About The Company

It provides a comprehensive insight into the company’s

history, corporate strategy, business structure and operations.
The report contains a detailed SWOT analysis, information on
the company’s key employees, key competitors and major
products and services.

This up-to-the-minute company report will help you to

formulate strategies to drive your business by enabling you to
understand your partners, customers and competitors better.

Scope
 Business description – A detailed description of the
company’s operations and business divisions.
 Corporate strategy – Global Data’s summarization of the
company’s business strategy.
 SWOT analysis – A detailed analysis of the company’s
strengths, weakness, opportunities and threats.
 Company history – Progression of key events associated with
the company.
 Major products and services – A list of major products,
services and brands of the company.
 Key competitors – A list of key competitors to the company.
 Key employees – A list of the key executives of the company.
 Executive biographies – A brief summary of the executives’
employment history.
 Key operational heads – A list of personnel heading key
departments/functions.
 Important locations and subsidiaries – A list of key locations
and subsidiaries of the company, including contact details.
 Highlights

Bose Corporation (Bose) is a manufacturer and marketer of

audio products. The company designs, manufactures and
markets audio equipment such as stereo speakers, computer
speakers, outdoor and marine speakers, amplifiers,
headphones and headsets, wave systems, home theater
systems, SoundDock systems for iPod, automotive sound
systems for luxury cars and automotive suspension systems.
The company markets its products under Bose, CineMate
Lifestyle, Wave, SoundTouch, SoundDock, PackLite,
QuietComfort, Sound Sport and SoundLink brands. The
company provides its products to various arts centers,
theatres, houses of worship, stadiums, arenas, restaurants,
retail stores, corporate buildings and hospitality
establishments. The company operates across North America,
South America, Europe, Australia, and Asia-Pacific. Bose is
headquartered in Framingham, Massachusetts, the US.

Bose Corporation Key Recent Developments

Oct 11,2018 High efficiency Sun Power solar project now

operating at Bose Corporation's Global Headquarters in
Massachusetts

Reasons to Buy
 Gain key insights into the company for academic or business
research purposes. Key elements such as SWOT analysis and
corporate strategy are incorporated in the profile to assist your
academic or business research needs.
 Identify potential customers and suppliers with this report’s
analysis of the company’s business structure, operations,
major products and services and business strategy.
 Understand and respond to your competitors’ business
structure and strategies with GlobalData’s detailed SWOT
analysis. In this, the company’s core strengths, weaknesses,
opportunities and threats are analyzed, providing you with an
up to date objective view of the company.
 Examine potential investment and acquisition targets with this
report’s detailed insight into the company’s strategic, business
and operational performance.

Top competitor of BOSE:

 Apple
 JBL
 Sony

Apple
Apple Inc. is an American multinational technology
company headquartered in Cupertino, California, that designs,
develops, and sells consumer electronics, computer software,
and online services. It is considered one of the Big Five technology
companies, along with Amazon, Alphabet, Facebook, and Microsoft.
The company's hardware products include the iPhone smartphone,
the iPad tablet computer, the Mac personal computer,
the iPod portable media player, the Apple Watch smartwatch,
the Apple TV digital media player, the AirPods wireless earbuds and
the HomePod smart speaker. Apple's software includes
the macOS, iOS, iPadOS, watchOS, and tvOS operating systems,
the iTunes media player, the Safari web browser, the Shazam acoustic
fingerprint utility, and the iLife and iWork creativity and productivity
suites, as well as professional applications like Final Cut Pro, Logic
Pro, and Xcode. Its online services include the iTunes Store, the iOS
App Store, Mac App Store, Apple Music, Apple TV+, iMessage,
and iCloud. Other services include Apple Store, Genius
Bar, AppleCare, Apple Pay, Apple Pay Cash, and Apple Card.
Apple was founded by Steve Jobs, Steve Wozniak, and Ronald
Wayne in April 1976 to develop and sell Wozniak's Apple I personal
computer, though Wayne sold his share back within 12 days. It was
incorporated as Apple Computer, Inc., in January 1977, and sales of
its computers, including the Apple II, grew quickly. Within a few
years, Jobs and Wozniak had hired a staff of computer designers and
had a production line. Apple went public in 1980 to instant financial
success. Over the next few years, Apple shipped new computers
featuring innovative graphical user interfaces, such as the original
Macintosh in 1984, and Apple's marketing advertisements for its
products received widespread critical acclaim. However, the high
price of its products and limited application library caused problems,
as did power struggles between executives. In 1985, Wozniak
departed Apple amicably and remained an honorary employee, while
Jobs and others resigned to found NeXT.
As the market for personal computers expanded and evolved through
the 1990s, Apple lost market share to the lower-priced duopoly
of Microsoft Windows on Intel PC clones. The board
recruited CEO Gil Amelio to what would be a 500-day charge for him
to rehabilitate the financially troubled company—reshaping it with
layoffs, executive restructuring, and product focus. In 1997, he led
Apple to buy NeXT, solving the desperately failed operating system
strategy and bringing Jobs back. Jobs pensively regained leadership
status, becoming CEO in 2000. Apple swiftly returned to profitability
under the revitalizing Think different campaign, as he rebuilt Apple's
status by launching the iMac in 1998, opening the retail chain
of Apple Stores in 2001, and acquiring numerous companies to
broaden the software portfolio. In January 2007, Jobs renamed the
company Apple Inc., reflecting its shifted focus toward consumer
electronics, and launched the iPhone to great critical acclaim and
financial success. In August 2011, Jobs resigned as CEO due to health
complications, and Tim Cook became the new CEO. Two months
later, Jobs died, marking the end of an era for the company. In June
2019, Jony Ive, Apple's CDO, left the company to start his own firm,
but stated he would work with Apple as its primary client.
Apple is well known for its size and revenues. Its worldwide annual
revenue totaled $265 billion for the 2018 fiscal year. Apple is
the world's largest technology company by revenue and one of
the world's most valuable companies. It is also the world's third-
largest mobile phone manufacturer after Samsung and Huawei.[10] In
August 2018, Apple became the first public U.S. company to be
valued at over $1 trillion.The company employs 123,000 full-time
employees and maintains 504 retail stores in 24 countries as of
2018. It operates the iTunes Store, which is the world's largest music
retailer. As of January 2018, more than 1.3 billion Apple products are
actively in use worldwide.[15] The company also has a high level
of brand loyalty and is ranked as the world's most valuable brand.
However, Apple receives significant criticism regarding the labor
practices of its contractors, its environmental practices and unethical
business practices, including anti-competitive behavior, as well as the
origins of source materials.

SWOT of Apple
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 SWOT analysis of the company gives
insights on the strategic actions of the business, especially in
maximizing its 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 is involved 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.
An Apple Wireless Keyboard (German language) and Magic Mouse.
A SWOT analysis of Apple Inc. shows that the business is strong but
must address the threats of competition and imitation in the computer
technology, cloud services, digital content distribution, and consumer
electronics industries. (Photo: Public Domain)
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 SWOT analysis of the company gives
insights on the strategic actions of the business, especially in
maximizing its 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 is involved 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 Porter’s Five Forces
analysis of Apple Inc. establishes that the company faces the strong
force of competition linked to the aggressiveness of other technology
firms, such as Google, IBM, Amazon.com, Samsung, Sony, Lenovo,
Dell, and PayPal. This competitive landscape requires innovative
strategies and tactics to achieve continuous business growth and
development, and to fulfill Apple’s corporate mission statement and
corporate vision statement.

Apple’s Strengths (Internal Strategic Factors)

 This aspect of the SWOT analysis framework identifies the strengths
that enable the company to overcome weaknesses, take advantage of
opportunities, and withstand threats in its business environment.
These strengths are internal factors specific to the conditions within
the business organization. In this case, the following are the most
notable strengths of Apple Inc.:

1. Strong brand image

2. High profit margins
3. Effective rapid innovation processes

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 by virtue of its strong brand
image. In addition, Apple’s marketing mix or 4P involves the
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. Moreover, the generic
competitive strategy and intensive growth strategies of Apple
Inc. involve 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.

Apple Inc.’s Weaknesses (Internal Strategic Factors)

In this aspect of the SWOT analysis, the emphasis is on the

weaknesses or inadequacies of the company. Weaknesses are internal
factors that are obstacles to business growth. The following business
weaknesses are the most notable in the case of Apple:

1. Limited distribution network

2. High selling prices
3. Dependence of sales on high-end market segments

Apple Inc. has a limited distribution network because of the

company’s policy of exclusivity. For example, the company carefully
 selects the authorized sellers of its products. The SWOT analysis
framework considers this exclusivity strategy as a factor that limits
market reach. 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 company has
the weakness of the dependence of sales on high-end market
segments. High prices attract customers from the middle- and high-
income brackets, while preventing customers from low-income
brackets to easily purchase the company’s products. This internal
strategic factor is a considerable weakness because high-end market
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.

Opportunities for 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.
These factors influence the strategic direction of business
organizations. In Apple’s case, the following are the most significant
opportunities:

1. Expansion of the distribution network

2. Higher sales volumes based on rising demand
3. Development of new product lines

An Apple Wireless Keyboard (German language) and Magic Mouse.

A SWOT analysis of Apple Inc. shows that the business is strong but
must address the threats of competition and imitation in the computer
technology, cloud services, digital content distribution, and consumer
electronics industries. (Photo: Public Domain)
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 SWOT analysis of the company gives
insights on the strategic actions of the business, especially in
 maximizing its 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 is involved 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 Porter’s Five Forces
analysis of Apple Inc. establishes that the company faces the strong
force of competition linked to the aggressiveness of other technology
firms, such as Google, IBM, Amazon.com, Samsung, Sony, Lenovo,
Dell, and PayPal. This competitive landscape requires innovative
strategies and tactics to achieve continuous business growth and
development, and to fulfill Apple’s corporate mission statement and
corporate vision statement.

Apple’s Strengths (Internal Strategic Factors)

This aspect of the SWOT analysis framework identifies the strengths

that enable the company to overcome weaknesses, take advantage of
opportunities, and withstand threats in its business environment.
These strengths are internal factors specific to the conditions within
the business organization. In this case, the following are the most
notable strengths of Apple Inc.:

1. Strong brand image

2. High profit margins
3. Effective rapid innovation processes
 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 by virtue of its strong brand
image. In addition, Apple’s marketing mix or 4P involves the
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. Moreover, the generic
competitive strategy and intensive growth strategies of Apple
Inc. involve 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.

Apple Inc.’s Weaknesses (Internal Strategic Factors)

In this aspect of the SWOT analysis, the emphasis is on the

weaknesses or inadequacies of the company. Weaknesses are internal
factors that are obstacles to business growth. The following business
weaknesses are the most notable in the case of Apple:

1. Limited distribution network

2. High selling prices
3. Dependence of sales on high-end market segments

Apple Inc. has a limited distribution network because of the

company’s policy of exclusivity. For example, the company carefully
selects the authorized sellers of its products. The SWOT analysis
framework considers this exclusivity strategy as a factor that limits
market reach. 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 company has
the weakness of the dependence of sales on high-end market
segments. High prices attract customers from the middle- and high-
income brackets, while preventing customers from low-income
brackets to easily purchase the company’s products. This internal
strategic factor is a considerable weakness because high-end market
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.

Opportunities for 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.
These factors influence the strategic direction of business
organizations. In Apple’s case, the following are the most significant
opportunities:

1. Expansion of the distribution network

2. Higher sales volumes based on rising demand
3. Development of new product lines

Apple Inc. has the opportunity to expand its distribution network.

Such opportunity directly relates to the weakness of the company’s
limited distribution network. This SWOT analysis emphasizes the
need for the company to change its 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. Furthermore, the company has the opportunity to
explore new product lines. Its current product lines are highly
successful. However, with further innovation, the company can
develop and introduce new products, like what it has already achieved
with the Apple Watch. Developing new product lines can support
business growth 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 Facing Apple Inc. (External Strategic Factors)

In this aspect of the SWOT analysis, the focus is on the threats that
the company experiences from various sources, such as competitors.
 Threats are external factors that limit or reduce the financial
performance of businesses. In Apple’s case, the following threats are
the most significant:

1. Aggressive competition
2. Imitation
3. Rising labor cost in various countries

Tough competition in the industry is partly because of the

aggressiveness of firms. 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 Apple Inc.
Because of the aggressive behaviors of competing firms, it is
necessary to have strong fundamentals for maintaining competitive
advantages. In addition, the company faces the threat of imitation.
This threat is significant because of the large number of local and
multinational firms that imitate the design and features of Apple’s
products. Moreover, 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 could suffer because
of aggressive competition and imitation of product design.

PESTEL Analysis:
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 Google, Microsoft, Amazon, Samsung, IBM, Dell, HP, Sony,
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.

An iPhone, one of Apple’s bestselling products. A PESTEL/PESTLE

analysis of Apple Inc. indicates that most of the external factors in the
company’s remote or macro-environment present opportunities for the
consumer electronics and information technology services business.
(Photo: Public Domain)
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 Google, Microsoft, Amazon, Samsung, IBM, Dell, HP, Sony,
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. Apple Inc.’s generic strategy for competitive advantage
and intensive strategies for growth are examples of strategic
congruence for countering such pressures.

Political Factors Affecting Apple’s Business

The political external factors in Apple’s remote or macro-

environment mainly present opportunities. This aspect of the
PESTEL/PESTLE analysis model indicates the influence of
governments and related organizations on businesses. In Apple’s case,
the following are some of the major political external factors:

1. Improving free trade policies (opportunity)

2. Stable politics in developed countries (opportunity)
3. Trade disputes, especially between the U.S. and China (threat)

An iPhone, one of Apple’s bestselling products. A PESTEL/PESTLE

analysis of Apple Inc. indicates that most of the external factors in the
company’s remote or macro-environment present opportunities for the
consumer electronics and information technology services business.
(Photo: Public Domain)
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 Google, Microsoft, Amazon, Samsung, IBM, Dell, HP, Sony,
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. Apple Inc.’s generic strategy for competitive advantage
and intensive strategies for growth are examples of strategic
congruence for countering such pressures.

Political Factors Affecting Apple’s Business

The political external factors in Apple’s remote or macro-

environment mainly present opportunities. This aspect of the
PESTEL/PESTLE analysis model indicates the influence of
governments and related organizations on businesses. In Apple’s case,
the following are some of the major political external factors:

1. Improving free trade policies (opportunity)

2. Stable politics in developed countries (opportunity)
3. Trade 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 Important to Apple Inc.

Most of the economic external factors in Apple’s remote or macro-

environment create opportunities. This 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:

1. Stable economies of developed countries (opportunity)

2. Rapid growth of developing countries (opportunity)
3. Increasing 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 Porter’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 in Apple’s Industry Environment

Apple’s business is subject to the effects of social or sociocultural

trends. This aspect of the PESTEL/PESTLE analysis model points to
the social external factors that influence consumer behaviors and
expectations. In Apple’s case, the following sociocultural trends are
significant in the remote or macro-environment:

1. Rising use of mobile access (opportunity)

2. Increasing dependence on digital systems (opportunity)
3. International 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 Apple Inc.’s
corporate social responsibility strategy. Such strategy helps satisfy
stakeholders, including customers and governments. In
addition, Apple Inc.’s corporate culture is 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, Apple Inc.’s marketing mix or 4Ps must include strategies that
match such social external factors.

Technological Factors in Apple’s Business Environment

The technological external factors in Apple’s remote or macro-

environment generally provide opportunities for the enterprise. In 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:

1. Growing cloud computing demand (opportunity)

2. Increasing technological integration in businesses (opportunity)
3. Growing mobile market (opportunity)
4. Growing 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 Apple Inc.’s
corporate structure, developing an expanded cloud infrastructure
could maximize the profitability of the business in offering cloud-
computing services. In 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 Apple 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.
 Ecological/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, the following ecological
external factors are the most important:

1. Business sustainability trend (opportunity)

2. Energy 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 Apple Inc.,
such an ecological trend offers the opportunity to strengthen the
company’s corporate image. In addition, the energy efficiency trend is
an ecological external factor that promotes the adoption of newer and
more efficient technologies among businesses and customers. Apple
has the opportunity to improve its operational cost efficiencies in this
regard, while offering more attractive products to an increasingly
environmentally aware customer population. Based on this part of the
PESTEL/PESTLE analysis model, Apple addresses these
ecological/environmental factors in its remote or macro-environment.
The company has strategic measures to adjust its operations and
technological products to respond to these ecological trends. Apple
Inc.’s operations management also supports business efforts to exploit
opportunities on these trends.

Legal Factors that Limit Apple

The legal external factors in Apple’s remote or macro-environment

create threats to the business. This aspect of the PESTEL/PESTLE
analysis framework indicates the impact of laws or regulations on
businesses. In Apple’s case, the following are the most significant
legal external factors:

1. Increasing privacy regulations (opportunity & threat)

2. Legal challenges against Apple’s policies and practices (threat)

Governments’ pressure on privacy in the digital age has resulted in

increasing privacy regulations on businesses like Apple Inc. This
legal external factor is a threat that could impose costly regulatory
compliance requirements and more limits on the technology company.
However, this PESTEL/PESTLE analysis identifies the same external
factor as a trend that presents the opportunity for Apple to boost its
business through enhanced privacy measures. In addition, the
company faces legal challenges related to its practices and policies on
after-sales service and other areas of the business. For example, in
Australia, the European Union, and the United States, among other
countries, the company has faced strong criticism and legal battles
regarding its policies on third-party repair services. Based on this part
of the PESTEL/PESTLE analysis model, Apple must emphasize
privacy protection and regulatory compliance in all of its products,
and consider adjusting its policies and practices to address current
legal pressures on the business.

PGDM Specialization: -
Marketing & Operation Management-

Marketing-
Marketing Analysis of Apple:
Marketing is one of the most crucial aspects of a business venture
which greatly determines its success in the consumer realm. Philip
Kotler describes marketing as “A set of human activities directed at
facilitating and consummating exchanges” (Kumar & Sharma, 1998).
American Marketing Association (AMA) defines marketing in more
detail as, “An activity, set of institutions and processes for creating,
communicating, delivering and exchanging offerings that have value
for customers, clients, partners and society at large” (Definition of
Marketing, 2012). Marketing is not just limited to advertising the
products and services to the end customers, it also entails the
determination of complete channels through which a product/ service
is going to be introduced in the niche market as well as its promotion
throughout the potential customers in order to encourage them to buy
the product/service.

Since the purpose of marketing is to create an awareness of the

product/service, an effective marketing strategy also focuses on
developing a need of the product/service among other market sectors
and expanding their horizon thereon. This is exactly what has been
observed in the marketing strategy of Apple Inc. – a world renowned
name of innovation and breakthrough in the consumer electronics and
computer industry. Although Apple Inc. is not the sole
producer/manufacturer and seller of MP3 players but however when
an individual thinks about buying a PMP, the first name that comes to
his/her mind is an “iPod”. This is attributable to the effective branding
and promotion of the product coupled with iTunes music software
(helping Apple Inc. creating a strong brand perception in existing and
new arenas.)

Apple Inc. is positioned in the market as the innovators of high-tech

products. Marketing for such products needs to be encompassing in
order to create and redefine new markets in addition to competing in
already existing markets. Apple Inc. has always taken steps to keep
their marketing process free of new market challenges in their attempt
to penetrate deeper into the industry.

This report constitutes an in-depth analysis of the marketing strategies

adopted by Apple Inc. It will discuss about Apple’s approach towards
the marketing mix and analyze the strategies utilized by the company
in relation to market segmentation, product segmentation, pricing,
distribution, promotion and social responsibility.
The Marketing Mix analysis of Apple Inc.

The term marketing mix was coined by Neil H. Bordon in his article
titled as “The concept of the marketing mix” (The Marketing Mix,
2010). Marketing mix is a concept which is used by businesses in the
marketing process. It is known as a set of controllable tools that can
be utilized by the firms to generate the desired demand levels of their
products in the market. Basically it constitutes 4 P’s of marketing but
in some cases they do extend to 10 P’s of marketing. However, in this
report, marketing mix analysis of Apple Inc. revolves around six most
crucial P’s of marketing i.e. Product, People, Price, Placement,
Promotion and Personality- each of which is briefly analyzed below:

Product/ Service

A product can be defined as an item produced and made available in

response to a gap in the market. This gap is originated from the need
or want of a tangible product or an intangible service by the potential
customers. The key element here is to identify the need and address it
by delivering the exact item. In response to the growing tech-savvy
society, Apple responded by offering high-tech products including
personal computers, Servers, iPod, iPhone, Wi-Fi based stations,
Accessories, software developing service, iTunes and peripheral
equipments etc. The full range of products offered along with their
key features will be discussed later in the report.

People

People include the target market of the business. It is imperative for

any organization to identify its potential target audience if it wishes to
address its needs effectively. The target market of Apple includes the
businesses and individuals who demand highly innovative yet user-
friendly experience of computer and consumer electronic products.
Apple targets those people who are willing to adopt the exquisite
technological lifestyle.

Price
Price is one of the most sensitive and important P’s of the marketing
mix which involves adjusting the cost to the market in order to
reasonably cater the solution by adding value to both the customer
relationship and the business. Companies need to ensure that the
products are correctly priced i.e. not overpriced enough that no one
buys it or underpriced enough that might raise quality concerns in the
customer’s mind. The pricing strategy adopted by Apple differs
considerably from its competitors in the market, since it is known as a
premium brand and has witnessed an ever growing iLegacy over a
period. Apple charges high prices, targeting middle to upper level
income groups because it is not just selling a product rather it is
selling a differential technological lifestyle to its customers which
they are willing to trade in return for a handsome amount.

Placement

Placement means the distribution channels through which the product

reaches the end-user from the point of production. Placement strategy
must be well thought of because it greatly impacts the costs
attributable to distribution of products and successive sales made to
the customers. The customers are willing to buy products that are
conveniently available to them. The best strategy is to provide the
customers with the products at a location where they can easily access
them along with the requisite support. Apple has a powerful retailing
activity. In the late 1990s, Apple Inc. was relying on the big box
retailers to deliver its products to the end users. Not much value was
being added to the business and company-customer relationship.
Apple decided to innovate its distribution channels while competitors
tied themselves to big box retailers.

By early 2000s, Apple started a chain of independent stores where

staff was focused more on customer needs rather than simply selling a
product. These retail stores have gone global and are now seen in
major cities of the countries where Apple is available including Asia/
Pacific, Middle East, Africa and Latin America. Through its
independent retail stores, Apple has penetrated deeper into the target
market creating awareness, need, promising a benefit and then
effectively delivering that benefit through innovatory products.
Apple’s retail outlets are contributing to its revenues increasingly.
Peter Oppenheimer, CFO said that Apple’s 372 stores yielded
collective revenue of about $4.2 billion which is a vast contribution to
the company’s earnings (Paczkowski, 2012).

Promotion

Five important areas are covered under promotion namely, personal

selling, direct marketing, sales promotions, advertising and publicity.
A promotional plan serves three basic objectives i.e. to create
awareness about the product in the market, to create or increase the
demand of the product and to communicate the differentiating
factor(s) of the product over the competitor’s. Other objectives may
include increasing the sales of the company to a certain level or
developing brand equity.

Apple has been quite actively participating in promotional endeavors.

It has tailored the promotional strategies according to how potential
customers desire to be benefitted from and informed about Apple’s
products. For this, Apple pursues two primary promotional methods
including advertising and personal selling. Apple believes in heavily
investing in the televised, print and online advertising. The apple logo
is now amongst the most recognizable logos around the globe and it
reflects a stylish and modern lifestyle. It promotes its USP mostly
through comparative advertising. It highlights the key benefits of the
products in a way that hits the right perception spot of the viewer,
convincing them that they will actually be delivered that benefit.

Apple’s promotional strategies are however, hype centric. The market

is typically boosted with enthusiasm before the launch of a new
product. Apple’s products are usually high priced as compared to the
competitors however; they add value to them by offering a three year
warranty.

Another promotional strategy extensively used by Apple is the

personal selling. Within the independent stores, a customer driven
approach is adopted by the sales representatives, who instead of
paying attention to selling products, focus keenly on turning the
visitor into a compulsive buyer. These representatives are well abreast
of the newest technologies springing out in the market. Moreover they
are trained to provide the customer care service in an excellent
manner. Change is often perceived as intimidating and Apple is
always on the go whether it concerns launching innovatory products
or upgrading the existing ones. For this reason particularly, personal
selling strategy is pursued in order to instill ease and convenience
with the newer technologies in the customers’ minds.

Personality

Apple has maintained a minimalist personality of its brand. It is

marketing its image largely through its retail outlets which reflects
their minimalist philosophy. Its stores are clutter free and staff is
trained to deal with customer needs in the most helpful and
informative manner. Potential customers are allowed to learn about
the Apple’s products, try them and obtain practical help about using
the technology. Apple’s brand personality is about delivering power
to the customers through technological, user friendly masterpieces
which enhances the lifestyle.

Apple reinvigorated its brand personality by creating an iPod halo

effect. Catering to the consumer want of great musical experience,
iPod and iTunes were created which have earned Apple the most
brand loyalty.

Customer Segmentation at Apple Inc.

Customer segmentation is best described by Kotler as, “Dividing a

market into distinct groups of buyers who have distinct needs,
characteristics or behavior and who might require separate products or
marketing mixes” (Market segmentation according to Sir Philip
Kotler, 2011) The target market is segmented considering various
factors such as demographics which include age, race, gender,
religion, occupation, education and income brackets. The customer
segmentation could also be carried out geographically, behaviorally or
psycho-graphically. Geographic segmentation is carried out by
dividing the target market according to geographic area. A business
that has created a niche in different cities or countries is said to be
utilizing geographic method to segment its customers. When
segmenting the market psycho-graphically, businesses base the
process on factors like values and lifestyle of the potential customers.
The behavioral segmentation is carried out in accordance with the
behaviors that consumers display to the product and the patterns in
which they spend their time and money.

Apple uses multiple successful customer segmentation strategies. It

divides its global market into four geographic segments including
America & Latin America, Asia/Pacific, UAE and Africa. Apple has
retail stores operating in all of these regions that sell products catered
specifically for those markets.

Moreover, what makes Apple’s segmentation process even more

successful and profitable for the company as a whole, is its vertical
product segmentation strategy. Apple, instead of focusing on
manufacturing a single product with multiple features for all
customers, it rather manufactures its products with specific use case,
highlighting a key benefit that overweighs all other aspects of a
competitor’s product. Targeting specific user’s experience and
desirability, Apple manufactures a product around that accordingly.
With the help of right segmentation, Apple (despite of not generating
as much sales as competitor’s e.g. Nokia in case of smart phones) is
the lead contributor to the industry profits. This is because it has
vertically segmented its products for specific user experiences. For
instance iPod for exquisite music experience and iPhone for myriad
user-friendly applications and then sells these products at the right
price (Apple’s a case study of segmentation strategy, 2007).
Customers are willing to pay premium for products that address their
needs and wants and this is how Apple is generating sizable revenues.

Instead of targeting a diverse market, Apple believes in targeting a

specific consumer market, providing all they desire and thus taking
over that segment with quality products and high-tech experience.
Following this philosophy, it has segmented its market into Business,
Creative Professionals, Education and Students or High-end users.
With this 3D market profile, it has secured a high demand for Apple’s
consumer digital devices.
Market Research at Apple Inc.

Apple Inc. is known as a premium brand that does not get engaged in
extensive market research programs to determine their customer’s
needs and wants rather they believe in dictating their customers about
what they need and desire in the form of their new products. Steve
Jobs, the CEO and co-founder of Apple Inc. commented about the
market research at Apple, saying “We do no market research. We
don’t hire consultants. The only consultants I’ve ever hired in my 10
years is one firm to analyze Gateway’s retail strategy so I would not
make some of the same mistakes they made [when launching Apple’s
retail stores]. But we never hire consultants, per se. We just want to
make great products” (Heisler, 2012). Since Apple is largely
associated with bringing about innovations, so according to their view
it is pointless to learn about customer’s needs and wants especially
when they have never seen anything remotely similar to what Apple
can offer them.

However, Apple Inc. does not completely ignore market research and
instead of engaging potential customers in surveys, they focus on the
existing Apple users to draw information considered essential for the
development of new Apple products. In this regard, Apple began a
market research campaign, namely “Apple Customer Pulse” which
targeted selective existing Apple customers to fill up periodic surveys.
An online community for Apple Customer Pulse has been established
on their official website to communicate issues and suggestions about
Apple products.

Apple Inc. also conducts similar surveys with iPhone and iPad buyers
to learn about the famous and most used features and level of
satisfaction with the product from different demographics. These
surveys are then used extensively by the company. However, it does
not get engaged in market research in the product development stage
since the Apple Inc. family figures out what they want and project it
onto the market customers. For iTunes and iPod, Apple Inc. said that
they wished to own the best portable jukebox and this desire could
definitely be projected to potential customers as well.
Apple’s pricing strategies

Apple Inc. uses most effective pricing strategies that impact the
customers’ buying behavior. It often sells its gadgets and devices in
price series. For instance, Apple launched three different versions of
the “iPod touch,” which were priced at $229 or $299 and $399, based
on varying storage capacities. A customer will excitingly spend $229
for that minimalist iPod providing excellent music experience, while
comparing it with its high priced version(s). Customers typically
don’t realize at that point that they can get iPhone with far more
features at lower price of $199. This is how Apple captures a profit
margin in each of its product category.

The pricing series strategy cloud the customer’s judgment. The

technologically sophisticated customers will want to spend $399 to
get the best of all versions available thus leading Apple to generate
even more profits (Apple’s Brilliant Pricing Strategy, 2011). Apple
launched iPad with an initial price of $499. People perceived it as a
high price which is not unusual for Apple’s products but when
compared with an iPhone having lesser features, the high price was
automatically justified in customer’s perception.

Apple adopts another pricing strategy, i.e. ‘Skimming’. It is where,

the company sells product initially at a very high price and
compromise sales for earning higher profits. This is probably done to
cover the high costs invested in manufacturing and developing the
product. Since a brand loyal customer is less price sensitive towards
the products, so such strategy mainly targets them successfully.

Apple has applied a price cut strategy both in the case of iPod and
iPhone. The iPod experienced a price cut four years later than its
launch while iPhone’s price cut happened after two months of its
launch. The reason behind it was to gain profits from price cut in the
declining phase of iPod while to monopolize the smart phone market
in the growing phase of iPhone (Pricing strategy of Apple, 2010).

Apple also offers discounts to its buyers from the education market
segment.
Apple’s Distribution strategies

Before 2001, Apple was mainly dependent on famous retailers

including Sears and CompuServe, although retailers who were not
owning the sale of Apple’s products in real terms were culled by
Steve Jobs. The only effective solution to this dilemma was a vertical
integration into retail. Apple launched online store, an iTune store
following the opening of retail stores across the USA initially.

These retail stores spread across the globe and were later opened in
Latin America, Canada, UK, Africa, Asia/Pacific and Middle East and
in other major countries like Australia, Switzerland etc. By 2012,
Apple had 360 retail stores which greatly contributed to company’s
total revenues. Apple chose high traffic locations and shopping malls
to open up its retail outlets.

Apple had made a contract with Foxconn- a manufacturing partner,

which manufactures products in China and ships them at low costs to
retail stores in the US and elsewhere.

Apple’s promotional strategies

Apple use advertising as its main promotional strategy. Its effective

advertising is based on comparative advantage received by their
customers. Apple is known to create memorable advertising slogans.
For iMac the slogan said, “3 steps to the Internet”. In this precise
message, the most distinctive feature of the product was
communicated to the masses. Slogan for Mac and iPod were
“Computers for the rest of us”, and “1000 songs in your pocket”
respectively.

Apple’s minimalist retail stores (with congenial environment for

visiting customers) promote the brand and the products as a whole.
Prospective customers are dealt with highly trained floor staff that
provides thorough information about the specifications of the
products. These stores give the visitor a feel of an Apple museum
which entices/attracts them and promotes the brand as a whole.
Apple uploads various special offers and qualifying promotions on the
website and online store to specific market segments like students. An
example is a US gift card promotion where a student might win $100
or $50 of Apps upon buying a Mac or an iPad from online store.

Marketing Planning at Apple Inc

Apple has a separate marketing unit that is headed by a Marketing

Chief. The marketing unit carries out all marketing planning in the
most effective manner. The marketing method used by Apple is
termed as ‘Golden Circle’, where instead of laying more focus on
communicating to the audience about ‘what they do?’, they start
spreading the message with the ‘why’ component i.e. ‘Why they do
what they do? (As Apple believes in thinking differently)’. Their
message begins with addressing the audience with ‘why question ‘,
followed by ‘how they do it’ (By making user friendly and elegantly
designed products) and ending the message with ‘what they do’
(Developing great computers).

The marketing planning process begins with research and planning

where complete market analysis is carried out. It leads to the stage of
developing market strategies where the marketing goals, ambitions,
strategies and marketing mix are developed, leading to the actions and
control step where marketing mix are managed and projects are
delegated keeping in view the due time limit.

Social Responsibility at Apple Inc.

Apple lays focus on supplier social responsibility ensuring healthy

and safe working conditions/environment, use of environmental
friendly manufacturing processes and deliverance of human and labor
rights to the workers. It conducts specialized environmental audit.
According to the official website of Apple, “Each of these audits
included onsite inspections of wastewater treatment facilities, air
emissions handling, solid waste disposal and noise abatement systems
– both at the facility and in the surrounding areas. The audits also
included interviews with local residents. The auditing team reviewed
all documentation regarding wastewater, air emissions, and noise
monitoring as well as waste removal and disposal documentation
from the past three years” (Environmental Impact, 2012).

Apple reflects the social responsibility in the marketing P’s of process

and placement. It ensures that all manufacturing processes are carried
out in non-hazardous conditions, workers are treated with dignity and
no environmental damage is being made.

Market Share of Apple

Operation Management;

Apple is famous for innovation and design. But few

people know that the way Apple handles inventory is also
a factor that led to success. As a matter of fact, research
firm Gartner ranks Apple’s Supply Chain as the best
supply chain in the world every year from 2010 to 2013.

Tim Cook, the current CEO of Apple, a company that

reached 170.9 billion in revenues last year, was before the
company’s Chief Operations Officer. He had joined
Apple in 1998, the same time Steve Jobs re-entered the
company, and he transform Apple’s messy operations into
a success, becoming COO in 2005 and CEO in 2011.

Tim Cook believes that when it comes to technology such

as smartphones, tablets and laptops, inventory deprecates
very, very quickly, losing 1-2% of value each week -
“inventory is fundamentally evil” he says. "You kind of
want to manage it like you're in the dairy business. If it
gets past its freshness date, you have a problem."

A comparison of how tech companies managed their

inventory in 2011 shows Apple was performing much
better than Dell, HP, Blackberry (RIM) and Motorola.
Using the Inventory Turnover formula that shows how
many times a company’s inventory can be sold and
replaced over a specific time period (so the higher the
number the better), in 2011 Apple performed 2 times
better than Dell, 5 times better than HP, 4.5 times better
than Blackberry, and 5.5 times better than Motorola.

In July 2011, Apple sold every ipad 2 it could make,

creating no wastage with unable to sell inventory.

In its recent quarterly reports, Apple introduced a bit

more details on their inventory: in Q1 2014 Apple had
$2.1 billion in inventory (a good number compared to
$170 billion of sales in fiscal year 2013), split in $1.6
billion in finished goods and $525 million in components.
And they are planning again to not have any inventory
unsold in time.

Also according to reports, Apple exited the Q1 2014 with

inventory almost in balance with demand for both the
iPhone as well as the iPad, unlike last year when the
iPhone 5 and the iPad mini were highly supply-
constrained.

How does Apple run its supply chain operations?

In a nutshell, Apple purchases components and materials

from various suppliers, then gets them shipped to the
assembling plant in China. From there, products are
shipped directly to consumers (via UPS/Fedex) who
bought from Apple's Online Store.

For other distribution channels such as retail stores and

other distributors, Apple keeps products at Elk Grove,
California (where central warehouse and call center are
located) and ships products from there. At the end of
product's life, customer can send products back to nearest
Apple Stores or dedicated recycling facilities.

How did Apple manage to have such a great inventory

management?

Tim Cook’s mantra was from the very beginning to slash

inventory, cut down on warehouses and make suppliers
compete between themselves.

"When Cook initially took over Apple's supply chain, he

cut down the number of component suppliers from 100 to
24, forcing companies to compete for Apple's business,"
writes San Oliver from Apple Insider, "He [Cook] also
shut down 10 of the 19 Apple warehouses to limit
overstocking, and by September of 1998 inventory [stock
on hand] was down from a month to only six days."

In 2012, Apple was said to turn inventory every 5 days!

And that was part of the reason the research firm, Gartner,
placed Apple’s supply chain the best in the world, with
Dell and Samsung ranking next in the electronics
category, turning their inventory aprox. every 10 days,
respectively 21 days.

Keeping as little inventory on hand as possible is very

important. Why? Because of costs with warehouses and
competitors possible hits. Technology manufacturers
can’t afford to keep too many products in stock because a
sudden announcement from a competitor or a new
innovation could change everything and suddenly bring
down the value of products in inventory.

By 2013, Apple was dealing with 154 key suppliers (way

lower than Amazon for example), which facilitates better
supplier relationships) and kept only one central
warehouse in perfect data sync with the aprox. 250 owned
stores.

Foreseeing sales levels accurately and not having excess

inventory is absolutely crucial in the computer industry,
especially when new products quickly cannibalize the old.

Not having too many SKUs helps correct forecasting (in

2013, Apple had 26.000 SKUs, way less than other
technology manufacturers). Another facilitating factor is
having a longer product life cycle and Apple has more
than 12 months for its key products.

And forecasting demand doesn’t come only in the form of

what products your customers will buy, but also on what
kind of technologies will be in demand for the next
coming years, allowing the company to reduce costs with
suppliers by placing orders for longer term. This also
leads to creating enough demand for suppliers, so that
other competitors cannot order the components and hence
limiting imitations.

Although Apple was always pushing to have fast

inventory turnover, it made a change in 2011 of not
rushing selling. The change was implemented with the
launch of the ipad 2 and consisted of selling the much-
awaited products the second day after they were delivered
to shops, despite the customer ques in front. This measure
was taken to make sure inventory tracking runs smooth
and there are no errors to lead to inventory inaccuracies.

If you are manufacturing or distributing electronics, you

might have something to learn from the above. We are
also curious to hear your stories too! Contact clara [at]
tradegecko.com if you want your story to be covered here.

Reference;
 www.google.com
 www.apple.com