Academic Year: 2008-2009
Business Administration 3rd Year
Module Lecturer: Athanasopoulos
University of Hertfordshire
Individual Coursework: Apple - 2005
This 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 iconoclastic appeal of their design with no success. The transformations that occurred during the years from inception to present day have included many strategic management variations that concluded in equipment and software alterations. The strategy shifts can easily be explained by the increase in the customer focus. Apple targets a niche market which most important component is the creative professional. This sector is one of the most important markets for Apple's hardware and software products. The company designs its hardware solutions with the creative professional in mind. Specific customer focus is part of Apple's strategy.
When producing a strategic analysis the environment in which the company functions should be taken into consideration. It consists of the external environment, the internal environment and the operational environment. The external environment refers to P.E.S.T that is political, economical, social and technological aspects that influence the company. Apple faces political segment issues both domestically and abroad. Domestically the Federal and State government continues to
tighten up on the environmental issues that constrain manufacturing
and disposal of the units. 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...