Apple InC. (AAPL)

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APPLE INC. (AAPL) Strategic Mgmt Dr. Jun Xia Chad Hyatt Dohhoon Yoon Joseph Ruzvidzo Khizer Javaid

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Apple InC. (AAPL). Strategic Mgmt Dr. Jun Xia Chad Hyatt Dohhoon Yoon Joseph Ruzvidzo Khizer Javaid. SWOT Analysis. Porters 5 Forces. Financial Analysis. Product Life Cycle. Value Chain Analysis. VRIO Analysis. Company Strategies. BCG Portfolio Matrix & Recommendations. CONTENTS. - PowerPoint PPT Presentation

Transcript of Apple InC. (AAPL)

Page 1: Apple  InC.  (AAPL)


Strategic MgmtDr. Jun Xia

Chad HyattDohhoon Yoon

Joseph RuzvidzoKhizer Javaid

Page 2: Apple  InC.  (AAPL)


Porters 5 Forces

Financial Analysis

Product Life Cycle

Value Chain Analysis

SWOT Analysis

VRIO Analysis

Company Strategies

BCG Portfolio Matrix & Recommendations

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Mission Statement

"Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and has recently introduced iPad 2 which is defining the future of mobile media and computing devices."

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Value Chain Analysis

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Financial AnalysisProfitability Ratios



ROA% (Net) 14.93


ROI%(Operating) 35.39


Liquidity Ratios



Quick Ratio 2.07 1.24Current Ratio 2.46 1.5Leverage Ratios



Long TermDebt to Equity

0.17 0.52

Total Debt to Equity

1.24 0.37

Turnover Ratios



Total AssetTurnover

1 1.05

Receivables Turnover

7.46 10.13

Sales 35.96%

Costs 22.44%

Profits 43.85%

Compounded Annual Growth Rate 2008-2012

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Porters 5 Forces

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PLC- Product Life CycleThe Apple product life cycles indicates just how big the iPhone and the iPad will be over the next few years.It took the iPod five years to break the thirty million units per annum mark. The iPhone got there in four andthe iPad made it in year two of launch. Either way for Apple, four years of strong growth are evident fromproducts already in the lineup, both the iPhone and the iPad are set to hit the one hundred million units perannum mark in 2014. Despite the march of the Androids, the Apple growth story continues.

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Software is Apple’ core OS X allow them to develop mobile device technologyStrong financial performanceCustomers’ interestRetail store

WeaknessHigh PricesMarket share subsidingDifferent CEOPatent breachesFlaws in new productsInconsistency with variety of OS

OpportunitiesHigh demand - IPad and IPhone 5ITV launchEmergence of the new provider of application processorsAdvancement of tablets and smartphones marketsProtection of patent against the other companies

ThreatsCurrents tax increaseChanges in technological rapidlyKey components - price pressure from SamsungFoxconn Workers’ pay raiseBreaches IP rightsAndroid OS growthOnline music market

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VRIO AnalysisResource/Capability

Value Rare Inimitable

Organized to exploit this resource /capacity


The Brand Yes Yes Yes Yes SCA

Supply Chain Management

Yes Yes Yes Yes SCA

Top Executives

Yes Yes Yes Yes SCA

International Product Distribution

Yes No No Yes TCA

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Company’s Strategies1. Related Diversification Strategy

Software and computer technology Digital music market with the launch of the iPod and iTunes Mobile devices iPhone, iPad App Store the digital contents market

cf)                           Samsung Electronics, Samsung Card, Hotel Silla, Cheil Industries(fashion, apparel), Samsung Insurance

2. Product Extension (Line extension & Category extension)

Mac - MacBook Air, MacBook ProiPod – iPod Nano, Shuffle, TouchiPhone – iPhone 3G, iPhone4, 4S, iPhone 5iPad – iPad 1,2,3,4Apple TV, iTunes, iCloud

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Company’s Strategies3. Vertical Integration

chip manufacturers, manufacturing, software standards, closed ecosystem, retail stores

product optimization cheaper parts, higher efficiency cost savings, high margin

Ex) To power the iPad, Apple has designed its own processor, called the A4. (Past: Intel chips for iMac and Macbook, Samsung chips for iPhone)

4. Three Generic Strategies – Differentiation

·     Powerful Ecosystem

·     Design Quality - iMac line was the first home computer to omit a floppy drive

·     Economies of Scale

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BCG Matrix & Strategic Recommendation

?$ Cash

Cow Star

Question mark



ket S



SmallLow HighMarket Growth


a. BCG Portfolio Matrix

b. Strategic Alliances with Microsoft

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Recommendations: Maturity stage, Apple should lower costs as volumes have increased. Apple Inc. should continue its Global expansion through partnerships ex. China

Mobile deal increased Apple’s 1st Q revenues by 29%. Acquisitions and Mergers

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Thank You