apple.inc strategic management caser
Post on 28-Oct-2014
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Innovation distinguishes between a leader and a follower.Steve Jobs
Saad Munir
Zamara Amjad
Ayesha Shaukat
APPLE COMPUTER, Inc.
Something for you…‘’Apple Glimpse’’
Company Mission Statement
Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and internet offerings.
Proposed Mission Statement
Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. “Think Differently” is a concept Apple executes with perfection, Innovation being the core competency of the company. The company is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and internet offerings. A challenge for the company is to shift towards environment friendly production of differentiated goods. As differentiation will ensure that the current profitability of the company is sustained. Apple will also strive to provide added opportunities for growth and enrichment of company personnel.
Proposed Vision Statement
Become the World Leader of innovation in the computer market
Porter’s Five Force Model
Potential entry of new competitors
Potential development of substitute products
Bargaining Power of Suppliers
Bargaining power of Customers
Rivalry among existing firms
APPLE inc. Value Chain
Enterprise Architecture and Portfolio Management
Finance
Sourcing, Staff and Vendors
Facilities and Operations
Procurement
Hardware Engineering
Dem
and
Rela
tionsh
ip
Managem
ent
Inbound
Logis
tics
Solu
tion
Develo
pm
ent
Pro
duct
ion
Outb
ound
Logis
tics
Mark
eti
ng a
nd
Sale
s
Serv
ice
Support
IT EnablementMARGIN
Support
Act
ivit
ies
Pri
mary
A
ctiv
itie
s
Internal Factor Evaluation
Strengths Weight Rate Score
user-friendly GUI 0.1 4 0.4
Highly Innovative products 0.07 4 0.28
Brand Loyal Customers 0.09 3 0.27
Financial Strength 0.05 3 0.15
Steve Jobs Return to APPLE 0.05 3 0.15ITunes and music store is a great source of revenue 0.1 4 0.4
Diversifications in Products 0.05 3 0.15
Internal Factor Evaluation
Weaknesses Weight Rate Score
Weak Corporate structure 0.05 2 0.1
Low e-trade 0.14 1 0.14
Business marketing strategy 0.08 1 0.08
Market Share 0.15 2 0.3
Product sales performance 0.07 2 0.14
Weak Corporate structure 0.05 2 0.1
Low e-trade 0.14 1 0.14
Total Score 2.56
External Factor Evaluation
Opportunities Weight Rate Score
Increase viruses and worms on Microsoft based systems. 0.05 2 0.1
Large population is Brand Conscious 0.05 3 0.15Ties with windows can make huge user shift to Mac 0.06 2 0.12Increasing market of downloaded music and Mp3 Players 0.15 4 0.6Expanding use of the Internet to sell products and services. 0.1 2 0.2
increase in popularity of internet 0.1 2 0.2
External Factor Evaluation
Threats Weight Rate Score
Weak foreign economies and us economies0.04 2 0.08
High Competition between Firms0.1 2 0.2
Risk of product Piracy, copyright infringements0.03 2 0.06
Risk of product obsolescence0.05 2 0.1
Substitute product development0.07 2 0.14
Competitors charge lower prices on similar products
0.1 1 0.1
Total Score 2.21
Porter’s Five Force Model
Apple Dell HP MICROSOFT IBM
Critical Success Factors Weight Rating Score Rating Score Rating Score Rating Score Rating Score
Innovation(Product Design)
0.13 4 0.52 3 0.39 1 0.13 3 0.39 2 0.26
Market Share 0.12 1 0.12 4 0.48 3 0.36 4 0.48 2 0.24
Brand Loyalty 0.09 4 0.34 3 0.26 3 0.26 4 0.34 3 0.26
Customer Service/Support 0.05 3 0.15 3 0.15 3 0.15 4 0.20 3 0.15
Diversification(Product Range)
0.10 3 0.29 3 0.29 3 0.29 2 0.19 3 0.29
Business Structure Efficiency
0.08 2 0.15 4 0.30 2 0.15 4 0.30 2 0.15
Pricing 0.08 2 0.15 3 0.23 3 0.23 3 0.23 3 0.23
History of Name 0.05 3 0.15 3 0.15 3 0.15 4 0.20 4 0.20
e-Store 0.05 4 0.20 3 0.15 4 0.20 3 0.15 2 0.10
Financial Position 0.09 3 0.27 3 0.27 3 0.27 3 0.27 3 0.27
Product Quality 0.13 3 0.39 4 0.52 3 0.39 3 0.39 3 0.39
Concern for Environment 0.05 1 0.05 1 0.05 1 0.05 2 0.10 1 0.05
1 2.78 3.23 2.62 3.24 2.58
Boston Consulting Matrix
World growth Rate = 14.1%
Market Share Dell = 15.3%
Market Share Apple= 5%
Relative Market Share = 5/15.3= 0.326
Boston Consulting Matrix
SWOT
The External-Internal Matrix
Grand Strategy
Quadrant 1Quadrant 2
Quadrant 3 Quadrant 4
Strong Competitive
PositionWeak
Competitive Position
Rapid Market Growth
Slow Market Growth
APPLE Inc.
SPACE Matrix
QSPM Alternative STRATEGIES
Market Penetration
Product Development
Weight AS TAS AS TAS
Increase viruses and worms on Microsoft based systems
0.05 4 0.2 3 0.15
Large population is Brand Conscious
0.05 3 0.2 3 0.15
Ties with windows can make huge user shift to Mac
0.06 3 0.2 2 0.12
Increasing market of downloaded music and Mp3 Players
0.15 4 0.6 3 0.45
Expanding use of the Internet to sell products and services
0.1 3 0.3 2 0.2
increase in popularity of internet 0.1 3 0.3 2 0.2
Opportunities
QSPM Alternative STRATEGIES
Market Penetration
Product Development
Weight AS TAS AS TAS
Weak foreign and US economies
0.04 1 0 3 0.12
High Competition between Firms
0.1 3 0.3 4 0.4
Risk of product Piracy, copyright infringements
0.03 1 0 3 0.09
Risk of product obsolescence
0.05 1 0.1 4 0.2
Substitute product development
0.07 1 0.1 4 0.28
Competitors lower prices 0.1 1 0.1 3 0.3
Threats
QSPM
Opportunities
Threats +
Market Penetration
ProductDevelopment
2.4 2.87
QSPM Alternative STRATEGIES
Market Penetration
Product Development
Weight AS TAS AS TAS
user-friendly GUI 0.1 3 0.3 3 0.3
Highly Innovative products 0.073 0.2 3 0.21
Brand Loyal Customers 0.08-2 0.2 3 0.24
Steve Jobs Return to APPLE 0.04-3 0.1 3 0.12
ITunes and music store is a great source of revenue 0.1
4 0.4 3 0.3
Diversifications in Products 0.053 0.2 4 0.2
Financing option 0.063 0.2 3 0.18
Strengths
QSPM Alternative STRATEGIES
Market Penetration
Product Development
Weight AS TAS AS TAS
1. Weak Corporate structure 0.05 1 0.1 3 0.15
2. Low e-trade0.15 2 0.3 3 0.45
3. Weak Business-to -
Business marketing strategy 0.08 3 0.2 1 0.08
4. Market Share0.15 3 0.3 2 0.3
5. Product sales performance
0.07 1 0.1 4 0.28
Weaknesses
QSPM
WeaknessesStrengths +
Market Penetration
ProductDevelopment
4.9 5.68
NET SALES/ CASH from SALES
ASSET TURNOVER
Inventory Turnover
Gross Profit Margin
Operating Expense Ratio
Net Profit Margin
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