Running Head: APPLES STRATEGIC ANALYSIS

Apples Strategic Analysis

Name: Alaa Kahla

Professor: Canan Mutlu
Course: Strategic Management 4305
Date: 4/17/15

Running Head: APPLES STRATEGIC ANALYSIS

Part 1: Executive Summary and introduction

A. Executive Summary
The report was commissioned to examine, and conduct a strategic analysis of Apple Inc.,
with the intention of establishing an apparent direction in which the organization should take,
and proposing imperative recommendations in relation to the measures the organization should
adapt. The research draws attention to the fact that Apples market scope is gradually shrinking
because of intense competition, from preeminent market players such as Microsoft, HewlettPackard (HP), among many others. Further, the research reveals that Apples marketing strategy
is not making imperative contribution in the marginalization of competition, in the Tech industry.
The recommendations discussed include,

The reinforcement of Apples product differentiation strategy

The Expansion of global retail locations
The reinforcement of product innovation and design

The research evaluates Apples potential in product innovation and design, and concludes
that it would be the ideal recommendation to avert intensified competition in the consumer
technology markets. Conclusively, the research identifies a concrete strategy implementation
plan that could be integrated by the organization.

Table Of Contents

Running Head: APPLES STRATEGIC ANALYSIS

Part 1: Executive Summary and introduction............................................................................2

A.

Executive Summary............................................................................................................2

B.

Introduction.........................................................................................................................4

Part 2: External Analysis..............................................................................................................6

A.

General Assessment of Environment................................................................................6

Economic environment analysis...................................................................................................6

Political environment Analysis.....................................................................................................7
Socio-cultural environment...........................................................................................................8
Technological environment Analysis............................................................................................9
Demographic environment Analysis............................................................................................9
B.

Stakeholders Analysis.........................................................................................................9

C.

Porters five forces analysis..............................................................................................10

Threat of new entrants................................................................................................................10

Threat of substitute products......................................................................................................11
Buyer bargaining power..............................................................................................................11
Suppliers bargaining power.......................................................................................................11
Rivalry among competing firms.................................................................................................12
Part 3: Internal Analysis.............................................................................................................12
A.

Apples Financial Analysis...............................................................................................13

B.

Apples SWOT and VRIO Analysis................................................................................15

Strengths.......................................................................................................................................15
Weaknesses...................................................................................................................................16
Opportunities...............................................................................................................................16
Threats..........................................................................................................................................17
VRIO analysis..............................................................................................................................17
C.

Apples Value Chain Analysis..........................................................................................18

Production....................................................................................................................................18
Customer service..........................................................................................................................19
D.

Apples Differentiation strategy......................................................................................19

Part 4: Recommendations...........................................................................................................20
A.

Three potential strategies.................................................................................................20

Running Head: APPLES STRATEGIC ANALYSIS

B.

Product Design and Innovation.......................................................................................21

C.

Strategic implementation plan.........................................................................................22

References.....................................................................................................................................24

B. Introduction

Apple is an American based multinational Company that deals in the sale and designing
of computer software, personal computers, plus a wide array of hand-held gadgets. Apple is best
known for products branded as Macintosh (Linzmayer, 2004). Apple Inc. was founded by Steve
Jobs, alongside his colleague Steve Wozniak in 1976. Initially, Apple focused on designing boxes
that facilitated long distance phone calls. The gradual sale of the communication boxes provided
necessary resources that were channeled to the construction of the Apple 1 computer box. With
the sale of the Apple 1 computer box, Jobs and Wozniak commenced work on the Apple 2
computer box (Linzmayer, 2004). Unlike the Apple 1, the Apple 2 would integrate circuitry. Jobs
and Wozniak sought help from Regis McKenna. McKenna facilitated the advertisement of Apple
products in the market (Linzmayer, 2004). Prevalently, Apple deals in various spectrums of the
Tech industry. Furthermore, Apple opted to venture into the music industry by innovating the
digital music player, the IPod, and iTunes. Apple Inc. continues to work towards providing
consumers with innovative products.
Overtime, the company has witnessed frequent changes in management. After Steve Jobs
stepped down, Tim Cook took up Jobs role as Apples CEO. During his reign, Cook stirred

Running Head: APPLES STRATEGIC ANALYSIS

enormous changes in management (Linzmayer, 2004). For instance, Eddy Cue was accorded the
responsibility to head the management team, Ron Johnson, the head of Apples retail
management retired, Scott Forstall, the Senior Vice President for IOS, was fired. These changes
have curtailed the Companys level of stability, and induced conflicts based on differences in
opinions, and perceptions (Sterling, 2012). As a result, Apple has overlooked promising
opportunities in the computer Industry. This fact has in turn resulted to the mitigation of Apples
competitive advantage and power. Records indicate that Apple is facing stiff competition from
Dell, Microsoft, and Gateway. Furthermore, the changes have accounted for the decline in
Apples stock. The stock has declined by an estimated $ 200, from a lofty $ 700 to $ 500. This
fact has further deteriorated Apples position in the computer industry. Given the gradual
increase in competition from major market Players such as Dell, Microsoft, and Gateway,
Apples market scope has deteriorated significantly. Records indicate that Apples market scope
has declined to an estimated 5%.
Comparative research indicates that Microsoft has posed enormous competition for other
players in the computer industry particularly, Apple. Microsoft covers an imperative percentage
of the overall market share. Apple has imperative potential to outdo other players in the
Computer industry (Sterling, 2012). For instance, Apples operating system differs considerably
from other systems integrated by other players in the market industry. Nonetheless, Apple has not
made effort to leverage on their operating systems. Typically, Apple has not paid imperative
focus on these problems (Sterling, 2012). Records indicate that it has garnered a significant
number of customers. Nonetheless, an increase in customers does not fully address the gradual
decline in market share. Additionally, an increase in customers does not address issues relating to

Running Head: APPLES STRATEGIC ANALYSIS

the accelerating levels of competition that have curtailed Apples progress in the computer
industry.

Part 2: External Analysis

A. General Assessment of Environment

Apple holds enormous capabilities and resources. Nonetheless, changes and trends within
the general environment pose considerable threats that could further curtail Apples progress and
success, in the Tech industry (Masi, 2011). Proper planning will enable Apple to marginalize
these considerable threats, while leveraging on the Companys core competencies that will
ensure the utilization of opportunities that will add value, and contribute imperatively to Apples
success.
Economic environment analysis

The economic recession in the United States marked a significant decline in the average
computer shipments. The shipments declined from an estimated 27.2 million to an estimated 22.7
million. Overtime, the United States has marked tremendous economic improvements. The
nation indicates signs of complete recovery from the perilous economic recession that hit the
nation in 2008 (Masi, 2011). Nonetheless, the recovery has not established adequate certainty. As
a result, citizens opt to curtail their overall spending patterns. This fact in turn motivates people
to shift from quality products to affordable and economic products. Typically, Apple is known for
quality, and luxurious brands that have contributed imperatively to the Apples supreme pricing

Running Head: APPLES STRATEGIC ANALYSIS

(Masi, 2011). The supreme pricing leaves the firm at a disadvantage, by paving the way for less
expensive competing brands. On a positive note, the gradual upsurge in the economy is more
likely to improve Apples position in the market. An upsurge in the economy will augment buyer
power (Masi, 2011). As a result, people will draw attention to luxurious, innovative, and quality
brands from companies such as Apple. This fact will then augment Apples competitive power
against lesser expensive brands.
Political environment Analysis
Apple is subjected to political issues both domestically and globally. Domestically, the
federal government places emphasis on the environmental concerns. Typically, environmental
concerns are directly affiliated to all players in the computer industry. The Environmental
Protection Agency enacted the EPA/310-R-95-002 (Hasan, 2013). The EPA required electronic
and computer industries to adhere to the directives stipulated in EPA/310-R-95-002. Based on
these stipulations, EPA required computer and electronic industries to ensure the apt disposal of
computer components and the mitigation in the overall carbon emissions affiliated with the
manufacture of computer and other electronic products (Masi, 2011). To adhere to these
directives, Apple must channel a significant amount of resources to foresee the production of low
carbon emitting products, and to ensure the proper disposal of computer components. Overtime,
Apple has implemented buyback, and apt clearance of computer products with the intention of
establishing proper product stewardship.
Overtime, nations such as China and Europe are curtailing their manufacturing costs and
government policies with the intention of augmenting the corporate sector. A significant
reduction in manufacturing costs and a mitigation of restrictive government policies encourages
more investors to invest in these nations. This fact in turn creates a promising opportunity for

Running Head: APPLES STRATEGIC ANALYSIS

Apple to expand the overall market scope (Hasan, 2013). Typically, government policies in
foreign countries tend to favor local companies, at the expense of foreign companies. This fact
results to the imposition of high tariffs and tax duties. This fact curtails Apples efforts to venture
into the international markets. Apple tax reports indicate that the company pays an estimated
32% of rate of tax, in foreign nations (Masi, 2011). In the United States, the company pays an
estimated 25.2% of rate of tax. Given a comparison of the two, it is evident that the company
pays more in foreign nations.
Socio-cultural environment

Contemporary societies are characterized by the increasing desire to incorporate wireless

devices. Unlike traditional devices, wireless devices are affiliated with rapid speed, portability,
and accessibility. This fact makes wireless devices more valuable. Prevalently, Apple is on the
forefront of the wireless transition (MacIntosh & Maclean, 2014). This technology augments
Apples competitive power against traditional PCs and laptops. Research indicates that cultures
are restrictive thus, may mitigate a firms average profitability. One of Apples socio-cultural
hurdles is the increasing levels of poor education standards in various parts of the world such as
Africa (MacIntosh & Maclean, 2014). With low education standards, people lack the basic
know-how in relation to technological devices such as computers. As a result, they overlook on
the importance of technological products such as computers. This fact in turn mitigates Apples
plan to venture African markets.

Running Head: APPLES STRATEGIC ANALYSIS

Technological environment Analysis

Research indicates that gradual technological advancements will result to device
convergence that will be the next big thing in technology. Traditional devices will be of little or
no help at all to individuals. Nonetheless, Apple stands at the forefront of portable and innovative
technology (MacIntosh & Maclean, 2014). Comparative studies indicate that the company is
considerably positioned to become a market leader in convergence devices, given their current
devices that are virtually convergent.
Demographic environment Analysis
Research indicates that the middle class people in the United States have been bombarded
with additional expenses such as health expenses, among many others. Regardless of the
increased expenses, the average wages are still stagnant. This fact in turn mitigates the
consumers purchasing power (MacIntosh & Maclean, 2014). Given Apples supreme pricing, the
Company stands at a risk of losing customers to cheaper brands. Research indicates that overtime
people in the 50-65 age brackets are embracing the use of computers, and other technological
gadgets. This fact creates a promising opportunity for Apple in that it can diversify on the overall
target market.

B. Stakeholders Analysis

In the corporate world, business stakeholders are imperative to an organizations success.

Stakeholders refer to individuals that have a share, interest, and an investment in an organization.
Apple Inc (MacIntosh & Maclean, 2014). Customers are perceived as imperative stakeholders in
the organization. They are external stakeholders hence, they do not have a say in the

Running Head: APPLES STRATEGIC ANALYSIS

10

organizations daily operations. The customers contribute imperatively to Apples success since
they purchase Apple brands that in turn yield enormous profit benefits for Apple.
Apple owners, the likes of Steve Jobs, are the categorized under the internal stakeholders.
They have a say in the organizations daily operations, and contribute significantly to the
organizations success. Apples suppliers are imperative internal stakeholders. The suppliers
contribute significant inputs that enable Apple to manufacture Apple brands (MacIntosh &
Maclean, 2014). Were it not for Apples suppliers, the organization would not be able to
manufacture brands. In addition to Apple owners and suppliers, Apple employees are crucial
internal stakeholders. They contribute imperatively to the organizations success by
implementing organization objectives, and supporting the organizations daily operations.

C. Porters five forces analysis

The five forces model is used to evaluate an organizations status against imperative
competitors in the industry (Hasan, 2013). The five forces model relies on several forces that
include buyer power, supplier power, threat of substitutes, degree of rivalry, and barriers to entry.
Threat of new entrants
Research indicates that the average startup costs in the computer industry are relatively
high hence, the probability of new entrances in relatively low. Overtime, Apple has created a
strong brand image, and leveraged on the imperative distribution channels (Hasan, 2013). As a
result, it has mitigated the apparent competing power of new competitors. The probabilities of
success are minimal. This fact deters new companies from venturing into the industry. Therefore,
Apple is not subject to threat of new entrants.

Running Head: APPLES STRATEGIC ANALYSIS

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Threat of substitute products

Overtime, the consumer technological sector has marked substantial growth, with an
advent of alternatives to the traditional PCs. These alternatives range from smart phones to the
advent PDAs (Hasan, 2013). The alternatives increase the variety of substitute products hence,
augmenting the threat of substitutes. Considerably, Apple has analyzed the apparent threats of
substitute products and launched the I pad and the I phone, to mitigate the threats posed by
substitute products.
Buyer bargaining power
The computer industry is characterized by the existence of numerous participants who
own a significant portion of the average market share. Therefore, Apples customers have an
array of computer companies to choose from in relation to acquiring computer components,
software, devices, and so on (Hasan, 2013). Apples customers have the power to switch to other
companies when the price, quality, and service is better elsewhere. This fact in turn strengthens
the buyer power that can only be curtailed through the implementation of product differentiation
that will increase the overall switching prices.
Suppliers bargaining power

The technology sector is characterized by the existence of plentiful suppliers. As a large

multi-national company, Apple can readily switch from one supplier to another, without incurring
any significant losses or repercussions. Therefore, the suppliers bargaining power is relatively
low (Hasan, 2013). Typically, the competition among suppliers is relatively high. This fact in
turn deteriorates the overall supplier power.

Running Head: APPLES STRATEGIC ANALYSIS

12

Rivalry among competing firms

Prevalently, Apple has many competitors. Unlike Apple, some of these competitors are at
advantage of owning a significant part of the overall market share. The firm faces competition
from preeminent market players such Microsoft, Hewlett- Packard (HP), IBM, Dell, Nokia,
among many others (Hasan, 2013). Research indicates that other smaller companies, with the
likes of Gateway, are posing threats to Apple. For instance, Gateway mimicked Apples digital
hub.
Part 3: Internal Analysis

A. Apples Financial Analysis

Based on Apples Q 1 results, the company garnered an estimated 74. 6 billion dollars
revenue, with an estimated 74.5 million I Pads sold, and an estimated 21.4 million I phones sold
and 5.5 million Macs sold (Robinson et al, 2015). The company made profits of an estimated 18
billion dollars for the fiscal year that ended in December 2014.
Table 1. Apples Consolidated Profitability analysis For the fiscal year that ended in
December 2014

Total Asset
Turnover
7.57 5.30 4.00 1.07

Company EER PBR PSR

Apple

Cash Gross
Ratio Margin
0.76 43.72

Operating
Margin
35.12

Total
D/E
42.84 42.84 42.84 0
ROE ROTC ROIC

Running Head: APPLES STRATEGIC ANALYSIS

EER = Enterprise to EBITDA Ratio
PBR = Price to Book Ratio
PSR = Price to Sales Ratio
ROE = Return on Shareholders' Equity
ROTC = Return on Total Capital
ROIC = Return on Invested Capital
D/E = Total Debt to Equity Ratio

13

Running Head: APPLES STRATEGIC ANALYSIS

Figure 1. Apples Consolidated Balance Sheet For the fiscal year that ended in December
2014.

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15

Judging by the data presented in Apples balance sheet (in figure1) and Apples
profitability analysis (in table. 1), it is evident that the company has a stable financial status. the
data indicates that the company has a evenhanded liquidity ratio. The liquidity ratio indicates that
the company has adequate current assets that can e used to cover up for the current liabilities. By
comparing Apples equity position and debt, it is evident that Apples debts are well managed.
With reference to the organizations profitability, it is evident that the organization garners
estimated 39billion dollars as the overall net profit. Conclusively, Apple reflects a stable
financial position.

B. Apples SWOT and VRIO Analysis

The SWOT analysis is an imperative technique, used to evaluate a companys strengths,
weaknesses, opportunities, and threats (Afuah, 2009). Generally, a companys SWOT analysis is
incorporated to carve a substantial niche in the market.
Strengths
Overtime, Apple has established an augmented brand image and repute. Apple has a
reputation of highly innovative, well- functioning, luxurious, and well-designed products. In
2012, Apple was valued at an estimated 76.5 billion dollars, and was perceived as the second
most valuable brand globally, in 2012. In addition to a strong brand image, customer loyalty and
strong advertising are classified among Apples strengths (Afuah, 2009). With reference to
customer loyalty, Apple has a strong customer base that has further augmented the companys
competitive advantage (Afuah, 2009). With reference to strong advertising, Apple has been
affiliated with a strong, and stable marketing department that has facilitated powerful advertising
that has in turn reinforced the commercialization of Apple products.

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Initially, Apples closed ecosystem triggered enormous weaknesses. However, this

changed gradually. Prevalently, Apples closed system is classified among the companys
strengths (Afuah, 2009). Currently, Apple has an array of software, Apps, and products that are
directly interlinked. Furthermore, the company is manufacturing supplements, and new products
that have further expanded the companys eco-system.
Weaknesses
Comparative research indicates that Apples brands are set at exorbitant prices that
surpass average prices affiliated with other competing brands. Apples supreme pricing is a
weakness, since it paves way for other competing brands in the market. High prices motivate
customers to settle for other cheaper brands (Afuah, 2009). This fact further mitigates Apples
market share, and customer base.
Overtime, Apple has been subjected to lawsuits inclined on patent infringement. In May
2013, Smartflash filed a case against Apple, for patent infringement. Apple lost the case and paid
an estimated $530 million (Afuah, 2009). Patent infringement weakens Apples public image
hence, damaging the companys brand image and reputation.
Opportunities
Research indicates that Apple can utilize its unique operating system by perceiving it as
an opportunity to improve and develop the Macintosh platform (Afuah, 2009). Mac OS X is
perceived as a secure, reliable, and stable system that is user friendly unlike Microsofts Linux
system. By utilizing and capitalizing on the different operating system, Apple will be at a better
position to establish style and design advantages over other competing platforms such as
Microsoft.

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17

Threats
Microsoft continues to dominate the computer industry with an imperative share of the
overall market share. Microsofts dominance poses a threat for Apple. Comparative research
indicates that an estimated 90% of computer users settle for Microsoft Windows operating
system (Afuah, 2009). To succeed in the computer industry, Apple has to persuade computer
users that Mac OS X is better compared to Microsoft windows. Furthermore, software piracy
also poses hazardous threats for Apple. Piracy concerns have accelerated significantly in the
computer industry. Research indicates that the future does not hold a remedy for the mitigation of
the illegal distribution of copyright software and operating systems.

VRIO analysis
The VRIO (Value, Rarity, Inimitability, and Organized) analysis analyzes a companys
capabilities and resources (Masi, 2011). If the for approaches are met, the Company is at a
substantial competitive advantage.
Resource/

Does it have

Capability

Value?

Is it

Is it

Is the company

Rare?

Inimitable?

Organized to exploit

SCA, TCA,
tCA, CP

this
The Brand

Yes

Supply Chain

Yes

Yes
Yes

Yes

resource/capability
Yes
SCA

Yes

Yes

SCA

Yes

Yes

SCA

Management
Top
Executives

Yes

Yes

Running Head: APPLES STRATEGIC ANALYSIS

International

Yes

No

No

18
Yes

tCA

Product
Distribution

As a brand, Apple is perceived as the worlds second largest information technology

company. In January 2013, Apples value was an estimated $414 billion. Undoubtedly, Apple is a
major player in the consumer technology sector. Research indicates that Apple has achieved
efficiency in relation to supply chain management (Masi, 2011). The company is in a position to
control the suppliers. This an added advantage to the company. Apples top executives have been
perceived as efficient and effectual. The leaders have been able to maintain the companys
reputation. In 2013, Apples market scope in China is expected surpass Apples market scope in
the United States.

C. Apples Value Chain Analysis

Porters generic value chain model provides a systematic framework used to analyze
Apples utilization of primary resources, which include, customer services, production, among
many others (George, 2013).
Production
Research indicates that Apples developed system and software is the premise and
cornerstone of the companys production (George, B. (2013). Apple has achieved incomparable
performance through the integration of distinctive designing with the virtually multi- colored and
virtually translucent I Macs. Generally, Apple treats and perceives the production process as an
extension of the designing process.

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19

Customer service
Overtime, Apple has established a solid relationship with the customers by delivering
technically superior products with the likes of I pods that are certainly incomparable to the
regular MP3s. Apple integrates all primary activities in a manner that is transparent and evident
to the customers (George, B. (2013). For instance, Apples intent to develop software to run
Windows Xp on the new Intel based I Mac.

D. Apples Differentiation strategy

Businesses integrate product differentiation to distinguish their brands from other

competitor brands. Research indicates that Apple has successfully integrated product
differentiation as an imperative marketing strategy, since the mid 1980s. Apple has integrated
product differentiation in the launching of new products that range from the I pod, I phones to I
Macs (Pride & Ferrell, 2014). Product design is an imperative hallmark when it comes to issues
pertaining to product differentiation. In this regard, Apple has capitalized and leveraged on
product design from the get go. Apple ensures that the products are designed and styled in a
manner that stands out from other competitor products. For instance, the I pod is designed in a
unique manner, a manner that stands out from other regular MP3s. Pricing strategy is another
crucial hallmark in product differentiation (Pride & Ferrell, 2014). Apple integrated the premium
pricing mechanism, where the cost of Apple brands stands out from other brands. Typically,
Apple products are affiliated with top-notch prices. The cheapest Apple brands are categorized in
the average mid- range.

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20

Regardless of the high prices, consumers are willing to purchase Apple brands
considering that they are of high quality. In the pursuit to maintain price differentiation, Apple
also integrates a retail strategy, minimum advertised product. This retail strategy deters Apples
dealers and third party retailers from advertising Apple products at a price that is below the
minimum advertised price. Based on research, Apple brands maintain high prices since Apple
makes effort to offer big retailers such as Wal-mart, a marginal wholesale discount (Pride &
Ferrell, 2014). Moreover, Apple ensures that the retailers do not take advantage of the marginal
wholesale discount to give price discounts to customers. Apple achieves this by monetary
incentives to retailers, to encourage them to sell Apple brands at the fixed prices set by the
organization.
Part 4: Recommendations
A. Three potential strategies
Based on research, it is evident that Apple has successfully developed a differentiated
mechanism brand (Masi, 2011). Therefore, Apple should continue to solidify and focus more on
this foundation, ensuring that it develops relevant mechanisms that will avert the pressure to shift
to the middle level.
Apple should consider expanding the global retail locations. By expanding the retail
locations, Apple will be at a better chance of offering the Apple experience to more people
globally (Masi, 2011). Moreover, Apple will be at a better chance of augmenting customer
services by ensuring direct customer relations.
Apple should place additional emphasis on product and design innovation. The computer
industry is more inclined on innovation and design (Masi, 2011). By placing additional emphasis

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21

on deign and innovation, Apple will be at a better chance of surpassing major players in the
computer industry, with the likes of Microsoft, among many others.

B. Product Design and Innovation

Prevalently, Apple is considered as the worlds most innovative tech company

(Linzmayer, 2004). Nonetheless, these innovative strategies have not enabled the company to
surpass prominent players such as Microsoft, who continue to own a significant portion of the
overall market share. Therefore, Apple should put additional effort and emphasis on product
design an innovation. Research indicates that Apple delivers brands that are affiliated with
innovative systems (Pride, & Ferrell, 2014). For instance, the Apples Mac OS X has been
perceived as an innovative system that outweighs systems such as Linux, Microsoft Windows,
among many others. In this regard, Apple should consider leveraging and capitalizing more on
Mac OS X. The company should place additional emphasis in developing and augmenting the
Mac OS X. Apples innovative leaders should think in terms of pipelines, and platforms, and
relentlessly push for innovative products, and unique designs.
Apple should not only focus on delivering innovative designs and products. On the
contrary, the company should also focus more on integrating innovative business models that
reinforce, and support the manufacture of innovative brands, and the integration of innovative
designs (Pride, & Ferrell, 2014). The company should integrate genius and innovative
ergonomics that will further augment the designs of Apple brands, while maintain a user-friendly
nature. Conclusively, Apples culture should be inclined on effectual and effective innovative
systems that harness creativity in relation to product design and innovation.

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22

Research indicates that overtime major players in the computer industry are placing
minimal emphasis on product innovation and design. For instance, Microsoft has relied greatly
on the Microsoft windows system, indicating little progress in inventing new systems. Moreover,
Microsoft has maintained a standard deign for all brands, indicating minimal progress in
augmenting product design (Pride, & Ferrell, 2014). Therefore, by placing additional emphasis
on product innovation and design, Apple will be at a better chance of surpassing preeminent
market players such as Microsoft. As a result, Apple will avert the negative implications
affiliated with intense competition in the computer industry.

C. Strategic implementation plan

Evaluate the strategic plan

Create a vision for implementing the strategic plan.
Select team members to help you implement the strategic plan.
Schedule meetings to discuss progress reports
Involve the upper management where necessary

In the first step, Apple will evaluate the plan, by conducting thorough analysis on the
challenges, and possible benefits that may result from the strategic plan. Moreover, in this step,
Apple should evaluate the overall funds required to carry on with the strategic plan. Therefore,
Apple should identify the pros and cons affiliated with product innovation and design (Afuah,
2009). Furthermore, Apple should estimate on the overall funds required to actualize product
design and innovation. In the second step, Apple will enact a vision in relation to product
innovation and design. Apple could achieve this by identifying the goals, objectives, and
purposes for implementing product innovation and design (Afuah, 2009). The vision will act as
Apples premise and cornerstone that will guide it through the implementation phase. In the third
step, Apple will identify the relevant team members that will carry out the strategic plan. In this

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23

case, Apple may consider the Innovative department since the members have the basic know
how, in relation to product design and innovation. In the fourth step, Apple should consider
organizing regular meetings to discuss the progress reports, in relation to product innovation and
design. In these meetings, Apple should focus more on establishing an implementation system
that is inclined more on success (Afuah, 2009).
Moreover, the company should conduct thorough evaluation to determine whether the
plan is ahead of schedule, behind schedule, or on schedule. These evaluations will enable the
company to keep track of the implementation process. In the final step, the designated team
members, the Apple innovative department in this case, should analyze the plan and establish
whether managerial consent in necessary. Based on the evaluation, the innovative department
should decide on whether to inform the administrative and managerial departments (Afuah,
2009). More often than not, it is more convenient to inform the managerial or administrative
departments for purposes of support that may range from financial to moral support, which is
crucial to the implementation of strategic plans.

References
Afuah, A. (2009). Strategic innovation: new game strategies for competitive advantage.
Routledge.

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George, B. (2013). Apple Value Chain analysis.

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. GRIN Verlag.
Linzmayer, O. W. (2004). Apple confidential 2.0: The definitive history of the world's most
colorful company. No Starch Press.
MacIntosh, R., & Maclean, D. (2014). Strategic Management: Strategists at Work. Palgrave
Macmillan.
Masi, B. (2011). Apple Inc strategic analysis. Scribd. com. retrieved on, 26. and Comprehensive
analysis of strategic analysis of Apple Inc.
Pride, W., & Ferrell, O. C. (2014). Foundations of marketing. Cengage Learning.
Robinson, T. R., Henry, E., Pirie, W. L., Broihahn, M. A., & Cope, A. T. (2015). International
Financial Statement Analysis, (CFA Institute Investment Series). John Wiley & Sons.
Sterling, C. H. (2012). 1. CBQ REVIEW ESSAY: Steve Jobs and Apple Computer.
Communication Booknotes Quarterly, 43(1), 1-10.