Strategic Analysis of Apple - Essay Example

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Apple Computer, Inc., commonly known as Apple Inc., is a US based multinational company involved in manufacturing and marketing of several consumer electronic products. …
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Strategic Analysis of Apple
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Download file to see previous pages The company is also the second largest publicly traded company in terms of market capitalization. As of 2012, the company had 394 retail stores spread throughout the world (Apple Store, 2012). The total revenue of the company for the financial year 2011-12 is $156.508 billion and the net income was $ 41.733 billion. The current employee strength of the company is around 72,800 people and has presence in many parts of the world (Golson, 2012). Some of the competitors of the company are Samsung, Nokia, LG, and Motorola among the others (NASDAQ, 2012; Gallo, 2012).
This report will analyse the issues Apple is currently facing and also how the company is dealing with it. It will be divided into 5 sections; the first and second section will cover the external and internal analysis of the company. The third and fourth section will shed light on the challenges faced by the company and how they are dealing with it. Finally, the last section will conclude the project.
Part I – External analysis
The external analysis of a company is about analysing the external business environment of a company (Monczka, 2000). In order analyse the same, the report will use PEST analysis and Porter’s five forces analysis.
PEST Analysis
Political factors: - The technology businesses remain highly dependent upon the political scenario of a country. Moreover, it also needs to depend on the rules and regulations of the operating country. However, the government of USA has always encouraged products which are innovative and trendy. Moreover, the political scenario of the country is highly stable which provides an opportunity for the company to further develop its R&D infrastructure and come up with innovative products.
Economical factors: - USA is considered as one of the richest nations of the world. The total GDP of the country is 15.09 trillion and the per capita income is $ 49,800 (CIA, 2013). The figures clearly reflect that the country is economically stable. Moreover, the disposable income of the US population is also high. Hence, it provides a great opportunity for Apple to get success with its high range products. Hence the economic condition of USA is extremely favourable for Apple. Social factors: - The total population of USA is 316,668,567 and the total urban population is 82%. Another positive aspect is that the rate of urbanization is 1.2 % (CIA, 2013). Hence, Apple with its high end products holds great chances of success in the US market. In addition, US population is also considered as tech-savvy which again acts as a positive factor for the company. Technological factors: - The market for mobile phones, laptop and tablets are growing at a rapid pace in USA which acts a favourable factor for Apple. In addition, information and communication infrastructure of USA is very strong which fosters research and development function of Apple. Industry Analysis (Porter’s Five Forces) Force Intensity Description Buyer’s Power High Due to the presence of a large number of established players in the market, users have the widest range of options. This increases the bargaining power of buyers. Supplier’s Power Moderate The suppliers of Apple include Intel, IBM, Motorola, Sony and Disney among others (Satariano, Burrows and ...Download file to see next pagesRead More
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