Vision and Mission Statement of Apple Inc - Case Study Example

Apple Inc. Apple Inc. Apple Inc. Overview Apple Inc. entails a multinational firm based in America and deals with sellingand designing personal computers, software and a range of electronic devices. The firm has also been known for its wide range of quality products ranging from the Apple smart phones, the Macintosh, iTunes, iPods, iOS and apps which appear to be compliments for its devices (Lashinsky, 2012). The firm was started by Steve Jobs in 1976 and has grown to become one of the today’s iconic designers, as well as, consumer electronics (Caamao, 2003). Apparently, Apple has 453 retail stores making it realize a current revenue base of $ 183 billion with a net outcome of over $ 40 billion in the first quarter of FY 2015. With more than 98,000 employees, Apple has subsidiary firms such as the FileMaker, Anobit, Beats Electronics and Braeburn Capital (Apple, 2015). Vision and mission statement Apple vision entails the commitment to ensuring the highest standards of the social responsibility in what the firm does. Therefore, their business operations must provide safe working conditions; fair treatment for its employees, as well as, using environmentally responsible production processes. Accordingly, its mission may be stated as producing high-quality, low cost and easy (non-complex) products that integrate high tech for their individuals. From such a mission, Apple has been able to sustain it through using technology that does not intimidate its users. Additionally, Apple ensures being the leader in the innovation sector, therefore, ensuring that the customers’ tastes are met. SWOT analysis SWOT analysis provides a framework that depicts the firm’s weaknesses, strengths, opportunities and threats that undermine or influence its operations. Apple intends to venture in the PC markets, Apps markets, and software and networking solutions across the globe. Therefore, it market position may be measured through the SWOT analysis that depicts its operating potential performance which may be also affected by increasing competition (Indu, 2014). Strengths Apple has a powerful brand image that has maintained throughout its operations throughout the global markets. Such a brand image has enabled Apple scope a larger market share within these tech markets. It has strong market position and consumer trustworthiness that has risen due to its sustainable ecosystem (Indu, 2014). Such aspects have raised its competitive advantage. Its cost leadership strategy and product differentiation have made the firm enjoy first-mover advantage unlike its competitors. Its high quality customer experience is a key strength in its retailing operations as it has well-informed and sufficient staffs which create brand awareness. Lastly, its cash base that approximates $ 10 billion allows its marketing strategies easier than its competitors (Apple, 2015). Weaknesses Due to high quality of its products, Apple has maintained high prices which have been the key weakness since there is a strong competition base, currently, in the tech industry. Consequently, the high-priced products are decreasing its market share. In 2013, Apple had various accusations that it disobeyed the patents of other firms and lost some trials, as a result. Such an aspect has long-term effect in destroying its market reputation. Loss of Steve Apple was a big strike on Apple’s management and innovation line in addition to the departure of great minds of Scott Forstall and John Browett (Indu, 2014). Opportunities The demand for iPads, iPhone and iPods, as well as, iTunes in the global markets has been a great opportunity and has enabled the firm venture in new markets for their quality and increased customer experience. The focusing of iTV which will be launched soon is part of the firm’s opportunity. On the other hand, the smartphones and tablet markets globally are a great opportunity as Apple will improve its revenue base and sales volumes. The growth of mobile advertising is a sole opportunity and Apple utilizes its iPods, iPhones and iPads for advertising its products, hence a cost minimizing strategy (Indu, 2014). Threats Rapid tech changes within the industry are a big threat experienced not only by Apple, but also its competitors. Customers’ tastes are changing on a daily basis as customers become tech lovers; therefore, Apple is facing pressure from other tech firms that are doing all what it takes to maintain their share. On the other hand, iOS is facing a great competition from Android OS in the mobile devices as its power is being dominated by Android OS. Its iTunes apps are facing threats from music stores such as Amazon, Sound Cloud and Wal-Mart music store (Indu, 2014). Lastly, there has been increased tax base in US, a key aspect that is adversely affecting its financial growth. Strategic factors influencing Apple Product Differentiation strategy Product differentiation entails a strategy that a firm makes its products distinguished from its competitors with an aim of making it more attractive and convincing to its users. Apple has successfully used product differentiation strategy through presenting an outstanding product design, and personalized services, as well as, high-quality products (Baker, 2003). Accordingly, its mission aims at producing non-complex products that are simple to use, thereby, making the targeted market vary from beginner to proficient end users. Such a strategy has boosted its customer experience and allowed the firm gain an increased competitive advantage (Keller, 2010). Cost leadership strategy Cost leadership is an essential strategic factor that has afforded Apple a higher competitive advantage than its competitors. It has outsourced its production to reduce the operating costs to third parties via vast economy of scale. Additionally, it has focused on user interface, as well as, industrial design to making products that are not only innovative but also stylish and user-friendly. Such aspects have given Apple a high command on higher prices than average prices due to these personalized products and user- friendly quality mobile devices (Keller, 2010). 4P’s of marketing Mix Marketing mix of Apple may be reflected through its implementation of different strategies regarding its price, promotion, product and place. The 4P’s serve as the key decision aspects that marketers should manage so as to satisfy the needs of the customers better than its competitors. These marketing strategies provide the organizational with its public picture and help the firm sell its products. Product Apple’s product decision entails the quality and quantity of goods to produce. The products decisions also reflect product lines, differentiation, branding and product-image positioning. As tech is rapidly changing, Apple has remained active in product development. Consequently, it has aimed at replacing out-of-date products. Portable computers, accessories, servers, Wi-Fi-based stations, iPhone, iPads and other peripheral products have been introduced as tech changed over the decade. Product line has been seen with the iPhone portfolio range starting with iPhone 3G, then 3Gs and finally iPhone4. Lastly, with its differentiation the iMac and the iOS, as well as, the iTunes have been fully differentiated with no other competing firm being able to produce similar products. Place These are distribution-channel decisions and their respective management, techniques of transportation, the number of outlets and inventory levels held. Apple has more than 450 retail stores in various countries in UK and US. The US stores offer direct sales distribution. Online marketing has allowed timely access for its goods where customers do online shopping. It has independent professional-service providers that have specialized in third party solutions. The retailers in UK markets indicate intermediary channels of distribution that allows door displays while others have been strategically placed in the busy cities to allow mass access and easy location by its customers (Beer, 2002). Price Apple entails a premium brand firm that never compete on prices. It has reduced its prices after the launching of its differentiated products to enjoy economies of scale. Apparently, it has used premium and skimming pricing techniques, successfully. These pricing techniques never fluctuate. The retail pricing is limited by Apple, an aspect that has allowed iPod sell from low margined retail prices. However, the discounting eats the margin price of retailer not Apple itself. Promotion Promotion mix has allowed creation of awareness for the Apple’s products and existence of its newly-launched products. Advertising entails the use of media channels to promote the iPods product lines and the iPads. Personal selling has been used in the US stores where qualified expertise in the marketing field venture the home markets to sell these products (Beer, 2002). Cross promotion has successfully been depicted through the use of one product to support the other. For instance, the iPod has been used to promote “the rock group U2.” However, internet marketing has taken over the whole marketing platform where every aspect has been integrated with use of the www phenomena. Users have accessed and shopped online and deliveries made to their convincing residential areas. Major competitors The major competitors may be illustrated to be; PEST analysis Political environment Over the last decade, Apple has ventured the European markets which it has no control over the relations with the UK countries due to the increased terrorism that has affected global affairs. Business operations in China, Korea and Ireland have been adversely affected by political conflicts. Since no control over these aspects, communication failure from these countries leads to big losses. Government regulations on taxation, tariffs and foreign trade have great impact on its operations. For instance, UK’s increment of 20% on VAT has had adverse on its financial growth in UK retail stores. The political affairs have also determined the legal issues such as operational permits in the foreign countries which their access depends with the political bureaucracy (Hasan, 2013). Economic environment Global economic challenges such as the European credit crunch, as well as, the global financial meltdown have had adverse effects to Apple’s financial expansion in and out of UK. These financial crises have reduced the purchasing power, therefore, leading to reduced sales as people consider necessities first. On the other hand, the price of iPad is a bit higher than that of iPhones indicating that this product has a reduced purchasing power for its potential users. These users opt to substitute it with low prices smartphones from Android firm. Lastly, US dollar has been fluctuating in the recent couple of weeks and such an idea has contributed to the creepy inflation that has a long-term adverse effect to the profits of Apple (Hasan, 2013). Social atmosphere Globalization has heightened over the past decade leading to constant changes and increased demand for the high tech devices that boost social media sharing. Music has been on the high demand as people change their lifestyles, thereby, the demand for iTunes and other music-supporting apps has been on the rise. Web piracy and counterfeiting are key social threats to the firm’s products. On the other hand, the environmental issues play together within the social factor to determine the kind of product to come up with. Apple has focused on environment-friendly products as the trade logo reflects, an “apple.” Technological environment It is of no doubt that the current technology is advancing on hourly bases. The Internet together with the advanced virtual communities has transformed the entire global village. Therefore, such an aspect has made Apple’s products be on the high demand as users love high tech. Adopting e-strategies by its competing firms is a key threat as it exerts pressure to its management because it has to invest in product development and innovation, constantly. Marketing mix strategies have also gone online indicating that most of the firm’s businesses are transacted online. Such an aspect forces Apple to manipulate its 4P’s of marketing to sustain its competitive edge (Hasan, 2013). Conclusion In conclusion, Apple Inc. may be reflected as a strategically positioned firm within the tech and communication industry. It has invested much in a big portfolio within the PC sector, hardware, software, music industry, and OS. Such an aspect reveals that it has diversified its marketing mix aspects to venture into these industries. Additionally, its global operation has made it achieve a bigger market share. However, competition has been increasing due to constant changes in technology; however, its 4P’s of its marketing mix have been reflected to encounter the stiff competition. The SWOT analysis has highlighted different opportunities that its marketers have to focus for achieving the aforementioned vision and mission, as well as, main threats associated with these aspects. The marketing mix is the only key to be unique among the major competitors highlighted. References Apple Inc. (2015). Apple. www.apple.com Apple, Inc. (2015). SWOT Analysis. (Business Source Complete.) Marketline. Beer, M. (2002). Building organizational fitness in the 21st century, Boston, MA, Harvard Business School. Barker, G., (2003). Apple cult gathers for innovation update. Retrieved from http://www.smh.com.au/articles/2003/01/06/1041566346064.html?oneclick=true Caamao, G., (2003). Company and culture. Retrieved http://apple.computerhistory.org/discuss/msgReader$99?mode=day Dedrick, J & Kraemer, K. (2002). Globalization of the personal computer industry: trends and implications. Center for Research on Information Technology and Organizations (CRITO). University of California, Irvine Hasan, M. R. (2013). Apple Inc. - An Analysis: PESTEL analysis, Porters 5 Forces analysis, SWOT analysis, Comprehensive analysis of financial ratios, and Comprehensive analysis of share performance of Apple Inc. Munich: GRIN Verlag GmbH. Indu, K. (2014). SWOT Analysis of Apple. Creately. Retrieved from http://creately.com/diagram/example/gsv8l5hs3/SWOT+Analysis+of+Apple Keller, W. (2010). Apple, Inc: Strategic analysis of a global powerhouse. United States: s.n. Lashinsky, A. (2012). Inside Apple: How Americas most admired-and secretive-company really works. New York: Business Plus. Read More