2125276- Business plan
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Kenyatta University *
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BSN101
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Management
Date
Nov 24, 2024
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docx
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41
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Name of the Company
Name of the Student
Institutional Affiliation
Course Title and Number
Name of the Instructor
Assignment Due Date
Table of Contents
1.0 Introduction
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3
1.1 Executive Summary
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3
2.0 Mission, vision, and description for innovation
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4
2.1 Mission
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4
2.2 Goals
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4
2.3 Vision
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4
2.4 Values
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4
2.5 Company Description
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5
3.0 Industry Analysis and Trends
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5
3.1.1 History of the industry
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5
3.1.2 Size of the industry
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9
3.1.3 Evolution of the Company
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9
3.1.4 Trends in the Industry
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12
3.1.5 Competitive advantage analysis
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13
3.1.6 Barriers to entry into the market
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15
3.2 Environmental Scan
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15
3.3 Products and services
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17
3.3.1 Product Marketing and Goals
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17
3.3.2 Pricing
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3.2.3 Customer value proposition
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4.0 Strategic Positioning, Strategic Intent (Measurable Goals), Competition strengths
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And weaknesses
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4.1 Market Analysis
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4.2 Strengths of the Company
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4.3 Weaknesses
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4.4 Threats to the Company
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5.0 Product / Service
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5.1 Product life cycle
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6.0 Management Plan
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6.1 Organizational Structure
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23
7.0 Marketing strategy
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26
7.1 Competitor Analysis
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7.2 Target Market
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7.3 Apple's marketing strategy distribution
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7.4 Apple's marketing plan promotions
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7.5 4Ps or marketing mix of Apple Inc
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7.5.1 Price
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7.5.2 Product distribution
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7.5.3 Product promotion
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7.5.4 Place
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32
8.0 operations plan
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33
9.0 Financial analysis
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33
9.1 Revenue from past sales
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35
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9.2 Projections for five years
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36
9.3 Capital Source
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36
10. Plan for Implementation
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37
11. Conclusion and Recommendations
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37
12.0 References
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39
List of figures
Figure 1 Management structure
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Figure 2 Balance sheet
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Figure 3 Growth projection
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1.0 Introduction
Apple Inc. is one of the world's major electronic companies. This American Company has had enormous
success in the past due to its senior managers' number of innovative strategies. Apple has been named the world's most valuable brand, assessed at $118.9 billion according to Friedlander (2006). Despite the current economic problems in the United States, the Company's share price has stayed reasonably steady. Their marketing policies have helped the Company obtain immense loyalty to the international market, particularly emphasizing social media marketing. Although the Company's future continues to be uncertain, it does. Increasingly competitive is the electronic market. Several Chinese companies that imitate and sell top marks on the worldwide market have aggravated this rivalry. There has also been a lot of demand from consumers. You have several options when you wish to buy anything (Metcalf & Manktelow, 2000). Apple has to develop a comprehensive business plan to address these problems. In its product creation and distribution techniques, it must remain creative.
1.1 Executive Summary
Apple, Inc., which started in 1976 in the computer business with Steve Wozniak and Steve Jobs, has endured twisting and turning. The layout of successful tactics contributed to the Company's position on the market in the brand. The Company's products include, but are not limited to, MacBook, laptops, iPhones, iPods,
iTunes, and smartphones. Its purpose, visions, and competitive advantage define the strategy and plan of the firm. The firm concentrates on being the finest PC manufacturer in the world. One of Apple's financial objectives is preserving and protecting significant renewable revolutions in the technology innovation sector. The Company's key competence is that it provides innovative goods that respond to the current demands of young people's growing economies. The scenario analysis by Apple suggests that it is possible to build its software, strong brand loyalty, product loyalty, and rapid development in the markets which are favorable internally. The industry study shows that consumers and businesses' use of computers and their related goods are growing strongly. For example, worldwide, commercial usage of PCs rose between 2004 and 2008 from 114.4% to 173.3%. Microsoft is Apple's biggest rival in OS, with worldwide OS usage accounting for over 90 percent. Overall, Apple is more capable of taking over the most significant market.
2.0 Mission, vision, and description for innovation
2.1 Mission
Apple Inc.'s aim and task are to develop the world's most excellent PCs, including Macs, professional applications, iWork, iLife, and OS X. (Blodget, 2013). With outlets like iTunes Online and iPod, it is the leading
digital music revolution. With its App Store and iPhone technology, Apple is focusing on reforming the mobiles sector. The future of computer equipment and mobile media is also defined utilizing its iPad gadget.
2.2 Goals
Non-financial goals
To safeguard and sustain a robust renewable industry revolutionary
Provide easy and peaceful answers to complex issues that individuals in the computer and communication sphere are unconscious.
Sustainable implementation of an established supply chain.
We are moving to more recent developments, like the market for electronic cars.
Financial goals
Increased product lines and high product and software requirements.
Expanding sales and provision of professional services continually.
2.3 Vision
As it appears on its website, Apple, Inc.'s mission is that Apple will provide its revolutionary hardware, software, and internet services to students, educators, creative professions, and consumers worldwide.
2.4 Values
The values of Apple, Inc. may also be accessed on its corporate website and include: We think we're making excellent items on the face of the earth. We trust the simple, not the difficult. We believe that the leading technology underpinning the things we produce must be owned and controlled. We only participate in markets where we can make a significant impact. We think that we say no to tens of thousands of initiatives so that we may focus on the handful that matter to us. We trust that our groups will work together closely and pollute each other to create so that others can't. In every group in the Company, we are nothing short of excellence, and we have the honesty to admit that when we are mistaken and courageous to change.
2.5 Company Description
Apple Inc. was begun by Wozniak and Steve Jobs, who were then college abandoners, as a modest technological start-up. In 1976, the technology and innovation industry constantly stabilized from causes including several technical restrictions (Rawlinson, 2015). The firm almost bankrupted in 1996, despite its revenues and earnings showed a promising future. However, Apple gained a strong foothold when producing technologically capable and advanced non-PC instruments (Lusted, 2012).
Apple Inc. was founded as the Apple Computers brand from the earlier identity. This was when methods for producing advanced non-PC technological gadgets were developed (Rawlinson, 2015). The
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technology company is now a worldwide company, with its head office in California. In a wide range of consumer items, Apple Inc. succeeded in satisfying its diversity. The main focus is on personal computers, online services, software and hardware modeling, production, and sale.
Apple goods are currently at the top of the communications sector ladder. It has a wide range of physical products, including smartphones, iPhones, iPods, and smartwatches, as well as world-renowned laptops and MacBook PCs. After Samsung Electronics, Apple is the second biggest technological business. However, the firm is the greatest in terms of total assets. It is also one of the top three well-known telephone
companies (Lusted, 2012).
3.0 Industry Analysis and Trends
3.1.1 History of the industry
Steve Jobs, Steve Wozniak, and Ronald Wayne formed the Apple Computer Company on 1 April 1976. Apple I, a computer entirely manufactured by Wozniak, is the first product of the business. Jobs sold a
few hundred dollars to fund the construction of its sole motorized transit system, the VW Microbus, and his HP-65 calculators were sold to Wozniak for 500 dollars US (2.274 dollars in 2020). In July 1976, in the Homebrew Computer Club, Wozniak showed his prototype. The Apple I was sold as a CPU, RAM, and bare
text video chip motherboard—a basis kit idea that would not yet be commercially available as a full-scale, personal computer. Shortly after its introduction, it was sold for 666.66 dollars (equal to 3,032 dollars in 2020). 180 Later, Wozniak stated that he didn't know about the coincidence mark of the 666 beasts and that the price was raised because he preferred "repeating numerals." On January 3, 1977, without Wayne, Apple Computer, Inc. was formed, leaving and selling the Company's stake to Jobs and Wozniak for $800 only 12 days after Apple was co-founded. Multimillionaire Mike Markkula supplied vital knowledge in business and
financing for jobs in Wozniak during the Apple incorporation of US$250,000 (equivalent to US$1.067 683 in 2020). Revenues rose dramatically, doubling every four months over the first five years of business. Annual sales grew from 775,000 to 118 million dollars between September 1977 and September 1985, with an average yearly growth rate of 533 percent.
On 16 April 1977, at the inaugural West Coast Computer Fair, the Apple II was also created by Wozniak. Its cell-based color graphics and open architecture differentiate it from its main rivals, the TRS-80
and the Commodore PET. In 1978, the release of a 5+1⁄4 inch Disk and Interface dubbed Disco I was replaced by earlier variants for Apple II using regular cassettes as storage devices. The Apple II was selected
as the desktop platform for the first business killer application: VisiCalc, a 1979 dial-up software. VisiCalc developed an Apple II corporate market and provided home users another incentive to purchase Apple II: office compatibility. Apple was a distant third-place contestant to Commodore and Tandy before VisiCalc.
Apple had a computer designer staff and a production line at the beginning of the 1970s. In May 1980, the firm released the Apple III to the commercial and corporate sector. To compete with IBM. In December 1979, jobs and other Apple staff, including Jef Raskin, a human-computer interface specialist, went to Xerox PARC and saw the Xerox Alto presentation. In return for the opportunity to purchase 100,000
shareholdings (5.6 million split-adjusted shares as of 30 March 2019) of Apple at a pre-IPO price of $10, Xerox offered Apple engineers three days' access to PARC facilities.
Jobs was immediately convinced of the graphical user interface (GUI) of future computers, and Apple Lisa began developing a GUI. However, because of infighting in 1982, he was pushed by the Lisa Team. Jobs then took over the low-cost Macintosh project of Wozniak and Raskin and reimagined it to be a cheaper, quicker, graphical machine than Lisa. In 1983, Lisa became the first GUI-sold personal computer, but owing to its high costs and restricted program titles, Lisa failed commercially. She would then reproof itself in 1985 as the high-end Macintosh and stopped in its second year.
On December 12, 1980, Apple (ticker "AAPL's"), which is more than $100 million and was more capital than any other IPO since Ford Motor Company in 1956, was able to sell 4.6 million shares for $22 ($0.39 per stock splits as of March 30, 2019). After the day, a stock price of $ 21 per share and a market limit of $ 1,778 billion produced 300 millionaires.
The first personal computer marketed without the programming language, Macintosh, debuted Apple
in 1984. Its premiere was marked with "1984," a TV advertising worth $1.5 million by Ridley Scott, broadcast during Super Bowl XVIII's third quarter on 22 January 1984. Apple has now acclaimed this event
as one of the biggest TV publicities ever by TV Guide. CNN has been named a masterpiece for Apple's success. Macintosh originally had solid sales but within the first three months started to shrink drastically owing to its expensive cost, slowing down performance, and a restricted variety of applications offered. At the beginning of 1985, this sales slump led to a power struggle between Steve Jobs and John Sculley. He had already been hired for jobs two years earlier using the famous line, "Would you like sugar water for the rest of your life to be sold or come with me to change the world?"
The board directed Sculley to provide jobs and to make costly excursions into unproven products. Jobs tried to get him out of his leadership roles in Apple instead of being led by Sculley. According to Jean-
Louis Gassée, Sculley found out that Jobs was trying to plan a coup, which caused the Apple executive to join the Sculley team and remove jobs from all operational tasks. Jobs quit Apple in September 1985 and brought NeXT Inc. to find several Apple workers.
Decline and reorganization occurred during 1991-1997. The Pen Lite is the earliest Apple tablet prototype. The project was created in 1992 to put the Mac OS on a tablet - however, it is canceled for the Newton. The popularity of the low-cost consumer models of Apple, notably the LC, has also led to their more expensive machines being cannibalized. Management created numerous new marks and sold almost identical equipment at various pricing points for different regions to deal with this problem. These were the Quadra-high-end, the Centris-high-end, and the Performa-consumer range. This led to substantial market confusion since buyers did not comprehend the difference between models. Apple also experimented with various failed consumer-oriented devices during the 1990s, including digital cameras, portable CD audio players, speakers, video consoles, the e-World online service, and TV appliances. In the troubled Newton Division, enormous resources were also committed based on the imaginary market projections of John Sculley.
The Company later experienced a downfall. Studies of Apple's history reveal that Apple has encountered upstream and upstream and the entire trip, as is the case for most firms. By 1996, the Company's outstanding reputation seemed to stop over time. No new items were available on the market. In addition, there was a massive rivalry between everyday objects and other firms that were on the market.
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However, Apple computers looked to be tough to hold their place in the business for a long time in the same
condition. However, this was not the Company's end.
According to the company history of 1977- 2011, This Apple corporate version is what most of you read. From Apple Watches to the emergence of advanced gadget technologies. Apple's period and the product gave the business true splendor. We witness even now the prolonged version of this age.
In conclusion, the history of Apple Inc. is extensive. There are periods in Apple's history in which the firm took the incorrect judgments when it celebrated its achievement and zeal. Steve Jobs is one of the most significant successful individuals. He had a goal to make Apple one of the finest IT businesses, and he was not just the Company's original member. He succeeded in bringing all of his Company's achievements at the end of the day. He was without question one of the world's most influential people. In particular, what do you and Apple Inc. generally think of it? Share your views below to guarantee a good debate.
3.1.2 Size of the industry
Apple Inc. (AAPL) was the first market-based corporation in the world to register $1 trillion in August 2018, and around two years later, the first US publicly listed Company to exceed $2 trillion. 1 The market cap of Apple climbed to 2 08 trillion dollars as of March 15, 2021. We give five additional items that
the great firm of technology is larger or equal in value to put that stunning 2 billion dollars amount into context.
Global GDP in 2019 was at $87,799 trillion, according to the World Bank latest statistics, and Apple's cap on the market amounts to 2 36%. . Apple's market value in 2019 is 9.7 percent composed of the US, the largest economy in the world with a GDP of $21.43 trillion. Only seven nations exceed Apple's market worth by yearly GDP data. Italy, Brazil, and Canada are GDP countries that are directly under $2.08 billion. In addition, for 263 nations, regions, and groupings of countries of comparable characteristics, the World Bank collects GDP statistics. More than $2.08 trillion in GDP per year is generated by 216 or 97.3% from them.
As of March 15, 2021, a total of US$45 57 trillion was exchanged in all the shares on the leading stock exchanges. Apple accounts for 4.56% of the total. Only 11 of the world's top 72 bills have more
market capitalization than Apple. The Frankfurt Stock Exchange, the South Korea Stock Exchange, the Stock Bourse, and the Swiss Stock Exchange are directly after Apple.
3.1.3 Evolution of the Company
The firm was founded as a tiny personal computer maker with Steve Jobs, Steve Wozniak, and Ronald Wayne, and its initial product was hand-crafted by Wozniak himself (Apple History, 2015). Wayne sold his shares a year after a simultaneous investment of US$800 to an investor called Mike Markkula and helped Apple develop its business and put US$250,000 into Apple (Apple History, 2015). The firm's revenues increased exponentially throughout the first five years, doubled every four months (Apple History, 2015). In 1977 and 1980, Apple continued to expand and release new computer models to compete in the sector of company computers. Apple went public before the end of 1980, and its company stock was offered
US$22 a share (Apple History, 2015).
In 1984 Apple started the Macintosh, which sold at first, but did not increase or even sustain its sales
several months after that (Apple History, 2015). This failure was the high retail price and the absence of software alternatives (Apple History, 2015). All this changed with the advent of LaserWriter and PageMaker, a cheap printer and publisher, which is extremely attractive to companies, authors, and publishers combined with Macintosh capabilities (Apple History, 2015).
A year later, John Sculley, CEO, was in a power-related struggle (Apple History, 2015). This caused Jobs to leave and sell all of Apple's shares to USD 70 million, except one. Jobs founded his own NeXT business, which focuses on the programming of software (Apple History, 2015). Sculley also had a strategy to implement a profit margin of 55% for Apple products (Apple History, 2015). This technique failed as soon as PCs were equivalent to Macintosh's and sold at a factor of a retail price for Macintosh (Apple History, 2015). At that moment, Apple experienced a significant loss and returned to the darkness. To overcome this loss, Apple chose to regain Microsoft's portion of the PC industry by working together with IBM and Motorola to introduce a new platform on the market (Apple History, 2015). It also started an e-
mail platform called e-World that was part of their diversification plan for the Company (Apple History, 2015).
In 1996, NeXT won an offer for Apple to develop firmware for the operating system (Apple History, 2015). NeXT was purchased soon afterward, and Steve Jobs returned to Apple (Apple History, 2015). He was named temporary CEO one year after his return four years later. He became permanent. The return of Jobs was a time-changing business for Apple owing to its new concept of design and unrivaled goods (Apple History, 2015).
In 1997, Microsoft CEO Bill Gates and Steve Jobs resolved to settle a long-term legal struggle over the breach by putting the office suite onto Apple devices to become the default browser for Apple Macs (Arthur, 2011). Apple utilized this investment to make its goods more innovative and engage in the education industry (Apple History, 2015). Finally, the iMac was launched, an all-new computer with an appealing, colorful plastic shell design (Apple History, 2015).
2001 was packed with Apple's important events. It has begun with the introduction of Mac OSX, a brand-new and easy-to-use computer firmware, which was revolutionary in its days owing to its stability and the quality of the visuals on the interface (Apple History, 2015). Later in May, Apple announced establishing a chain of retail locations aimed at helping to build direct relationships with its consumers and better promotion for their goods because Apple products had not been displayed by third-party retailers (Apple History, 2015). In October, the most significant event was announced, and the iPod, the digital music
player, was launched (Apple History, 2015). In the first quarter of 2000, this iPod had crashed sales and brought Apple's overall income from $1.9 billion to $3.2 billion in the same period 2001. (Apple History, 2015). Apple said three years later that it owned 76% of the music player market. Apple launched the iTunes
store; a digital media library centered on music to meet the demand for digital music songs (Apple History, 2015). In only three years from its inception, Apple sold 1,000,000 pieces on iTunes and 10,000,000 tracks by 2010. (Apple History, 2015).
In 2007, Apple joined the cell phones industry with the introduction of the iPhone, which is widely praised for its unique appearance (Apple History, 2015)—followed up by the iPhone in 2010, which was essentially a larger iPhone without calling capability, which targets those who are searching for a lightweight, large-screen devices that can perform most of the work on their PCs (Apple History, 2015). An
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important historic occasion took place later in 2010. (Apple History, 2015). Microsoft is Apple's leading opponent and long-standing computer dominant market, lost its share value and revenue position when Apple first exceeded Microsoft's share value and total revenue (Apple History, 2015). It was not at all expected back in the 1980s and '90s. Still, since Apple remained very successful in numerous sectors, particularly in mobile phones, Microsoft failed in many areas, especially in the internet search engine industry (Apple History, 2015). Apple continued to manufacture its products successfully and launched new items like the latest Apple Watch, even after Steve Jobs departed from Apple in 2011 and Tim Cook's position (Apple History, 2015).
3.1.4 Trends in the Industry
Among the significant trends in apple, the company is content diversification. Apple is supplying a substantial amount of infrastructure essential to customers for accessing and using technology, through its laptops, smartphones, and tablets, to mention just a few, as a producer of devices. Apple can better manage the environment in which its gadgets function by developing iTunes and the App Store. An Apple system, for instance, could utilize applications used by its devices and, in the same way, supplied iTunes with a method of secure access to Apple's ecosystems, such as music, movies, podcasts, and other material.
Now, it seems that the firm has moved into the content generation area by introducing Apple Arcade and Apple TV+. As far as Apple Arcade is concerned, it cooperates with many developers to offer this subscription service. On the other hand, the firm was responsible for creating original TV shows and related material for that new service for Apple TV Plus. It seems that Apple is ultimately expanding its position from device maker to ecosystem regulator by launching those two new services, and that content producer is
now included. Content production might be argued for not being a logical step forward for a gadget maker, but the reality is that content is where much attention is being given now and in this age. Hardware and infrastructure tend to be ignored after installed, and content — what we look at and do on our devices – is highlighted. In addition, when consumers keep their equipment for at least two years, this implies that Apple
is unlikely to see most of its customers buy a new gadget, potentially for three years, following its first one-
time acquisition (Rawlinson, 2015).
Secondly, there is the lowering of prices. Prices for their products have increased over the last three or four years, notably for Apple devices. For instance, the iPhone XR was priced at about USD 749.00, the previous year's smartphone starting level. However, the pricing of the iPhone 11, which will begin this year at USD 699.00, is already available. This tendency is visible in most Apple line-ups, where pricing either stays the same or is cheaper than their predecessors for new launches. In an increasingly saturated consumer
equipment market due to the low sales in all major manufacturers in recent years, industry analysts suggest that the expenses of increasingly costly Apple devices, exceptionally marginal feature improvements, and performance improvements, have perhaps not been justified by consumers. As a consequence, you've kept your gadgets longer. Consumers may be encouraged to purchase when Apple lowers its prices (Lusted, 2012).
The third trend is introducing more options to satisfy diverse customers. Apple offers a little more choice for its gadgets. As far as the iPhone is concerned, for example, the buyers are given a choice of colors to pick in addition to the three available and new lines. The Apple Watch is the same. However, in some features which were highlighted during the product launch event, the ability for consumers to better adapt devices to their needs and lifestyle was more evident:
Camera capability to capture ultra-wide-angle images (iPhone)
Improved waterproofing (iPhone)
Compass and drop-detection (Apple Watch)
Electric sensors (Apple Watch).
The breadth of features and device options will help them to better align themselves with their consumers instead of using the features. Therefore, consumers can become even closer to their devices because the functions they require are featured and never realized they wanted (Denardi et al., 2019).
Apart from current technology trends, Apple may distinguish out from the electronics industry. Drones have recently become a technology that everybody wants to acquire. As Apple is recognized for its high quality of video and camera, it may profit from it and produce drones for its consumers. Apple takes its major
competitors Samsung and Microsoft, a step further by doing so. In other words, by bringing drones to its consumers, it will make more income
3.1.5 Competitive advantage analysis
Apple and other computer developers are relying on providers' software and other components. Processors are the fundamental elements of computers, as the basic computer performance is typically linked to the processor speed. The merger between Apple and Intel enabled rapid development of the CPU. Intel builds new central processor units every three months. To offer environments for diverse applications, computers also need operating system software. Microsoft Inc. dominates the operating systems' market share and emerges as Apple's principal opponent. Microsoft Windows is used as OS by more than 90 percent of personal computers. A monopoly competition is characterized as the structure of the PC industry. It is simple for rivals to enter the market, while the current businesses make some differentiations. There are also minimal obstacles to admission.
Apple has a stronger competitive position in smartphones, tablet computers, and media players based on industry assessments. Sadly, Apple has been lagging in the establishment of absolute market domination in personal computer manufacture. An industry evaluation serves to analyze the position of Apple in a variety of goods; PCs, tablets, media players, and smartphones in computer and technology devices industries. While technology has progressively gone beyond the scope of tablets and laptops, Apple's PC offering in the years 2000, 2007, and 2009 was not commercially viable. After 2009, however, the firm has undertaken a successful and significant transformation with innovative technology - app store, software, iPods, wristwatch, and TV. This
achievement preserves the position and prestige of the firm in the highly competitive industry (McGrath, 2013).
For ten years now, Apple has been evaluated for core skills as the most successful inventive Company (beginning 2006). This is due to the emergence of different iPods, iMac, and iPhone devices. These goods are distinctive, following the present hypocrisy of the high-tech computing and communication gadgets that rely primarily upon. Apple acquires important brand accreditation via the creation of electronic, film, video, and music recordings.
Apple may create and adhere to the product and brand line of Macintosh. The firm designs the consumer
and ultra-thin MacBook, for instance. It is also highly portable and has outstanding functionality on a laptop.
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Most products of the firm have been effectively characterized as consumer and professional devices that can meet the computer requirements of the most demanding users.
Generally speaking, Apple Inc. has the power to integrate its vital center capabilities to the most inventive products offers. According to analytical writing, the competence of the center refers to the skills and talents of any group, recognizing it as offering a competitive position against top rivals. It remains evident to this aim that Apple is notably at the forefront of its analysis of its skills in design and development.
The Company will work closely with its design team, perturbations, and suppliers to build partnerships and connections necessary to ensure that customers' manufacturing of advanced technology and communications devices may be satisfied (McGrath, 2013).
3.1.6 Barriers to entry into the market
There is a relatively minimal danger from the new entrants in this business who can effectively impact market share. That is because of the very high price of building a well-respected and trustworthy firm within the
industry (Mavrick, 2015). The creation of a brand reputation exceeding current brands also has substantial costs (Mavrick, 2015). Any new entry to the personal computer or smartphone industry should have considerable cash for research, development, and production before it even enters the market (Mavrick, 2015). Since the beginning, customers have been loyal to current firms, and it would require a considerable amount of marketing
money to breach this loyalty (Mavrick, 2015). While a new firm can join the market and succeed, it isn't particular at this moment (Sophlee, 2015). Apple has also built a supply chain to its advantage and vigorously defending new entrants against low-end interruption (Sophlee, 2015). New entrants would not be able to compete given the cost structure of the Apple supply chain (Sophlee, 2015)
3.2 Environmental Scan
3.2.1 Opportunities
The main possibilities accessible to the firm are identified in this part of the SWOT analysis by Apple Inc. Opportunities are outside variables, such as the digital content market on-demand, depending on the industrial environment. These variables impact corporate strategy orientation. The main possibilities accessible to the firm are identified in this part of the SWOT analysis by Apple Inc. Opportunities are outside variables,
such as the digital content market on-demand, depending on the industrial environment. These variables impact corporate strategy orientation.
The distribution network for Apple Inc. is expanded. This is due to the weakness of the firm's restricted distribution of products like smartphones and tablets. This SWOT analysis highlights the necessity to change the distribution strategy of the technology firm. A broader distribution network can enable Apple in the worldwide market to reach more people. In this connection, the firm has the chance to expand its sales volumes,
notably for mobile goods, through aggressive marketing. As the study of Apple Inc. by PES TEL/PESTLE demonstrates, this potential is connected to the growing need for mobile access.
To complement current products, such as online services, the firm also can explore new product lines. The Company can create and release new goods as it has previously accomplished with the Apple Watch with additional innovation. Creating new product lines helps corporate growth, particularly in the worldwide market versus other technological companies. Thus this element of Apple's SWOT analysis shows that despite tough competition, the Company has substantial development potential (McGrath, 2013).
3.2.2 Patents and intellectual property rights
Apple has taken full advantage of the technology patent system since Steve Jobs decided in 2006 to protect the iPhone before its first release. According to former General Counsel, Nancy Heinen of the business, "[Steve Jobs] view is that if someone at Apple can envision it, then we should apply for a patent. The broad portfolio of Apple's patents shows some patterns in R&D but also shows the Company's intention to employ its IP to prevent competitors from either pulling out the existing technology or first bringing the 'original' ideas of Apple to fruition.
Over the years, Apple has produced patent and trademark applications that give insight into the past and current development of the product. They show the firm that IP protection is a priority. Apple owns around 1,000 registered trademarks in the US and over 350 unregistered trademarks but filed according to the ktMINE IP platform search. Although it is not known as complete, just a tiny part of that is a registration list released by Apple. As shown in the figure below, Apple has applied for patents in the past twenty years and has been awarded globally.
Apple has controlled the industry with popular and occasionally groundbreaking product designs and utilities, and the analysis mentioned above of its IP business indicates further surprises. But is it the revolutionary pioneer or the patent strategist committed to success in its final legacy? Apple takes a lot of effort to preserve and utilize its IP for a competitive edge, from concealing trademarks and patent applications to launching legal proceedings for rival technology companies. Innovation is the Company's boast, yet originality and ingenuity may be undermined in the domain of technology.
3.2.3 Failures in the industry
Steve Jobs was famous for his deep perfectionism in Apple's early days. Apple has developed the initial Macintosh computer for over three years because Jobs has asked for every aspect to be endorsed. This search for what he saw as perfection led him to terminate talented workers without reluctance to his aesthetics and scrape almost-finished projects that did not match his elegance requirements.
While Steve's focus on detail and his unwavering determination undoubtedly helped the firm produce some of the world's finest technical products, his leadership style was less than desirable at the start. It negatively impacted the people who worked in the company. Ultimately, the behavior of Jobs and his internal power struggle over differences between himself and CEO John Sculley resulted in his withdrawal from the firm. This episode was catastrophic in the view of Jobs.
3.3 Products and services
In addition to the line positioning, difference points, and target markets, this portion specifies the marketing projections and product objectives for Apple Inc. Apple Inc runs the consumer electronics market. The Company is one of the world's major mobile and personal computer manufacturers. Its renowned goods like Mac book, iPhone, iPad, tablets, and iPod make it a well-known choice. It now offers cloud solutions like I Cloud, iTunes Store, the Mac App Store, and IOS Store to extend its product portfolio (Lashinsky, 2012). The Company also sells various software for personal computers and smartphones such as OS X, iWork, or Life. This Company's central market is in the US and portions of North America. However, the Company has entered specific new needs successfully, including China, India, and Brazil (Sutherland, 2012). The brand also has confidence in its worth in European markets. The Company extended its product portfolio on the market, as
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indicated in the preceding section. It offers technologies for security management at airports, supermarkets, hospitals, and many other institutions facing terrorist danger.
3.3.1 Product Marketing and Goals
Apple's marketing objective is to take full advantage of the popularity of its goods while establishing a basis for extra income. The product and marketing objectives are outlined in the following areas:
Current markets: the markets will be further developed through diversified brand distribution at the retail locations, which are accessible to many individuals.
New markets: the app and software industry will be expanded to African and Asian markets in the next three years. This adds to around 41 percent worldwide presence.
New products: Apple will extend its brand footprint to electric car manufacturing. Apple will achieve this in developing new idea innovation in electronics and computer systems for application in sustainable engineering. Four years from the current fiscal year, the product is projected to be accessible on the market.
3.3.2 Pricing
Price is another crucial aspect of the strategy of the marketing mix. By delivering excellent products, Apple is doing everything it needs to provide its consumers' value for their money. In addition, a company's performance also depends on its pricing policy, which affects the Company's benefit or loss.
Due to the excellent quality of its goods and the Company's creative character, Apple has a recognized position on the market. This enables Apple to charge its items at exorbitant rates. Irrespective of the cost of Apple's products, consumers are prepared to acquire them. Increased profit for Apple and increased value for the firm result from the premium pricing approach. Apple may, however, make more extensive sales for lower-income users by creating cheaper items.
3.2.3 Customer value proposition
Research by Kantar ensures that the quality recommendation for tablets for purchasers continues to be incredibly murky. The United States tablet entry in 4Q13 was 37%, 54% up against the same time in 2012. (Purcher, 2014). But year-over-year progress is beginning to be more accessible. The research notes that 53% of US purchasers meeting during the event indicated they would not buy a tablet in the next 12 months, and 34% said they would not be able to buy a tablet over the same period of allocation.
The mission for the pioneers of the business tablet is to convey more precise signals that show customers why they should take the dive and acquire a tablet. Apple is so well in front of analysts and has launched a busy notice cruise about various verses – fantastic single worlds of how consumers unite with their iPad. Macintosh offers a wide range of stories that delineate different people and businesses who use the iPad. The only firm that does this is Apple's.
4.0 Strategic Positioning, Strategic Intent (Measurable Goals), Competition strengths
And weaknesses
4.1 Market Analysis
Apple Inc. is highly competitive in the present market. For the market study, a SWOT analysis may be required. Apple Inc's strength has been demonstrated in several ways. This Company's ability to expand its electrical items outside PCs contributed to its market sales. This Company has designed a quality assurance unit in all its subsidiaries to ensure quality products are delivered to its consumers to preserve the quality of its various electronic items. It has developed a niche market, making its brand renowned worldwide due to its capacity to provide exceptional items to the client (McGrath, (2013).
The iPhone and I Cloud are some of its latest products that show that they can provide consumers with satisfaction that goes above the market's expectations. Despite the above qualities, this Company had several flaws that hindered its development to a certain extent.
Environmental management is one of the critical problems this business has not handled adequately (Reilly, 2004). The goods of this Company are recognized to be very environmentally
hazardous. The atmosphere is challenging with old handsets, computers and other goods.
Apple Inc.'s global market activities provide a wide range of options. A vast untapped market in Third World nations is one of the opportunities this business has had. Stable economic development in the leading economies implies that this Company is increasingly able to extend its sales in nations like Europe and the US. With this economic development, customers will always spend enough on luxury products, like iPhones and iPads. In the market for superiority, the Samsung Galaxy Note 10.1 and the Apple iPad 3 compete. Some dangers are worth considering in this business (Phillips, 2012). The greatest threat that the Company confronts in this business is perhaps technology. It's a horror to see what specific competitors can achieve with the same technology. The tough competition of the other companies is another challenge to this Company.
4.2 Strengths of the Company
Classes Product ranges - Apple offers a variety of products which makes it profitable. Mac, iPod, iPhone, iPad, Apple Watch, Apple TV, Software, Electric Vehicles, Apple Energy are among the product lines. Apple guarantees that it can give its consumers contemporary technology with this diverse portfolio. Some are cash cows, among these items. This indicates that these goods are the most popular product and earn the most income. The diverse portfolio also guarantees revenue stabilization. For a certain period, one product may fail, while at the same time, another might be sold well. Apple also controls the risks of product failure by offering a range of goods.
Apple is exceptionally mindful of hiring honest and reassuring workers who work hard to
assure quality when recruiting. Careful staff selection. Apple strives to identify those staff that is incredibly committed and idealist. "Apple seeks positive thinking people who do not say "no," people who can think out of the box, and people who can make it hard to achieve," according to
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Forbes. Apple, therefore always remains high in quality and offers its consumers innovative and creative goods. This allows Apple to retain a strong image of the brand.
New product development - Apple does not end when a final product is launched. Shortly
after completion and launch, they begin working on producing a new product. By tracking the sales of your goods, they do not spend time. "We are already working on the next one when we debut a product. And perhaps the next, or the next." - Apple's CEO Tim Cook said. [5] This is one of the highest findings in our Apple Inc. analysis.
Strong Brand Image — Apple has provided its customers and consumers with great products from the start. A customer purchased an iPhone without any internal difficulties for a long time. With this particular provision of quality, it has been well known for the brand. "Apple has as much worth as Microsoft," according to Forbes Magazine. Apple is placed #1 among the most beloved brands on its ranking.
Computer World says: "Apple is the most successful corporation in history." "Apple's the world of the computer." Some facts were listed. Apple has created records, solved phone theft issues, and has a vast collection of apps on the market. Apple is one of the most valuable companies in history.
Strength Financing – It has a solid financial base, enabling it to finance its investments and research to develop its products and services. Apple announced revenues of $74.6 billion in February 2015 and a quarterly profit of $18 billion in February 2015. The highest income in history is claimed to be. It has a lot of money as its income is kept. As of September 2016, it was worth USD 96 36 trillion. This retained income account can help you recover from any future financial downtime. It may also be utilized as support towards a more robust R&D department.
4.3 Weaknesses
Price higher than other intelligent phones – Since Apple utilizes a pricing approach, the costs of Apple products are constantly outside the reach of the general public, mainly iPhones. The product prices were consistently higher on the market than any other well-known brand like
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Samsung, HTC, etc. For middle-class folks, there is a large market. To retain its brand image, Apple avoids this area.
Limitations - When you wish to link it with devices from different brands, it is not versatile. You cannot install the software from other sources than your suppliers on Apple iPhone.
Fewer variations in the phone design - iPhone 1 and iPhone 7 don't change much regarding their appearance. Their first look didn't differ much. This provides the sensation that, years after years, identical items are used. Conversely, other manufacturers offer HTC, ASUS, and Samsung goods with distinctive and beautiful smartphones.
The narrow line of products - We found the product line relatively limited in the vulnerability part of Apple Inc. SWOT. The same looks like iPhones with updated functions have
been developed over the last decade.
Niche Customer Target - The niche markets of a firm are tiny. In this example, the smartphone or computer industry is not significant in Apple's market. Apple Inc. targets mainly high-end consumers, which prevents medium-sized customers who are genuinely a large market.
Niche Customer Target - The niche markets of a firm are tiny. In this example, the smartphone or computer industry is not significant in Apple's market. Apple Inc. targets mainly high-end consumers, which prevents medium-sized customers who are genuinely a large market.
4.4 Threats to the Company
The Tablet and Smartphone Market potential – As I said before, demand for smartphones has decreased by 3% in smartphone sales. Some reasons appeared most significant. There are several reasons. This means that if a person gets a smartphone, they will use it for 2.5 to 3 years. No new grounds can be seen for spending a significant amount of money on a new mobile telephone while the current one works quite effectively. Selling the smartphone is slowed down.
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New rivals - The most significant danger is emerging powerful competitors that provide a
reduced rate of the same sort of items. Alternatives are available. Samsung offers both luxury items and inexpensive gadgets. Sony, Asus, and Nokia are also developing bigger competitors.
Aggressive competition among Blue-Chip businesses, which makes the sector more competitive, is the rising number of Blue-Chip companies. China offers items of the highest quality at a meager price compared to Apple products.
Imitation - The danger to renowned brands throughout history has always been significant. When Apple presents a new product, another company introduces a duplicate of a substitute product. Technology is sometimes robbed. Many counterfeit items are also available on the market. In the Chinese market manufactured by Chinese producers, 6 6 fake iPhones have been recently uncovered.
5.0 Product / Service 5.1 Product life cycle
At this stage of its product life cycle, Apple's iPhone is growing.
Quarterly profits from Apples continue to rise and exceed market forecasts. The iPhone continues year after year to surpass their competition and meet the expectations of the streets concerning the sales of products. In addition to beating the figures for items sold, the iPhone has increased sales to other nations beyond the US. In the first quarter of the fiscal year 2015, China was the largest consumer for iPhones. Apple virtually doubled its revenues over the last year due to the new arrangement with the Chinese.
It is only the beginning of the iPhone that will become every successful smartphone. As soon as the firm keeps improving the product, the iPhone will continue to expand. One of the most delicate things ever produced
by consumers is the design team at Apple. Once the product is no longer attractive to the consumer, it will enter the maturity stage. The iPhone is now a brand that must be owned and has the upper hand over many other smartphone manufacturers with its repeated buyers. As long as Apple continues to innovate and listen to the consumer, there is no reason why it will soon reach the mature stage.
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6.0 Management Plan 6.1 Organizational Structure
The structure of Apple's organization may be defined as hierarchical and functional. The founding member and former CEO Steve Jobs established such a framework to guarantee his creative ideas and clear corporate strategy were carried out in a concentrated way. Since Tim Cook took the leadership post in August 2011, Apple's organizational structure was subject to significant changes. In particular, Mr. Cook has to a certain extent, adopted a decentralizing decision-making approach to promoting innovation and creativity at many levels. The organization, however, remains mainly hierarchical. The format depicted in the following image now is the Apple organizational structure:
Figure 1 Management structure
The hierarchical structure of the organization. While Tim Cook brought significant modifications
to Apple's business organization after reaching the highest position in 2015, the system remains very
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hierarchical with numerous management layers. A large group of 132,000 full-time equivalent employees worldwide requires compliance with the hierarchical organizational structure. Apple's hierarchical organizational structure benefits from close control over all elements of the Company by top
management. In addition, promotional possibilities encourage staff to do well, and the degree of competence and responsibility is evident. The hierarchical organizational structure of Apple on the negative side can make the Company flexible to adapt to changes in the global market environment. In addition, communication across various departments is less successful in hierarchical companies than in flat organizations.
Intensive and successful partnership across different groups and divisions of Apple Inc. Apple Inc. The collaboration across the product groups is the outcome of each product within the Apple portfolio, such as iPad, iPhone, iPad, Apple TV, and iWatch. Apple Inc. is made up of eight board members with strong industry leadership backgrounds. Three acting CEO members and two past CEOs of multinational businesses are members of the Group. In addition to the established leadership, including former US vice president, Albert Gore Jr., the former Chief Financial Officer, and Corporate President, the Boeing Company, James A.
Given the Company's problems, such as fast reducing technological goods life cycles and lowering the sales of iPhones, iPads, and Mac products, it may be claimed that Apple's organizational structure may undergo some adjustments in the medium term. More specifically, the structural components of the matrix organization structure and the design of the division organization may be included in Apple Inc. to improve the efficiency of new product development procedures.
Another essential feature of the Apple structure is its functionality. Although the product-based grouping is, as mentioned above, a necessary part of the organization, senior vice presidents reporting to the CEO is responsible for the functions and not for products. For behemoths like Apple, the functional organizational structure is unusual, yet the tech giant benefits from contemporary corporate structure patterns. In particular, Apple's leaders of product divisions do not struggle for resources, unlike many other major firms.
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Furthermore, the technology giant might disregard short-term financial goals while creating new products that need significant expenditures in functional organizational structures. Significantly, the compensation of senior R&D managers is based on the Company's economic success and not income from specific products. For this reason, Apple managers are called upon to treat the business as a whole, comparable to small business enterprises.
7.0 Marketing strategy
The marketing strategy is a procedure that helps companies to focus their limited resources in the
best possible ways to achieve a sustained competitive advantage and increase sales or profitability (Ferrell & Hartline). Apple's marketing approach is based on differentiated smartphone positioning.
In addition to OS X, I Life, work, and professional software, Apple designs Macs, the world's most excellent personal computers. With its iPods and iTunes online store, Apple leads the digital music revolution. With its innovative iPhone and App Store, Apple has redesigned the mobile phone and defines the future of iPad mobile media and computing devices.
They feel they are making amazing things on the planet's surface, and that doesn't change. They focus on innovation continually. They don't trust the complicated in the simple. They think that they require and only operate in markets where we can make a meaningful contribution, own and control the technology underpinning the items they produce.
Thousands of projects think they say no, so that they may focus genuinely on the few that
are essential and meaningful. We believe in our groups being involved and pollinated to create in
a way that others do not. And honestly, in every group in the firm, we are no less than greatness, and we have the honesty to say if we are wrong and the bravery to change. And I believe that irrespective of who these ideals are in this firm (Sahoo, 2012).
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7.1 Competitor Analysis
There is no doubt that Apple is leading the way in both innovation and sales when it comes to the smartphone market. Apple has seized the market share of everyone, including its major rival Samsung, with its newest model iPhone 6S and 6S plus. In the smartphone business, Samsung became a powerhouse and was at the number one place until recently. With the debut of
the iPhone 6 and 6 plus, however, all this has changed. The two new iPhones are available with a
more prominent display, as the user wishes.
Apple has managed the smartphone market in the United States in the last quarter of 2014
by gaining 48% of its market share. The second position was 38 percent for Samsung, followed by third place for Windows. In 2013 Samsung was the industry leader, so it is the most competitive smartphone business in Apple. FY14 smartphone sales Blackberry Windows Apple Samsung Apple will undoubtedly keep its number one place in the smartphone industry by bringing the iPhone into the business-to-business sector.
7.2 Target Market
Apple is a product with a broad spectrum. They provide all users with innovation, creativity, and quality technology. Their products have various areas of demand. Their items, therefore, also establish their market objective. They have over 1.5 billion consumers, and their product release expands every year. Air Pods, Apple TVs, Apple Watch, iMac, iPad, iPhone, MacBook, etc., are the main hardware items available. At the same time, I Message, iMovie, iTunes, and more software applications can be found in these areas. So, how does the target market look like for Apple? Let's find out. Let's find it out (Wilkin, 2013).
In terms of age, the age of loneliness is 22-55. This group is a market for the Company conveniently. However, the age dimension differs with various goods. Similar to clever, small gadgets, 20-45 age groups, are increasingly utilized. The age range 18-30 is used for iTunes, Apple Pay, the app store, and the iTunes store. And last but not least, consumers of apples, telephones, and accessories are from over 20-45 years of age.
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Regarding gender, until 2011, the market itself was not controlled by gender. The user ratio for males and females was about 1:1 (53/48). But the number of male users rose fast, and soon almost 2:1. Soon. The current rate between male and female users is 60.8% and 39.2%. Therefore, the target market naturally expands in the male market.
Apple focuses on the market for households or people between medium and high income.
Research indicated that half of the users make $100,000 from home. Thus, Apple Inc's target market is unquestionably maintained among high-wage folks near to the norm. And the individual average income of a user is about $98,000, far greater than the standard demographics
of gadget owners.
Most of the consumers of Apple are highly educated thousands of years. They work and professionally have a social life. Apple Inc.'s primary target market is students, managers, professionals. Apple product consumers are generally 64% university graduates. We may say it is
more affluent, better educated, and older than any other mobile phone customer since it offers a premium service.
The company also targets young people, particularly young people, as a firm target market. For various reasons, the youthful market group uses iPods. Some of the causes are twitting, MSN, Facebook, music listening, and interacting with others. Various gaming applications meet the demands of young people. Apple targets university and university students.
Students will rapidly capture their study notes using their goods, such as iPhones, MacBooks, and iPads. The letters are saved and arranged on such devices. In addition, Apple devices are low
in weight, making it much easier to move from and to institutions.
The items supplied by Apple Inc. are intriguing to business people. Apple gadgets,
including MacBook, iPad, and iPhone, have a formal company quality to improve their usability. The devices are more efficient and easier to use in the finishing process. It is very straightforward and orderly to submit papers. Young children are also a critical Apple product target market. The rationale is because devices like iPads and iPods have accessible user
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interfaces, as can be observed via the quality of the touch screen model. Download and teach small kids games is very easy.
7.3 Apple's marketing strategy distribution
Apple has a brilliant retail configuration. In the US, there are around 450 shops. And these retail shops are so focused that they can enable the consumer to make it easy to use Apple instead of selling the goods and re-stuffing the product.
The Apple genius bar has also been introduced. It is a walk-in service facility that can aid any client in MacBook, iPhone, or IPad difficulties. The retail and service departments operated by the firm are generally outstanding. Apple has also established business partners such as Ingram Micro and Redington to sell and distribute the brands alongside companies' storefronts. These business partners will acquire the brand in quantity and then promote the product. Therefore, Apple is present in various modern and premium retail locations and its retail outlets. Their retail partners are responsible for these stores.
Apple's presence online e-commerce is excellent. The Company promotes most e-
commerce platforms itself, as they know that the brand is in great demand. Besides this, the price
penetration in Apple is significantly lower. Thus Channel partners and E-commerce platforms are
glad too because they don't have to battle the price. Apple's total market reach is provided through the mix of retail, distribution, and e-commerce (Yoffie, 2012).
7.4 Apple's marketing plan promotions
Apple is one of the most beautiful advertisers in newspapers in print advertising. Apple advertisements are generally seen in their messaging as clean and sharp. The background is white, and the print ad shows a sprinkling of colors introducing or distinguishing the item. This is one of the brand's great strengths. Apple is so distinguished that a wide variety of advertising is available, all designed to differentiate the items it offers. Print advertising is not all the same, even video commercials. They tell you a point that emphasizes the qualities of the goods. This is one of the brand's great strengths. Apple is so distinguished that a wide variety of advertising is
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available, all designed to differentiate the items it offers. Print advertising is not all the same, even video commercials. They tell you a point that emphasizes the qualities of the goods.
In general, when a new product starts, Apple advertisements and promotions are ten times
used. The resulting buzz is so high that you cannot ignore it. And that excitement continues till the end of the product. Since the number of Apple goods is lower, it is clear that it wants to target
every one of its items.
Apple has a terrific online e-commerce presence. The majority of e-commerce platforms promote the brand itself as they know it is in high demand. In addition, price penetration in Apple is much lower, and thus channel partners and e-commerce portals are also glad since they do not have to battle for the cost. From your home page. Apple has total market reach with the mix of retail, distribution, and e-commerce
7.5 4Ps or marketing mix of Apple Inc.
The marketing mix (4P) of Apple Inc. illustrates how it adapts its operations to the worldwide IT,
consumer electronics, and online services market circumstances. A marketing mix of a firm includes strategies and techniques for carrying out a marketing plan. The marketing mix focuses on the 4P variables: product, location, promotion, and price. The marketing mix in this situation is particular to Apple's business technology.
Apple Inc. utilizes a high-quality branding strategy. This strategy entails capitalizing on the premium brand and guaranteeing a strong brand image by all 4P aspects. Apple's prices, for instance, mirror its premium brand and its associated customer view that matches the high value and quality of its products. Such a market reaction, strengthened by suitable 4Ps, allows the company to maintain its broad profit margin. This helps meet the corporate vision and purpose declarations of Apple Inc. (Hangen, 2010).
7.5.1 Price
This factor in the marketing mix influences the company's outputs. In this example, the product mix from Apple consists of items and services categorized as or involving IT. However, the firm continues to grow
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its product mix, allowing non-IT items to be included in this 4P aspect. The Mac product range comprises computers of different sizes for various market sectors, including desktop and laptop. On the other hand, mobile
devices with some comparable Mac products have iPad, iPhone, iPod, and APPLE Watch. The fact that the firm works in consumer electronics items is evident in its marketing mix. The Digital Content product line comprises
digital music, movies, e-books, and games under the company's current strategic management strategy. Apple TV, mobile applications, among other things, through digital content.
7.5.2 Product distribution
Selecting the right areas or locations where the firm distributes its products includes this aspect of the marketing combination. The business case of Apple Inc. includes companies and other parties authorized by Apple Inc. to distribute its goods. In the distribution plan of Apple, the following sites are included:
Locations in the Apple Store
Company's desktop and mobile websites and online shops
Sellers’ licenses
Companies of telecommunications
Apple has a clever store configuration. In the United States, it has about 450 shops. The department stores are so focused that they enable the consumer to comfortably use Apple rather than sell the goods and fill the product in the throat of their clients.
Apple has also created a walk-in service center, Apple Genius Bar, which can aid any client in MacBook, iPhone, or IPad difficulties. The retail and service locations operated by the firm are generally excellent.
Apple has placed business partners such as Ingram Micro and Redington in charge of the sales and distribution of brands and corporate ownership shops. These trading partners would acquire the brand in quantity and distribute it on the market. Apple is therefore found in various modern and premium retail establishments in addition to its retail locations. The retail partners are responsible for these shops.
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7.5.3 Product promotion
This marketing mix factor defines the communication techniques used by the firm to achieve their target
customers, also called the marketing communication mix. Apple Inc. advertises its products in numerous ways through multiple channels and parties. The firm stresses the premium brand image and quality of its products while addressing this 4P aspect.
Promotion merely sensitizes clients about the products and services of the firm. Apart from relationships
and personal sales, it advertises its products or services through numerous avenues. In terms of private sales, clients in Apple stores are provided with the information they need on business products and services in a well-
trained, lively, and very instructive manner. These sellers additionally convince potential clients to acquire the items of the firm. Apple can nonetheless enhance its brand recognition through partnerships with brands or celebrities. These persons have a well-known public and can promote the products and services of the firm.
The Marketing Mix of Apple Inc. is advertising on Google's digital advertising network and websites for
technology news. The firm is committed to promoting Apple goods through collaborations with different notable Web sites. In addition to this, Apple Shop staff are using personal sales to convince store visitors to purchase product-specific information.
7.5.4 Place
Where the firm sells its products and delivers its services, the location within the marketing mix is. By using several distribution channels, Apple aims to make its products available to everyone. "The Company distributes its products through its retail locations and online shops globally, and through its direct sales force and cellular network operators, distributors, merchants, and resellers," according to Apple's 10-k form (Apple, 2018).
However, the firm should grow its retail shops, especially in Africa, where very few are available, given the enormous want for Apple products. The firm can also collaborate in other countries, other than America, with third-party cellular network providers so that the items can be freely accessible to customers. In addition,
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the firm can also collaborate in countries other than America with third-parties mobile network providers to enable users to access the goods.
8.0 operations plan
For the next ten years, Apple Inc. has had essential goals. The three main aims are to reach the middle-income class through a new product line, improve service offerings, and improve the distribution
network. By targeting low-income workers, the firm will improve its revenue base. It is already implemented, and in the next five years, the project will be implemented (O'Grady, 2008). This action is intended to improve the company's revenue base.
In addition to the items it presently sells, the firm wants to enhance its service offering. Apple Inc. is now providing two services, including Apps, iTunes, and Apps. The firm will increase its income base and diversify its goods and services on the market by extending services such as financial services, Apple TV, and Apple Music. Finally, via the collaboration of various retail locations, the firm wishes to increase its distribution network. This method will provide simple access to enterprise products, leading to more income and firm profitability (Bach, 2007).
9.0 Financial analysis
The financial overviews of Apple regarding marketing efforts are explained in this section. In 2018, net sales climbed 16% or €36.4 billion, as compared to 2017, due to hipper net sales of iPhones, services, and other products, according to Apple's 2018 Form 10-K. In addition, in each of the geographically reported categories, the firm's net sales rose year on year. Apple launched a new $100 billion return-capital program in May 2018, and in May 2018, Apple boosted its dividend from $0.63 to $0.73 per share. In 2018, it spent $73.1 billion repurchasing shareholdings of its ordinary stock and dividend equivalents and $13.7 billion in dividends equivalents (Apple, 2018)
With a net profit of $53.4 trillion, Apple declared the most significant gain in its history. The newest set of data available for the fiscal year 2015, the overall revenues of the entire year of Apple totaled $233.7 Billion, and net revenues nearly reached $53.4 billion, up 26 percent from last year's total
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sales of $39.5 billion, as indicated in Apple's 10-K financial reports. This has been driven by the growth of various products and services on the worldwide market. The enormous growth in iPhone 6 and iPhone 6 in recent years has pushed the increase in sales. The product has proved to be a landmark in the
mobile device sector, dominating the Samsung and Nokia market. This was motivated by the nature of the product since many people throughout the world appeal to the style and application features. The firm has also provided the marketing department with a lot of resources. As a result, market share has risen in overseas markets, and sales of iPhones and sales have also increased. This is obvious because overseas sales of miscellaneous items generated 62 percent of the Company's overall income. This demonstrates that the world market is changing with more individuals wanting to get apple products.
Other goods, such as the Apple watch and mac, have also been sold. These goods have also contributed substantially to the Company's substantial success by increasing its sales. After the last quarter of 2015, the Mac was released with excellent new features attracted worldwide by technology fans. This means that this year it has a great deal of potential to achieve higher results. This might lead to more significant product revenues and favorable outcomes for 2016.
Apples' asset return and net profit margin ratios grew by almost 1.3 percent apiece in 2015 compared to the previous year. Asset sales in 2015 were the same as in 2014, while stock sales grew somewhat in 2015, explaining that the firm was doing very well compared to 2014. But 2013 saw a modest improvement in assets and inventory turnover compared to 2015. This is why it expanded in 2013 in the acquisition of more inventory. These stocks were conducive to the Company's future success. As the Company concentrated more on the production process, inventories decreased in 2014. This work led to the 2015 Mac computer manufacturing, an enormous increase in sales in the firm. The year 2015 saw the manufacturing of the world's hits in iPhone 6 and iPhone 6S. 2015 was a busy year for the firm, leading to the launching of new goods on the market and establishing future companies leading to the company's development (Heracleous, 2013).
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Figure 2 Balance sheet
9.1 Revenue from past sales
In the trimester between September 2005 and September 2014, Apple has steadily increased its sales revenues. The 10-year rise in income is 7.08% (Sep 05 revenue was $13931 and Sep 13795 was $182795). (Guru Focus, 2015). The constant rise in income is mainly due to strong pricing and promotional strategies consistent with the firm's values.
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9.2 Projections for five years
In the next five years, the experts after Apple predict the firm to expand at an average annual rate
of around 13, 97 percent in 2015 in terms of revenue per share. In the year under review, industry analysts estimate that their income would rise by approximately 39.95% compared to the previous year's
statistics. In the current financial year, the growth rate of earnings is anticipated to be 6.04 percent.
Figure 3 Growth projection
9.3 Capital Source
The Board and the CEO are primarily accountable for decision-making, while main activities encompass
sponsors, purchases discovery, marketing, and supplier connections. Apple, Inc. can present the idea to its investors and the board of directors about long-term investment capital project such as the acquisition of Netflix
since this will have a direct impact on financial stability because of the price per stock of its investors ($183.64; a total of$53 billion) (Nasdaq, 2017). The firm can thus also issue stocks and bonds and acquire extra funding because the debt will need more significant expenditure. In addition to high risk, but the price per share of
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Apple is relatively high ($159.6), and it is fair to utilize it as a vehicle for financing generation (60%) and debt (40%). (MarketWatch, 2017). It is, therefore, logical to rely on that notion as it will contribute to boosting capital project profitability.
10. Plan for Implementation
Apple should contemplate the spectacular development of changing product offers in the amount to which the organization's financial performance (PC) is worried. The organization should carry out inventive improvements in design and usefulness. This must be done to assure the reliability of a variety of goods and customer dependency. Buyers should be convinced that Apple's PCs are more efficient, effective, and competent
than Dell, HP, or other prospective rivals through innovative use. As McGrath points out, the system of an organization should face market competition and be able to change products for profitability (McGrath, 2013). Therefore, it is possible to use budgetary exposures to reflect Mac PC's deception so far as rivalries are concerned. This is the most significant way to update and evaluate the overall system of a company.
11. Conclusion and Recommendations
In this SWOT analysis, internal and external variables show Apple Inc. has strong strengths to respond to the organization's weaknesses successfully. The firm may also take advantage of such strengths, such as the growth of its distribution network for consumer goods. In addition, the firm can effectively create and launch new technological product lines with its strong brand image and quick innovation procedures. However, Apple faces threats to aggressive rivalry, imitation, and distribution of digital content services, which pose challenges to participants worldwide for consumer electronics, computer hardware, and software.
Based on the strategic concerns revealed in this SWOT analysis by Apple Inc., the advice is that the firm
develops its goods further aggressively and rapidly. Technological innovation decreases imitation's harmful consequences. In addition, Apple is suggested that its manufacturing processes be further automated and that the
manufacturers' automation be supported to offer a solution to growing labor costs. Also, collaborations with other suppliers are recommended to enhance the total market reach of consumer e-products.
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Although the Company is a significant focus on PC devices and the linked goods, certain companies – particularly those in control and assessment – could be considered business practices by Apple Inc. The Company should adopt iPads, as part of the review, by reverting to the structure and utility of the working framework. Evaluation should be carried out to ensure that clients can access the essential aspects of different brands (Spender, 2014). Apple should nonetheless aim to shift the game against competitors in the business sector. In the Apple Pay story, the New York Times recommends the international movement for innovation to drive Apple Pay to enable customers to access mobile telephones alone (Isaac, 2014). The business should essentially make progress with iPads by thoughtful selections that its customers can regularly use. The gadget should be given a more substantial role in the most critical marketplaces, with variety and vast business. This control will ensure that the iPad becomes a player in the overall execution of Apple.
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12.0 References
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