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Strategic Analysis Of Apple

4167 words - 17 pages

Academic Year: 2008-2009MOUZOUKI THEODORABusiness Administration 3rd YearModule Lecturer: AthanasopoulosUniversity of HertfordshireIST StudiesAthens campusIndividual Coursework: Apple - 2005This case study aims to break down key factors of Apple with a thorough analysis so as to conclude to the most suitable suggestion in terms of strategy that should be adopted by Apple. Apple was founded in 1976 and is the brainchild of Steve Wozniak and Steve Jobs. The concept of Apple is the creation of innovative products with the unique design that characterizes this group. Due to this the group stands out and differentiates itself from the rest of the market, as many have tried to replicate the ...view middle of the document...

Environmental concerns are issues that directly affect each computer manufacturer. Apple strongly supports the protection of the environment as stated also in the mission statement. This promotes an environmentally friendly approach that might assist the image of the group. Many countries may favour the local companies over the foreign ones, in order to enhance the manufacturing within their borders. In many situations additional tariffs are imposed on foreign competitors. Apple and fellow computer companies have accepted that pirating and copying is more easily done in some countries than in others. This illegal activity affects directly the bottom line of every company involved. In the economical segment, inflation, unemployment and consumer income factors can all influence a company's existence. The electronic computer industry has been struggling since early 2000 when the economy weakened. In addition to this, rising unemployment, anticipated wars and terrorist attacks assisted in reducing the number of computer purchases. The largest socio-cultural obstacle for companies such as Apple is the lower educational standards of various countries. While many are making great progress, they are limited in number. Internet sales in many overseas countries are not as successful as in the United States and Europe due to that many customers prefer to view the products they are purchasing. Becoming accustomed to the differences in culture imposes difficulties and some manufacturers are trying to build up value in their company name. This is done so that branding will ultimately be linked to honesty, integrity, quality, and good service so that stores will not be as necessary. Concerning the technological segment, the government has always favoured the computer industry's research and development by implementing funding programs. Many of today's technological innovations that are being augmented affect many parts and accessories of the computer units. Taking advantage of Apple's current opportunities could improve the chances of strategic success. The rapid advancement of technology and business processes creates an atmosphere of high competition in which Apple must be dynamic to survive. Apple has been able to effectively do this with the introduction of commercially strong products and services such as the iPod and iTunes. The rest of this segment will be about Apple's opportunities.OpportunitiesThe biggest opportunity that Apple acquires is their line of iPod products and iTunes service. IPod's are very popular and they are rapidly increasing in demand. Apple saw the opportunity to make a smaller, less expensive version of the iPod and marketed it towards teens. With a cheaper price tag than the original iPod it is affordable for teens to get the same great product that everyone has been talking about. Another spin-off from the iPod is the iTunes music store, iTunes is a digital music store found on Apple's website that allows people to legally...

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