will entertain their customers and their shareholders.
Introduction
Apple is a company located in several different industries, with products and services ranging
from the music industry to the computer/mobile industry. This report will focus on the
computer/mobile industry, and will analyze facts regarding the industry and Apples position
within. Apple is a company that shows great profitability, however recently, due to fierce
competition and loss of key employees, has been on the radar for financial analysts. The report
will detail the general environment of the industry and the direction Apple will need to take in
order to continue to sustain the growth that they have had over the course of three years. This
includes demographic, political, and technological factors that may affect the companys growth.

4 Apple: Company Analysis
In addition to the general environment, the key stakeholders will be discussed and analyzed as
members of the Apple community, and how the contributions that they make to the company will
benefit or harm the future of the corporation. Future opportunities and threats will be analyzed,
followed by a discussion of the Porters five forces and how they define the position Apple
currently holds in the computer/mobile market. By analyzing the competitors, the power of
buyers and suppliers, and potential threats, Apples external environment will be clearly defined.
In addition to the external analysis, a thorough internal analysis will be conducted that will
include a breakdown of financial statements, using ratios that allow us to see the profitability and
liquidity of Apple. The strengths and weaknesses of Apple will be defined, along with Apples
position compared to its competitors, and the value chain of the company while manufacturing
one of its many products. The paper will conclude with analysis of Apples current strategy,
recommendations on different strategies the company could potentially take in order to grow,
and guidelines on how to follow the most concise strategy.
External Analysis
General Assessment of Environment
Demographic Segment
Today, the world consists of roughly 7 billion people, the majority living in developing countries
in Asia. The U.S. Census expects the population of the world to reach 9 billion by the year 2040.
The most populated countries will consist of India, China, United States, Indonesia, and
Pakistan. As noted in Figure 1, four of those countries are within Asia. Amongst the world
population, 33% of people are aged between 14 and 30, while only 11% are over the age of 60.
This is crucial data for global technology companies like Apple, because it allows them to target

5 Apple: Company Analysis
specific aged demographics. Over the last five years, Apple has worked tremendously to shift
their image to the cool and hipster product it is today.
In addition to the overall world population, there are several different geologic regions around
the world that the personal computers/mobile industry targets. The United States leads the world
by far in terms of personal computing. The US has a 19.4% market share in terms of PCs In-Use
around the world (equates to 310 million computers). This is followed shortly by China at 195
million, Japan at 98 million, Germany at 71 million, and India at 57 million. This data shows that
there is plenty of room for personal computing to grow globally. In addition to saturated markets
such as U.S, Japan, and Germany, the computer/mobile market has a lot of room to segment into
developing countries such as China and India in order to capitalize on their large populations.
Political Segment
Politics change the world every day, and securities installed by political movements create a
foundation for whats ethical and legal within the computer/mobile industry. Domestically,
companies such as Apple have to ensure that they are within boundaries set by the U.S.
Government, and that the company is actively participating in laws that may affect its business.
An example of domestic changes is the Sarbanes-Oxley Act of 2002. The law forced companies
such as Apple to increase funding to ensure accounts were handled properly.
In 2011, the Stop Online Piracy Act (SOPA) was brought up in Congress. The bill would allow
the government to censor the internet and prevent the use of many foreign websites by citizens of
the United States. The bill did not pass, as companies and citizens alike rejected the act. The act
could have affected Apples sales as censoring could potentially reduce the usability of many
Apple products. The Cyber Intelligence Sharing and Protection Act of 2013 (CISPA), on the
other hand, is created to prevent cyber-attacks on large corporations by giving the U.S.

6 Apple: Company Analysis
government access to consumers personal information. The act is supported by Apple, as the
law will allow the government to handle a lot of work that is done by security teams currently
hired by the company. These acts and laws could change the way business is done throughout the
U.S. and bring changes to the market globally.
On a global scale, the computer industry has to incorporate many laws in order to make sure that
their global business is running as intended. In China and many other countries, companies have
to follow strict business policies and research censorship laws that may require business to be
handled differently.
Technological Segment
The computer/mobile industry is part of the high-tech sector. Companies within this industry are
those that use technological innovation to create products that entice the customer. From the
year 2000 to 2012, the number of internet users around the world has gone from approximately
360 million, to 2.4 billion users. As shown in Figure 2, this is a 566% growth in as little as 12
years. In comparison, it took 38 years for the radio to reach just 50 million users. The internet
is a part of the core for every company, especially one within the computer/mobile industry.
Apples business depends on the internet, and technological advancements globally, in terms of
equipment and speed, will allow the company to further penetrate their market. The development
of fiber-optic cable will allow data to be transferred a hundred times faster than the average
coaxial cable. These changes should open new opportunities for technology giants, as faster data
transfer will make their products and services more marketable.

7 Apple: Company Analysis
Stakeholder Analysis
The stakeholder analysis can be broken into two categories: internal stakeholders and external
stakeholders. The internal stakeholders are those that work at the company currently and
influence the direction the company takes. The external stakeholders are institutions, customers,
and suppliers that have a say about the companies motives.
Internal Stakeholders
The internal stakeholders are employees that currently work at Apple. They influence the culture
and decisions that the company makes, and work as a community to help the company prosper.
Figure 3A consists of the key executives at Apple that are the most influential in terms of power.
Tim Cook is the current CEO of Apple. His goal is to create long term growth for the company,
as well as please the board of directors. There are many other internal stakeholders that
influence the environment. Additional key decision makers are listed in the Appendix.
External Stakeholders
The external stakeholders consist of a large variety of people. The most influential are
institutions that own a significant stake in the company. Figure 3B shows the top institutions and
the number of shares that they currently hold. Of course, as many shareholders, the goal of these
stakeholders is to support the company in any way that will increase the bottom line for Apple.
In addition to institutions, other external shareholders include customers and suppliers. Even
though they may not own a percent of the company, these are people that give Apple an idea of
what direction to take and what the general population is currently demanding. For example, if
customers wanted an iPhone that was more slick and thin than its predecessor, talking to the
customers would allow the key executives to decide exactly how to approach it.

8 Apple: Company Analysis
Porters Five Forces
Threat of New Entrants
The computer/mobile industry is one of the technology forefronts of the world. New technology
is being invented every day in order to improve the speed, design, and processing power of
products. The threat of new entrants that can challenge Apples market share is low. New
phones, laptops, and tablets come out every year with new features and different companies
producing them, however they all require significant amount of research and development. Apple
products attract a niche market, because their operating system cannot be used by any other
company.
Bargaining Power of Suppliers
The bargaining power of suppliers is low in the computer/mobile industry. Apple products use
materials that are imported from different parts of the world and brought together in China in
order to be produced at one of Apples factories. Being a global corporation with recognition
across the world, Apple has authority when handling suppliers. Apple can manipulate its
suppliers because a contract with Apple would bring significant growth for any supplier, and the
company can easily switch to different providers, if one causes a problem.
Bargaining Power of Buyers
Apple products use technology that is different from all other products available in the market.
The operating system is limited to only Apple products. Through prestigious marketing and
branding, Apple has created an image that allows them to position their pricing in ways they see
fit. The long term service and quality of the products has created loyalty for Apple products.

9 Apple: Company Analysis
Therefore, the bargaining power of buyers remains low. Apple products can be seen as a niche
product in the computer/mobile market.
Threat of Substitute products
In recent years, the threat of substitute products can be labeled as high. Many different
companies, as noted in the next section, have created products that can be seen as strong
substitutes to Apples operating system. In the mobile industry, Android and Windows phones
are substitutes to Apple phones. In the computer industry, products that use the Windows
operating system can be considered substitutes.
Rivalry among Competitors
There is moderate competition between rivals in Apples market. Like the substitute products,
rivalry among competitors can be split into two different industries: the computer industry, and
the mobile industry. The computer industry consists of competition from companies such as
Dell, Lenovo, HP and Asus. These companies all use the Windows operating system on their
products. As stated in the bargaining power of buyers section, Apple products can be seen as a
niche product because they have their own, closed operating system. The mobile industry
consists of competition from companies such as Samsung, Microsoft, Nokia, and Sony. These
companies use two different operating systems; Android, or Windows. As of 2013, Android
holds a 51% market share lead over Apples iOS, at 43%. In comparison, Samsung holds a 29%
market share in the smartphone market, versus Apple at 22%. These statistics show that Apple
may be losing market share to its competitors. This does not, however, affect Apples business
because the company focuses on a niche market, and the competitors compete with themselves
due to open source operating systems.

10 Apple: Company Analysis
Opportunities and Threats
Opportunities
Government and Education Markets
The government and education markets are adapting in terms of devices used by their
employees. More and more agencies are creating trends of allowing their employees to bring
their own devices. Until recently, the iPhone had been seen as a social device which could only
be used by students and the younger generation. Apple has taken the opportunity to market the
device as something used by professionals, therefore allowing the company to tap into the
government and educational sectors. The availability of different apps on the iPhone and iOS
market, compared to BlackBerry (the leader in professional devices), has encouraged employees
to switch devices. A recent study found that large corporations, such as Halliburton, are phasing
out BlackBerry devices and purchasing iPhones for their employees.
Developing nations catching up in technology
Developing nations are a huge market for Apple. Countries such as China, India, and Brazil
show huge potential because of vast populations and rapid technology development. Due to the
nature of technology upgrades, countries are able to skip existing technology and create an
infrastructure built for the future. For example, many countries are installing fiber-optic cables,
as they do not have a preexisting coaxial cable network. This poses as a huge opportunity for
Apple to market their products worldwide. In fact, Apple products are so popular worldwide that
people are willing to pay a premium in order to get an iPad or iPhone from a supplier in the
United States.

11 Apple: Company Analysis
Threats
Android and Windows Phone
The competition in the market is increasing, with companies such as Google and Microsoft using
diverse research and development to attract existing Apple customers. The market share for both
Android and Windows is expected to grow significantly over the next 3 years. The open source
Android software is also catching up in terms of technology and competing with iOS in
incentives and support.
Security of operating system
With the growth of Mac OS and iOS in the past decade, security has been a major issue for the
operating systems. In the past, due to small market share, the OS did not attract criminals and
hackers as the information they were looking for was much easier to get on Windows. Security
measures will ensure that Apple is able to grow into new sectors, especially the government
agencies and educational institutions.
Internal Analysis
Financial Analysis
Income Statement
Figure 4A and 4B show the key details of Apples income statement for the last three years,
along with profitability ratios used to analyze Apples current development path. Over the
period, Apples general and administrative expenses, when compared to Sales, have decreased
from 8.5% to 6.4%. This indicates that Apple is controlling its growth and limiting itself from
spending lavishly. This can also mean that Apple is limiting opening new stores, or increasing

12 Apple: Company Analysis
efficiency of administrative workers. In addition to the G&A expenses, research and
development funding decreased from 2.73% in 2010 to 2.24% in 2011, and 2.16% in 2012. The
large shift in funding decrease in the year 2010 can be explained by the release of the iPad. The
product was introduced in 2010 and launched in 2011. Over the last year, funding has remained
relatively the same. This indicates that Apple is keeping to its traditional research methods.
Android has created significant challenges for Apple, and Samsungs Galaxy phone is taking a
significant chunk of Apples market share. Apple will have to enter new markets and create new
innovations in order to reflect the image that has been created of the company in the last ten
years. With the creation of new products such as Apple TV and iWatch, research and
development funding is expected to increase to counteract to the increase in competition. As
shown on the Income Statement, Apple has seen a 167% profit growth over the last three years.
The growth can be credited to the release of the iPad, as well as iPhone 4, one of the most
successful phones in Apples lineup. To continue to provide such strong growth, Apple will have
to reinvent their existing line of products, and move into new products that may attract different
markets.
Shareholders Equity Statement
Figure 5 shows the shareholders equity statement for the last three years. Apple has shown a
tremendous growth in retained earnings over the course of the last three years, mostly due to the
launch of iPad and the result of globalization. From 2010 to 2011, Apples retained earnings
increased by 69%. The following year, it increased an additional 61%. Retained earnings show a
healthy and bullish growth for the company, because the retained earnings are steadily increasing
year out. The retained earnings can be used to create growth opportunities for Apple, not only

13 Apple: Company Analysis
domestically, but internationally too. The influx of funds can also be used to develop new
products and to ensure that Apples brand image is maintained.
Financial Ratio Analysis
Financial Ratios allow us to analyze how Apple is participating in the fierce market, and what
moves the company is making in order to ensure long-term growth. Figure 6 covers the Current
and Quick ratios of Apple, Microsoft, and Google. Apples current ratio has decreased gradually
over the course of three years and is in the average range for companies in the
computer/mobile industry. In comparison, Microsofts current ratio has increased gradually,
however has remained fairly stable after that. Microsofts ratio is in the 2-3 point range,
indicating that the ratio is High compared to the industry average. Google shows strong
fluctuation in their current ratio. The ratio increased from 4.16 to 5.92 in 2011, to 4.22 in 2012.
These changes indicate that the company is investing and creating new liabilities, as well as
paying dividends to its shareholders. Apples gradual decrease in their current ratio can be
explained with two reasons. First, the launch of the iPad created liabilities for the company
which resulted in a gradual, long-term drop. Secondly, Apple has been investing a significant
amount of money in growing their business globally. This involves investment of their assets,
and thus reduces their current ratio. Financial analysts indicate that a 2:1 ratio is ideal; however
Apples current ratio can be acceptable as long as the funds are being used for long-term growth
and potential. The quick ratio mirrors the current ratio in terms of movement, however is used as
a more conservative approach to measure the liquidity of the company(where as the current ratio
is more direct). Apple is reaching a point in liquidity where their future moves can be questioned
by investors. The company is on average compared to the industry, however in comparison to
competitors such as Google and Microsoft; the company might be in danger of not being able to

14 Apple: Company Analysis
pay short term debts. Compared to Apples average ratio, it can be concluded that the company is
managing their funds strictly in order to capitalize on growth and innovation, whereas the
competition has extra money available for future use. This can be shown on Googles Chart. The
company had a ratio of 5.92 in the year 2011, indicating that too many assets are available and
that they are not being properly managed and used to help the company grow.
Strengths and Weaknesses
Strengths
Successful product lines
Today, Apple is known to be the creator of innovation and an industry leader in new products.
Starting from the iPod, the company has slowly and gradually increased their line of products by
integrating features created by past products into new lines of products for different markets,
such as the iPhone and iPad. In 2011, Apple had a 20% market share in the mobile market with
their iPhone 4 launch. In the same year, the iPad acquired 70% of the tablet computing market
share. The chain of successful products has brought attention to not only the new products, but
also existing lines of Macs that are sold at every Apple store. The success of these products has
created reliability and dependability for Apple products, and will allow the company to launch
new products with market authority.
Loyal customers
With the creation of successful product lines, Apple has created a foundation for loyal customers.
Over the last five years, Apple products have been marketed and branded as products that are
niche, and better then the average market product. This has created strong emotional
attachment to Apple customers by loyal fans of the company. The loyal customer base is

15 Apple: Company Analysis
considered a strength for Apple because their price range is significantly higher than many other
products available in the market, and the backing of loyal customers allows Apple to bring in
more customers at their own price point.
Weaknesses
Price points
Even though the price point set by Apple is validated by the uniqueness of the products, Apple
lacks products that meet the demands of customers with different price points. The competitors
of Apple, such as Microsoft and Google, have created products that are available at different
price points for customers with different needs. Apple will need to compete in these markets in
order to not only hold its reputation, but also to ensure that the new and untapped markets are not
lost to its competitors. In 2012, Apple launched the iPad Mini in order to reach a new market of
Apple product fans.
Competitors products
The competition in the smartphone and tablet market is fierce. Competitors such as Google and
Microsoft are creating products that reach to every market that is not contaminated by Apple
products. These markets are much larger then what Apple currently possesses. In the overall
mobile handset segment (all handheld devices) of the market, Apple only commands 5% of the
market.
VRIO Analysis
Value
One of Apples biggest assets is the name alone. Apple is a product manufacturer known to have
high-quality products that satisfy the needs of customers. In comparison to their competitors,

16 Apple: Company Analysis
Apples value can be seen in both the hardware they provide, and the software included in their
products. In comparison to competitor products, Apple builds high-quality products that are built
to sustain damage and to make the customer feel that they are paying for the good quality. The
competitors, on the other hand, create low profile products that can reach the market at a lower
cost. Apple uses their customized and closed market iOS, while every other phone on the market
uses Android or Windows, or a similar open market operating system.
Rarity
Apples rarity is simple; iOS and Mac. The company has created an operating system through
decades of ideas and now has an advantage over competitors due to the nature of their closed
market product. iOS creates a competitive advantage for Apple because the functionality of the
operating system has been proven and witnessed by many customers, and the success of the
software can be seen through reviews and loyal fan bases.
Imitability
Apple products are part of a niche market. Even though they have been imitated by new products
with different operating systems, these new products can be seen as substitutes instead of direct
competitors to Apples products. The cost of imitation is high, however, over the last five years,
large companies such as Google have invested a significant amount of assets in order to compete
with Apple in both the smartphone and the tablet market.
Organization
Apple continues to be innovative with their products thanks to the intelligence of their
employees. Following the leadership of Steve Jobs, the company has continued to use their
traditional methods to create new products in the market that are different from those that their

17 Apple: Company Analysis
competitors have created. The goal for Apple as a company is to keep the innovation flowing and
to make sure that Apple products remain in the same market, where the cost of imitation is so
high, that companies will think twice before creating a product that can match Apples
equipment.
Value Chain Analysis
Designed in California and Made in China. These are words that many Apple products once
read in fine print, enlisted on every product. Apples value chain can be compared to those of a
shoe retailer, such as Nike, however with differences noted in early stages of the cycle. The first
chain in Apples product is the design stage. Apple products are known to be designed by
talented engineers acquired by Apple in their California based headquarters. These are the
masterminds that change the design of the products and create guidelines for manufacturers to
mass produce in factories. The next stage in Apples value chain process is procurement. Apple
procures materials from all over the world in order to create one product. Different countries in
Asia provide Apple with the internal hardware for their products, while European and African
companies provide chipsets and rare metals that are used for the external hardware and casing.
The procurement process is followed by manufacturing. The procured materials are sent to
China at several different factories, where thousands of employees manufacture the product and
follow strict testing procedures to ensure Apple holds on to their high-quality reputation. The
manufacturing process is followed by distribution and logistics, which in turn leads to sales.
Apple uses multiple distribution strategies in order to provide products to their different markets.
Depending on the market, a consumer can purchase an Apple product through their own retail
stores, licensed retailers, or online stores. The products are collected at a distribution center in
multiple countries, and shipped to retailers from specific distribution centers.

18 Apple: Company Analysis
Strategy Identification
Apples current strategy rotates around the high quality and high price product line. With a large
loyal customer base, the company currently feels the need to continue charging a premium for
their products and services because they are different from other products available in the
market. Unlike Google or Microsoft, Apple does not have to compete with companies running
Apples software as the software is limited to only their own products. The prices of products
running the Android software have gradually decreased over the last five years; however the
prices of iOS products have remained untainted. Apple continues to use the traditional strategy
of innovating and enhancing the quality of life of their products in exchange for high prices.
Over the last three years, Apple has brought forth multiple different products, each building upon
its predecessor. Products that have been brought forth in the market include iPad, iPad 2, iPad
Mini, iPhone 4, iPhone 4S, and iPhone 5. This is a wide range of products over the course of just
three years. All the products are priced at a premium when compared to its largest competitor.
iPad Mini was brought into the market to compete with the Nexus 7 and Kindle Fire. In
comparison to Kindle Fire, iPad Mini is at a price gap of $129 dollars more. As noted previously,
this price gap is largely due to Apple valuing their software highly when compared to the open
source Android. Also, the high price range has aided Apple in creating loyal customers who
favor Apple products over any other due to dependency and credibility.
As stated by Apples mission statement, the company has reinvented the mobile phone with its
revolutionary iPhone and App store, and is defining the future of mobile media and computing
devices with iPad. The strategy is tied in with the mission statement, as it clearly answers why
Apple has remained different and revolutionary when compared to competitors. In order to meet

19 Apple: Company Analysis
the demands of the stakeholders, Apple continues to bring out innovative products at a price
margin attractive to high-end and loyal customers.
Recommendations
In addition to the current strategy, there are several paths that Apple can take in order to show
growth.
The first path would be vertically integrating their products downward, and launching new
products that meet the needs of different markets at different price points. For example, the
company could launch a Slim version of every new product that they bring into the market.
These products would include bare bone hardware, which can be afforded by people at all price
points. The strategy can be compared to a car dealer. The base model would be the lowest price
and be absent of any features. The user would get complete customization on what features they
feel are necessary and thus have the power to control their price. Lowering the price could result
in Apples image getting significantly tarnished, as users that are using the products because of
the high-end quality will lose faith in the company.
The second path Apple can potentially use to gather a larger market base would be to license
their operating system to key manufacturers and gain a larger market share for their iOS
software, as well as the App Store. In comparison to Googles Play Store, even though there are
more Android devices in the market then iOS, the App Store contributes 80% of the profits in the
app market. Allowing different manufacturers, such as Asus, to produce products that use
Apples operating system will allow the company to reach a larger market share without the need
of investing large funds into research and development of bare bone hardware that entangles with
the spirit of Apples products. The licensed operating system can be slightly altered to keep
Apples own line of products different, however it would allow Apple to gain back market share

20 Apple: Company Analysis
that has been stolen by Android and Windows by establishing contracts with key manufacturers
to produce and sell iOS phones and Mac OS laptops.
The third and final potential strategy for Apple to use would be to introduce a new line of highly
secure products that can be marketed towards institutions and government agencies, as well as
existing businesses. With the exception of art and design companies, the majority of the
computing market share is still held by Windows. Government agencies and majority of the
educational institutions still run Windows on their equipment, and will continue to do so due to
the popularity of the operating system, and the continuous support for security measures. The
new line of products would be only available through businesses, agencies, and institutions, and
would be a black colored product that completely opposes the current line of products. Instead
of the Simple image created by the white Apple products, the black products would indicate
that the product is durable and safe, and completely capable of holding highly secure
information. As Apple has had problems convincing government agencies to use their products
in the past, a strict research funding could be used to produce these devices in a manner suitable
for the political environment.
In comparison to the recommendations, Apples current strategy still remains strong and will
continue to allow the company to establish their market presence as the rest of the world catches
up in technology and internet capabilities. Countries such as Indonesia, Singapore, and India are
expected to see significant technology boosts in the next decade, and Apple will have the
opportunity to establish their current high-end presence in those markets. As stated previously,
Apple products are already viewed as prestigious items in these countries and therefore, not only
will the products be valued for the quality and durability, but also for the emotional and social
attachment that the product brings with itself. The following strategic implemental plan identifies

21 Apple: Company Analysis
the route Apple should take in addition to their current route while globalizing into different
markets.
Strategic implementation
A. Establish retail segments in BRIC countries (Brazil, Russia, India, China), as well as
niche developing countries within the regions.
a. Work with other companies to assist the countries in setting up a technology
infrastructure.
b. Use existing price points and set prices that are equal, globally.
c. Enhance the image of high quality in untapped markets
d. Use aggressive advertising campaigns on customers new to computing.
B. Continue to innovate
a. Create new products that are different and out of the ordinary
b. Continue creating products even if the line of successful products breaks and a
failure happens.
c. Continue to use time and money to research new products prior to rushing
production.
d. Continue to read market movements and create products that meet the customers
needs (iPad Mini, for example).
C. Expand infrastructure
a. Promote valuable staff and globalize the valued staff (in other words, send them
to regions where expertise is needed).
b. Create administrative efficiency and production efficiency in factories
D. Create new price points, but keep the high-quality nature
a. Go smaller and more convenient, keeping high quality parts and software.
This implementation plan builds upon Apples existing plan of providing unique and high-
quality products at a premium price. The establishment of retail segments globally, along with
expansions in infrastructure and innovation will allow Apple to not only meet different price
points, but also keep the nature of their high-quality business.


22 Apple: Company Analysis

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24 Apple: Company Analysis
Appendix



Figure 1


25 Apple: Company Analysis
Figure 2



Figure 3A
Name Position Goal
Timothy D. Cook
Chief Executive Officer Provide long-term growth
Arthur D. Levinson
Chairman of the Board Provide shareholder feedback to company
Jeffrey E. Williams
Senior VP of Operations Ensure operations are running efficiently
John Browett
Senior VP of Retail Grow retail segment and control logistics
Peter Oppenheimer
Senior VP Provide overview and feedback to CEO



Figure 3B









26 Apple: Company Analysis
Figure 4A





Figure 4B




27 Apple: Company Analysis


Figure 5









Figure 6