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Case Analysis
Presented by: Mariham Helal & Esraa Elseidy
Situation Analysis
Financial Analysis
Key Success Factors
SWOT Analysis
Recommendations
Implementation and Expected Outcomes
Evaluation and Control
Company Overview
Apple was founded by Steve Jobs,
Steve Wozniak, and Ronald Wayne on
April 1, 1976 to develop and sell
personal computers.
It was incorporated as Apple
Computer, Inc. on January 3, 1977,
and was renamed as Apple Inc. on
January 9, 2007 to reflect its shifted
focus towards consumer electronics.
Apple Inc. headquarter in California.
Apple Inc. has 9 products , 7 services
and 378 retail stores world wide
NAME HISTORY
Situation Analysis:
Industry Overview :
The Consumer Electronics industry includes electronic
appliances that are used everyday, mostly for
communication, entertainment, and office purposes.
Mission Statement
"Apple is committed to bringing
the best personal computing
experience to students,
educators, creative
professionals and consumers
around the world through its
innovative hardware, software
and Internet offerings."
iPhone; 23%
iMac
iPod
iPhone 4s
iPod Nano
iPhone 5s
iPad
iPhone 5C
Apple Inc.
Competitors
In smart phones
industry
In iPads
industry
Apple Inc.
Competitors
5
4
3
2
1
0
0.5
1.5
2
Quality
2.5
3.5
Financial Analysis
Ratio
2010
2009
2008
Comment
39.30%
40.10%
35.20%
28.20%
27.30%
22.20%
21.50%
19.20%
16.30%
18.60%
17.33%
15.40%
29.30%
26%
29%
15.15%
9.08%
6.78%
Profitability Ratios
Liquidity
Ratios
Current Ratio
2.01
2.74
2.46
Quick Ratio
1.96
2.7
2.42
Inventory to
net working
capital
5.01%
2.27%
2.47%
Leverage Ratios
Debt-to-Asset
ratio
36.40%
33.40%
46.80%
Debt-to-Equity
ratio
57.30%
50%
88.20%
13.90%
13.70%
21%
Activity Ratios
Inventory
turn Over
62
94
73.6
Fixed Assts
Turn Over (
FATO)
2.08
3.08
12.7
Total
Assets
Turn Over (
TATO)
0.87
0.9
0.94
Issues
1. Product differentiation
In todays age there is a thirst for hot new products, and
keeping a high end product on the shelves can be a
challenge.
2. Product Diversification
Apple has continuously expanded its product depth to
extract all of its value. The question is how long can they
keep doing this until consumers lose interest?
Issues
4. Marketing
A well-known and well-respected brand name
Currently Apples brand name is ranked number one in the world
according to Interbrand's study of worlds most popular brands.
This title increases their brand awareness and also
proves they are at the top of their game in the electronics
industry
SWOT Analysis
Strengths
#1 Globally recognized brand
Research and Development
Innovation
Healthy Financial Performance
Loyal Consumers
Economies of Scale
Weaknesses
High retail prices:
Apple has a differentiation strategy and charges
higher prices for their unique products, but have to be
careful to not charge too much.
Slowing innovation:
If this happens, then Apple may lose a competitive edge.
Competition from major firms:
Competition could intensify.
Opportunities
Threats
Stiff competition:
Competition is high and intense in the technology
sector.
Product Imitations:
These product imitations could serve as a low cost
substitute.
Potential saturation of mobile market:
If markets become saturated profits decrease for the
industry and Apple.
Recommendations
Recommendations
Options for competing in international markets
Continue the expansion of Apple stores: The stores represent
an important source of revenue for Apple and serve as an
interactive advertisement for the Apple brand. Their success
has been unmatched by any other industry player.
Emphasize the integrated system in advertisements: Apple's
integrated system holds a significant advantage over other
industry systems relying on Microsoft Windows, yet some
customers have not experienced the seamless interoperability
of all Apple products. This marketing angle will result in cross
selling of more products to new and existing customers.
Apple should continue to support the educational and creative
professional markets
Recommendations
Generic strategies
Design innovation: Put additional emphasis on design
development with internal resource allocation to continue to
lead the industry in design.
Research user interface possibilities: As a mode of setting
Mac computers apart from other PCs Apple must continue to
innovate in user interface focusing on easy-of-use and intuitive
menu functions
Consumer electronics diversification: While the PC market
has grown increasingly crowded with competitors and
customers saturated other areas of consumer electronics
continue to grow. Developing complementary products in other
categories provides broader sources of revenue by accessing
more customers in markets with less intense competition.
Apple should consider all work related to its operations in the iPod,
iTunes, iSync, and iChat sectors.
Recommendations
Short Menu
Option One: Franchising of stores
Option Two: Growth Strategy through new
products and new market opportunities
Option Three: Vertical Integration
Expected Outcomes of
selected strategies
Strategy Implementation:
Organization Structure:
Implementation
The recommended strategies are implemented as follows:
Build long term organizational strength by implementing a clearly thought
out leadership development and selection programmer that will be able to
develop the special leadership required for Apple.
Future leaders should be technically brilliant, innovative pioneers with
strong team working skills and high levels of ethics.
Build specific products of high quality, but lesser prices, for the huge
populations of India and China that are passionate about computers,
mobile phones and music.
Continue and intensify the search for innovative, stylish and useful
products in its existing area of operations.
Make productive use of strong cash reserves
Recommended strategy
supportive policies:
Action plans:
Producing an action plan can be beneficial not only for
individual basis but also for businesses. For example, it allows
project managers or any member of a group to monitor their
progress and take each task step-by-step, therefore allowing
them to handle the project efficiently. The advantage of doing
this is, it allows you to execute a structured plan for the end
goal you intend to achieve. Furthermore, it provides the team
with appropriate foundations, therefore prioritising the amount
of time you spend on each task.
This will then prevent any sidetracking that may occur. Lastly
it creates a bond within a team, as each member is aware of
their individual role, as well as providing necessary
information to ensure success of the project
Thank you..