BAM 479 Case Study
Apple Inc.
Presented by: Brittany Watts, Taylor Moulios, and Robert Zimmerman
Contents
Introduction
Case Statement
Mission Statement
Mission Statement Evaluation
Vision Statement and Evaluation
Key Milestones
External Assessment
Internal Assessment
Industry Analysis
Financial Analysis
Competitive Strategies
Recommended Strategy
Ethical & Social Responsibility
Implementation Plan
EBIT/EPS Analysis
Conclusion
References
Introduction
Apple Inc. is one of the top selling consumer electronics company.
The companys portfolio includes the iPhone, iPad, Apple Watch,
computers, and other personal electronic devices. While Apple is a
fierce competitor, the company still faces steep competition in the
market.
Case Statement
Apple Inc. is subject to a highly competitive consumer electronics
field in which competitors can create similar products quickly and at
a lower price point. Apple must create products that cannot be easily
duplicated by competitors while also being cost conscious.
Mission Statement
Apple Inc. is committed to protecting the environment, health, and safety of our
employees, customers, and the global communities where we operate. We
recognize that by integrating sound environmental, health, and safety
management practices into all aspects of our business, we can offer
technologically innovative products and services while conserving and enhancing
resources for future generations. Apple strives for continuous improvement in our
environmental, health, and safety management systems and in the environmental
quality of our products, processes, and services.
Derived from David (2013) Strategic Management Concepts and Cases: A Competitive Advantage Approach.
Mission Statement Evaluation
Mission Statement Components The companys mission statement is
Customers
well executed and includes
Products or Service
Markets components such as care for the
Technology
environment, its customers and
Concern for Survival, Growth, and
Profitability employees, and advancement
Philosophy
Self-Concept
through technology. However, it is
Concern for Public Image recommended to provide information
Concern for Employees
about the companys self concept.
Vision Statement & Evaluation
Vision Statement Evaluation
Apple ignited the personal computer
The statement provided only speaks to
revolution in the 1970s with the Apple II and
what Apple has done in the past and how it
reinvented the personal computer in the
1980s with the Macintosh. Apple is was accomplished. Apple Inc. should
committed to bringing the best personal
provide its future plans for sustainability
computing experience to students,
and technological advancements.
educators, creative professionals, and
consumers around the word through its
innovative hardware, software, and Internet
offerings.
Derived from David (2013) Strategic Management Concepts and Cases: A Competitive Advantage Approach.
Key Milestones
Apple Computer The first iPod is
Inc. releases the released
Apple-1
1976 1998 2001 2007
The iMac is The iPhone is sold
introduced and is a and takes over by
best-seller storm
Derived from Time (2016)
External Assessment
Highly Competitive Market Use of Electronic Devices by Younger
New technology and design is
Users
introduced often
Tablets and phones are no longer just
Pricing wars
Features and technology are similar for business
from brand to brand
Product adaptation for younger users
Marketing strategy to new target
market
Internal Assessment
Leadership at Apple Brand Awareness
Steve Jobs Passing
Strong reputation in the market
Tim Cook New CEO for Apple
Loyalty from customers
Having different Leadership skills
Cook needs to convince Apples Customers Trust
employees and shareholders that Cook
Being synonymous with quality and
and successfully leard the company just
technology
like Jobs would have.
Industry Analysis
High level of competition among the major companies that compete
directly with Apple Inc. in the technology sector. Apple Inc. is in direct
competition with Google, Hewlett-Packard Company, Samsung
Electronics, and Amazon.
Financial Analysis
Apples revenue of $215 billion is favorable and the company
outperformed the industry by 0.28% in terms of revenue. The companys
return on capital is 14.48% which makes stock options more attractive
to investors.
Competitive Strategies
Product Increasing Brand
Loyalty Program
Differentiation Awareness
Recommended Strategy
Product Differentiation
Create a new product with new technology, design, and features
Product could be directed towards a new target market
Benefits
Increase brand awareness
Increase desirability
Gain new customers
More competitive
Ethical & Social Responsibility
The recommended strategy does not change nor negatively impact Apples
ethical or social responsibility. The company will continue monitor and improve its
core values surrounding:
Renewable Energy - 100% Goal Supplier Code of Conduct
Removing toxins from devices Supplier Employee Education
Apple Renew - Recyclable & Development
products Combating Human Trafficking
& Slavery
Derived from www.apple.com/supplier-responsibility/
Implementation Plan
The implementation plan for the recommended product differentiation strategy
requires input from the following functions:
Human
Marketing
Resources
Operations
Research &
Finance Development
EBIT/EPS Analysis
Amount required = $1 billion
EBIT Range = $3.5b $4.5 billion
Interest Rate = 5%
Tax Rate = 37%
Stock Price = $142
Number of Shares Outstanding =
5.25 billion
Conclusion
The product differentiation strategy will help to set Apple apart from
competitors by providing unique features and technology that are not
easily duplicated.
Research and development plays an essential role in determining what
type of products will best differentiate the brand and marketing will help
in solidifying the brands image. If executed thoughtfully, product
differentiation would allow Apple to dominate the market, increase sales,
References
Apple. (2017). Resources. Retrieved from
http://www.apple.com/environment/resources/
Apple. (2017). Supplier Responsibility. Retrieved from
https://www.apple.com/supplier-responsibility/
David, F.R. (2013). Strategic management concepts and cases: A
competitive advantage approach. (14th ed.). Prentice Hall.
Time.com. (2017). Apples evolution. Retrieved from
http://content.time.com/time/specials/packages/article/0,28804,18
73486_1873491_1994489,00.html
