Business plan for Apple Company - Book Report/Review Example

BUSINESS PLAN FOR APPLE COMPANY TABLE OF CONTENTS Executive Summary ………………………………………………….2 2. Introduction …………………………………………………………..3 3. Company Description…………………………………………………3 4. Market Analysis……………………………………………………….4 5. Industrial Analysis…………………………………………………….5 6. Competitor Analysis…………………………………………………..5 7. Marketing Plan………………………………………………………..6 8. Operational Plan……………………………………………………....6 9. Financial Plan…………………………………………………………7 10. Conclusion…………………………………………………………….7 Work Cited……………………………………………………………………8 Executive Summary Apple Company has identified a gap in the market that demands tablets that operate in a higher speed. Therefore, the business plan will address factors such as the targeted market, the financial issues and the competition in the market. These are issues that will help to determine whether it is viable and profitable for the company to manufacture the new product. The business plan also seeks to examine the position of the customers in the market. This way, the company will identify the way in which it will reach, attract and maintain the consumers of its new product. The plan has also laid down, the financial analysis of the venture in order to indicate its profitability to the business owners. Introduction When a business comes up with a new product, its key motive is usually to increase its market size and attract more customers to purchase its products. Apple Company has identified an opportunity in the technological industry where it can introduce more advanced computers and mobile phones. The company needs to introduce a product that will satisfy consumers’ needs and wants effectively. Therefore, a number of factors will be considered and assessed to ensure that the set objectives are achieved. In addition, since Apple Inc. is a multinational company, the business plan will have to include a large number of persons. Company Description Apple Company was founded in the year 1976 by Steve Jobs to sell a personal computer kit. The company was then incorporated in the year 1977 (Lu?sted, 12). Over the years, the company has grown into a multinational company that manufactures products such as laptops, mobile phones, iPods, iPads, tablets and even TVs. The company has advanced itself in bringing new and more advanced technology to the market. The key objective of Apple Company has always been to be more innovative by bringing unique and advanced technology into the market. The company works on the statute that it should always manufacture better products than its previous products. The company’s mission statement is to bring the best computing knowledge and experience to students, professionals and consumers around the world, through being innovative in the way it builds its hardware, software and internet aids (Lu?sted, 15). In the past years, Apple Company has immerged to be best designer of personal computers in the world. The company has also designed professional software such as iWork. Apple Company also brought the music industry to another level when it invented the iPods and iTunes. Mobile phones also became more advanced when Apple Company introduced the iPhone. Therefore, the company keeps on redefining technology in the world each time it invents new products (Scott, 10). The business concept that Apple Company is pursuing with this plan is introduction of a tablet with a higher speed and smaller size than the current iPad that is in the market. The key objective of this strategy is to enhance portability and speed of work by the user. The concept also aims at improving the screen resolution of the tablet. Market Analysis The product mainly targets working individuals in the consumers. In addition, the tablet also targets students who need to store documents or data for future use. Unlike the iPod whose key objective was to improve the quality of entertainment, the key objective of the iPad is to enhance work and data management. Therefore, it aims at reducing work for persons dealing with large amounts of work. The market of the product has been segmented depending on features of the product and the age of the market (Overton, 13). This is because, while some of the consumers are interested in the video and photo features of the tablet, others will be interested in the processing of documents. Segmentation according to age involves aged persons and young people who are mainly interested in the entertainment features of the tablet. The company will also target the big firms in the market that are in search of quality technology for processing information. Therefore, the market size is generally large since it will include every individual that is in need of technology. The market can also be said to be growing very fast since, each day individuals stop using manual methods and embrace technological advancement (Nykiel, 27). Industrial Analysis The technological industry is generally large since; demand for technology is very high. There is freedom of entry and exit into the industry though it tends to be dominated by companies that have already established themselves. Apple Company will not have a major problem in this case because; it already has an established customer loyalty in the industry (Scott, 17). Therefore, the company will not face any barriers in introducing its new product. The suppliers in the industry are also well acquainted with the whole industry and thus, they already have an established market (Scott, 20). In addition, the suppliers also charge their prices according to the prices charged by Apple Company. Therefore, sale of the product in the industry will not be difficult or cumbersome. Competitor Analysis The technological industry is very wide and thus, Apple Company faces a large number of competitors. For instance, in the area of computers, the company faces stiff competition from other computer manufacturers such as Dell, HP Compaq and Toshiba. Each of the manufactures brings products that are perfect substitutes to Apple’s products and thusconsumers can easily switch from one manufacturer to another (Scott, 25). However, since Apple Company will maximize the quality of its products, it is unlikely that the consumers will shift to the competitors. The competition is fragmented since; one major manufacturer does not dominate the industry. All the companies compete equally according to their innovativeness. In addition, where the prices being sold are similar, the competition is also based on the prices charged. For instance, some of the consumers might shift from Apple Company due to the high prices charged. On the other hand, competition in the technological industry is mainly based on inventions. This is because; each company in the industry may come up with its own inventions, which might challenge the products of the other Companies. Therefore, the ability of Apple Company to compete favorably will depend on the quality of its inventions. Marketing Plan Due to the high level of competition, the marketing strategies applied by the company will have to be effective and very productive. Apple Company will mainly apply the four P’s in marketing its tablets. Pricing: The pricing strategies of the product will mainly depend on the costs incurred in manufacturing the product (Overton, 23). However, the prices will also depend on the prices charged on other similar products in the market. The product will be positioned in terms of its value. This is because although there might be other products in the market, the product will price itself depending on itsprocessing speed. Therefore, the product will be positioned in such a way that it fulfills the intended objectives. In the promotion part, the product will be promoted differently depending on the group being targeted. For instance, when promoting the product to working individuals, promotional methods used will have to illustrate the way in which the product is fast in processing data. Some of the promotion methods that will be used include, use of advertisements, use of billboards and use of the internet. This way, a large number of persons will be made aware of the product. Operational Plan The normal operations of Apple Company will not change when it brings the new product in the market(Overton, 25). In addition, their locations will still remain to be California. However, the number of employees will be increased since; the operations will increase thus, forcing the company to demand more labor. Security persons in the business will however be outsourced. The management team of the company will also remain since; there will be no changes in the organizational structure. Risk management in the business is also an essential part of the plan since; the business has to examine the major uncertainties that affect its operations. Therefore, issues such as market uncertainties, production uncertainties and inadequacy of resources will have to be addressed. Financial Plan In its financial plan, Apple Company will address its incomes versus the expenses incurred. The key expenses include labor costs, costs of materials purchased and other operational expenses. On the other hand, the company approximates that it will derive maximum revenues of $ 100 million from the product. Therefore, indeed the profits will be more than half of the revenues. The assets of the company are bound to remain fixed since; introduction of the new product will not affect the company’s assets. Conclusion Based on the projections, we can conclude that the venture is indeed viable since, Apple Company will make high profits from the sale of the new product. Therefore, the company should proceed with the manufacture of the product to fill the existing gap in the market. Works Cited Lu?sted, Marcia A. Apple: The Company and Its Visionary Founder, Steve Jobs. Minneapolis, MN: ABDO Pub, 2012. Print. Nykiel, Ronald A. Marketing Your Business: A Guide to Developing a Strategic Marketing Plan. New York: Best Business Books, 2003. Print. Overton, Rodney. Business Strategy Made Simple. Murwillumbah: Martin Books, 2007. Print. Scott, Missy. Apple, Inc. Westport: Greenwood, 2008. Print. Read More