Mission, Vision, and Value Proposition for Apple - Case Study Example

Task Mission, vision, and value proposition for Apple Inc. Company For over the last 30 years, the personal computing industry has undergone tremendous changes, growing steadily a small market to a large global market. Since Apple entered the personal computing business and launched its first personal computer, there has been a significant growth in the number of people owning personal computers. The innovative nature with which companies in the electronic business have developed their products, the nature, features and number of electronic gadgets has increased tremendously. Laptops, smartphones, and tablets, among others are examples of gadgets manufactured by various electronic gadget manufacturers. As the industry becomes more profitable, there has been a subsequent growth in the number of companies manufacturing electronic gadgets. More companies have joined in the electronic business, with the smartphones business being the most profitable. At the time when Apple was launching its first gadget, few people embraced the concept of personal computer ownership. Currently however, owning a personal computer is not only a fashionable but also a necessity. The company only focuses on creating personal computers for the high-end market customers with dispensable levels of incomes (“Apple Inc.,” 2014). From Samsung electronics, Apple is the second leading corporation in the smartphone companies. The unique strategy that Apple uses is one of the best contributing factors to the company’s success over time. While other companies focus on manufacturing low cost smartphones in order to compete against the growing demand for low cost smartphones, Apple focuses on the high-end market, providing high value products (Financial history, 2014). Although the strategy has paid off in the past decades, there have been challenges facing the company in the recent past. While analysing the impact of this strategy on the success and performance of the strategy on Apple, project will analyse the performance and profitability of the company since its inception. For instance, between 2009 and 2011, Apple recorded increased profitability ratios from 19.19 to 23.95. However, its profits plunged in 2012 to 21.67, an indication of increased competition from companies such as HTC and Samsung. Although these profit ratios rose again in 2013 to 26.67, the company, as most critics and analysts argue, should consider changing its strategy and focusing on all market segments (“Apple Inc.,” 2014). Since Apple strategically prices its products relatively higher than any other company’s owing to the quality does, the rising demand for low cost smart phones is perhaps the biggest contributing factor to the decreased profitability of the company. Despite Apple maintaining quality for its products to win the support of its customers, the mission of this project is finding an opportunity for the company to transform its weaknesses into strengths (Tan, 2013). Further, it will analyze the external environment to help the management use the threats it faces, transforming them into competitive advantages. Further, in the project I will target on how the company can revamp its business strategy, thus improving its strengths, checking on its weaknesses, use its opportunities to achieve competitive advantage, and take care of its threats. Vision In addition to Apple targeting to becoming the leader in innovative gadgets in the electronics business, the company also has a vision for the community. As the community, increasingly demands for pro-people policies, businesses know that it is only through corporate social responsibility that they can achieve their growth (Wheelen & Hunger, 2012). Apple knows this very well and as such invests considerable amounts of its capital in developing its communities and high quality innovative products for the people. Although the company hopes to grow its revenue, it has no plans of expanding its markets, rather than focusing on the high-end market it currently serves. As such, there is little or no market differentiation and diversification by the company as the trends of the company proves. To achieve this strategy, this research hopes to identify the various factors contributing to either the success or failure of Apple. Operating in a highly competitive industry, Apple hopes to achieve success and growth by focusing on the high-end markets. However, critics have argued that there is no likelihood of Apple maintaining this strategy. This research, through a SWOT analysis of the company will seek to establish whether this strategy is sustainable or not. Different factors determine the suitability of a strategy such as the company’s level of profitability, sustainability, customer attraction, and revenues (Wheelen & Hunger, 2012). However, this only happens if a company’s strategies are in line with the company goals and objectives. The potential for future growth and development better defines the vision of an organization (Kotler & Keller, 2012). If there are no clear statements on the adopted strategies by an organization, the reality is that the company has no potential of succeeding in its activities. For apple, the increased levels of competition from low cost manufacturers, coupled with the decreasing investor confidence in the sustainability of the company’s strategy must have been the biggest contributing factors to this decline (Tan, 2013). This research thus hopes to revamp the status of the company. In addition to making Apple the most profitable organization in the smartphone business, this research will target in making it the company the best community focused organization in the smartphone industry. Value proposition Apple’s strategy best suits its business model as of now. However, in the recent past, after the company suffered decreasing profits owing to the various changes that occurred in the smartphone business, the company ought to consider a number of things in its strategy and implementation policy. This research will gather data and information about Apple Inc., its activities and products in an effort to establish its competitive position against other companies such as Samsung and HTC. After the research, I will draw recommendations in line with the findings. By considering the strengths against weaknesses, opportunities against threats, this paper will draw recommendations on how Apple can improve its competitive advantage over its biggest rival, Samsung. Emerging markets such as China have increased the demand for low cost smartphones, as more markets keep emerging, contributing to the existing smartphone market. With this increasing demand, different companies have sought to produce low cost smartphones to meet the demand for these markets. Additionally, these markets too have firms, which manufacture low cost smartphones for their local markets. As such, Apple does not enjoy the increased sales as cheap brands edge it out of these emerging markets. This is the biggest challenge facing Apple as a company. There is no hope of the company changing its strategy and giving to the market pressures of producing low cost mobile phones (Financial history, 2014). Edging itself as targeting the high-end customers, apple hopes to benefit from the differentiated markets by the high social class. However, there is little hope of sustaining this market, if the trends in the net profit margin are anything to go by. The company should thus consider changing its strategy. The increased competition from low cost manufacturers, coupled with the decreasing investor confidence in the sustainability of the company’s strategy must have been the biggest contributing factors to this decline. References Apple Inc. SWOT Analysis. (2014). Apple, Inc. SWOT Analysis, 1-10. Financial history. (2014). Investor relations, Apple.com. retrieved from http://investor.apple.com/financials.cfm Kotler, P., & Keller, K. (2012). Marketing management (14th ed.). Upper Saddle River, NJ: Prentice Hall. Tan, J. (2013). A Strategic Analysis of Apple Computer Inc. & Recommendations for the Future Direction. Management Science & Engineering, 7(2), 94-104. doi:10.3968/j.mse.1913035X20130702.Z001 Wheelen, T. L., & Hunger, J. D. (2012). Concepts in strategic management and business policy: Toward global sustainability. Boston ; Munic [u.a.: Pearson Prentice Hall. Read More