Strategic Analysis and Recommendations
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Capella University *
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STRATEGIC
Subject
Information Systems
Date
Dec 6, 2023
Type
pptx
Pages
9
Uploaded by AdmiralTreeToad20
[Apple Inc. Strategic Analysis and Recommendations]
[Abdirahman Omar]
[10, 20, 2023]
Introduction
Apple Inc.
•
AFI Framework
•
Analysis
1. VRIO
2. PESTEL
3. Five Forces
4. SWOT
•
Recommended Course of Action
AFI Framework
Analysis
Who are our leaders?
How do we make money?
What is our relationship with our customers?
Formulation
Business Strategy
Global Strategy
Implementation
Make Strategies into action
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VRIO FRAMEWORK
V: Strong Brand and Reputation
R: Design and User Experience
I: Patents and Intellectual Property
O: Marketing and Customer Experience:
PESTEL ANALYSIS
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Political Factors: Taxation Policies
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Economic Factors: Exchange Rates
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Social Factors: Consumer Preferences
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Technological Factors: Intellectual Property
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Environmental Factors: Sustainability
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Legal Factors: Antitrust and Competition Laws
Porter’s five
forces
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Competitive Rivalry(High): The tech industry experiences competition,
include Samsung, Google, Microsoft, and Amazon.
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Bargaining Power of Buyers(Low): Apple maintains customer loyalty
through brand.
•
Bargaining Power of Suppliers(High): Manufacturer like China and
suppliers like Intel hold significant power due to their capabilities.
•
Threat of Substitution(Moderate):
•
Threat of New Entrants(Low): The tech industry has high entry barriers.
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SWOT Matrix
S: Strong Brand: Apple has one of the most
recognizable and valuable brands globally, which
fosters customer trust and loyalty.
W: High Product Prices: Apple's premium pricing
strategy limits its market share, especially in price-
sensitive markets.
O: Emerging Markets: Apple has opportunities for
growth in emerging markets like China and India,
where smartphone adoption is rising.
T: Supply Chain Disruptions: Apple is vulnerable to
supply chain disruptions, as seen during the COVID-
19 pandemic, which can impact product availability.
Recommendations
1. Diversify the Product Portfolio: Introduce innovative products in emerging categories, such as augmented
reality glasses or electric vehicles, while maintaining the core focus on design and user experience. Because
Apple's heavy reliance on iPhone sales exposes it to market fluctuations.
2. Expand in Emerging Markets: Emerging markets like China and India offer significant growth opportunities.
So customize products and pricing strategies to cater to the preferences and affordability levels of consumers
in these markets.
3. Enhance Services Revenue: Services revenue, including Apple Music and the App Store, is a growing
segment. It is best to continue to invest in services, develop exclusive content, and explore new service
offerings like cloud services, healthcare-related apps, and financial services.
4. Focus on AI and Augmented Reality: Artificial intelligence and augmented reality is a new growing field that
can enhance product features and user experiences, offering a competitive edge.
References
•
Grant, R. M. (2019). Contemporary strategy analysis: Text and cases edition. John
Wiley & Sons.
•
Yoffie, D. B., & Kim, R. (2010). Apple Inc. in 2010. Harvard Business School
Case
•
Stone, B., & Seetharaman, D. (2021). The Washington Post. Apple v. Facebook is
a battle of Big Tech titans
•
Johnson, G., Whittington, R., & Scholes, K. (2019). Exploring strategy: Text and
cases. Pearson.
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