Apple Inc. Report

  • Published: February 2021
  • 19002 Words
  • 73 Pages
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Established in 1977 in California, Apple Inc. is a global designer, manufacturer and marketer of mobile communication and media devices, personal computers, and portable digital music players. Apple is the largest IT company in the world by revenue and total assets and the second-largest mobile phone manufacturer. The company also sells a variety of related software, services, accessories, networking solutions, and third-party digital content and applications.

Apple’s ability to design and develop its own operating systems, hardware, application software and services to provide its customers products and solutions with innovative design is placed at the core of its business strategy. As of September 2020, Apple had approximately 147,000 full-time equivalent employees. The net sales of the world’s largest IT company by revenue increased 6% or USD14.3 billion during 2020 compared to 2019. Higher net sales in Services and Wearables, Home and Accessories categories played an instrumental role in achieving such a growth (Annual Report, 2020).

Apple business strategy comprises focusing on design and capabilities of products and ever-strengthening the company’s ecosystem. The first company ever to be valued at USD1 trillion purposefully cultivates a reputation for not paying dividends to investors. In short-to-medium term perspective, Apple is working towards decreasing dependence of the business on the sales of iPhones.

Leadership style at Apple is known to be democratic. CEO Tim Cook practices ‘quiet leadership’ and he is widely recognized as an effective leader. At the same time, a number of industry watchers and analysts criticize Tim Cook for the lack of innovative genius his predecessor legendary Steve Jobs used to possess.

Apple has hierarchical organizational structure. Moreover, the company’s organizational structure also integrates product-based grouping with a focus on collaboration between different groups and divisions. Organizational culture of the multinational technology company, on the other hand, fosters creativity and innovativeness coupled with intensive workload for employees at all levels. A high level of secrecy and focus on diversity and inclusion can be also specified as important elements of Apple corporate culture. Today, Apple is faced with a range of business threats such as quality problems with negative implications on the sales and the company brand image and intensifying competition from China and India.

Apple Inc. Report contains the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on Apple. Moreover, the report contains analyses of Apple’s business strategy, leadership and organizational structure and ecosystem. The report also analysis marketing strategy, ecosystem and discusses the issues of corporate social responsibility.

1. Executive Summary
2. Business Strategy
3. Leadership
4. Organisational Structure
5. Organizational Culture
6. Apple and Ansoff Matrix
7. SWOT Analysis
7.1 Strengths
7.2 Weaknesses
7.3 Opportunities
7.4 Threats
8. PESTEL Analysis
8.1 Political Factors
8.2 Economic Factors
8.3 Social Factors
8.4 Technological Factors
8.5 Environmental Factors
8.6 Legal Factors
9. Marketing Strategy
9.1 7Ps of Marketing
9.2 Segmentation, Targeting & Positioning
9.3 Marketing Communication Mix
9.3.1 Print and Media Advertising
9.3.2 Sales Promotions
9.3.3 Events & Experiences
9.3.4 Public Relations
9.3.5 Direct Marketing
9.3.6 Personal Selling
10. Porter’s Five Forces Analysis
10.1 Threat of new entrants
10.2 Bargaining power of buyers
10.3 Bargaining power of suppliers
10.4 Threat of substitute products or services
10.5 Rivalry among existing firms
11. Apple Value-Chain Analysis
11.1 Primary Activities
11.1.1 Inbound logistics
11.1.2 Operations
11.1.3 Outbound logistics
11.1.4 Marketing and Sales
11.1.5 Service
11.2 Support Activities
11.2.1 Infrastructure.
11.2.2 Human Resource Management
11.2.3 Technology Development
11.2.4 Procurement
12. McKinsey 7S Model
12.1 Hard Elements
12.2 Soft Elements
13. Apple Ecosystem
14. Corporate Social Responsibility
14.1 CSR Programs and Initiatives
14.2 CSR Criticism
15. Recommendations

List of Figures

Figure 1 Apple Inc. Organizational Structure
Figure 2 Apple Ansoff Growth Matrix
Figure 3 Apple Inc. net profit margin chart
Figure 4 Apple Inc. quarterly revenues from Greater China segment
Figure 5 Changes in iPhone unit sales
Figure 6 Annual lobbying by Apple Inc.
Figure 7 Changes in cost of labour in China, Mexico and Vietnam
Figure 8 Porter’s Five Forces
Figure 9 R&D spending of top 15 companies in 2018 in USD billions
Figure 10 Share of Iphone users planning to get Apple product for their next smartphone purchase
Figure 11 Apple Value Chain Analysis
Figure 12 Apple operations roadmap
Figure 13 Apple Inc. R&D expenditure 2007 – 2020
Figure 14 Apple McKinsey 7S model
Figure 15 Apple ecosystem
Figure 16 Water usage by Apple
Figure 17 Apple’s carbon footprint in 2019

List of Tables

Table 1 Apple SWOT analysis
Table 2 Apple products and descriptions
Table 3 Apple services and their descriptions
Table 4 Apple segmentation, targeting and positioning
Table 5 Role-based basic skills required by Apple

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  • Published: February 2021
  • 19002 Words
  • 73 Pages
Apple Inc. Report 2021