apple mission statement 2015
What is the company’s major problem (e.g., what decisions must be made? what choices must be faced?)?
Apple Inc, record the most profitable quarter at the end of 2014 and market of capitalization was on the top with $ 18 billion. With this success apple Inc, it also faces some of the challenges in 2015. The sale of the Apple iPode is continuously freefall, the sale of the tablets is going to decrease and Macintosh marketing shares are small, for the growth of the company Apple have to increasing dependent on the iPhone. Beside this Smartphone, competition is also intense in 2015 especially in market of China. There is the important decline in the sales of the iPad. The profitability of Apple Inc based on 69% on the revenues of iPhone. These are the some of the major problems that Apple Inc has been facing in 2015. For increasing, the sales of iPad and to increase the shares of Apple Mac have to make some of the special strategies, with this they have to take the care full decisions.
What is the company’s current overall objective(s)?
Apple overall objectives are to increase the profitability of the organization or to attract the more customers by competing their competitors. Apple has making the strategies for increasing the market shares of Macintosh. company overall objectives are the reinvigorating innovation With this they also have the objective to increase its spending on R&D for getting the better information with this they are also focusing to pare down the inventory significally. Their current objective is to create the new culture so that the customers feel satisfy in organization and employees have to face no problem in the workplace. Apple focus is on the innovation of the products because it is necessary for the competing the competitors or for the growth of the organization. The purpose of all these strategies is to increase the revenue of the organization or for maintaining the reputation of the brand
Assignment on Apple Inc. in 2015 (Questions & Answers) By ABC Date What is the company’s major problem (e.g., what decisions must be made? what choices must be faced?)? Apple Inc, record the most profitable quarter at the end of 2014 and market of capitalization was on the top with $ 18 billion. With this success apple Inc, it also faces some of the challenges in 2015. The sale of the Apple iPode is continuously freefall, the sale of the tablets is going to decrease and Macintosh marketing shares are small, for the growth of the company Apple have to increasing dependent on the iPhone. Beside this Smartphone, competition is also intense in 2015 especially in market of China. There is the important decline in the sales of the iPad. The profitability of Apple Inc based on 69% on the revenues of iPhone. These are the some of the major problems that Apple Inc has been facing in 2015. For increasing, the sales of iPad and to increase the shares of Apple Mac have to make some of the special strategies, with this they have to take the care full decisions. What is the company’s current overall objective(s)? Apple overall objectives are to increase the profitability of the organization or to attract the more customers by competing their competitors. Apple has making the strategies for increasing the market shares of Macintosh. company overall objectives are the reinvigorating innovation With this they also have the objective to increase its spending on R&D for getting the better information with this they are also focusing to pare down the inventory significally. Their current objective is to create the new culture so that the customers feel satisfy in organization and employees have to face no problem in the workplace. Apple focus is on the innovation of the products because it is necessary for the competing the competitors or for the growth of the organization. The purpose of all these strategies is to increase the revenue of the organization or for maintaining the reputation of the brand. What are the current strategies to help the organization achieve its current objective(s)? Current strategies that Apple has been using to achieve the current objectives are the use of the latest or the advanced technology. One of the most important strategies that Apple has been using is the creation of the unique products or the services for the industry and company. For achieving, the current objectives Apple have been adopting the broad differentiation strategies. Premium price strategies and product differentiation are the important strategies that are helping organization to achieving the current objectives. Using the company’s mission statement, identify which components were utilized Mission statement Apple is very specific that indicate that what the company has to do and what will do. The mission statement of Apple Inc includes the Macs, iWork, OSX and others. These things are important for the setting and recognizing the future actions that Apple has to take for solving the problems that they are facing. The mission statement of this organization shows that, Apple have the plan to continuously focus on the research and development of the mobile devices. Create your “improved” mission statement utilizing all components and identify each component in your “improved” mission statement “Apple innovative strategies are the best way to for the introduction of the innovative or the unique products, Apple design personal computers, Macs along with OSX, iWork and professional software’s. Apple is leading in the mobile phones and digital music’s and defining computing devices and mobile media with the iPad. Innovative strategies and use of the latest and advanced technology are the result of the success of the organization”. Innovation in the products with the help of the innovative or the latest technology is the improved components in this mission statement of Apple Inc. How attractive is the industry (e.g., size, growth rate, profitability, competitive intensity, Porter’s 5 forces) to companies currently in the industry? In addition, to companies who would like to enter the industry? (FYI. When you finish answering this question, you should know: 1) if you are considering entering in this industry, do you want to enter in to this industry or 2) if you are currently in this industry, do you want to stay in this industry.) It is very interactive industry; the products of this industry facilitate the customers in the different ways. This industry offer different products like iPhones, tablets, mobile phones, Macbooks, and many of the other devices. Regarding the size, competitive intensity, growth and size, it is very interactive to inter in this industry. However, it is not easy to enter in this industry; it is very difficult to enter in this industry or to make the place. For entering in this industry, entrepreneurs have to face many of the challenges or the problems. The reason is that there re already many of the competitors in this company that are offering the different or the innovative products. Porters 5 forces: Competitive Rivalry: Regarding the competition, this industry has the strong forces of the competitive rivalry. This analysis also helps this industry to determine the influences and intensity of competitors on each other. There are many of the strong competitors in this industry, this industry have the like low switching cost and high aggressiveness. Apple, Samsung, LG, BlackBerry are the strong competitors in this industry and are making the different. In rapid aggressive advertising, rapid innovation and imitation such aggressiveness is observable, the competive rivalry in this industry is high. On the other hand, it also easy for the customers from one brand and to move the other one, this shows that switching cost is low, thereby make the competition together. There are more competitors, there is the intense competition in this industry for the same customers. Different companies are doing the different efforts to make them different from others. Apple products are always innovative from the others, products of this brand never go on sale, it competes on the bases of uniqueness and quality of the product. Bargaining Power of Buyers: The bargaining power of buyers in this industry is strong that affect their business of the different companies. This factors of this model help to understand that how the buyers affect the different business. In case of Apple buyers power is strong due to some of the external factors that are small size of individual buyers and low switching cost. It is very easy for the customers to switch one brand and the move to the other, thereby make them powerful in compelling the Apple for ensuring the satisfaction of the customers. With this, customers of this brand are very loyal with them, they always prefer to the products of this brand rather than the other. However, it is easy for the customers to move from Apple to the other brand like Samsung and any of the other brands, therefore buyers exert the strong force. Apple must have to include that bargaining power of buyers is the important variable in the developing strategies. By keeping the critical products, features mobile industry keep the switching cost high and easily transferable to the other devices. For increasing the stickness, it is necessary for all of the competitors to carefully broaden its innovative products for existing in this industry. Bargaining Power of Suppliers: Mobile industry experiences the weak force regarding the bargaining power of suppliers. In this industry, most of the industries need supply of chips, sim cards or many of the soft wares or the hard wares. If the suppliers will not provide the good quality in the right prices then companies in this industry have the option to move on the other suppliers. There are the many suppliers around the world therefore; all the companies in this industry have the more options. This thing make to the individual suppliers weak in imposing the demands of Apple of the other firms. However, for most of the components of Apple there is the high level of supply of the products. This component of this analysis shows that in developing strategies for the industry leadership and innovation Apple has no need to prioritize the bargaining powers of the suppliers. Beside this, most of the companies in this industry start to produce most of the components or mobile parts himself like chips, sim cards. This shows that the bargaining power in this industry is very low, because companies in this industry have many options. Threats of the Substitutes: Mobile industry has the weak threats of the substitutes in affecting the business. This component helps to determine the power of the substitute product for attracting the customers. In this industry, there are weak threats of the substitutes. These substitutes exert the weak force on the low performance of the substitutes and high availability of the substitutes. There are some of the substitutes of the Apple, Samsung, Nokia or the other products in the market, as instead of using the iPhones for taking the pictures people can use the digital cameras. With this also can use the iPhone of the other brands. For calls, they use the landlines. Although these substitutes have the lower prices, therefore they have limited features. Due to the innovative of the products, most of the customers are loyal with this brand; with this, products of Apple brand have the different or the innovative features. Substitutes have the weak force; they cannot affect the business of mobile phone industry. In the business processes, Apple has no need to prioritize the substitute threats like product development, design and marketing. By making, the selective products with the innovative features Apple mitigate the effects, which ultimately replace the iPhones and MacBooks. Threats of New Entrants: Regarding the new entrants, this industry experiences the higher forces of the threats of new entrants. It is not easy for any of the industry to inter in this market, industries that have large revenues and have large amount of many can inter in this industry. However, after interring in this industry it is not easy for the enterprenuereurs to exist in this market, because there are many of the strong competitors are already working in this industry like apple, Samsung. This component indicates the possibility and affect of the new entering industries in the market of mobile industry. For building the strong brand reputation and to compete their competitors require the capital like Apple and Samsung. . Therefore, it is not easy for the new industries to inter in the business or to exist in the market. However, large firms that have capital in large amount can inter in this industry and do the efforts to compete Apple and Samsung. In market, there are the large competitors of Apple that have the capacity to compete Apple. Therefore, threat of the new entry is moderate. Yes if I got the opportunity to inter in this industry then I will prefer to inter in this industry rather than the others. Alternatively, if i am already present in this industry then I want to stay in this industry. The reason is that this industry is continuously growing. The profitability of the industry is increasing. Although there are strong competitors are present in this industry, but if anyone who have large amount of money can inter in this industry. With the help of the innovative strategies, it is easy Conduct a Situation/SWOT Analysis (internal and industry analyses) Internal Analysis of Industry: Strengths: Mobile industry has many of the strengths that are helping this industry to continuously grow, or to increase the profitability of this organization. Use of the innovative strategies or latest or advanced technology is the great strength of this industry. This industry becoming essential for the population and there are very low chances of the changes in this industry. Another important strength of this industry is that devices of this industry are using all around the world. High-speed wireless internet and rapid growth in the smart phones of the different industries are the great or the important strengths of this industry. These strengths are helping this industry to continuously grow or to attract the more customers. Weakness: Although it is the continuously growing, industry but it have some of the weaknesses that can affect the growth of this industry. It is the danger that mobile manufacturers will see the profit dwindle as the prices of the advanced technology handsets falls. With this different companies in this industry are spending a lot on the marketing of the products this thing affect the profit of this industry. Beside this, there are the huge entry barriers for the new entrants in this industry. These weaknesses of this industry are affecting this industry. Conduct an industry analysis (external audit) External Analysis of the Industry: Opportunities: This industry has some of the opportunities, by availing these opportunities this industry can increase profitability. By using the latest and the advanced technology, this industry can introduce something new. By using the technology this industry can easily produce the new handsets, like Apple introduce something new each year, the use of the new or advanced technology help to attract more customers. With this overall use of the mobile phone, devise has been increasing, with the increase of the population this industry has opportunity to grow rapidly. Threats: Mobile industry have some of the security threats, hackers can easily hack the devices and see the personal data of the organizations. This thing create the problems for the organizations, therefore this industry have to focus on the security problems. With this there are more competitors in this industry, due to the competition there are the chances that the other industries can enter in this industry. What are the company’s external opportunities and threats? Opportunities: Apple has some of the opportunities, by availing the opportunities this Apple can increase market shares and attract more customers. Apple can expand their business in all around the world, by expending on the development and research Apple can introduce something new, with the use of the latest and advance technology Apple have the opportunity diversify their products and they can bring innovation in the smart phones because trend of Smartphone is increasing in the people of the different areas. With iPhones tablets sales of Apple Inc has been increasing Threats: Apple is facing some of the threats; one of the biggest threats is strong competitors because there are the strong competitors of this company like Samsung, blackberrying. Sales of PC has been decreasing which is not good for Apple, with this organization rely on some of the specific suppliers; these are some of the threats that Apple has been facing. With this competition is increasing for the online music and music downloads. Apple growth is heavily depending on the iPhones, these are some of the things that can affect the Apple profitability or their reputation. Demand of Apple TV and Apple Mac has been decreasing which is not good for the growth of Apple Inc. Without the introduction of the innovative products, it is not possible for Apple to exist in this industry or to increase their profit ratio. Develop an External Factor Evaluation (EFE) Matrix, explain what the company needs to improve on externally, and justify why it needs to be improved External Factors weight Rating Weighted Score Opportunities Expansion of business on international analysis 0.2 4 0.8 Use of latest and advanced technology in iPhones 0.1 2 0.2 Expansion in the product line 0.2 2 0.4 Sale of tablets 0.08 2 0.16 More compatibility with the Microsoft 0.09 2 0.18 Threats Strong competitors 0.1 2 0.2 Rely on specific suppliers 0.09 1 0.09 Increasing competition in online music and music download 0.07 1 0.07 With the use of the advance technology consumers expectations are increasing 0.07 1 0.07 Total 1 17 2.17 Apple have to expand their business in the different countries of the worlds, it will be very profitable for the company because Apple have the strong brand image in the minds of people. In addition, in this age people are brand conscious therefore it will prove profitable for the company. With the change in the technology demands of the apple products have been increasing, because people want to look different from the others therefore Apple have to focus on the innovation of the products. By availing, these opportunities Apple can add large amount on their profit ratio, with this it also essential for the company to compete their competitors. Apple has to create the relations with the other suppliers because it is not good for company to rely just on the few suppliers, because suppliers charge the heavy prices of the products, it is essential for company to maintain the quality of the products. Identify the company’s major competitors, develop a Competitive Profile Matrix (CPM), explain what the company needs to improve on competitively, and justify why it needs to be improved There are the different strong competitors that can compete Apple by the use of the latest technology and innovative strategies. Regarding the iPhone greatest competition come from Android, free and open platform was developed by the Google. Large number of the manufacturers are entering in this market beside this Android based phones have low prices and have more variety. Samsung is the direct competitor of Apple, although Samsung relatively enter late in the market of Smartphone but it became the leader in 2011. Beside this, Lenovo and Blackberry are also competitors of Apple Inc. Xiaomi are the feared competitor in this market it is the new player from china. Apple Samsung Blackberry Critical success factors weights Rating Score Rating Score Rating Score Market shares 0.13 4 0.52 4 0.52 2 0.26 Consumers loyalty 0.10 4 0.40 3 0.30 1 0.10 Product quality 0.08 3 0.24 3 0.24 2 0.16 Brand reputation 0.1 2 0.2 2 0.2 1 0.1 Product variety 0.08 3 0.24 2 0.16 1 0.08 Market penetration 0.12 2 0.24 2 0.24 1 0.12 Store location 0.09 4 0.36 3 0.27 2 0.18 Competitive prices 0.11 3 0.33 2 0.22 1 0.11 Product uniqueness 0.1 3 0.3 2 0.2 1 0.1 Financial condition 0.09 4 0.36 3 0.27 2 0.18 Total 1 3.19 2.62 1.39 Blackberry has to do struggle for competing their competitors; Apple and Samsung are the strong competitors. Blackberry have use some of the innovative strategies and have to introduce something new, with this they also have to improve the quality of the products, because it’s not easy for blackberry to compete these strong competitors. However, for making place in this market Blackberry have to do something new, therefore Blackberry have need to improve competitively. Conduct internal analysis What are the company’s internal strengths and weaknesses? Strengths: Apple has some of the strengths that are helping this company continuously grow. Apple have the strong image in the minds of people, therefore it is not difficult for this company to attract the customers. Introduction of the innovative products is strong strength of this company. Beside this, organizations spending large amount on the research and development this thing help them to get the information about the customers, Apple have the loyal customers and Apple competitive position in this market is a great strength for the organization. Apple watches and Apple premium prices are the greatest strength of Apple. Weaknesses: Apple has some of the challenges that can affect reputation of company. Lack of the compatible software’s , with this decline in the sales of the personal computers. This thing is affecting on the growth of the company. Customers have to pay high prices for the products due to which some of the customers prefer to move any of the other brands. One of the most important weaknesses that can heavily affect the company growth is the death of the Steve Job. Steve Job struggle hard for this company for bringing upward, Steve Job innovative strategies are the results of the success of this organization. Now death of Job becomes the weakness of the company. How would you describe the company’s financial condition? Company financial condition is very strong, company is rapidly moving to the upward. In the prior decade, performance of this organization had been stellar. In 2015, Cook celebrates his accomplishment. In 2014 apple, recorded profit was $ 18 billion it was the largest quarterly profit in the history of corporate, by the release of iPhone 6 shattered sales have been recorded, in holiday quarter of 2014 there were 74.5 million selling units of iPhone. Stock performance of company was undeniable, 69% revenue of Apple depend on the sales of the iPhones. Premium prices are the greatest strength of this organization that is the reason that market shares of Apple has been increasing since from 2004. In the U.S, market about 91% of the PC prices above $1000 sold by the Apple. At the end of 2014 market, shares of PCs will reach in 6.4%, which are the fifth global PC manufacturers. With this great sale of iTunes and iPods are affecting the profitability of the Apple Inc in the positive way. According to some of the analysts Apple, generate more than 60% from the industry of cell phones from total profit of 2013. In 2012 in the fourth quarter Apple staggering 93% profit of the handset industry. In 2014 Apple realized an $687 from the sales of iPhones. Prepare a financial analysis by developing and explaining each of the four different analyses separately (ratio analysis, vertical/marginal analysis, horizontal analysis, and percentage change analysis) Ratio Analysis: Current Assets After analyzing each analysis separately, explain what is the company’s financial position when considering all four analyses together After the analyzing the different analysis separately, it proves that Apple is the strong company in mobile industry. Financial position of apple is very strong as compare to their competitors, Apple innovative strategies and innovative products are the result of the success of this company. In final quarter of 2014, this company records the historical profit of this industry. Develop an Internal Factor Evaluation (IFE) Matrix, explain what the company needs to improve on internally, and justify why it needs to be improved Critical Success Factors Weights Rating Weighted Score Strengths Strong Brand image 0.18 4 0.72 Introduction of the innovative products 0.09 4 0.36 Research and development 0.13 3 0.39 Loyal customers 0.10 3 0.30 Premium prices 0.11 2 0.22 Weaknesses High prices of products 0.1 2 0.2 Incompatibility 0.09 3 0.27 Dependence on iPhone 0.12 3 0.36 Lack of the debts 0.08 2 0.18 Total 1 26 3 These are the strong strengths of Apple Inc that are helping to continuously grow to apple Inc, but for maintaining the reputation of the company it is necessary for Apple Inc to remove the weaknesses of the company, because these weaknesses affect the reputation or growth of company. Therefore, it is necessary to remove all of these weaknesses of company, otherwise there are the chances that customers will move to the other brands. Given the IFE, EFE, and CPM, is the company stronger internally, externally, competitively, or some/all. External, external or the competitive matrix of Apple Inc shows that apple is the strong company in the mobile industry. It is not easy for any of the company to compete this company. Internally and externally, it is the strong company but it also has some weakness and threats, which is necessary for company to remove threats and weakness because by removing these weaknesses or the threats profitability of the company will increase with the great ratio, with this it become easy for apple to compete their competitors. Otherwise, this company is going on the top from all of the organizations in mobile industry. Apple Inc is doing all the efforts for profitability and to compete the competitors, therefore this organization introduces something new in each of the year for attracting the more customers or to get the competitive advantages. Develop four matrices for the company: SWOT Matrix, SPACE Matrix, IE Matrix, and Grand Strategy Matrix. Highlighting each of your strategies listed SWOT Matrix: Strengths Weaknesses Strong brand image Research and development Innovation in the products Loyal customers Premium prices Incompatibility Dependence on iPhone High prices of products Lack of debt Opportunities Threats Expansion of the business Expansion of the Product line Compatibility with the Microsoft Use of latest technology Increasing Competitors Rely on specific suppliers Increasing competition in online music and music downloader Increase in expectations of customers Space Matrix: PP ConservativeAggressive CPIP Defensive Competitive SP This SPACE matrix shows that the company has to follow the aggressive strategy, it means that Apple have to implement horizontal, backward, and forward integration, as well as diversification, product development and for market penetration. IE Matrix: IFE Scores Strong 3-4 Average 2-2.99 Weak 1-1.99 EFE Scores High 3-4 I II III Medium 2-2.99 IV V VI Low 1-1.99 VII VIII IX Grand Matrix is the popular tool for the formulation of the alternative strategies, with the help of this matrix all companies can be positioned. Grand Strategy Matrix: Rapid Market growth Quadrant IIQuadrant I Market Penetration Product Development Weak Strong Competitive positionCompetitive position Quadrant IIIQuadrant IV Slow Market Growth What would you see as the greatest advantages? biggest strategic concerns? Strategies play the important role in the success of any of the business, Apple success is the result of the Apple innovative strategies. Strategies have the important concern in the success or the failure of the business. If we make poor strategies then it is not possible to get success or to compete their competitors. Apple Inc always make different or the innovative strategies for existing in the market or to attract the more customers. Otherwise, in this competitive age it’s not possible for Apple to compete Samsung and Blackberry or other competitors. Innovative products of Apple Inc are the result of the innovative strategies. Competitive strategies the great concern in the success of any of the organization. Based upon an industry analysis, where do they fit? Based on the industry analysis Apple Inc is on the top in this industry, although there are the strong competitors are present in this industry. However, it is not so easy for them to compete this company. Samsung, Blackberry is the strong competitors of Apple in this industry but due to innovative strategies, Apple is leading to all the companies that exist in this industry. Describe, in detail, their financial position? Financial position of Apple is very strong, that is the reason that net sales Apple increase every year from 2004 to 2014, in 2014 net sales of Apple Inc are 182, 795. In the same way cost of sale and net income of Apple Inc increases from 2004 to onward in all the years, with this Apple return on the assets and sales continuously increase from 2004 to 2014. Stock prices of Apple Inc also have been growing rapidly onward from 2004. These all things affects on the profitability of Apple Inc in the positive way. This shows that with the time profit ratio of company is going to increase; therefore, it is not easy for their competitors to compete this organization because financial position of company is very strong. Given your understanding of the industry and their strategy, what would you recommend for them to do in order to survive in this industry? For surviving in this industry, Apple has to do some more effort, because competition in this industry is going to increase. Apple is one of the most profitable company in all around the world, after going of Steve Job Apple enter into the new age and future of the company can be a very well jeoparady. Apple has need to introduce the innovative devices, with this at the entry level they have the need to be more elite for the expensive devices, with this apple have opened the new stores in United States with the accessories and peripheral for the computers. They also have to use the established markets. For attracting the coming generation, they have to contract the music spokesperson. Apple has to add the more features in their existing products like software of iTunes and office programs. Innovation in the products is essential for surviving in this industry; otherwise customers have many of the other options they can easily move to the other brands. Therefore, for attracting the customers Apple Inc have to do something different.